Originally published in the Fall 2022 NAIOP Development Magazine by Ron Derven.
Since its founding in Dallas in 1991, Granite Properties has understood the impact of real estate developments on people and communities. That’s why it creates spaces and relationships where people can flourish while supporting local communities.
Inflation is expected to remain around 8% for August according to Bloomberg. While this may be slightly lower than the 8.5% consumer price index recorded in July, the continued rise in inflation from a year ago increases the cost of providing and maintaining government programs and services at the local level. The National League of Cities has reported that cities are using federal pandemic relief funds to address the impact of inflation.
Originally published on September 20, 2022, by Maria Gatea for NAIOP Blog.
E-commerce provides easy access to goods with the click of a button, filling homes with stuff, stuff and more stuff. Meanwhile, the trendy minimalist lifestyle emphasizes only keeping what is needed and eliminating everything else. Where does the average American end up on the spectrum of goods ownership? As it turns out, among apartment renters, one in five uses self-storage to manage their belongings, at least temporarily.
Originally published by Jenna Glick in the Summer 2022 Issue of NAIOP's Development Magazine.
The lack of diversity in the commercial real estate industry has been under increased scrutiny for the past few years. Some of the largest companies in global real estate made it a priority, such as Blackstone appointing a global head of diversity, equity and inclusion (DEI) in June 2021 and CBRE hiring a chief responsibility officer in 2020. Cushman & Wakefield named its first chief DEI officer in December 2020, and JLL expanded its internal team dedicated to DEI initiatives.
Originally published in September 2022 by Christopher De Sousa, Ph.D., MCIP, RPP, Professor, School of Urban and Regional Planning, Toronto Metropolitan University for NAIOP.
Former industrial sites and other properties that may be contaminated — commonly called brownfields — can be found across the United States and Canada. Brownfields are often adjacent to well-developed transportation infrastructure, and many are near urban centers. These locational advantages make many brownfields viable targets for redevelopment to new uses, but the costs and risks associated with environmental remediation often make these redevelopment projects impossible without public financial and regulatory support. For this reason, public-private partnerships involving multiple levels of government, nonprofit organizations and private developers have played a prominent role in brownfield redevelopment. Public support for these projects has long been tied to achieving social and economic goals such as increasing employment, revitalizing communities and strengthening local real estate markets. In recent decades, public-private partnerships have also prioritized environmental objectives, from green building design to renewable energy and ecological revitalization.
Originally published by Robert Dunphy in the Summer 2022 NAIOP Development Magazine Issue.
The COVID-19 restrictions that began in March 2020 led to business closures and a sharp cutback in personal travel that caused demand for parking to plummet. Except for curbside pickup of retail purchases and carry-out meals, most travelers stayed home and avoided commercial and private parking lots and on-street spaces.
Growing convergence between the retail and distribution sectors could have profound impacts on the commercial real estate industry. As retail and industrial clients adjust to shifts in consumer behavior and the overall economy, CRE professionals will be challenged to change their thinking about how to truly serve their clients. That challenge, however, could also produce innovative real estate products and new opportunities. That’s according to Dustin C. Read, Ph.D./J.D., author of the NAIOP Research Foundation report, “New Places and New Spaces for E-commerce Distribution: Three Strategies Bringing Industrial and Retail Real Estate Closer Together.”
What was the most interesting or significant discovery you made while researching the paper?
Industrial properties are often built near neighborhoods, but that isn’t always popular with the residents, who have legitimate concerns about noise, traffic and pollution from the increased volume of trucks and vans.
Originally published on September 6, 2022 by Patrick Sisson for Bisnow National.
Women in commercial real estate, particularly those in the upper echelons of management, have made gains when it comes to equity and pay parity in the workplace, but talent pipelines, mentorship and diversity in leadership ranks still leave something to be desired.
Originally published on September 3, 2022 by Rebecca Picciotto for the Wall Street Journal.
Affordable-housing developers nationwide are stalling work on new projects, delaying thousands of units from coming to market when the U.S. already has a broad deficit of low-income housing.
On Nov. 8, Gastonia residents will vote on a $75 million Transportation General Obligation Bond Referendum. The City Council approved the bond referendum at its Aug. 2 meeting.
Proposed projects include:
Two and a half years after the pandemic began, the short-term future for the office sector remains uncertain, with record vacancy rates adding to the industry’s woes, according to a recent office report from CommericalEdge. And as hybrid and work-from-home business models continue to take hold — and rising inflation rates further deter workers from returning to traditional office settings — the sector’s long-term prospects are also murky.
The average full-service equivalent listing rate in the top 50 U.S. office markets was $37.58 per square foot in June — up two cents from the previous month, but down 2.6% from the previous year.
Dangerous chemicals and infectious diseases are among the many hazardous materials that are handled inside life science facilities. Getty ImagesLife science industries span a range of uses — clinical research and trials; biologics; medical devices; pharmaceuticals; vaccines research, development, manufacturing, and distribution; plant and animal technology; and veterinary products, to name just a few. Leases for life science facilities can present unique challenges and considerations for building owners. Besides the particular demands life science uses place on electrical capacity, HVAC, floor loads, and waste removal, the activities within these facilities can pose many other risks.
Inherent in many life science facilities is the utilization, storage, and/or distribution of hazardous or toxic materials under applicable environmental laws. Of course, most common leases will contain standard indemnification clauses allocating responsibility to the tenant for losses resulting from its activities.
Since the start of the pandemic, sleepy small towns and suburbs have taken on new luster as people have migrated en masse from the urban core, drawn by the lower cost of living and with the flexibility afforded by increased remote work options. Will this be the new normal, or will people move back to the major metropolises once we put the pandemic behind us? What does it mean for office real estate in the short and long term?
In a recent NAIOP webinar, experts from Marcus & Millichap shared their research and insights into how these trends are shaping the investment landscape for urban and suburban office spaces. They began by examining the broader economic context underlying the urban to suburban shift before discussing recent office sale trends, the impact of demographics and what’s ahead for this sector.
The economic slowdown from the COVID-19 pandemic initially raised concerns within states that general revenue collections would be lower than anticipated and, as a result, create shortfalls in maintaining a balanced budget. Although revenue collections from specific sectors of the economy, such as hospitality and tourism, were lower, overall revenue shortfalls from the pandemic did not materialize in most states. Partially bolstered by e-commerce and the collection of state sales tax from internet transactions, revenue collections increased, producing budget surpluses. These surpluses provided an opportunity for states to enact various tax relief measures.
To put it in perspective, the Fiscal Survey of the States, spring 2022 version, from the National Association of State Budget Officers (NASBO), indicates that general revenue collections have increased in 49 states for the fiscal year 2022. The estimated 3.2% growth in revenue collections for the fiscal year is projected to be followed by a more nominal growth of 1.4% for the fiscal year 2023.
By Ioana Ginsac
Growth in the life sciences sector has driven demand in recent years for both commercial real estate space and labor to accommodate this specialized sector. A new study by commercial real estate platform CommercialCafe set out to identify the best metros for life science companies in 2022 and assessed more than 40 metropolitan statistical areas (MSAs) in terms of regional talent pool and workforce; accessibility of local office markets; the degree of availability of existing dedicated property; as well as the state of the local pipeline aiming to expand local life sciences capacity.
Over the past 15 years, multilevel warehouses — particularly those used for retail purposes — have been a growing trend across Asia and, more recently, in the United States. However, some challenges accompany their design and construction that are not encountered in the traditional approach to large-format retail. With operational criteria at the top of the list, these challenges vary heavily based on several factors, including location, footprint, environment, jurisdictional requirements, and cultural and community influences.
The increase in demand for and construction of multilevel warehouses has unearthed numerous unique considerations not present in traditional warehouse environments. These challenges — each intricate in their own right — have required creative solutions and careful programming to successfully bring each project to life.
Congrats to Sagar Rathie for being named a 2022 Developing Leader award winner by NAIOP. 
Sagar joined Crescent Communities in 2016, and leads all aspects of Crescent Communities Commercial development and new investment growth through the East and West, including North Carolina, Tennessee, Georgia and Florida. His primary responsibilities include acquisitions, predevelopment, and financing, as well as managing Crescent Communities' $800 million commercial pipeline. Rathie has extensive capital markets experience, having collectively raised over $3 billion in capital throughout his career.
Last week, the U.S. Senate passed the Inflation Reduction Act of 2022, a $740 billion budget reconciliation measure with provisions to address climate change and energy security, extend federal healthcare subsidies, and allow Medicare to negotiate prescription drug prices. As we informed you last week, the bill, which had been negotiated by Senate Majority Leader Charles Schumer (D-NY) and Senator Joe Manchin (D-WV), contained a proposal changing the taxation of carried interests that would have harmed the commercial real estate industry and real estate entrepreneurs.
When the Schumer-Manchin agreement was announced, NAIOP and NAIOP Arizona, along with our national real estate allies, mobilized to support Senator Kyrsten Sinema (D-AZ) in her efforts to oppose the proposed changes to carried interest. In order to ensure her vote, the proposal was dropped from the bill before the legislation was brought up for floor debate.
