Categories Narrative

2019-20 Top Ten Issues Affecting Real Estate – My Annual Take

One of the best parts of being a Counselor of Real Estate (CRE) is the annual debate about what issues are driving real estate.  Boy have they changed over the last 5 years.  For 2019-2020, our organization has come up with a couple issues that you would have NEVER guessed would have been on the top … Continue reading 2019-20 Top Ten Issues Affecting Real Estate – My Annual Take

Categories Narrative

#1 Item for a Superior Customer Experience Strategy

McKinsey did a pretty interesting study on creating a superior customer experience strategy.  As you can imagine, it’s not just the actions of the front-line, customer-facing workers that adds the ‘customer first’ experience to a company, but the executives and strategy as well. The more a company invests in the interests of their employees, the … Continue reading #1 Item for a Superior Customer Experience Strategy

Categories Narrative

Ready for an office space deep dive?

Sometimes I geek out over office space.  Today’s narrative is one of those just for the interested.  Here is a link to a survey conducted by the National Association of Industrial and Office Professionals (NAIOP). This 50-page deep dive into the topic asks real estate owners and professionals their thoughts on Co-working vs. Building Collaborative … Continue reading Ready for an office space deep dive?

Categories Narrative

Vertical Warehousing

  The entire world is being disrupted.  Readers of this narrative know this.  Here is the latest disruption: vertical warehouses with four stories. Why are these taking off?    –Consumer demand for instantaneous delivery has caused the industry to take a hard look at the “last mile” and seek new ways to speed up delivery. … Continue reading Vertical Warehousing

Categories Narrative

Affordability

  One of the most daunting tasks our national clients face is to quantify the key metrics for making decisions for their office locations.  I review no less than 30 different reports a year on this topic and the items people track are, well…daunting. Demographics, traffic patterns, access to amenities, cost of labor, office space costs, … Continue reading Affordability

Categories Design, Narrative, Tech Industry

Chinese Company Headquarters WAY different than U.S.

  Chinese company, Tencent, just finished its global headquarters.  In previous narratives, I have discussed US-based tech companies’ cool new headquarters (Click here to read my narrative on Apple’s HQ). This week, I have included two different articles about the same building. What is different? Technology.  In China, the government allows some technology that is not … Continue reading Chinese Company Headquarters WAY different than U.S.

Categories Narrative, Office Market

1-Minute Phoenix Metro Office Market Update: Q4 2018

It’s time for us to look back at the Metro Phoenix Office Market for 2018. Readers of this narrative know that I am an office broker who works every day representing tenants and landlords as they navigate real estate nuances and opportunities. I (along with my incredible team) am based in Phoenix but work around the country … Continue reading 1-Minute Phoenix Metro Office Market Update: Q4 2018

Categories Narrative

What do Baseball and Commercial Real Estate Have in Common?

Some of you may know that I was drafted out of college and played professional baseball for the Minnesota Twins organization before I got into Commercial Real Estate.  If you play baseball, you learn statistics. As sportswriter Arthur Daley said:  “A baseball fan has the digestive apparatus of a billy goat. He can, and does, devour any set of … Continue reading What do Baseball and Commercial Real Estate Have in Common?

Categories Narrative, Office Market

Piling On

I’m adding to my narrative two weeks ago (click here to read) on the effects of open office plans.  Today is not about the science but rather the complaining and emotional impact on employees after moving to open office space.  I’m not taking a side, rather just piling on more information from two weeks ago.    Workers … Continue reading Piling On

Categories Architecture, Design, Narrative

The Legacy of Steve Jobs and Office Space

Apple moved into their spaceship this year.  I wrote about it while under construction and now you have probably have seen finished photos all over.  If not, here are some.But today’s narrative is not about this inspired headquarters.  Today, I want to talk about Pixar’s headquarters built in the late 1990’s.  The standards of creative office (and … Continue reading The Legacy of Steve Jobs and Office Space

Categories Narrative, Office Market

1-Minute Phoenix Metro Office Update: Q3 2018

Below is my quarterly take on the Metro Phoenix office market. Readers of this narrative know that I am an office broker who works every day representing Tenants and Landlords as they navigate real estate nuances and opportunities.  I (along with my incredible team) am based in Phoenix but work around the country and internationally as … Continue reading 1-Minute Phoenix Metro Office Update: Q3 2018

Categories Narrative, Tech Industry

Humans are Underrated

One trend I actively follow is automation. In 20 years, what jobs will be done by robots? With new advancements in technology, it’s not just the routine data entry and labor jobs that are in danger anymore. Robots can now analyze emotions, perform surgical operations, even drive semi-trucks across the country.  All these developments beg the … Continue reading Humans are Underrated

Categories Narrative

Working Remotely

There is such freedom in working remotely.  But, as is the case with everything, there is a dark side.  People who get to work remotely have flexibility and save time from not having to commute. But are these benefits worth the stress?Remote workers also deal with the following:    –          Feeling disconnected from their team.  And even … Continue reading Working Remotely

Categories Narrative, Office Market

The “Coffice”

In our ongoing discussion about the future of office space, here is a nice stat:  In this cycle, office space users have been taking approximately ½ of the space they took as they grew in the last cycle.  We know why—open office, the explosion of the tech companies and shared space environment and all the … Continue reading The “Coffice”

Categories Narrative, Office Market

2018 Top 10 Issues Affecting Real Estate

The changing demographics of workers in the U.S. is HUGE and it’s changing everything. This is probably the biggest issue we are facing in office space leasing, and it features predominantly on the 2018  Counselors of Real Estate (CRE)  Top 10 Issues Affecting Real Estate. Below is the release and a link to the full report. I … Continue reading 2018 Top 10 Issues Affecting Real Estate

Categories Narrative, Office Market

1-Minute Phoenix Metro Office Update: Q2 2018

Readers of this narrative know that I am an office broker who works every day helping Tenants and Landlords navigate the nuances and opportunities across geographical areas and product types.  I (along with my incredible team) am based in Phoenix but work around the country and internationally as well. We get hired for all kinds … Continue reading 1-Minute Phoenix Metro Office Update: Q2 2018

Categories Narrative, Tech Industry

Amazon Headquarters Selection Process

Over the past few months, Amazon has been very public about their search for a second headquarters. (They have looked at 238 different cities.)  I wanted to share a bit of this process and what it might mean to the economic development communities across the country. The Amazon announcement will play out over the next year, but the … Continue reading Amazon Headquarters Selection Process

Categories Economy, Narrative

Rules for Capital

When writing my LIFEies (my weekly blog on personal development) I get to share very complex ideas that are made simple by lots of people. Like Albert Einstein said, “The definition of genius is taking the complex and making it simple.” For this narrative, however, I focus on more complex Commercial Real Estate developments. But every … Continue reading Rules for Capital

Categories Narrative, Office Market

Commercial Real Estate Designations

  I come from a family of educators.  Both my parents were school teachers.  After getting my bachelor’s degree, I felt the need to continue my education.  Today I have earned my MBA and the three most prestigious designations in the Commercial Real Estate industry: CCIM, CRE, and SIOR.  Andrew has earned the same three designations.  … Continue reading Commercial Real Estate Designations

Categories Economy, Narrative, Office Market

1-Minute Phoenix Metro Office Update: Q1 2018

The long and stubbornly slow recovery continues.  Q1 2018 numbers are out and the Metro Phoenix office market absorbed 686,469 square feet of net positive space, lowering overall vacancy to 19.39%.  We are now into the 8th straight year of positive absorption in office jobs.  Vacancy varies throughout the Greater Phoenix area with a high of 30.5% in the Sky Harbor … Continue reading 1-Minute Phoenix Metro Office Update: Q1 2018

Categories Economy, Narrative

Growing Together

I grew up 20 minutes from the Mexican border.  My dad and three of my siblings still live in Sierra Vista, AZ.  I know firsthand the good and bad of living next to an international border and all the issues surrounding both sides.    Given the recent political turbulence surrounding globalization, NAFTA, and the United … Continue reading Growing Together

Categories Economy, Narrative, Office Market

Underlying Organizational Costs

The biggest waste we consistently see is clients underutilizing their office space.  Planning for growth that never occurs, thinking you “need” the space for visiting people, and making work areas and offices too big — there are multiple ways that companies waste money. Office space, and even more important facilities, can significantly reduce costs through … Continue reading Underlying Organizational Costs

Categories Architecture, Design, Narrative, Tech Industry

How Tech Office Space Sets the Bar for Everyone Else

What would you do if you had an unlimited budget to improve your company’s next office renovation?  Below is a great article detailing what some tech giants are doing to their interior design to keep their employees happy, productive and in the office.    One simple takeaway is that these companies are doing THE most innovative and comprehensive buildout you … Continue reading How Tech Office Space Sets the Bar for Everyone Else

Categories Narrative, Tech Industry

Getting Disrupted

In this narrative I talk about disruption quite a bit.  My own industry, brokerage, is in the bullseye of all tech companies.  Below is a Forbes article discussing how technology will do 90% of my job within a decade. Scary, right? Here are some highlights of this work: – Automation may be capable of taking … Continue reading Getting Disrupted

Categories Narrative, Office Market

1-Minute Phoenix Metro Office Update: Q4 2017

Positive and Steady. That’s how I would describe the Metro Phoenix Office market’s performance for 2017.  The market posted its 7th straight year of positive net absorption (net gain in office jobs) finishing at 1.83 million SF. For reference, our 25-year average is 2.5 million SF, and 2016 net absorption reached 2.9 million SF.   … Continue reading 1-Minute Phoenix Metro Office Update: Q4 2017

Categories Narrative

C2 By the Numbers

Every year we look back and reflect on the deals, relationships, and memories we made over the past 12 months. We had another excellent year in 2017, and as we look back on the numbers we’re incredibly grateful for amazing clients and friends like you.  Now that we’re a few weeks into 2018, we’re excited for … Continue reading C2 By the Numbers

Categories Narrative

Gratitude

In addition to this narrative, I also write a weekly blog called LIFEies, based on the 18 rules from my book The Fantastic Life. This week’s LIFEies discusses the many reasons to give thanks, and how cultivating a thankful heart is one of the biggest advantages we can have in life. You can read that blog here. I’m thankful for each of you … Continue reading Gratitude

Categories Economy, Narrative, Office Market

1-Minute Phoenix Metro Office Update: Q3 2017

The Metro Phoenix office market continued on its eight-year positive course, albeit at a slower pace, for the 3rd quarter of 2017. As any athlete will tell you, a win is a win and all the [market] players will take it.  The 216,037 SF of office space absorbed fell short of expectations, however, some large leases were … Continue reading 1-Minute Phoenix Metro Office Update: Q3 2017

Categories Architecture, Design, Narrative

Third Space First

You heard it here first (hopefully).  There is a new type of space for companies called third spaces.  Third spaces are places for local people to gather and eat, with areas for creative, cultural, and community activities. This is where ideas and startups are born. If this concept takes off, the next wave of development will need … Continue reading Third Space First

Categories Narrative, Tech Industry

Autonomous Vehicles

If you’ve been following this narrative for a while, you know that one of my favorite topics is how technology is disrupting the world around us. Of all the technology I’ve covered, by far the most exciting development is autonomous vehicles. Almost every major tech company is involved in this technology, from Uber, to Alphabet … Continue reading Autonomous Vehicles

Categories Narrative

Is the Pendulum Swinging Back?

As technology has advanced over the past decade, the number of freelance and remote office professionals has increased dramatically. With only an internet connection, employees can work virtually anywhere, and many companies are embracing the perceived benefits (including less money spent on office space) of allowing employees to work remote.However, among this trend, IBM announced a … Continue reading Is the Pendulum Swinging Back?

Categories Economy, Narrative, Office Market

2-Minute Phoenix Metro Office Update: Q2 2017

The second quarter was not quite as busy as the first, but there is still good news as our market slowly (painfully slow) continues to improve.  Vacancy held steady at 18.8% despite new construction, and we continued our streak of continuous positive net absorption (job growth).  We haven’t had negative net absorption since 2009. The pace of … Continue reading 2-Minute Phoenix Metro Office Update: Q2 2017

Categories Design, Narrative, Tech Industry

Finally! A Possible Solution to Thermostat Wars

Finally. Maybe? No shot!!  Those were my immediate thoughts when I read the below article.  The war over office temperatures has been fought for decades. The ability to heat and cool their space for themselves, is one of the biggest issues our tenants have. In Arizona, this is compounded by the heat and sunlight beating on … Continue reading Finally! A Possible Solution to Thermostat Wars

Categories Narrative

Evolution of Work

If you want to attract top talent, listen to the demands of the workforce. More and more, companies are living by this golden rule, making changes to their workplace to reflect the unique wants and needs of incoming employees.  We’ve discussed this trend in previous narratives, and now we are seeing those changes take shape … Continue reading Evolution of Work

Categories Narrative, Office Market

1-Minute Phoenix Metro Office Update: Q1 2017

Q1 2017 was a very busy first quarter! Metro Phoenix office market experienced 800,000 SF of positive net absorption. Annualized, this puts the market on track to absorb 3.2 million SF for the year, and 700,000 SF over our 25-year average.   Vacancy in the first quarter essentially stayed flat at 18.9%, due to new building … Continue reading 1-Minute Phoenix Metro Office Update: Q1 2017

Categories Narrative, Tech Industry

Shipping Containers and Farming?

Months ago, I wrote a narrative on old warehouses becoming indoor farms. (Click here to read.)  Now, we are seeing shipping containers being used to grow produce.  No transportation costs and no packaging costs are clear advantages of this new way of farming. Here are are few more:   –          Each 320 sq. ft. box has the growing power to … Continue reading Shipping Containers and Farming?

Categories Narrative, Office Market

1-Minute Market Update: Q4 2016 Report

The Metro Phoenix office market’s health continues to improve. Net absorption (job growth) of 2.93 million SF mirrored 2015 figures, which helped push vacancy down to 18.6% (from 19.5% at the end of 2015). Overall, lease rates are higher than they were a year ago with a current average of $24.34/SF Full Service. Rental rates still … Continue reading 1-Minute Market Update: Q4 2016 Report

Categories Narrative, Tech Industry

CRE Lagging in Tech Adoption – Why?

Commercial Real Estate is notorious for NOT being market leaders in technology adoption. Why? The Urban Land Institute has an interesting article below that includes these explanations: Old Timers. The industry is full of dinosaurs. Senior Real Estate professionals are the key to developing successful products, having the industry knowledge and expertise that tech companies don’t have. As we see … Continue reading CRE Lagging in Tech Adoption – Why?

Categories Economy, Narrative, Office Market

CRE Crowdfunding

Crowdfunding Commercial Real Estate acquisitions is all the rage. However, like everything, there are opportunities and liabilities in placing your investment dollars in a crowdfunded deal.   Below are two different articles with highlights. But first, a quick summary: Liabilities: Investors lack the industry knowledge and experience needed for real estate investments Too many uncommitted investors High legal fees … Continue reading CRE Crowdfunding

Categories Economy, Narrative, Office Market

Suburban Office Markets

The current recovery has been anemic, not just economically but in terms of new office construction as well. Long term, the lack of new buildings is good as overbuilding is not a concern. With the emergence of millennials in the work force and live/work/play environments,  suburban office markets have been even slower to recover. As the Central Business District … Continue reading Suburban Office Markets

Categories Narrative, Tech Industry

World’s First AI Lawyer Hired

Artificial Intelligence (AI) used to be the stuff of science fiction. But today, it’s becoming a rapidly-evolving technology with massive implications for many industries. Below is an article about the world’s first AI lawyer.  Why would this make me think about commercial real estate?  We represent a large number of law firms. (Check out our Law Firm Experience.)  This … Continue reading World’s First AI Lawyer Hired

Categories Economy, Narrative, Office Market

Metro Phoenix is Getting Better…Slowly

Steady net absorption (more space being leased due to job growth) continues to chip away at Metro Phoenix’s office vacancy as we head into Q4 2016. This quarter, Phoenix benefitted from medium-sized companies expanding. We hope these companies continue to grow. The metro Phoenix office market is on pace to perform roughly the same as 2015, i.e. … Continue reading Metro Phoenix is Getting Better…Slowly

Categories Narrative, Tech Industry

Where VC Money is Flowing For CRE Startups

Despite a drop in funding, tech startups are still disrupting the market at a fast rate. Below is a great article highlighting the biggest disruptive startups in commercial real estate. Read on to see what segments of the market VC money is flowing to.    Not totally surprising, the tech market is down from 2015. Though … Continue reading Where VC Money is Flowing For CRE Startups

Categories Narrative

American Malls Are Changing

With recent massive growth in online shopping, retailers are making drastic changes to their in-store strategy. Currently, one-third of all malls cannot afford to pay for just the maintenance of their properties. This is causing a huge shift in how tenants change their value proposition.   – Brands are putting more of an emphasis on in-store experiences. – … Continue reading American Malls Are Changing

Categories Narrative, Tech Industry

Driverless Trucks

A few weeks ago, I shared my thoughts about driverless cars hitting the roads and the issues office space will be facing (click here to read). Now, that technology is working with the trucking industry, and as the below article shows, it’s going to have a huge impact on many parts of our lives. Recently a platoon of driverless trucks drove across … Continue reading Driverless Trucks

Categories Narrative, Tech Industry

Autonomous Cars

I have talked about autonomous cars previously. All of the coming disruption is just the next evolution in transportation. If you think driverless cars won’t happen in your lifetime, you’re wrong. Here is a link to a New York Times article about Ford putting these automobiles on the road in less than 5 years (click here to read). Starting in … Continue reading Autonomous Cars

Categories Narrative

Learn From Arizona’s Top Entrepreneurs

Some of the best entrepreneurs in the United States live right here in Arizona. Instead of sharing an article this week, I thought you would enjoy a video getting inside the minds of some successful businesspeople, like my business partner Craig Coppola.    “INSPIRE: Stories of the American Dream in Arizona” was created by The Arizona … Continue reading Learn From Arizona’s Top Entrepreneurs

Categories Law Firms, Narrative, Office Market

Political Real Estate Issues

Below is a great summary of political issues facing the real estate industry.  I have highlighted some key issues specifically for commercial real estate.  These include:   Ongoing tax reform may make “Like Kind Exchanges” more difficult to close and lose tax benefits drying up volume. New standardized accounting principles for leases could decrease cash … Continue reading Political Real Estate Issues

Categories Narrative, Tech Industry

Using Drones in Business

We know technology is disrupting business at an incredible rate. One big area is using drones. There has been a lot of controversy and excitement about introducing drones to business, the military, and more. This technology has the potential to disrupt many industries. Below is an article detailing some companies that have already begun testing drones, including … Continue reading Using Drones in Business

Categories Narrative

The Collaboration Curse

We have talked a lot about open offices and collaborative work spaces in this narrative. Today’s article discusses the latest buzzword, Collaboration.  While collaboration is important, the real question is:  At what cost? The below article succinctly lays out the disadvantages of collaboration in the office. My takeaways: -Less deep work -Longer time to complete a task … Continue reading The Collaboration Curse

Categories Architecture, Narrative

17,000 Manhattan Buildings Could Not Be Built Today

Big cities like New York, San Francisco, and LA have always fascinated me from a real estate perspective. To buy land, design and build buildings is a complex process. Zoning and city planning alone create innumerable obstacles for developers due to the limited amount of space. New York City’s zoning code turns 100 this year, and below … Continue reading 17,000 Manhattan Buildings Could Not Be Built Today

Categories Design, Narrative, Tech Industry

World’s Smartest Building

Sustainability is a huge priority for many in commercial real estate these days. The movement towards green, sustainable buildings has opened the doors for new innovations. The below article highlights a building in Amsterdam that received the highest score for sustainability in the world from BREEAM, the world’s leading assessment for sustainable buildings. Even more exciting for … Continue reading World’s Smartest Building

Categories Narrative

How Leaders Prepare for New Workplace Environment

With all the new open office environments, our clients are having to work with their associates to manage the inevitable issues that arise. We have discussed these issues in previous narratives like noise, lack of privacy, no storage space, etc. Today we wanted to share a few ways to work with your team as you make the transition. These … Continue reading How Leaders Prepare for New Workplace Environment

Categories Narrative, Tech Industry

Robotic Parking

1,000 cars valet parked in a garage. No humans. Unreal. See the story below and if you are really interested, check out the two minute video of the largest parking garage in Europe that is completely run by robots. I have sent some previous narratives on robotics and how it is eliminating jobs. This is one area it will change – … Continue reading Robotic Parking

Categories Economy, Narrative

How Much You Need to Make to Buy a Home

While we specialize in leasing commercial office space, we watch the housing market very closely. Housing is a precursor to office space growth. Regular readers know this housing market recovery has been slow and multifamily has been on fire for the past 5-6 years. While there are lots of reasons for this, affordability may be one of them.   The below … Continue reading How Much You Need to Make to Buy a Home

Categories Uncategorized

Why Use a Broker?

Our team handles 50+ tenant advisory assignments every year. Why? We like to think it is because we are really good. But there are many other reasons to hire a broker including: Researching and looking into office space takes up a large amount of time. Do you have the luxury of stepping away from your immediate job responsibilities … Continue reading Why Use a Broker?

Categories Design, Narrative

The Open Office Trap

Yes, open office is all the rage. But there is fallout (as I get older, I can now see there is good and bad in literally everything). Below is a contrarian view on the whole open office collaborative space perspective. Around 70% of all offices are now building open office environments. And with all this openness comes … Continue reading The Open Office Trap

Categories Economy, Narrative, Office Market

Understanding The Office Market: Q1 2016 Phoenix Office Report

Office leasing is off to a good start in 2016.  Here in Metro Phoenix, the market saw 641,000 square feet (SF) of net absorption (office jobs added) recorded in the first quarter.  This means Metro Phoenix is on track to absorb approximately 2.5 million SF for the year. That would mean another year of consistent, average … Continue reading Understanding The Office Market: Q1 2016 Phoenix Office Report

Categories Narrative, Tech Industry, Uncategorized

Game Changing Trend is Happening Right Now

Each January, I attend Abundance 360 produced by Peter Diamandis. One takeaway this year was how fast driverless cars are becoming a reality. This will happen in our lifetime. Google autonomous cars have over 1,000,000 miles in Palo Alto (click here). Tesla has a new package that will drive your car on the highway (click here) and there are at least … Continue reading Game Changing Trend is Happening Right Now

Categories Architecture, Narrative

Passive House Residential Ups the Ante

This narrative is focused on all things commercial real estate. We also like to look outside our world to see what will be coming soon to a commercial project near you. Below is a short article about a building currently under construction on Cornell Tech’s Roosevelt Island Campus. In short, it is the first high-rise residential building … Continue reading Passive House Residential Ups the Ante

Categories Narrative

Square Feet Per Employee Continues to Drop

The amount of office space allocated for each employee continues to fall. Below is a graph and a short description why from Of Interest Today. While we all know it is happening, how does it affect landlords, tenants and investors? Depending on your perspective, you get massive differences:   Owners: Issues with parking shortage, not enough A/C to cool all … Continue reading Square Feet Per Employee Continues to Drop

Categories Narrative

Millennial Design Influence in the Workplace

Last week, I sent an infographic on the huge wave of Millennials and what that means to the workforce and real estate industry. Today, I want to take that discussion a step further and talk about how Millennials design and influence the workplace. Lisa Bentley with McCarthy Nordburg, provided me with two insightful articles below that you can … Continue reading Millennial Design Influence in the Workplace

Categories Narrative

The Real Estate Industry & Millennials

Below is a great infographic from UpNest on Millennials and buying residential real estate. Here are some stats that stand out: –25% of all Americans are Millennials (between 18 and 34 years old)–44.2% are minority or belong to an ethnic group—Within 10 years, 75% of the US workforce will be Millennials–75% want to buy (when they buy) a … Continue reading The Real Estate Industry & Millennials

Categories Narrative

47% of Jobs Created by Companies with Under 50 Employees and 9 Other Trends

Want to know a disconnect between Commercial office developers and job creation? Developers are building bigger floorplates while job creation is coming from small companies.    When I got into the business, office floorplates in Metro Phoenix averaged 10-15,000/sf. Today, new construction is looking at floorplates with a minimum of 25,000/sf all the way to 40,000/sf for multi-tenant office … Continue reading 47% of Jobs Created by Companies with Under 50 Employees and 9 Other Trends

Categories Narrative

Work in 2025

In 10 short years, what will work look like? Gensler interviewed four futurists on this topic and below is the outcome. I have highlighted my biggest insights including these: –45% of Millennials are nonwhite. How will that affect the commercial real estate industry? Certainly the retail sector will be turned around as will all marketing campaigns. –How do real … Continue reading Work in 2025

Categories Narrative, Office Market

How Do Star Wars and the Phoenix Office Market Relate? Q4 2015 Phoenix Market Report

Seeing Star Wars Episode VII: The Force Awakens recently I cannot help but draw a parallel to the world of Metro Phoenix office leasing. Why? Because, like “the force,” net absorption awakened in 2015 posting 3.4 million square feet. This is the highest absorption since 2005 and has pushed our vacancy rate below 20% for the first time in eight years. (By … Continue reading How Do Star Wars and the Phoenix Office Market Relate? Q4 2015 Phoenix Market Report

Categories Narrative

Maquiladora- What does that mean?

Several weeks ago, I talked about the PC 16 (please click here for the narrative) and how Mexico was one of the 16. I grew up in Sierra Vista, Arizona less than 20 miles from the Mexican border. I follow Mexican manufacturing, its economy and the maquiladora program very closely. The 50 year old maquiladora program allows a factory in Mexico, run by … Continue reading Maquiladora- What does that mean?

Categories Narrative

300 and Counting

Time flies. The market changes. Cycles occur. AND as of today, this is our 300th narrative. We have grown from 700 to over 28,000 weekly readers with an open rate that is double the industry standard. Thank you for your support and readership. For 2016, we are going to add some humor throughout the year…Please watch this thirty second preview before … Continue reading 300 and Counting

Categories Narrative

Arizona to Lead in Job Growth

Some good news for Arizona job growth (my key indicator for office space net absorption). In November, Forbes projected Arizona to lead the United States in job growth for the next couple years. Traditionally, Arizona has been a boom/bust cyclical state. Readers of this narrative know that this cycle, for the first time, we have not been in the top … Continue reading Arizona to Lead in Job Growth

Categories Narrative

White Collar Jobs Going to Robots

Robots are changing the world. We know that. Below are two articles that will update you on how the job market is changing with the advent of robots. First is an article that talks about five white collar jobs where robots are already replacing humans. How about: Lawyers—Software is here doing the job of attorneys who did document review. Try 1.5 million documents analyzed … Continue reading White Collar Jobs Going to Robots

Categories Narrative

Chasing Excellence

Sometimes the perfect holiday gift comes without warning. Today is your lucky day! This week, my fourth book, Chasing Excellence, Real Life Stories form the Streets is available on Amazon. It’s the perfect stocking stuffer for friends and family. You can get it by clicking here.   On a serious note, I am so honored to share this book that I’ve written with our … Continue reading Chasing Excellence

Categories Narrative

More Housing and Job Market Updates

One of the reasons Arizona has been a net in-migration state since its inception is because of our affordability. One key component of affordability is being able to buy a reasonably priced house. Click here to see my earlier perspective on the housing market. Arizona Residents can buy a house substantially below California and cheaper than most surrounding markets (The question is … Continue reading More Housing and Job Market Updates

Categories Narrative

Metropolitan Phoenix Housing Market at a Glance

Job growth has muddled along nationwide. Housing has been even slower. But there are bright spots and Arizona is in the mix. Below are two different graphics, one on job creation and the other on the healthiest housing markets. I will be sending a specific Metro Phoenix housing narrative in the next week or two, but for now take … Continue reading Metropolitan Phoenix Housing Market at a Glance

Categories Narrative

33 more rules for your family’s Thanksgiving touch football game

Fifty-one weeks a year this narrative is informational, commercial real estate focused and, we think, the best in our field.  Not this week.  Once again we bring you Jason Gay’s Rules for Thanksgiving touch football.  Yay!   For me: –#5–A bit of pregame stretching. Puts down the box of blueberry muffins, stands up.  Ok that’s good … Continue reading 33 more rules for your family’s Thanksgiving touch football game

Categories Narrative

Is an LLC the Right Choice for my Commercial Real Estate Investment?

When I first got into commercial real estate, the Limited Liability Corporation (LLC) had just been created. It didn’t have any case history or track record.  With that in mind, I thought I would do a quick review to make sure the LLC is still the right structure for most real estate investments.  Turns out, it still is for the … Continue reading Is an LLC the Right Choice for my Commercial Real Estate Investment?

Categories Narrative

Post China 16

Below is a infographic on the Post China 16 (PC 16) that fascinated me.  I know that China’s maturation has jumpstarted manufacturing growth in other countries.  What I didn’t realize is the sheer number of countries affected.  See below to grasp the number and diversity.   These countries include:   –All of Indonesia –Cambodia and Vietnam … Continue reading Post China 16

Categories Narrative

10 Things to Know About Commercial Real Estate Appraisal

“Appraisal” is one topic that we spend very little time talking about, until you need to refinance or you are acquiring a new asset.  Below is a great summary article about appraisals.  Read it now, or store it away for when you need to recall what is important.  I have highlighted some key areas that have … Continue reading 10 Things to Know About Commercial Real Estate Appraisal

Categories Narrative

Ten Ways Big Data Is Revolutionizing Supply Chain Management

As an office broker, I am not usually asked about supply chain activities. Our industrial brokers, however, live it every day. There is a huge disruption happening in the supply chain. Below is some detailed (and slightly over my head) information on 10 ways big data (analyzing over 52 different sources) is disrupting the supply … Continue reading Ten Ways Big Data Is Revolutionizing Supply Chain Management

Categories Narrative

What DOES $1,500 buy you? – Very Different Apartment Comparisons Across the US and Around the World

Apartment development and rents have been the talk of this cycle’s development. I found a couple different examples of apartment comparisons: First, a look at which states offer the most square footage across the US. In Detroit you can rent an 818 SF place for the same price you get for a 285 SF place in San Francisco. I heard a few stories … Continue reading What DOES $1,500 buy you? – Very Different Apartment Comparisons Across the US and Around the World

Categories Narrative

Landlords Are Trying Not to Rent to Startups

Across the country, the hottest markets have been those with a tech/startup employment driver. Other growth markets were locations with oil, but those are now mostly gone. Dead. This cycle, most markets are growing based on their ability to attract tech companies and startups. In Arizona, for the first time ever, this has been a large part of our net … Continue reading Landlords Are Trying Not to Rent to Startups

Categories Recent Transactions

SkySong 4 To Break Ground In October

We are very proud to have represented The Plaza Companies/Holualoa in bringing its first tenant, Booker Software, Inc., to SkySong 4, The ASU Scottsdale Innovation Center’s next phase at 1355 N. Scottsdale Road. SkySong 4 will deliver in Q3 2016.

Categories Narrative

SubTropolis: The Massive Business Complex Buried Under Kansas City

You won’t believe what is happening underground in Kansas City. SubTropolis has been around since 1964, but I just found out about it thanks to Ann McCartney with Lighthouse Commercial Finance. Check out all the companies that have space in this underground industrial park. The entire thing is an excavated mine the size of 140 … Continue reading SubTropolis: The Massive Business Complex Buried Under Kansas City

Categories Narrative, Tech Industry

The Impending Opportunity In Real Estate Technology

The tech market is hot. The Commercial Real Estate tech market is frothy. The reasons behind why there is so much interest in real estate right now are summarized nicely in my green highlights below. The market is gigantic.      I know I bored a few of you with my five-day-in-a-row slog of all the real estate start up … Continue reading The Impending Opportunity In Real Estate Technology

Categories Narrative

2015 Top Brokerage Firms

While there are some crazy numbers on the below graph (52,000 brokers at CBRE), I found the information pretty interesting. There is a huge market consolidation occurring in the commercial real estate brokerage sector. We see this continuing as firms try to keep pace with global market coverage and try to be all things to all clients. Since … Continue reading 2015 Top Brokerage Firms

Categories Narrative

Population Realities — A Two-Part Series. Today–The World

Today and next week, I am going to spend a little time on population and share some interesting realities. Below is a link to a very cool interactive map from Brookings. To get more detailed information on the cities that interest you, click on the individual cities. Here are a few world realities: –300 places … Continue reading Population Realities — A Two-Part Series. Today–The World

Categories Narrative, Office Market

Market Insight: Q2 2015 Phoenix Office Report

Like the national office market, the Metro Phoenix Office Market is rebounding at a gradual pace. Last week Craig sent out a good update on the national office market from The Wall Street Journal. (Click here for his narrative in case you missed it) Today I’m sending you an update on the progress we’re seeing in Phoenix. The WSJ article mentions … Continue reading Market Insight: Q2 2015 Phoenix Office Report

Categories Narrative, Office Market

Office Market Is on a Slow Roll

I just got a peek at our Q2, 2015 Metro Phoenix office numbers and once again we are mirroring the national office market. It’s a methodical and frustratingly-slow recovery. Andrew will highlight Phoenix in the next few weeks, but today I am focusing on the National office market. Below is a nice Wall Street Journal update on the national … Continue reading Office Market Is on a Slow Roll

Categories Narrative

4th Asset Class: Real Estate

Real Estate as the fourth asset class is finally becoming a reality. Why is this important? Well, the amount of capital that has and will flow into our industry is astonishing. Billions of dollars, an additional $500 billion to be exact. This money will make our market more liquid, provide for stability in markets and will change the way properties … Continue reading 4th Asset Class: Real Estate

Categories Narrative

70% of Americans Negative About Their Jobs?

A recent Gallup study shows that 70% of Americans are negative about their job. That woke me up. A full 20% are actively disengaged and are trying to work against their company. The goal of this narrative is not leadership or coaching, but rather bringing office space users topics of interest. We spend all our time, every day making sure our tenants … Continue reading 70% of Americans Negative About Their Jobs?

Categories Narrative

Larry Ellison Bought an Island in Hawaii

Buying an island is a very cool thought. Who would not want that? The island in Hawaii that Larry Ellison now owns 97% of is no ordinary tiny island. Quite the opposite, it is 90,000 acres. Just throw in $300 million, buy an airline to service the place and you could have something cool. Think it sounds like paradise? Not so fast. The island has … Continue reading Larry Ellison Bought an Island in Hawaii

Categories Narrative, Tech Industry

The Rise of Robotics

As you know, I make my living in the office space market. However, I still like to keep up with trends outside of the industry and how they will eventually affect office space. Below is an article about the megatrend now taking place in robotics and what amazing changes are occurring. One of the reasons job recovery has been slower … Continue reading The Rise of Robotics