Features

Passive Design Strategies Help Mixed-Use Owners Maximize Sustainability, Energy Savings

by Taylor Williams November 26, 2019

At a conceptual and theoretical level, all architects support sustainability and want to make the world a better, greener place. Some states, such as California, have gone as far as establishing sustainability requirements — many that go far beyond industry standards — to ensure new buildings are designed with the environment in mind. California, for example, has the nation’s first mandatory green building standards code, CALGreen Code. This is in addition to Title 24 Energy Standards, which implement minimum energy-efficiency standards and are referenced within the LEED certification system. In California and many other states, LEED is no longer driving sustainable design, as many of the program’s basic principles have become common practice. In addition to CALGreen Code, California has adopted a new goal far tougher than LEED’s requirements: Zero Net Energy (ZNE), which is a label reserved for energy-efficient buildings whose actual annual consumed energy is less than or equal to the renewable energy generated onsite. The state’s goals for the development of ZNE buildings must be implemented in new residential construction by 2020 and commercial construction by 2030. While architects and designers in California are obligated to follow these strict requirements, building design professionals in the Southeast and …

November 26, 2019

Agencies, Lenders Ramp Up Loan Production for Affordable Housing Properties

by Jeff Shaw November 22, 2019

There’s a human factor when it comes to working in the affordable housing industry. Kelly Frank, senior banker at KeyBank, recalls attending a ribbon-cutting ceremony for a scattered-site housing development where a woman came up to her in tears expressing how grateful she was to have a home in a safe neighborhood setting. The ability to make such a positive impact on someone’s life is one reason Frank loves the affordable housing business. “A lot of work is being done to bring affordable housing to every community,” says Frank. “Everybody’s eyes are on it because it’s a resounding theme throughout the country that there’s just not enough affordable housing.” The United States is short 7 million rental units that are affordable and available to extremely low-income renters, according to the National Low Income Housing Coalition. These renters have household incomes that are at or below the poverty guideline, or 30 percent of their area median income. The silver lining is that Cleveland-based KeyBank and other lenders have a large toolbox of financing mechanisms available to combat the affordable housing crisis and facilitate the development and preservation of affordable units. Many loans are processed through agencies, including government-sponsored enterprises such as …

November 22, 2019

Features Georgia Retail Southeast

Sports Entertainment Provides a Promising Future for Retail Real Estate

by Jeff Shaw November 21, 2019

ATLANTA — The future of food and beverage retail is…sports? To hear from “The Future of Restaurants & Entertainment” panel at the ICSC Southeast Conference & Deal Making event, sports-centric concepts are a solid bet for retail real estate owners to pursue going forward. Produced by the International Council of Shopping Centers (ICSC), the event was held Nov. 13-15 at the newly renovated Georgia World Congress Center in downtown Atlanta. Justin Amick, president of Painted Hospitality, spoke during the panel about his two venues in Atlanta, The Painted Pin and The Painted Duck. Both locations have an industrial motif and offer an expanded dinner menu, craft beer and cocktails and classic parlor games such as shuffleboard and horseshoes. The differentiator, though, is the boutique bowling alley. Amick said the idea is to attract patrons with the games and provide an experience while making money via food and beverage. “Painted wasn’t the first to invent the high-end bowling concept — the first to do so was probably Lucky Strike — but with our model of gaming, food and beverage, dancing and sports all under one roof, we do it well,” said Amick. His company recently announced a second location of The Painted …

November 21, 2019

Features Multifamily

Technology is Top-of-Mind for Multifamily Renters, Says NMHC Survey

by Jeff Shaw November 19, 2019

WASHINGTON, D.C. — More and more renters are looking for apartments that feature high levels of technology, according to the 2020 Apartment Resident Preferences Report released by the National Multifamily Housing Council (NMHC) and research firm Kingsley Associates. The NMHC is a Washington, D.C.-based nonprofit organization serving the multifamily industry. The report was compiled through survey responses from nearly 373,000 renters living in 5,336 different apartment communities throughout more than 270 U.S. markets. It was the largest number of responses in the report’s eight-year history, according to the NMHC. On the technology front, 91.2 percent of respondents said reliable cell phone reception is important, and 44 percent won’t rent at a property without it. Even more — 91.7 percent — noted the need for high-speed internet, with nearly 70 percent even saying that Wi-Fi throughout the community (not just in apartments) is important. This reliance on the web is because of residents’ use of multiple internet-connected devices. Over 98 percent of respondents use at least one internet-connected device, and over 40 percent possess five or more. Renters also expressed high levels of interest in smart-home technology like smart thermostats (70.5 percent), smart lighting (66.9 percent) and smart locks (63 percent). However, …

November 19, 2019

Features Industrial

RCM-SIOR Investor Sentiment Survey Shows U.S. Industrial Outlook Remains Positive for 2020

by Kristin Harlow November 14, 2019

CARLSBAD, CALIF. — U.S. industrial investment is expected to continue at a steady pace into 2020, although headwinds created by tariffs and a slowing economy are beginning to strengthen, according to the third annual Industrial Investor Sentiment Report from Real Capital Markets (RCM) and the Society of Industrial and Office Realtors (SIOR). Investors are shifting strategies, however, to find safe havens against any market slowdown. Some investors are adjusting their portfolios toward land-constrained markets that provide the potential for higher rent growth. Among those strong markets are Seattle, Miami, Northern New Jersey and parts of Southern California. Other investors are moving back to core markets to minimize risk or are focusing on secondary markets where further cap rate compression is more likely, according to the report. “Investors are projecting a steady flow of industrial activity in the United States for the foreseeable future, given the strong fundamentals and the stability this sector offers,” says Steve Shanahan, executive managing director of Carlsbad, Calif.-based RCM, a part of LightBox. “Investors are keenly aware of the potential for an economic slowdown but are focused on the long-term horizon and taking the steps necessary to protect their investments.” The RCM-SIOR report includes insights and …

November 14, 2019

Features

Forecast Survey: What’s Your Take on Real Estate in 2020?

by Kristin Harlow November 12, 2019

The editors of REBusinessOnline are conducting a brief online survey to gauge market conditions and we welcome your participation. The survey should only take a few minutes to complete. Questions range from property sectors that you are most bullish on heading into 2020 to trends in deal volume to your outlook for interest rates. The results will be collated and published in the January issues of our regional magazines. Conducting these surveys is part of our mission at France Media to provide readers with indispensable information. To participate in our broker/agent survey, click here. To participate in our developer/owner/manager survey, click here. To participate in our lender/financial intermediary survey, click here. (Note: Please remember to click on “done” to properly submit the survey.)

November 12, 2019

California Features Retail Western

Ten-X Commercial: E-Commerce, Store Closures and the Impact on the Retail Real Estate Sector

by John Nelson November 7, 2019

IRVINE, CALIF. — Ten-X Commercial, the online commercial real estate platform formerly known as Auction.com, reports that the U.S. retail market is “largely suffering” in the face of rising e-commerce and massive store closures. In its latest Retail Market Outlook report, Ten-X expects the retail sector to show little to no improvement in the immediate future. By fourth-quarter 2022, the Irvine-based company forecasts that the effective rental rate per square foot for the national retail sector to increase by only 1 percent and the vacancy rate to increase by 10 basis points. Due to store closures, Ten-X reports that retail space absorption has been poor and developers have scaled back construction of new retail spaces as a result. According to Coresight Research, more than 8,560 store closures have already been announced year-to-date in 2019, a steep increase from the 5,524 in 2018. These include by brands such as GNC, Walgreens, Bed Bath & Beyond, Kitchen Collection, Forever 21, Avenue, Dress Barn, Charming Charlie and LifeWay Christian Stores. In their announcements, most brands detail that their profits were sunk due to competition from e-commerce companies. Ten-X reports that e-commerce has doubled its total share of retail sales over the past decade …

November 7, 2019

Features Illinois Midwest Office

CBRE: Chicago Remains Most Green U.S. Office Market

by John Nelson November 5, 2019

LOS ANGELES — Chicago’s office market maintains its top status in the 2019 edition of CBRE’s Green Building Adoption Index, an annual report that measures the energy sustainability of the top 30 office markets in the United States. The index (GBAI) reviews the various office markets’ adoption of two green building certifications — the EPA’s Energy Star rating and the U.S. Green Building Council’s LEED certification. The GBAI is tracked in terms of both square footage and number of buildings. More than 167 million square feet of Chicago’s office space is certified green, or approximately 71.1 percent of the metro’s total office inventory (235 rentable million square feet). Coming in behind the City of Broad Shoulders is San Francisco (67.5 percent), Atlanta (59.3 percent), Minneapolis/St. Paul (57.1 percent) and Los Angeles (56.6 percent). Chicago is a growing and thriving office market. Tech firms such as Uber, Amazon and LinkedIn, as well as coworking concepts Spaces, Industrious and WeWork, have all taken down large swaths of office space in the metro area. According to third-quarter data from CBRE Research, more than 5 million square feet of office space is under construction in metro Chicago. “Going green is one key to any …

November 5, 2019

Features Heartland Feature Archive Retail

Mall Owners Scramble to Redevelop Properties in Face of Department Store Closures

by Alex Tostado October 31, 2019

The number of retail store closures nationwide in the first half of 2019 surpassed 7,000 and is on pace to reach a record 12,000 by year’s end, according to Cushman & Wakefield. Major retail bankruptcies over the last year have caused the power and regional shopping center sector to experience continued store closures and negative absorption of 2 million square feet in the first half of 2019. That said, discount retailers, entertainment and fitness concepts are still in expansion mode and help backfill vacant space. Mall and shopping center owners are scrambling to redevelop properties and incorporate a variety of uses. For example, this month CBL Properties will wrap up completion of a Sears redevelopment at Brookfield Square in Milwaukee. The project includes new-to-market entertainment operator WhirlyBall as well as a Movie Tavern by Marcus Theatres. Additionally, there are several new dining options and an Orangetheory Fitness location. “Our strategy is to transform our properties from traditional, enclosed malls to suburban town centers that offer a variety of uses, including entertainment, dining, fitness and in some cases office, hotel or multifamily,” says Stacey Keating, public relations and corporate communications director for Chattanooga, Tennessee-based CBL, which owns 108 properties totaling 68.2 …

October 31, 2019

District of Columbia Features Retail Southeast

Holiday Shoppers Plan to Spend 4 Percent More This Year, NRF Survey Shows

by Alex Tostado October 29, 2019

WASHINGTON, D.C. — American consumers plan to boost their holiday spending 4 percent this season on a year-over-year basis, according to the National Retail Federation (NRF) and Prosper Insight & Analytics. The projection is based on a survey of 7,782 adult consumers. Specifically, shoppers expect to spend an average of $1,047.83 this year, up 4 percent from last year’s total of $1,007.24, the survey findings show. Meanwhile, shoppers who are between the ages of 35 and 44 plan to spend an average of $1,158.63 this holiday season. Consumer spending is grouped into three separate categories: gifts for family, friends and co-workers, at an average $658.55; non-gift holiday items such as candy and food, decorations, greeting cards and flowers at $227.26; and other non-gift purchases that take advantage of the deals and promotions throughout the season at $162.02. “Consumers are in good financial shape and willing to spend a little more on gifts for the special people in their lives this holiday season,” says Matthew Shay, president and CEO of Washington, D.C.-based NRF, the world’s largest retail trade association. Furthermore, 52 percent of shoppers between the ages of 25 and 34 plan to purchase gifts for co-workers, and 82 percent of …

October 29, 2019

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