Originally published on July 9, 2021 by Shawn Moura Ph.D. for NAIOP E-Newsletter.

In June, NAIOP conducted its eighth survey of its U.S. members on the impacts of COVID-19. Since April 2020, the association has examined the pandemic’s effects on commercial real estate and how firms have responded. Most American adults are vaccinated, and daily coronavirus case counts have plummeted in the five months since the previous survey. This has allowed a widespread return of customers to restaurants and retailers, and most observers now expect that office occupancy rates will rebound in the fall when schools re-open for in-person instruction. 

Originally published on July 2, 2021, by Ioana Ginsac for NAIOP E-Newsletter.

Last week, commercial real estate property data and listings platform CommercialEdge published its most recent national office report, which paints a more current picture of office sector activity across the top 50 U.S. markets. Data analyzed for the June 2021 report found that:

• The average office lease rate was up 0.4% year over year, as asking office rents averaged $38.36 per square foot in May.
• Vacancy rates reached an average of 15.6%, following a 240 basis points increase compared to May 2020.
• Office sales closed during the first five months of the year totaled nearly $23 billion, contouring the possibility that 2021 investment activity is likely to at least match last year’s total volume of $61 billion.

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Originally published on June 29, 2021, by Zach Bowyer, Brian Chandler and Bryan Lockard for NAIOP E-Newsletter.

The COVID-19 pandemic interrupted a nearly 12-year growth cycle for the senior housing market, causing a drop in valuations to an eight-year low. Stabilized occupancy rates also fell to record lows due to infections, mandated holds on new resident admissions, safety concerns, and isolation fears. Rents, however, continued to rise, despite significant occupancy losses.

Originally published by Daniel Castner, Brian Spence and Trevor Boz for NAIOP's Summer 2021 Issue.

This fast-growing sector can be complex to navigate for developers.

The scientific research market has grown substantially over the past 10 years. With a global pandemic top of mind, investors are looking at the life science industry now more than ever.

Originally published on June 21, 2021 by Marc Rapport for MillionAcres.com.

The pandemic recovery in the office sector is underway and is projected to reach positive net absorption in the fourth quarter of this year, according to research from NAIOP, the Commercial Real Estate Development Association.

Originally published on June 22, 2021 by Andy Halik for NAIOP E-Newsletter.

With U.S. coronavirus cases plunging and knowledge workers craving the social component of the workplace, many companies across the country are fully reopening their offices to employees. Some companies took the opportunity to renovate or update their workspace during the lockdown periods of the pandemic, and others are planning significant design changes to prepare for the next era of the office.

Originally published by Ron Derven for NAIOP's Development Magazine Summer 2021 Issue.

The post-pandemic period could see a lot of innovation and experimentation in commercial real estate.

COVID-19 delivered a gut punch like no other to the commercial real estate industry last year, with transactions in the second quarter of 2020 plummeting approximately 40% over the same period in 2019.

Originally published on June 15, 2021, by Katie Sloan for Rebusiness Online.

When it comes to mall redevelopment, one of the biggest hurdles is changing the business community’s perception that enclosed malls are only for retail use, says Sean Garrett, president of acquisitions and director of community relations for East Peoria, Illinois-based Cullinan Properties Ltd. 

Originally published on June 15, 2021, by Esther Fung for the Wall Street Journal.

During the worst of the pandemic, many landlords offered deals where ailing retailers paid a percentage of their monthly sales in rent—rather than a fixed amount—to help them survive. Now, this once temporary way of charging tenants looks poised to outlast Covid-19.

The following statement was issued by REBIC on Tuesday, June 22, 2021.

Last night the “Plan Policy” section of the 2040 Comprehensive Plan passed the Charlotte City Council by a 6-5 vote. This outcome had been widely expected for several weeks. In the end, REBIC took the position that moving ahead to the more difficult challenges, such as the debate over the “Implementation Strategy” and “Manuals and Metrics” sections, as well as the Place Type mapping and ultimately the Unified Development Ordinance (UDO) was in the best interests of all parties. It was evident that members of City Council had withdrawn to their respective corners and that any further compromise was not possible.

Originally published on June 2, 2021, by Sasha Jones for Bloomberg News.

The future of the office sector remains largely uncertain at this point post-pandemic, but there’s one segment that continues to see huge gains.

Originally published in NAIOP's Development Magazine Spring 2021 Issue by Ann Moore.

Waterfront development in California used multiple strategies to get off the ground.

Megaprojects can transform landscapes, improve quality of life and deliver significant economic benefits to their communities. When they are sited on a waterfront in a binational urban area, they take on even more complexity. In Southern California’s San Diego County, a megaproject will transform a formerly blighted stretch of waterfront into a thriving destination. The project team is pursuing innovative ways to reduce the risk that could be instructive to other development teams. 

The NAIOP Research Foundation has published the NAIOP Office Space Demand Forecast for Q2 2021.

Key Takeaways:

• Increasing COVID-19 vaccination rates and strong economic growth will help demand for office space rebound, with a return to a positive net absorption forecast for the fourth quarter of 2021.
   
• Quarterly net absorption in 2022 is forecast to average 11.7 million square feet, in line with the 2015-2019 quarterly average of 11.6 million square feet.
   
• Although tenants have begun to return to the office, it remains to be seen how widely they will adopt long-term remote work arrangements. Remote work will likely limit net absorption for the next several quarters.
   
• Tenants may now prefer less dense office layouts than before the pandemic, partially offsetting declines in demand due to remote work.

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Originally published on May 18, 2021, by Knorad Putzier for The Wall Street Journal.

More than a year into the pandemic, high-rise office buildings are largely empty. About one of every two hotel rooms is unoccupied. Malls are struggling to attract shoppers.

Originally published by Richard Florida for Bloomberg CityLab on May 14, 2021.

Just last spring, a chorus of pundits loudly proclaimed a sweeping urban exodus and the impending death of cities. Now, just slightly more than a year later, our cities are springing back to life. Sidewalks are starting to bustle; restaurants, which have spilled onto the streets, are teeming with patrons; museums and galleries are reopening; and fans are heading back to baseball parks, basketball arenas and even outdoor concert venues.

Originally published in the Spring 2021 Issue by Jennifer LeFurgy, Ph.D. for Development Magazine.

Large revenue shortfalls will accelerate technological advances, conversions and design innovations. 

Quarantines and business shutdowns fueled by the COVID-19 pandemic have led to a dramatic decrease in parking demand. Subsequently, many sectors of the economy that depend on parking revenue are facing budget shortfalls this year.

Originally published on May 7, 2021, for the Building  Design and Construction Network.

Construction employment was unchanged from March to April as nonresidential contractors and home builders alike struggled to obtain materials and find enough workers, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said the industry’s recovery was being hampered by problems getting stable prices and reliable deliveries of key materials, while the pandemic and federal policies were making it harder for firms to find workers to hire.

Originally published on May 4, 2021, by Esther Fung for The Wall Street  Journal.

Mall owners have hit on a new way to fill gaping holes left by failed department stores and other departing big-box tenants: hosting public schools in need of more space.

The recommended draft of the Charlotte Future 2040 Comprehensive Plan is now available online at cltfuture2040.com. The City of Charlotte is hosting a virtual Planning Community Conversation about the recommended draft on Thursday, May 27, from 5:30-6:30 p.m.

Anyone interested in participating must complete the community conversation sign-up form to speak during the meeting and submit questions or comments through the WebEx virtual meeting platform. The meeting will also be live on the City of Charlotte’s YouTube and Facebook pages, and staff will take questions submitted through the video comments.

The CLT Development Center would like your opinion about their services and processes. Please click the link below to provide your input:

Share your perceptions of City services; please DO NOT evaluate Mecklenburg County as a part of this research.