Originally published on December 5, 2023 Doug Faron for NAIOP.

In today’s environment, there are countless barriers to new commercial real estate development opportunities, including rapidly rising borrowing rates, increased constraints on banks, growing insurance costs and geopolitical risks, to name a few. On top of that, a major constraint to development today is the rising cost of construction. The upward trajectory of construction spending itself can be attributed to many factors including inflation, labor costs, rising insurance rates, materials and even permitting costs. As the cost to build becomes more expensive, developers are grappling with how to deliver high-quality buildings on time and within budget.

The NAIOP Research Foundation has published the NAIOP Office Space Demand Forecast for Q4 2023.

Key Takeaways:

Originally published on November 20, 2023 by J. Byron Brazier for NAIOP.

When you travel to a different country, you expect to encounter a different landscape, culture and customs. But in many parts of the U.S., communities mere blocks or miles apart feel like wholly distinct worlds. Take Chicago: Its beautiful architecture and stunning lakeshore belie the staggering economic disparities among neighborhoods and real estate developments. 

Originally published on November 27, 2023, by WDG for NAIOP.

Adaptive reuse architecture presents a creative and specialized challenge. The prevailing trend is to convert vacant office buildings into multifamily residential or hospitality properties. These designs are a purposeful, more sustainable solution that provides vibrancy to obsolete, underutilized and often vacant buildings. Converting unused offices to another occupancy can address housing supply shortages and help bring back commercial business districts. The improved functional spaces increase the tax base for taxpayer and municipality benefits. The properties utilize the existing public infrastructure, roadways, transportation network options and utility connections for the rapid reconnection of an existing community. Understanding basic concepts of conversions is critically important for development professionals, city officials and local communities. Each potential property needs to be evaluated on its own merits to determine the probability of success, and whether the location, costs, timing and existing building layout make sense for a conversion.

Originally published on November 13, 2023, by Rick Scardino for NAIOP.

As a retail real estate specialist for more than three decades, I’ve seen many trends come and go. One day, it’s an explosion in the sale of bank pads. And now, I’m seeing that niche real estate investors – who historically operate with a bit of herd mentality – have crowned the car wash industry the latest investment darling. The evolution of the car wash industry and the resulting uptick in interest from investors, developers and operators alike has been fascinating to watch. Brands like Take Five, Waterway, Zips, Spotless and Mister Car Wash are just a few of the modern success stories bringing car wash investment into the headlines. So, what’s with the hype?

Originally published on November 9, 2023, by Francis Chantree for NAIOP.

More and more Americans are moving to a different state, often to one inland and less densely populated but with great real estate options. The highest net migration is seen in Idaho, Montana and Vermont, plus Maine and other states offering plenty of space and housing, a trend that fuels the local real estate sectors.

Originally published on October 25, 2023 by Brielle Scott for NAIOP.

Geopolitical strategist Peter Zeihan combines an expert understanding of demography, economics, energy, politics, technology and security to help clients best prepare for an uncertain future. At NAIOP’s CRE.Converge last week in Seattle, attendees had an opportunity to hear from him at the closing keynote.

Originally published on October 20, 2023, by Logan Nagel for NAIOP.

Industrial real estate might have been one of the strongest-performing property types out there in recent years, but it is far from immune to change. During the panel “Industrial Real Estate and the North American Supply Chain Revolution,” held at NAIOP’s CRE.Converge conference in Seattle this week, Chad Griffiths, MBA, SIOR, partner and associate broker at NAI Commercial Real Estate, spoke with Matt Carroll, senior associate at Avison Young, about what’s in store for industrial properties in the coming years.

Originally published on October 19, 2023, by Brielle Scott for NAIOP.

There are myriad key considerations involved in developing a successful, comprehensive ESG strategy, including meeting evolving investor and tenant demands, global drivers for ESG performance and expectations, the most pressing climate risks and their financial implications, emerging regulatory guidelines, green financing options, and more.

Originally published on October 19, 2023, by Victor Whitman.

Mass timber has a bright future within commercial real estate development but there are special hurdles that developers and builders must learn about and overcome, according to commercial real estate experts at NAIOP’s CRE.Converge in Seattle. 

Originally published on October 19, 2023, by Kathryn Hamilton, CAE for NAIOP.

Amazon’s real estate strategies have stretched and been reshaped over the last decade as the company – like every retailer – strives to expand its reach and get closer to the consumer. The largest developer of industrial real estate in the world, the company has always leaned into the innovation and partnerships that fuel its corporate culture and deepen its impact.

Originally published on October 19, 2023, by Pamela Jew for NAIOP.

With the increasing push to return to the office, employers and developers are tasked with sweetening the deal for current and future employees in the office and industrial markets. Makeshift home offices and kitchen counters became the new office during the pandemic, and working from home came with its own set of perks, such as no commute and more flexibility of time. Promises of increased collaboration with the return to in-person work aren’t enough of an incentive. Now, workers across industries expect more when physically in the office.

Originally published on October 23, 2023, by Pamela Jew for NAIOP.

High interest rates combined with persistent inflation have created the toughest commercial real estate financing environment since the Global Financial Crisis. Post-pandemic vacancies in commercial real estate and shifts to digital retail and work have added more considerations for prospective buyers and sellers.

Originally published on October 20, 2023, by Logan Nagel for NAIOP.

Low occupancy across the office sector as well as high demand for housing has many real estate development professionals asking whether adaptive reuse of commercial buildings may be an option to add supply during the housing crisis. A NAIOP CRE.Converge conference panel in Seattle this week investigated that very question, focusing on a successful conversion case study in Alexandria, Virginia, as well as exploring what it takes to get conversion projects across the finish line. 

Originally published on October 20, 2023, by Logan Nagel for NAIOP.

As investors and occupiers look to improve the sustainability of their investments and operations, decarbonizing the built environment is an increasingly important real estate decision.

Originally published on October 20, 2023, by Victor Whitman for NAIOP.

The office market is still struggling with high interest rates and high levels of remote work, producing a tough lending environment and frozen deals on the sales side, and generous concessions and terms that favor tenants on the leasing side.

Originally published on October 20, 2023, by Pamela Jew for NAIOP.

With ChatGPT suddenly mainstream, artificial intelligence has become a hot topic with the ability to disrupt any and every industry it touches. The commercial real estate industry is not excluded from this disruption, but the implementation of AI in the space leaves a lot yet to be discovered.

Effective immediately, NCDOT will be utilizing Accela (The City of Charlotte's Plan and Permit Platform) to approve Subdivision permits and Plats.  They are also testing out the process for Commercial permits.  For continuity and a better user experience, please submit your plans to the City through Accela and NCDOT through its existing portal.  Here are additional details:

• Please contact the NCDOT review engineer for that area.
• Charlotte Explorer has the NCDOT Review Areas layers that can be used to identify the review engineer.
• As part of that email, also copy Rashunda Harris (rcharris3@ncdot.gov) and Paul Harness (pharness@ncdot.gov).
• Email subject line: Include the NCDOT Permit Number and Accela number provided through the NCDOT Permit Portal to identify the project quickly.
• Plats: Include the NCDOT-approved permit number associated with the plat.
• NCDOT Comments: Staff comments will be through the NCDOT Permit Portal.
• Accela plan will have a generic comment stating that NCDOT comments will be available through the NCDOT Portal.  
• Plans must also be submitted through the NCDOT Portal.

If you have any additional questions about this new process, please get in touch with Hassan Malik, Acting District Engineer - NCDOT via email or at (980)523-0000 or (980)264-0386.

Originally published on October 16, 2023, by Kathryn Hamilton, CAE for NAIOP.

A 1.5 million-square-foot cold storage facility an hour south of Atlanta sits unassumingly among farmlands and other distribution warehouse facilities containing everything from mattresses to salad dressing to office supplies. Inside its doors though, racks and rows of premium chocolates are stacked high in an international chocolate producer’s distribution facility for the Southwest.