Sometimes, emptying the cache of our consciousness is a laxative. Today is that day. As some famous person once said, they are only thoughts, but they are random and all are mine.
So now without any pause, here it is!
Lee & Associates Summit
Last week we found ourselves at Encore in Las Vegas for our annual soiree, aka The Summit. Participants from across North America and the UK participated. In short: 2020 was completely scrapped; 2021 was virtual. So it was the first time since 2019 that we were together.
A lot has changed, including a supercharged industrial market, a precarious office environment, and a morphing retail experience. I should mention that our technical equipment has also improved. Months of lockdown will do this for an industry.
Highlights of an industrial panel featuring professionals from the Rockefeller Group, Dermody and Prologis…
Institutional asset owners are wary of inflation, both a pending recession and how cap rates will be affected. Everyone agreed that the industrial has been the darling of the pandemic and that even if all new projects under construction go fallow, our vacancy will still be low – around 5.5%.
Fuel conservation, automation, and a longer and more efficient list are our future. With the advent of self-driving trucks, truck courts could get smaller.
The use of technology in commercial real estate has outpaced our residential counterparts.
Since the purchase of a home is largely a consumer transaction versus a business deal, target-rich social media sites are not as plentiful. In addition, we do not share our available inventory and lease comps through a commercial real estate clearing house. Therefore, we have been slow to adapt.
We have seen a large consolidation of technology providers as evidenced by the acquisition of Lightbox’s Client Look, Real Capital Markets and Digital Map Products. In addition, Buildout has recently added Apto, Rethink CRM and Prospect Now. No big gorilla dares to compete with CoStar.
Some in the audience wondered whether the brokerage would eventually drop out? The general consensus was that more money would be made to replace the role of brokers versus selling.
Who knows where we will be next year. Most agree Las Vegas is hard to beat for its ease of travel, entertainment, and huge convention information. However, it is a difficult scholar from the East.
Orange County Office of the World
As readers know, my expertise focuses on construction and logistics buildings and the family-owned and operated companies that occupy them. I don’t look for office work but sometimes they find me.
Our current work is an offshoot of an industrial transaction. You see, we were engaged in sublease the warehouse of a building. The plan included the remaining tenant in the office portion of the building. As our campaign unfolded, two groups emerged that both wanted warehouse and office space.
Now the operating group is looking at moving to a suite of offices. So, we visited eight suites in five buildings over the past week. The office world is changing to cater to an evolving workforce. Open associate positions are disappearing and returning to private sector banks.
After all, virtual meetings require privacy. Outdoor space is sought for rest, meetings and gatherings. On-site facilities such as a conference area, fitness center and game room are under construction. Corporate America is considering facilities in office buildings as a way to attract new employees and persuade existing ones to return.
An interesting turn of events, indeed.
Alan Buchanan is a leading and commercial real estate broker in Lee & Associates, Orange. He can be contacted at 714.564.7104 or email@example.com.