Real Estate Management News - 07/22/2015

IREM Real Estate Management News
Facebook Twitter LinkedIn www.irem.org Banner
July 22, 2015
subscribe
Send to a Colleague
Join IREM

The Labor Department reports U.S. employers advertised more job openings in May than in any month since tracking started in 2000. How is this upswing impacting your employee turnover?
Vote and see results


Upcoming Events
Leadership Development: Motivating Others
7/23/2015 - Webinar

Ethics for the Real Estate Manager - ETH800
7/24/2015 - Boise, ID

Managing Residential Properties - RES201
7/27/2015 - Boise, ID


Industry Partners
Yardi
 
Appfolio
 
 
 

IREM® HEADLINES
New Sustainability Course from IREM
Geek Squad Founder to Keynote IREM’s Executive Edge Conference
Asia Pacific Real Estate Congress in Hawaii
Three Practices to Help You Keep Who You Hire

INDUSTRY HEADLINES
Kraft Heinz to Move Chicago-Area Headquarters to City Center
Don't Go It Alone When Retrofitting
Millennial Workspace Preferences Measured
Are Airports the Shopping Mall of the Future?
Apartment Construction Drives US Homebuilding Surge in June
Minneapolis Office Tower Adds Farmers Market
Owners of Prominent Raleigh Office Building to Test Crowdfunding for Real Estate
Moving to a New Office? 7 Questions You Need to Ask About Tech
5 Lessons the Building Industry Can Learn From a Fitbit
Phoenix 2nd Most Saturated Shopping Center Market in Country
How a Green Building Influences the Health of Its Occupants
Tree Houses: Are Wooden Skyscrapers The Future Of Tall Buildings?


IREM Headlines


New Sustainability Course from IREM

New from IREM and Rocky Mountain Institute: Enhancing Property Value with Deep Retrofits is an online course that can help you understand and start to master deep retrofits -- projects that achieve at least 30% energy savings and improve the overall sustainability of the property.

You'll learn to evaluate precisely how a deep retrofit project will contribute to the net present value of a real estate asset and to use that knowledge to build a business case and proposal.

This course will also allow you to:
  • Distinguish yourself with leading-edge skills that are in demand across the marketplace.
  • Deepen your analytical skills to better meet owners’ investment goals with sustainability and energy-efficiency projects.
  • Define deep retrofits and best practices.
  • Preview the Deep Retrofit Value Methodology, an analytical model that determines whether a deep retrofit project could help a professional or organization reach or exceed investment goals for a particular property.
Register online today. Just $79 for IREM Members, or $99 regular price.

This course -- the first in a three-part series -- will place you firmly in the vanguard of the industry on a topic that's becoming more crucial by the day.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
Geek Squad Founder to Keynote IREM’s Executive Edge Conference

Robert Stephens revamped the boring world of computer support. With just $200, he formed the now famous Geek Squad in April 1994. By 2002, the Geek Squad was acquired by Best Buy and featured in all its US and Canadian stores. In his IREM keynote session, this former chief technology officer of Best Buy, will discuss his bet on the “bigger than social networking” trend of the coming decade and the importance of using technology and software to build the services your company needs to establish a unique brand and innovative culture.

Plan now to attend the only industry event specially curated to meet the challenges and needs of both multifamily and commercial real estate managers. Gather with hundreds of peers, colleagues and thought leaders this October 22-24 in Salt Lake City. The Executive Edge is your chance to compile a year’s worth of learning, making new contacts, and fun into just three days.

Register now for the best networking and education of 2015!

Top-Flight Destination

The Grand America Hotel in Salt Lake City, the headquarters location for the Executive Edge, features a prime downtown location near restaurants, bars and activities, luxuriously appointed guest rooms with complimentary Wi-Fi, and stunning views of mountains and skylines.

Come see why Salt Lake City is booming.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
Asia Pacific Real Estate Congress in Hawaii

Honolulu, Hawaii, will be the setting for the FIABCI Asia Pacific Real Estate Congress (APREC), taking place from September 10-12 at the Hilton Hawaiian Village Resort. The Congress will feature prominent speakers from around the Pacific Rim on cutting-edge topics including sustainable design, public/private partnerships, and new resort and luxury property development.

A highlight of the congress will be the Transit Oriented Development Summit focusing on real estate development around active transportation hubs in the region. Delegates from Australia, China, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, the United States and Vietnam are invited to attend and will provide updates on their markets during the Asia Pacific Panorama.

IREM is a principal member of FIABCI, which is an international real estate federation comprising individual real estate practitioners as well as associations in 60 countries.

For more information about APREC, go to www.fiabci-usa/hawaii
Share Facebook  LinkedIn  Twitter  | Return to Headlines
Three Practices to Help You Keep Who You Hire

From the July 16, 2015 IREM Blog posting by John Salustri

What is your employee retention rate? It might be a bit higher if you take to heart some tips from the recent feature, “Talent Management,” from the May/June 2015 issue of JPM.

Create a clear career path from the outset. W. Brent Shaw, CPM, a VP at Newmark Grubb ACRES in Salt Lake City, says he draws talent “from Brigham Young University’s Facility and Property Management Program, and we’re focusing more on setting up programs our employees can relate to such as helping them earn a CPM designation.” He says new hires typically start as assistant managers, shouldering the “grunt work,” all toward becoming a full-fledged property manager.

Promote from within. In Louisville, PMR Companies tries to promote from within rather than passing over current employees to go outside for talent. “We have lots of strong managers who serve as mentors to newer people,” says Amy Bickel, VP of human resources for PMR.” What she describes as a “family-type atmosphere with an open door policy” also helps retention. Competitive salaries and a “very rich benefits package” don’t hurt either.

Passion can trump experience. PMR Companies also attracts new talent by building a strong community presence. Bickel explains, “We involve ourselves in the communities we serve, and people are attracted by the reputation of our founder, Deborah Charlton, in the industry."

To paraphrase a popular TV commercial, what’s in your retention strategy?
Share Facebook  LinkedIn  Twitter  | Return to Headlines

Industry Headlines


Kraft Heinz to Move Chicago-Area Headquarters to City Center
Wall Street Journal (07/16/15) Gasparro, Anne

Kraft Heinz Co. has decided to move its Chicago-area headquarters to the city's center in the first quarter of 2016 after decades in the suburbs. This marks the latest shake-up after completing its merger earlier this month. Kraft Heinz has yet to speculate on how the move will impact the nearly 2,000 employees now working at its 700,000 square-foot offices in Northfield, Ill. where Kraft moved in 1990. The planned downtown office will offer approximately 170,000 square feet on five floors. Kraft Heinz will continue to operate a second headquarters in Pittsburgh, Heinz's longtime home base. A number of other companies have been moving into the Windy City and other urban locales, partly to attract younger talent. Kraft, for instance, opened a new downtown Chicago office in the spring of 2014 to make meetings easier and improve commuting times for some of its Chicago-area staff, nearly 33 percent of which lived in or near downtown. That satellite space will now be subleased.
Share Facebook  LinkedIn  Twitter  | Full Article - May Require Free Registration | Return to Headlines

Don't Go It Alone When Retrofitting
Energy Manager Today (07/16/15) Meacham, Jim

Building owners embarking on an energy upgrade have more data and choices than ever before on everything from power meters to HVAC systems to lighting systems.  But in this time of rapid advancements, the dilemma is that building owners and operators can neither vet every new technology solution themselves, nor can they risk the consequences of choosing a vendor that does not meet their needs.  What many need is a neutral, unbiased adviser with a thorough understanding of the market who can help guide high-level discussions about retrofitting goals, budget, and prioritization.  Such an expert can help landlords and their management staff with the process of implementation, tuning, and maintenance by capturing life-cycle costs/benefits, planning the retrofit, addressing data platform questions, and writing the Request for Proposal.  

Additionally, an expert can normalize bids, take the work flow into account, and be there for post-occupancy support. With regards to this last responsibility, an energy performance advisor can be instrumental in helping to train operators and occupants on the specifics of the newly retrofitted building, carrying all concerned through that first critical year of occupancy. Particularly important during this period is ensuring that all warranty issues are captured within the warranty period, ensuring building owners don't have to pay twice to get the performance they need. Finally, retraining throughout that first year for building owners and managers will ensure the investments in new tools, technologies and workflows last.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Millennial Workspace Preferences Measured
Buildings (07/16/15)

As organizations search out ways to attract Millennial workers, new findings show their values and preferences for both workspace layout and personal wellness on the job.  Conducted by ESI Ergonomic Solutions, the survey notes that by 2025, Generation Y-age workers will represent 75 percent of the total workforce, meaning their preferences will become intrinsic to staffing and retention.  According to the study's results, the three most important working conditions to improve and maintain high levels of productivity include: property lighting, the ability to control noise levels, and the ability to control distractions.  When participants were asked about facility measures that have the most impact on personal wellness, in addition to lighting and the ability to control noise level, the option to sit or stand while working was equally valued.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Are Airports the Shopping Mall of the Future?
Hospitality Net (07/15/15) Jokic, Bojan

In the latter half of the 20th century, the shopping mall was the mecca of Baby Boomer and Generation X consumerism. But now an increasing number of malls in the United States are sitting empty and/or shutting their doors entirely.  Some retail analysts, though, suspect that the nation's airports could be the new malls, offering retailers new opportunities to reach audiences they might otherwise miss.  According to recent New York Times reporting, retailers say that sales per square foot are higher at airports than they are in street locations or shopping malls, and retailing is the second biggest source of revenue for airports.  Verdict Retail, meanwhile, predicts that from 2013 to 2019, retail sales at airports are expected to increase by 73 percent.  

Airport retail has been steadily expanding from magazines, souvenirs, and snacks to luxury goods and brand experiences. Retailers are taking advantage of the captive audiences they have during the time travelers linger between going through security and boarding their planes -- periods of time that are often elongaged due to flight delays.  Additionally, studies have shown that the experience of traveling inspires people to shop and spend money. Among the most common retail conveniences available to travelers at airports are automated retail, or vending solutions that dispense goods that would generally be sold in specialty retail shops; duty free shops; fast-food/quick-service restaurants, also known as "grab and go" eateries; sit-down/casual/bar establishments, which are typified by table service, but may also offer carry-away or "grab and go" components; news and gift shops; specialty coffee; and specialty retail -- a type of concessions operations that specializes in the sale of a particular category of consumer products such as clothing, electronics, travel accessories, lotions and personal care items, and so forth.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Apartment Construction Drives US Homebuilding Surge in June
Memphis Daily News (07/19/15) Boak, Josh

U.S. developers broke ground on apartment buildings in June at the fastest pace in almost 28 years. Builders of multifamily housing anticipate that recent jobs gains will result in a whole new wave of renters. The Commerce Department said late last week that housing starts in June were up 9.8 percent to a seasonally adjusted annual rate of 1.17 million homes. The entirety of that growth came from a 28.6 percent spike in multifamily housing that put apartment construction at its highest rate since November 1987. By contrast, single-family home starts dipped 0.9 percent in June. Looking at the trends from a geographic standpoint, housing starts jumped 35.3 percent in the Northeast because of apartments and rose 13.5 percent in the South. Home construction slumped in the Midwest and West in June.
Share Facebook  LinkedIn  Twitter  | Full Article - May Require Free Registration | Return to Headlines

Minneapolis Office Tower Adds Farmers Market
Minneapolis/St. Paul Business Journal (07/15/15) Black, Sam

In Minnesota's Twin Cities, more and more office buildings are adding bocce ball, bike-repair stations, and fitness centers with core-strengthening yoga classes to appeal to health-conscious occupants.  The latest amenity, though, is on-site farmers' markets.  This past Wednesday, for instance, saw was the second regular farmers market at Capella Tower in Minneapolis.  It's scheduled to run weekly through Oct. 28 in the building's lobby.  Other downtown office buildings could soon join in if the positive feedback from vendors is any indication.  Directly across the street from Capella Tower, U.S. Bank Plaza also has a small market in the plaza in front of the building with a couple of vendors.  The Capella space is unique because it is indoors and air conditioned, reports Tom O'Connor, who works a booth at the Capella Tower Market for Solomon's Bakery.  His business' gluten-free pastries don't melt in the lobby like they would outside.

For vendors, the farmers market is another alternative to the traditional Thursday's downtown market, which has been relocated from Nicollet Mall to Hennepin Avenue for the next two years because of a $50 million reconstruction project.  Capella's market was organized by The Musicant Group and by Ryan Cos. U.S. Inc., which manages the 53-story office tower on behalf of ASB Capital Markets.  The market will have a variety of vendors and events for tenants.  Former Target Corp. IT employee Tina Rexing said her four-month old business, T-Rex Cookie.com, and others were recruited to join the market and sales have been strong in the early going.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Owners of Prominent Raleigh Office Building to Test Crowdfunding for Real Estate
Triangle Business Journal (07/15/15) Hoyle, Amanda

The owners of the five-story Colonnade II office building in Raleigh, N.C., have announced a plan to raise $10 million in new equity using crowdfunding.  According to EarlyShares, the Florida-based crowdfunding platform that will manage the launch, the deal is expected to be the largest such offer for a commercial property in the United States.  Experts say a lot of commercial building owners have been waiting on the sidelines to see how the investment platform created in 2014 under the SEC's Regulation D will work.  "We're looking at this as our test case," said Steve Sadler, managing director of Real Estate Value Advisors and building owner.  "Looking at a five-year horizon, we think the crowdfunding revolution is just beginning."  Sadler added that the purpose of the fund raise is to provide another option for investors seeking a "like-kind replacement property" for a 1031 Exchange requirement from anywhere else across the country.  Sadler says the fund has been open for about a week and has already raised approximately $750,000 in equity as of July 15.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Moving to a New Office? 7 Questions You Need to Ask About Tech
Entrepreneur (07/15/15) Barendrecht, Arie

While amenities, location, comfort level, and pricing are important things to consider when looking for new office space, there is another critical factor that many businesses are not focusing on -- the building's tech infrastructure.  Experts say that when searching for new office space, there are seven questions to ask their brokers or potential landlords, most notably what their company's tech requirements are.  Experts say those hunting for new office space should ask what telecom providers and carriers are currently in the building, what services those providers offer, and whether the potential space to be leased is equipped for service.  Additionally, companies should consider the telecom experience of the tenants at the potential space, whether the proeprty owner is willing to bring new providers into the building, and whether the building is wired certified.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

5 Lessons the Building Industry Can Learn From a Fitbit
GreenBiz.com (07/17/15) Guevara-Stone, Laurie

Just as wearable fitness-tracking devices provide data to help the wearer improve their fitness level, tracking a building's energy performance can help improve its performance.  Data that is more specific is more useful, according to a Johnson Controls study, which found user-specific data helps engage people in energy management.  The study also found disaggregating building data down to the personal level helps individual occupants see the impact their decisions have on the building's performance. Many smaller commercial buildings often only have one data point as well. A building may have a meter that records energy use for a short interval of time. From that data point people may try to infer all sorts of things, said RMI Manager Roy Torbert: "Are we operating systems at times we shouldn't? Are any systems operating out of order? Are my dampers open when they should be closed?"

One big suggestion is to use multiple data points. Unfortunately, too many buildings stop at one data point. "If I had to make investment decisions based on Fitbit data, I'd be in trouble," said Torbert. "And it's the same if people make operational and investment decisions for buildings based on data they get from whole-building electricity meters. If the inferences from that data are incorrect, that's a huge problem. When you have multiple direct data sources, your inferences get more accurate." On the positive side, with the cost of data collection going down, there is far more data being learned about buildings. Providing energy feedback and savings goals resulted in a 20 percent energy savings in an Eindhoven University of Technology study.  Lucid Design Group created a building dashboard for commercial buildings that enabled departments in a multinational media company to see which department could reduce their energy use the most.  The competition saved 47,000 kWh in two weeks, or $5,000 in energy savings.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Phoenix 2nd Most Saturated Shopping Center Market in Country
Phoenix Business Journal (07/10/15) Brown, Brandon

The Phoenix metro area's shopping center landscape ranks as the second most saturated market in the nation, trailing only Las Vegas, according to a recent study conducted by Pitney Bowes and the Directory of Major Malls. Researchers found that Las Vegas, Phoenix, and the District of Columbia have the highest ratio of gross leasable area to population. They also found that, since 2012, Phoenix added the same amount of gross leasable area (GLA) as Los Angeles. During that time, L.A. constructed 28 new shopping centers and Phoenix erected 18. Hal Hopson, managing director of applied analytics at Pitney Bowes, remarks, "Saturated markets -- where there is too much retail for the underlying consumer base -- depress overall profitability, increase time to payback, and can impede investment from newer retail concepts." A saturated market can be good for consumers, Hopson added, but it puts a strain on shopping center landlords and individual retailers.

The study said that such cities as Las Vegas and the nation's capital have such a high concentration of tourists and visitors, that it makes sense to have that high level of GLA. While Phoenix's retail saturation can be regarded as a negative, the report shows that there are some positives about Phoenix's shopping centers. The Pitney Bowes report listed Phoenix in its "Optimism Prevails" category. Hobson observes that there is currently good demand, positive household population and growth in Phoenix, and the existing shopping centers should be sufficient to fulfill the area's consumer needs. Developers, though, are continuing to find the Phoenix market attractive and are investing in the market. Such cities as Dallas, Los Angeles, and are also in that category.
Share Facebook  LinkedIn  Twitter  | Full Article - May Require Free Registration | Return to Headlines

How a Green Building Influences the Health of Its Occupants
Medical Xpress (07/09/15)

The health benefits of green buildings are summarized in the first comprehensive review of studies of green buildings conducted by Joseph Allen and his team of Harvard T.H. Chan School of Public Health researchers.   The review included a total of 15 studies and found green buildings generally have better indoor environmental quality when compared with traditional buildings that confer direct health benefits to the building occupants.  Occupants of green buildings enjoy better indoor air quality, and are more satisfied with their workspaces, building cleanliness, and maintenance.  Occupants of such buildings also are exposed to fewer allergens, pollutants, and environmental contaminants such as formaldehyde.  

In addition, the studies found there is less employee absenteeism, fewer reports of symptoms of sick building syndrome, higher worker productivity, better mental and physical health, and lower turnover among occupants of green buildings.  One of the studies focused on green hospitals, and it showed improved quality of care, fewer blood stream infections, improved record keeping, and lower patient mortality.  Researchers found that one area green buildings need to improve on, in general, is acoustics and noise levels.  Allen and his colleagues note the studies relied mainly on subjective data, and propose mobile health sensors to obtain more objective data of the health performance of green buildings.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Tree Houses: Are Wooden Skyscrapers The Future Of Tall Buildings?
The Guardian (07/07/15) Oldfield, Philip

There may be a coming revolution in the construction of skyscrapers.  Until recently, even the most modern tall buildings have been built with the same basic steel or concrete structure that was used in the 19th century.  However, Canadian architect Michael Green is proposing to build a 35-story building of timber that would be three times taller that the current tallest timber building.  The wood skyscraper would be part of a six-tower development called Baobab in Paris, and other 30-story wooden buildings are planned in Stockholm, Vancouver, and Vienna.  The designs are not typical wood-framed buildings but use "mass wood" to create large solid panels that can support much taller buildings than ordinary wood.  

Baobab would use pre-cut custom Cross Laminated Timber (CLT) sheets that can be put into place and attached together, with little work being done on the site.  The precisely-cut CLT will speed construction times, Green says.  The CLT walls will run the full height of the tower in addition to timber columns and a central timber core that will have elevators and stairs.  Some steel beams will be used for added strength and flexibility for dealing with wind, and concrete will be used in the foundation and ground floor.  The goal is not to completely get rid of concrete and steel, Green says, but merely to reduce the ratio of its use compared to timber, as it is a lower-energy material with a much smaller carbon footprint.  Indeed, he says timber acts as a "carbon sink" by absorbing carbon dioxide.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines



Abstract News © Copyright 2015 INFORMATION, INC.
Powered by Information, Inc.


Institute of Real Estate Management. All rights reserved. IREM® logo, IREM®, Certified Property Manager®, CPM®, the CPM key logo, Accredited Residential Manager®, ARM®, the ARM torch logo, Accredited Management Organization®, AMO®, the AMO circle logo, Income/Expense Analysis® , Expense Analysis® and JPM® are registered marks of the Institute of Real Estate Management.