Categories Covid19 Impact, Economy, Narrative, Office Market

All Kind of Rankings

This headline made me laugh: Phoenix was ranked as the least relaxing city in America, according to a recent survey. Factors such as light pollution, green spaces, and coastal proximity all weighed heavily against Phoenix in the survey, which showed the least number of respondents who get 7+ hours of sleep each night. Meanwhile, San Jose, … Continue reading All Kind of Rankings

Categories Covid19 Impact, Economy, Narrative, Tech Industry

Indoor Farming

A few years back I wrote a narrative on indoor farming (you can read it here).  The technology has grown and grown (pun intended) and now we are seeing some incredible changes. Sananbio, one of the world’s largest indoor farming technology providers, has announced an unmanned vertical farming system.  Here’s how it works: –Pour the seeds in … Continue reading Indoor Farming

Categories Covid19 Impact, Creative Office Spaces, Economy, Graphs, Narrative, Office Trends

Hybrid Work Messiness

Now the messy part with hybrid work begins. Below is an article outlining the conversations we are having 5 times a day right now with our clients.  How do we come back to work and what are the rules, office space layouts and long-term consequences of allowing everyone to partially work from home? Here is … Continue reading Hybrid Work Messiness

Categories Covid19 Impact, Economy, Narrative

Which Cities are America’s new boomtowns? Try Salt Lake City and Indianapolis

Even before the pandemic, jobs in Metro Phoenix were on the rise, drawing large numbers of employees away from bigger cities like San Francisco, LA, and New York, to the area. That trend accelerated during the pandemic, with an influx of new remote workers moving to the city. What is really cool is the diversification … Continue reading Which Cities are America’s new boomtowns? Try Salt Lake City and Indianapolis

Categories Covid19 Impact, Economy, Narrative, Office Market, Office Trends

The Hottest Office Topic in the Valley

Office subleases continue to prove a hot topic this year. Tenants in the market are eyeing subleases for their great prices, or are using them as leverage to bargain against traditional options. In the Metro Phoenix market, with 100 million SF of office space, we are now showing over 4.5 million SF of sublease now … Continue reading The Hottest Office Topic in the Valley

Categories Covid19 Impact, Economy, Graphs, Narrative, Office Market

Reducing Office Space? 74% of Fortune 500 CEO`s Say It`s Likely

You may have noticed that I’ve spent more time than usual passing along information as it pops up.  My job is to make sure you and our clients are on the cutting edge of where office space is going and how it is changing. Due to the pandemic, there is a lot of confusing data … Continue reading Reducing Office Space? 74% of Fortune 500 CEO`s Say It`s Likely

Categories Covid19 Impact, Economy, Narrative, Office Market, Original Content

1-Minute Phoenix Metro Office Market Update: Q2 2021

The Metro Phoenix Office Market remains in disarray at the midpoint of 2021.  Companies (small and medium-sized) are coming back to work, signing new leases and getting back to a new normal. Other companies (often large ones) continue to kick the can with short-term renewals, downsizing as leases roll, or trying the sublease market.  The … Continue reading 1-Minute Phoenix Metro Office Market Update: Q2 2021

Categories Covid19 Impact, Economy, Graphs, Narrative, Office Market

Office Still in Disarray

Conflicting views on the future of the office continue to volley back and forth in the media. Below is the NAIOP research division’s latest forecast for office space demand, which they feel will stabilize by the middle of 2022. NAIOP is the largest commercial real estate trade organization in the United States, carrying a relevant … Continue reading Office Still in Disarray

Categories Covid19 Impact, Economy, Graphs, Narrative, Office Market

CRE International Investors Coming to the US and AZ

Readers of this narrative know that my team and I represent tenants and landlords primarily in the Metro Phoenix area. Every year we see more and more investors coming to us from outside Arizona, and even outside the U.S. Interest in commercial real estate investing is on the rise in the international community, which is … Continue reading CRE International Investors Coming to the US and AZ

Categories Economy, Graphs, Narrative

$329,100

The housing market is on FIRE. We are seeing house prices skyrocket across the country, especially here in Metro Phoenix. How hot is it? The median price of a home in the US just hit $329,100. While I’m not in the residential sphere, I’ve been keeping an eye on housing prices and am amazed at … Continue reading $329,100

Categories Covid19 Impact, Economy, Graphs, Narrative, Office Trends

Commercial Sales Volume in a Pandemic

There’s no doubt that the pandemic has had far-reaching consequences for industries worldwide. In my business, the pandemic created several great markets (residential development and industrial); a sandstorm in our area of office space leasing (no one knows where we are going yet) and has devastated other segments (retail and hospitality). One other segment that was … Continue reading Commercial Sales Volume in a Pandemic

Categories Covid19 Impact, Economy, Narrative, Office Market, Original Content

1-Minute Phoenix Metro Office Market Update: Q1 2021

The pandemic certainly took its toll on the Metro Phoenix Office Market in Q1.  The numbers tell us it was the worst quarter since the Great Recession (2008): Net absorption (new office space taken by job growth) went negative for the third quarter in a row, at -550,000 SF; sublease space increased at the highest … Continue reading 1-Minute Phoenix Metro Office Market Update: Q1 2021

Categories Economy, Graphs, Narrative

Countries With the Most Sustainable Energy Policies

I have some global thinking for your narrative today. Lots of thought and energy is going into making the world more sustainable. There are many ways people are working towards sustainability, and below is a graph showing which countries are doing the best job. Here are my thoughts:1—The US is doing a good job (I know, we … Continue reading Countries With the Most Sustainable Energy Policies

Categories Economy, Narrative, Office Market

Investing in Commercial Real Estate

These days, it’s easier than ever to get started in investing. There are apps that let you buy and trade stocks while waiting at the gas station. Real estate, especially residential, has always been an accessible investment vehicle. But these days, even commercial real estate is being disrupted and opening up to the masses, with … Continue reading Investing in Commercial Real Estate

Categories Covid19 Impact, Economy, Narrative

Negative Office Absorption in Our Future

We now believe the national office market will likely have negative absorption for 2020 and, depending on how long the pandemic lasts, into 2021.  Globe Street has a nice overview in the article below my comments.  Here are some of my thoughts on the office sector looking forward into the next year. Why negative absorption … Continue reading Negative Office Absorption in Our Future

Categories Economy, Narrative, Office Market, Office Trends

Top 10 Issues Affecting Real Estate

The Counselors of Real Estate (of which Andrew and I are proud members) have released their annual top 10 issues affecting real estate.  Please read the whole article below.  As you can imagine, COVID-19 is currently leading the way on issues affecting real estate. Big shocker.  We have written about the pandemic a ton in previous … Continue reading Top 10 Issues Affecting Real Estate

Categories Economy, Narrative

Real Estate Tax Breaks and Potential Dangers

As an office broker for 35+ years, I have done my share of corporate headquarters relocations and negotiations.  If you need office space, I am your man.   Part of any negotiation for a sizable relocation can be state and city incentives. The article below from the New York Times talks about companies taking advantage of this … Continue reading Real Estate Tax Breaks and Potential Dangers

Categories Economy, Graphs, Narrative, Office Market

What is Your State’s Poor Infrastructure Costing You?

Below is an incredible graph.  States have let their infrastructure go to hell and it is costing consumers a ton of money in car damages.  Take a look below to see what your state is costing you.I also pulled cities within the Metro Phoenix market to see what individual cities are costing us. 1—Lack of … Continue reading What is Your State’s Poor Infrastructure Costing You?

Categories Economy, Narrative, Office Market, Office Trends

Most Expensive U.S. Office Submarkets

I messed up.  This is a narrative that edits what I sent over earlier this week. Below is the narrative and orange are my edits.  Sorry for sending incorrect information.  Craig Over the past several years, one of the trends my team has been tracking is the number of California companies that are moving to … Continue reading Most Expensive U.S. Office Submarkets

Categories Economy, Narrative, Office Trends

I Got One Right… and I am not happy about it

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

Categories Economy, Narrative

Analyzing Business Opportunities

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, all … Continue reading Analyzing Business Opportunities

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 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 Economy, Narrative, Office Market

10 Issues Affecting Commercial Real Estate 2017

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

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 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 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 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 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 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 Economy, Narrative, Office Market, Office Trends, Tech Industry

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 Economy, Narrative

Employment Growth – Employer Payroll Survey vs. Household Survey

My favorite economist who tracks the national economy and the US office market is Peter Linneman. He produced the graph below which shows job loss and gain during the recession. This graph demonstrates exactly why I follow the jobs market so closely and why most office markets in the US have been slow to recover. Surprisingly, there are just a few … Continue reading Employment Growth – Employer Payroll Survey vs. Household Survey

Categories Economy, Narrative

Spheres of Influence

Every now and then I see cool graphs that grab my attention. Site Selection magazine ran the below graphs showing the top industries and the top projects of the year (2013).   I found the following insights: –Where companies are headquartered and the size of each company are very interesting. There is some clustering, but not always. –Transportation is driving the … Continue reading Spheres of Influence

Categories Economy, Narrative

7 Bold Commercial Real Estate Predictions

In my weekly narrative, I spend quite a bit of time thinking, talking, and looking at the future. Below are seven bold predictions by some of the leading thinkers in our industry. Here a few key predictions that stand out: –Malls will soon be extinct –Technology will run buildings (we see that coming today) –Green buildings will become the norm … Continue reading 7 Bold Commercial Real Estate Predictions

Categories Economy, Narrative

5 Measures of Arizona’s Economy As Fall Season Arrives

The local paper in Phoenix, The Arizona Republic, published a great summary about the Arizona economy and my favorite topic—Jobs. Please take a look below for the full article, but here are a few highlights:   –We are still at 60% of jobs recovered from pre-recession numbers. –Construction, typically our get-out-of-the-slump card, is severely lagging. –One bright spot … Continue reading 5 Measures of Arizona’s Economy As Fall Season Arrives

Categories Economy, Narrative

Phoenix Housing Double Dip Recession?

No recovery is smooth. There are fits and starts. There are blue skies and cloudy. The Phoenix housing market, which in past years has driven the office market, has cooled off and is pulling back. Nobody thinks this will be a full recession, but there are clear signs that all is not peachy in Phoenix. I believe this to be true … Continue reading Phoenix Housing Double Dip Recession?

Categories Economy, Narrative

Highlights from Arizona State University’s Annual Economic Outlook

Over the last two weeks, I have talked about the numbers behind the job numbers in the US and Arizona. Of course, there are people much more qualified and articulate who actually track this kind of data for a living. Arizona State University’s annual Economic Outlook produced some quality information that I thought I would … Continue reading Highlights from Arizona State University’s Annual Economic Outlook

Categories Economy, Narrative, Office Market

A Look at the Numbers Behind the Current Headlines About Job Creation

Job creation news made headlines a few weeks back touting that the United States had recovered all of the jobs that were lost during the great recession. In Arizona, however, we are still way behind our pre-recession levels. Over the next two weeks, we are going to try to tie jobs, the Phoenix office market, … Continue reading A Look at the Numbers Behind the Current Headlines About Job Creation