In 2015, I said this was not a good investment. In 2018, I said, I couldn’t believe this was still going on. In April this year, I reiterated this was going to crash….and it finally has. But that doesn’t mean I’m happy I was right. What was my prediction? WeWork (now We Company) was not … Continue reading I Got One Right… and I am not happy about it
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
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
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?
Below is an interesting article from The New York Times about office landlords seeking a competitive edge in leasing space to tenants. Our primary market is Phoenix, so when I travel or read, I am always watching out for trends and changes in what owners are doing and what tenants are leasing. Here are … Continue reading Gaining a Competitive Edge in Office Buildings
It’s July in Phoenix and it is hot — both in temperature and in the office market. The office market remains hot but office net absorption (job growth) cooled off in the 2nd quarter, posting just 245,000 SF in Q2. Mid-year net absorption stands at 1.5 million SF and will likely hit 3 million SF … Continue reading 1-Minute Phoenix Metro Office Market Update: Q2 2019
I saw the below graph and article and it hit me: there are 5 generations now in the work force. How is anybody managing that? Then my commercial real estate mind immediately kicked in and thought: how are we designing space to accommodate the various needs of each cohort? The truth is, I’m sure we are….at … Continue reading 5 Generations in the Work Force
There has been a lot of talk about the middle class getting squeezed and the numbers below bear this out. Take a look at the graphs. What does this mean to the average worker? Rent, medical costs and tuition have increased more than income, shrinking savings. The median hourly wage in the U.S. … Continue reading The Shrinking Middle Class
I keep telling my team: right now is what the top of the market feels like. In the United States, one out of every seven people moving out of state moves to Arizona. The economy is hot. How long can it continue? Who knows, but NAIOP is forecasting another great year for the rest of … Continue reading The National Office Market continues to roll on
When I wrote How to Win in Commercial Real Estate Investing, I spent all my words on the process of investing. Not the psychology of the business. Below is a great (and short) article on the 4 P’s of being a successful investor. I would recommend that everyone think about these words before they jump … Continue reading Being A Successful Real Estate Investor
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
We all know we have to do our homework when analyzing any business opportunity. Doing due diligence from every side and perspective will help protect your interests (and money). Below are some reminders and a priority list for conducting your due diligence to limit your risks and hopefully ensure your ROI: – Financials first, … Continue reading Analyzing Business Opportunities
The Metro Phoenix Office market continued its trend of positive net absorption this quarter in a BIG way. Fresh off a year of posting 2.8 million SF of net absorption (job growth) in all of 2018, Metro Phoenix hit 1.1 million SF in just the first quarter 2019, sending vacancy down to 16.9% from 17.57%. … Continue reading 1-Minute Phoenix Metro Office Market Update: Q1 2019
For those who have followed my narrative for a while now, you might recall that WeWork and the overall rise of Coworking office space has been on my radar for the past few years (Click here to read “Rise of Collaborative Workspace” and here to read “WeWork now a $5 billion co-working startup”). The market … Continue reading Building Collaborative Areas vs. Coworking Space
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
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.
We are constantly asked by owners and prospective owners to value buildings. As brokers, we can prepare BOV’S (Broker Opinion of Values). This is our opinion of a specific property’s market value if put on the market for sale. Full valuation for Lenders and partners to benefit all parties is called an Appraisal. Below … Continue reading The Commercial Real Estate Appraisal Process
This narrative typically talks about office space leases, trends and all things commercial real estate. Today, I wanted to talk about how we have thrived over 35 years in an incredibly tough business. It’s pretty simple — we build deep meaningful relationships with our clients. How do we do this? We have a … Continue reading Relationships- Deep and Meaningful
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
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?
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
In my ongoing effort to explore both sides of the open office vs. traditional office debate, here are some thoughts based on science. The Journal of Environmental Psychology jumped into the fray and came out with a huge study (40k+ workers and over 300 companies). What did they find out? — Closed offices outperformed open … Continue reading Open Plans Kill Productivity
At the end of each year, we take the opportunity to reflect on the past 12 months. 2018 was exceptional for our team. We had a great year, fantastic clients (old and new), continued to grow our team with quality (and talented) people, and we traveled. Boy, did we travel. Travel has long been a part … Continue reading Happy Holidays from The Coppola-Cheney Group
Exposed ceilings are all the rage, but users pay a price for this look. Most of our clients think it’s less expensive to just demo the ceiling and have a cool open space. Not so fast. Here are some of the additional costs that come with an exposed ceiling: – Re-running electrical cabling and HVAC … Continue reading Exposed Ceilings Are Cool But Not Cheap
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
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
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
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
Technology is changing everything, from the way we eat and drive, to how we communicate and work. The “digitalization of everything” is changing how we work and therefore the skills we need to do our work. Brookings produced a study in late 2017 that is highlighted below and here is a link to the full study. Here are … Continue reading The Digitalization of Everything
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”
First, let me say, I told you so. I have been saying for some time that the huge shift to urban core will not be sustained. There are companies that want/need to have that environment so I am still bullish on urban cores, but there are others who will reverse the three-decade trend of moving offices closer and closer … Continue reading Suburban Offices are Back
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
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
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
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
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
I have been representing tenants across the US and overseas for 34 years. As I write this narrative, I want to provide value, spot trends and get business. If you have a question or need office space, call me. We would love to work with you. One huge trend that has had a meteoric rise … Continue reading The Rise of Collaborative Workspace
In many ways, I am jaded after being in the CRE brokerage business for so long. Representing office tenants means you get to see just about everything. But I also live in an Arizona bubble most of the time. So I was SHOCKED at the amount of property taxes that the highest-taxed buildings in America … Continue reading The Highest Taxed Buildings in America
I have a great friend, Trish, who has been a mentor to me for the past 30 years. She is in the residential ownership and management business, and has been a great insight into the changes happening in that sector. Which is why I’m not surprised by the below article, and the size of the … Continue reading Meet Your New Landlord At Home
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
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
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
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
t’s always warm in Phoenix. In the summer, we go above 110 degrees on a regular basis. On the other hand, the Phoenix office market continues to move along at a steady pace…like it’s 70 degrees. BUT, all is not lost. Many companies are beginning to realize the true cost of having all their … Continue reading Businesses are Relocating to AZ
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
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
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
As the wealthiest people in the world continue to grow their wealth, they are looking more and more at Commercial Real Estate for their portfolios. We are now seeing the uber-wealthy put 6-25% of their portfolio into CRE. This is a big trend because the rich are getting richer. Here are a few stats: HNWI’s … Continue reading How High-Net Worth Investors Invest in CRE
Every year, we share the most innovative offices from around the world (and a few from our own clients). Below is our list from 2017. First, you get a few of the best clients we were fortunate enough to work with this past year. We can hold our own here in the Valley of the … Continue reading World’s Coolest Offices 2017
Every year my team and I are lucky enough to travel to some incredible places. From exploring countries across the sea to discovering the hidden gems of our own Arizona backyard, 2017 was definitely one for the books. We’ve put together a 2-minute slideshow of our favorite memories from our travels this year to share with you. … Continue reading Happy Holidays and Our 2017 Travels
One thing I constantly stress to my team is that to be successful in this industry, you have to be willing to learn and adapt to the times, or quickly become obsolete and watch your business disappear. As a 20+ year Counselor of Real Estate (CRE), I love our annual top ten issues affecting commercial … Continue reading 10 Issues Affecting Commercial Real Estate 2017
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
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
One of my favorite movie quotes is from Jerry Maguire – “Show me the money!” And that’s exactly what the below chart does. This very informative chart shows spending trends over the past 75 years in America. Some key points for me: — Education spending is trending up. Not sure if this is Americans valuing education … Continue reading Spending Trends in America
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
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
By next year, 36 million square feet of retail space could be vacated and returned to the market. It’s official – the global landscape of retail is changing and changing rapidly. These changes are driven by a combination of growing e-commerce use and a demographical shift in consumer behavior, which prioritizes experience over tangible goods. … Continue reading Traditional Retail is Dead
Remember what you paid as rent for your first apartment? That first rent payment probably felt like a real dent in your paycheck. But I guarantee you it’s not anything like today’s rents. Apartments have been on fire for a LONG time this cycle. While I think there is still room for this market niche to … Continue reading US Apartment Rents are CRAZY
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?
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
estate are simple. A tenant needs office space. An owner needs to lease their space to a tenant. But once you get into the details of the transaction, things become complicated really fast. A good amount of my time working with clients is spent answering their questions. I even wrote 2 books on the subject … Continue reading 5 Frequently Asked CRE Questions
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
We spend a large amount of time with our tenants talking about the changing workforce, and how to drive change within the company. Below is a great infographic from Forward Tilt and Allsteel on how to do exactly that — drive change. To drive change, you should know some of the myths that are perpetuated, … Continue reading Driving Change In Your Office
Whenever a client has a problem with their space or lease agreement, 9 times out of 10 we can trace that negativity back to one thing: a communication failure in the original lease negotiation. Leases are unfamiliar territory for many of our clients. Most of the time, they just don’t know the right questions to ask. Below … Continue reading Office Lease Checklist
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
I remember in high school (proud graduate class of ’79 Buena High School in Sierra Vista, AZ) my economics teacher Joe Bob Cole told us that the person or company that figured out how to make solar power economical would be rich. Fast forward 38 years (I just felt really old typing that) and guess … Continue reading World’s First Solar Panel Road
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
When you start a new job at a new office, what’s the first thing you do? For most of us, the answer is get settled in your workspace. You are assigned a desk, maybe put up a few pictures, stock the drawers with your favorite pens, and meet your neighbors. But this simple act of … Continue reading UBS Reinvents the Work Space
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?
What are the biggest pressures facing law firms right now? I will give you three I know are on your priority list: 1) Lower costs, 2) Landing top talent, and 3) Automation. You know how I know? Because law firms are no different than any other business. The law firms we work with are finding some innovative ways … Continue reading Law Firms Get Creative
3D printing is by far one of the most exciting and innovative technologies hitting the market today. But most people have no idea how far along the technology has come. From ears to planes, car parts to prosthetic limbs, and now entire office buildings, 3D printers are already creating amazing things and disrupting entire industries in the … Continue reading A 3D-Printed Building?
The good news keeps coming. Metro Phoenix just landed 4 cities in the top 20 best US cities for finding a job in 2017. Arizona is open for business. If you are looking to relocate, or know someone who is, there is no better area than the Valley of the Sun. Here are a … Continue reading 4 in the Top 20!
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
We had another great year in 2016. We added new members to our families, took some fantastic trips, and executed some incredible deals. Please see below for a recap of our year by the numbers. Now we’re looking forward to 2017, excited for new opportunities and grateful for amazing clients and friends like you. Thank … Continue reading Coppola-Cheney: Looking Back on a Strong 2016
We love office space. It’s our job. And every now and then we find some really cool spaces that we just have to share. Every year, we take a look back on some of the coolest office spaces built over the past 12 months. For 2016, we saw some really cool, some classic, and a few … Continue reading World’s Coolest Office Spaces 2016
Starbucks is not office space. Sure you can have a meeting, grab a coffee, and check your email, but it’s not a real office. There are tons of new co-working or shared office concepts. And yet, office space is not going away. Below is a short and sweet article that gives a few reasons why. My top takeaways on why … Continue reading Why We Still Need Office Space
It is no secret that a company’s culture has a huge impact on its success. Today, the rapid disruption of every industry and the emergence of millennials dominating the workforce means that, more than ever, your culture is either helping or hindering your company’s ability to reach its goals. So what can you do … Continue reading Increasing Productivity – Six Factors
Each year I read tons of reports, market studies, and research. One of the best in the business is Gensler’s workplace survey. This year, Gensler takes a deep dive into innovators–how they work, how design drives innovation, and what is happening for the individual worker. At the end of this email is a link to … Continue reading Innovators and Office Space
Happy Holidays from Coppola-Cheney! We are grateful for all of you who have made 2016 one of the best years for a number of reasons: — We grew our family. Andrew and Chelsea both had their first children this year. — As a team, we visited seven different countries. — Oh, our team was also … Continue reading Happy Holidays from Coppola-Cheney!
This week’s narrative features some brand new “WOW” technology. In early 2017, Amazon is opening the first store without any checkout lines. You scan your smartphone on the way in, shop, and walk out when you are done. Watch this short video to see how it works: What will this do to shopping? … Continue reading Shop and Leave…No Checkout Line
Everyone talks about the negatives that happen in our lives. But some of the most incredible transformations are going on right in front of our eyes as well. A few months ago, I shared with you Dr. Peter Diamandis’ email about how the world is getting better (Click here to read that post). Today’s topic also comes from Diamandis, and … Continue reading Demonetized Cost of Living
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?
Once a year, we take time out from our weekly narrative to enjoy the holidays, say thank you to our clients and readers, and share Jason Gay’s hilarious rules for Thanksgiving Touch Football. This year, here are a couple of our favorites: –This is Peyton Manning’s first Thanksgiving as a retired football … Continue reading 27 More Rules of Thanksgiving Football
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
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
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
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
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
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
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
Anytime you look to the future, the word disruption always enters the conversation. I spend way more time now looking at companies that are trying to disrupt the brokerage business than I ever did in my entire career. As a 25-year CCIM, I found the below article worth sending out as one of my narratives. Many … Continue reading Who Will Be the Uber of CRE?
The world is continuously becoming a better place to live. You may not know that from the news, but below I will show you why (with the help of Dr. Peter Diamandis). Peter is a true visionary. Because I am part of his A360 group, I have a cool offer for you today. His biography, How … Continue reading The World IS Getting Better!
The next five years will bring tremendous change in our lives. Part of this narrative is to look out for changes in the Commercial Real Estate industry. Virtual Reality (VR) tours are coming, and fast. Imagine being able to walk through a proposed building, pick from a variety of office furniture and layouts, choose from a detailed … Continue reading Virtual Reality Property Tours?
Today is a quick reminder to all readers (including me) about risk. As humans, we tend to minimize risk. Below is a chart from a 2012 Harvard Business Review article on risk bias. (Click here to read the full article) Here are 5 ways to mitigate some of the risks you take when leasing or acquiring … Continue reading Looking at Risk and Risk Bias
Arizona is growing again. Of all the states boasting job growth, we are at the top. We have been doing it with regional headquarters relocations, internal growth, and a robust tech market. I give a lot of credit for this growth to our pro-business Governor Doug Ducey. This narrative is decidedly not political, but our growth … Continue reading Finally AZ is Growing Again!
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
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
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
We are again, happy to have helped another non-profit find the right space. Congratulations to Children’s Action Alliance, on their new space in the CopperPoint tower.
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
Positive and steady. Those are the two words I would use to describe the office leasing market in Metro Phoenix as of mid-year 2016. The numbers in the below report also reflect this sentiment that I see every day on the streets of the market. Across the entire portfolio of buildings my team leases, we … Continue reading Positive and Steady: Q2 Office Market Insight
All of us at C2 are thrilled to welcome Security Title Agency, Inc. to their new office in Camelback Commons building 4722. Congratulations.
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
Thank you for reading my weekly narrative. Some of you have been with us the entire five years. I have been blessed to get tons of great feedback, be recognized for an award, and actually get some business out of this weekly email. See below for a graph charting our progress over the past 5 years. Here … Continue reading 5 Year Email Anniversary
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
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
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
It seems like I am stalking all Millennials these days. Readers know why. They are changing the way we do business. Below is an article on how they are changing Commercial Real Estate. Here are a few takeaways for me: Smartphones are here and they are being used for EVERYTHING. All our websites, media, packages, flyers etc. need … Continue reading Stalking Millennials and CRE
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
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
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?
I follow housing trends. I used to follow homebuilding, but now I follow housing. It’s a little like saying I used to follow Global Warming but now I follow Climate Change. Here’s why—Millennials. Today there are 9 million more renters than just a decade ago. That is a ton, but what really caught my eye was that … Continue reading 49% Of All Renters Are Cost Burdened
Workspace design continues to be a hot topic. Last week, I talked about the huge issues that come with open design that we are now discussing with all of our clients. Below my comments is an infographic on a survey that Cort Furniture compiled on workplace trends. I follow it up with a bonus article on how designers are … Continue reading Boosting Productivity in the Office
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
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
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
I spend a ton of time working with my team on growing their individual skills, increasing our deliverables and really making sure we are engaged. As we work with big and small companies and I talk to our clients, engagement has become one of the most desired (and least attainable) traits in companies today. A few … Continue reading Employee Engagement Sucks. Why?
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
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
The Wall Street Journal did a detailed study on the urbanization of our world, and the challenges and strengths that come from this growth. Below are several interactive maps worth clicking on. Skip the first video unless you are into the topic, but be sure to pay attention as: –The world urbanizes –Key cities grow –Manhattan becomes Gotham … Continue reading Cities as Digital Laboratories
I have been watching this trend unfold in the residential construction industry for the past year. Now it is spreading to all sectors. Contractors and subcontractors are having a heck of a time hiring to fill needs. In fact, 50% or more of all contractors and subcontractors are having issues. What does this mean for the market? My … Continue reading Massive Construction Labor Shortages
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
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
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
Below are a couple of handy charts. First, a graphic that shows the top 10 and bottom 10 states for taxes. I have also pulled a chart that shows state-by-state comparisons well. Not too many surprises, but here are a few highlights: –California and New York have the highest taxes. –Arizona is in the middle, ranked 24th. –Texas has been … Continue reading State By State Business Tax Climate
2015 was another great year for our team. Please see below for a recap of our year by the numbers. As we head into our 25th year at Lee & Associates Arizona, we are excited about new opportunities and blessed to have great clients. Thank you for being a part of our future. Craig 602.954.3762 email@example.com P.S.- In … Continue reading Coppola-Cheney: A Review of a Strong 2015
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
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
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?
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
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
To finish the year off, I thought we would take a look back at the coolest office spaces across the world for 2015 as well as a few really special transactions that we have been fortunate to work on ourselves. This year we had the opportunity to work with great companies who built awesome spaces. Be sure to scroll … Continue reading The World’s Coolest Offices
Happy Holidays! At The Coppola-Cheney Group, we have a culture of traveling the United States and the world. This year, 2015, was no exception. Below is our annual holiday card with photos we took of some of the coolest places on Earth. The slide show is just over a minute long, so take a look. We hope adventure is on … Continue reading Take a Minute to Travel the World
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
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
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
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
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
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?
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
2015 is shaping up to be a lot like 2014 for the Metro Phoenix Office market: i.e. the continuation of the long, steady, climb out of the Great Recession. Below is a link to our 3rd Quarter Phoenix Office Market Report and here is a brief summary: The overall market had a great … Continue reading Q3 2015 Phoenix Market Office Report
Over the past couple years, I have spent quite a bit of time thinking, researching and writing about Commercial Real Estate Tech companies (don’t worry, I will not do another five day series this January. Ha). Why? The second graph below says it all. Here are some highlights from the article: –NYC and Silicon … Continue reading The Rise of Real Estate Tech
“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
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
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
Okay, now things are getting creepy. Or I am just getting old fast. Below are the coming trends on wearable technology and now implantable technology and how it is changing the office worker. How about: –No more fobs to get into your office –No need to take your gym membership card to the gym –Swipe … Continue reading Implantable Technology for Your Employees?
Most of the time we hear how important China is becoming; how the reemergence of Russia is going to affect the US; and of course all the dramatic stories of the meltdowns of Greece and now Puerto Rico. I always try to wrap my head around how these developments will play out in my backyard … Continue reading Wrap Your Head Around These Companies vs. Other Countries
A good client of ours called last week as he was preparing for a company-wide meeting to talk about their office lease. It was an initial meeting to go over their future office needs and figure out if they would be renewing or relocating. He asked for a list of some questions they should be … Continue reading 10 Questions To Ask Yourself Before Choosing an Office Space
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
We were proud to represent Lincoln Property Company, in bringing new tenant, Phoenix Children’s Hospital, to the newly remodeled Biltmore Commerce Center at 3200 E. Camelback Road in Phoenix.
Congratulations to Regus on their new office location in the beautiful Desert Ridge Corporate Center I at 20860 N. Tatum Boulevard in Phoenix.
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.
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
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
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
Last week, I talked about world realities. This week, the statistics on the US population, which are staggering. –1 in 7 Americans live in one of three cities (New York, Chicago, and LA). –If you look at the top 10 largest cities, almost one in three people live in these. –America has become urban – … Continue reading Part Two on Population — USA
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
It’s no surprise that square feet per office employee is declining. The open office concept is changing the world and the biggest user of office space in this cycle is…..Tech companies. But this trend has been coming for a long time; see the graph below. In addition to the SF per employee graph there are … Continue reading Trends in Square Feet per Office Employee
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
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
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
We were grateful to represent Plaza Companies in bringing new tenant, Groupon, Inc., to their state of the art SkySong I located at 1475 N. Scottsdale Road.
We are very proud to have represented The Valley of the Sun United Way in the sale of their property at 1515 E. Osborn Road in Phoenix for $3.15 million.
We were proud to represent our long-term client, Furst Properties, LLC, in bringing new tenant, Farmers Insurance Exchange, to their beautiful Pinnacle in Kierland I at 14624 N. Scottsdale Road.
We were thankful to represent our long-term client, AEGON, in the sale of their Arrowhead Business Center, a 3-building complex at 7025-7075 W. Bell Road in Glendale for over $1.6 million.
As competition for hiring millennials continues to increase, companies are trying to lure them by moving into the city to offer urban living as a perk. Is this a long term trend? For me, I think it is something that may continue for the next 5-10 years. But I believe that millennials will ultimately start … Continue reading Tech Firms Moving to the City
Below is an article on the most amazing use for warehouses—an indoor farm. This farm is 100 times more productive than traditional farms. Even if you have no interest in the topic, take a minute to scroll down and look at the photos. Here are some amazing facts: –25,000 SF of space –Produces 10,000 heads … Continue reading World’s Largest Indoor Farm
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?
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
For the past 30 years we have been analyzing operating expenses for the tenants we represent. It’s vital for tenants to understand how operating expenses work because this is a huge potential long term and expensive hidden cost. Here are a few items to watch out for in a tenant lease: –Not getting a grossed … Continue reading Operating Expenses? Yes! And It’s Important.
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