Need a quick way to evaluate commercial real estate
and connect with your clients?

A RealLaunch Tool will save you time!

Commercial Real Estate News for Monday, Dec. 5

Lots of news waiting for you after the weekend! Check out these five articles on commercial real estate.

Commercial Property Firm JLL Expanding D-FW Operations with Purchase

JLL is advancing its operations in North Texas after purchasing Integra Realty Resources. “IRR – Dallas brings a strong track record in capital markets valuations, eminent domain, and the seniors housing and healthcare sectors,” said John Gates, JLL’s CEO of Markets for the Americas.

Investments in Commercial Real Estate in Moscow Grow by 15%

Moscow saw $3.1 billion in commercial real estate investment in 2016. Of these investments, office space made up the largest share with 34% of all new buildings falling into that property type.

Women’s Fashion Retailer The Limited to Lay Off HQ Staff, Put Business Up For Sale

The Limited becomes another retailer to suffer from declining foot traffic in malls. A longtime staple in shopping centers, the company announced they are planning on shutting down the business unless a buyer can be found.

Office Markets Reliant on Energy Firms Might Wait Years for Recovery

Office space in energy dependent areas of the US will likely continue to suffer as oil prices drop worldwide. The shrinking energy companies have left nearly 23 million sq. ft. of sublease space in the top seven North American markets.

San Francisco Gears up for Final Push to Lure George Lucas Museum

On Jan 6, the George Lucas Museum team will decide between San Francisco and Los Angeles as the site of the $1 billion project. ““It seems to be going smoothly from our end,” Adam Van de Water, a project manager for the City and County of San Francisco, told the Chronicle. “We are doing our due diligence and hoping for the best.”

Commercial Real Estate News for Thursday, December 1

Good afternoon! Below you’ll find three articles detailing technology in the commercial real estate world and the state of retail.

Two Commercial Real Estate Tech Firms Merge in $300M Deal

VTS and Hightower, commercial real estate tech firms which offer cloud-based leasing software for landlords, are pondering a merger. The companies employ 275 people and are valued together at around $300 million.

Rental Trends: Virtual Reality Tours for Commercial Real Estate

Touring properties in the future may involve never setting a physical foot in them. Commercial real estate developers are turning to virtual reality experiences to show prospective buyers their buildings.

Retailers Try to Extend Holiday Shopping Season, But Will It Make a Difference?

Retailers are attempting to stretch the shopping season into earlier the parts of November and the later weeks of January. Early down-trending data from Black Friday seems to imply their efforts are in vain.

Trends in Retail that Center Owners Will Want to Know

With the continued evolution of eCommerce putting a dent in the bottom line of brick and mortar retail stores, from AAA national brands to local mom and pop shops, it’s tougher than ever for owners of retail centers, malls, villages, and the like to know what to include in their tenant portfolio to maximize effectiveness and ROI.

As a shopping center owner, you know that your property is very much a different beast than buildings in a downtown area or small local business strips. Yours is a space pre-built to drive demand due to factors like the interplay of tenants, available on-site parking, and overall convenience to retail customers.

As the shopping center has emerged and evolved as a cornerstone of retail commerce, complex patterns are emerging regarding types, naming conventions, societal preferences (in many places the “mall” is becoming a dinosaur), and even ecological impact—all of which influence consumer preferences and therefore the profitability of your tenants. Here are some of the top trends in retail happening this year:

What’s in a Name?

Marketing to recruit tenants, shoppers, and community support has lead to naming conventions that have in some ways become confusing or non-standardized. Identities such as “commons”, “market”, “village”, and even “mall” all mean different things to different interested parties. Considerations about where naming trends are going, or rebranding your space are both viable ways to keep your location competitive moving forward.   

Quora has a few brief articles if you’re looking for inspiration, here, here, and here.  

Pop-Up Retail

pop-up shop Trends in retail

One of the emerging trends in retail is the “pop-up” or flash retail phenomenon. This is the trend of opening short term sales spaces.

In the past, retail center owners were less likely to allow a pop-up operator into their space, preferring long term leases and stability. Convention was that a large anchor tenant was ideal, supported by long term smaller chains or local vendors.

Pop-up vendors were first seen in the early 90’s in major urban areas such as New York City, Los Angeles, and Tokyo. Pop-up stores allow for creativity and risk taking that consumers respond well to.

As defined by thestorefront.com, a pop-up shop has a few features worth considering as a part of your tenant portfolio:

Term: Typically 1 day to 3 months

Location: High traffic areas (city centers, malls)

Price: Significantly lower than a traditional store, lease paid up front

Use: Sell products, allow a more diverse presence during holidays or events, supporting the launch new products, generate awareness (PR stunts and publicity), allow a retailer to move specialty or excess inventory, test a new idea or location, and for you (the center owner) increase the ‘cool’ factor of your property.

Pop-up shops are a great way to keep consumers interested in your space through novelty factor alone, and support your “anchor tenants” by drawing in new and diverse shoppers who may not have been exposed to the space previously.

And don’t think the Pop-up store is only a gimmick—Business Insider reports that Amazon is planning to open a slew of pop-up retail locations across the US in the next year.

Medical Facilities

massage Trends in retail

Modern life is, if anything, focused on convenience and maximizing time efficiency. Many medical outlets—physical therapists, massage, spa, general clinics, urgent care centers (for both people and pets), dentists, chiropractors, and alternative medical practitioners (Chinese, Ayurvedic, Reiki, etc) can now be found in retail centers, side by side with conventional stores.

As reported by biznow.com, Americans are now spending more than ever on healthcare, want healthcare that is easily accessible and fast, and landlords are looking for creditworthy tenants to fill the space left vacant by failing traditional retailers. This focus on healthcare is pushing one of the current trends in retail. 

It is easy to imagine a couple on a shopping outing, stopping in for a massage or an acupuncture treatment, extending their stay in your shopping center and making it an overall more enjoyable experience.

It could even be argued that you, as the owner are now more responsible than ever for creating an engaging and multi-faced experience for consumers than ever before.

The sorts of medical-related occupants that are acceptable to consumers has changed significantly over the last 10 years, wellness, rehab, or medical locations now offer a slew of possibilities for you to consider.

Final Thoughts

As you and your property management team consider how best to manage your portfolio, be sure that you are thinking “outside the box” as new opportunities and consumer expectations abound. Your retail center can evolve from the traditional, long-lease-all-mercantile, to more of a service based, exciting, and consumer-centric location.

Follow these trends in retail for successful investments. Build space for the community to spend time, and they will.

Commercial Real Estate News for Wednesday, November 2

Good morning! We hope the weather is nicer where you are than where we are. Below you’ll find six articles on commercial real estate covering everything from specific city investment news to the impact of the presidential election on property types.

Black Lion Scoops up North Palm Beach Mixed-Use Center for $14M

Chesser Group, a California based real estate conglomerate, has sold their Crystal Tree property in Palm Beach to Black Lion Investment Group for $14 million. The space was attractive to the investors due to the high numbers of surrounding luxury condos but relative lack of retail property.

Done Deal: Warehouses, Apartments, Retail Sold for Almost $6 Million

A list of recent commercial real estate deals in the Memphis area. Useful information for any brokers or investors interested in Southwest Tennessee.

Influx of Foreign Dollars Continues to Power Commercial Real Estate

A good interview Greg Warsek, senior vice president and senior regional manager with the Chicago office of Associated Bank, where he discusses foreign investment money and its movement away from American coastlines and toward the center.

Commercial Real Estate Market On Strong Run

Andy Cates, president and CEO of brokerage services for Colliers International in Memphis, is optimistic about the city’s commercial real estate growth in 2017. Cates bases his enthusiasm on the heavy amount of construction in 2016 and the land capacity for even more projects as demand goes up.

“Problem” Loans Create a Drag on CMBS Refinancing

While the number of CMBS loan maturities has been shrinking, research groups have estimated around $103 billion worth of loans still need refinancing. Office and retail spaces are facing the most pressure from this development.

How U.S. Election May Impact Factories in Mexico

Border cities are seeing a slowdown in office and industrial space leasing as the possibility of a Trump presidency looms large.