Already big in the retail sector, mixed-use projects have become increasingly popular for office developers. Mixed-use developments can deliver accelerated lease-up periods as well as command higher rents compared with standalone properties in the same market. And that’s not all. As some commercial property sectors, most notably office buildings and retail properties, continue to face challenges post-pandemic, investors are more and more attracted to mixed-use projects. Market experts say that the experience economy’s influence on the workplace is a key to retaining talent. It’s a trend that forward-thinking office owners and developers are cashing in on by integrating office space into mixed-use environments. Read on to learn more about key attractions of mixed-use, including what investors are looking for. New development drivers In a May 2022 article on wealthmanagement.com, Nihar Shah, vice president of development at Perseus TDC, an affiliate of Transwestern Development Company, spoke about what’s driving new mixed-use projects. According to Shah, “There are several drivers underpinning a boom in mixed-use projects. One of the main ones is the interconnectivity of uses within a larger master plan. Infill locations work in areas that have amenities already in place, but mixed-use developments create a new built environment in areas that were previously not developed or were underutilized…The new uses usually become a win-win for both investors and cities as they create more housing, retail and tax revenue. But in densely populated areas, a location near public transit is often critical to a mixed-use projects’ success.” Higher average office rents Research shows that office rents at mixed-use developments lease up faster and tend to be an average 24.7 percent higher than those in the surrounding submarket. Not surprisingly, large mixed-use projects are under development across the country and many have already broken ground. From...

Since the pandemic, companies have had to adjust to keep their customers returning. For example, movie theaters are finally starting to see box office numbers like in 2019, but how are they getting people out of their comfortable living spaces and coming to the movies? Because viewing options at home are limited, and most need more space for a 60 by 80-foot screen, IMAX theaters are growing, but smaller, older theaters cannot keep up with amenities. Sounds familiar for the return-to-office issues companies are having. Lifestyle offices have become attractive for top talent seeking a modern and progressive work environment. Let’s discuss how traditional rigid office structures and work-life integration play a significant role for talented individuals who value flexibility and freedom in their work. Lifestyle offices are the IMAX version of an office building, packed with amenities and features that support work-life integration, such as flexible work hours, remote work options, on-site childcare/dog care facilities, and relaxation areas with greenery and wellness programs. These initiatives contribute to reduced stress, increased productivity and improved employee satisfaction. Aesthetically pleasing workspaces contribute to a positive work environment. Open-plan layouts with natural lighting and biophilic design elements promote employee satisfaction. Many more extensive tech or finance companies are moving to this type of office style since they have the budget to afford the construction and high rent prices. One Brickell City Centre in Miami has done just this. Featuring sustainability and is the first LEED gold-certified commercial building with sustainable architectural features. They offer gorgeous city and ocean views from each building floor, along with flexible workspaces. Other places in New York, California and Boston have ample lifestyle offices for regional transit access, dramatic outdoor terraces, top-of-the-line security and plenty of amenities. Some offer perks for exclusive...

The importance of proper workplace ergonomics is one thing that hasn’t changed since the pandemic’s onset – whether you’re still at home or back in the office. The concept of ergonomics – a word coined by a Polish professor in 1857 – dates to chair and tool designers in ancient Greece. Attention to workplace injuries grew in the early 20th century, as repetitive factory work increased strain injuries, and accelerated further during World War II, when the assembly of complex weapons systems and equipment required a high degree of decision-making, attention, situational awareness and hand-eye coordination. The war marked the point at which “ergonomics took a true turn into the concept that we understand today with deeper research to follow,” notes OMT-Veyhl, a Holland, Mich.-based office furniture manufacturer. By the 1980s, the ubiquity of computers in offices had led to a spate of arm, neck and back injuries. That’s because computer work tends to involve repetitive movements that place strain on hands, wrists and other areas of the body. These problems continue, in commercial and home offices. Creating an ‘ideal fit’ That’s where ergonomics comes in. This discipline focuses on ensuring correct placement of chairs, desks, monitor stands and other elements of a workstation to avoid pain; tingling or numbness in the hands, wrists or shoulders; and other afflictions. “Ergonomics is the science of establishing an ideal fit between a worker, their working environment and the tasks they carry out. Office ergonomics, then, is simply about making sure that office employees have the correct furniture, equipment and working conditions to be able to do their jobs effectively and comfortably,” says British CMD Ltd., a British power systems manufacturer. Taking the right ergonomic measures, the Mayo Clinic adds, means “you’re not doomed to a career...

How are you overseeing maintenance operations, managing service requests from tenants, tracking work orders with technicians and extending the health of equipment in your buildings? If you’re not using automation, you’re working too hard and spending too much money. It’s also easy for important things like timely repairs and inspections to fall through the cracks. You can optimize building performance and tenant experience by using facility management software to automate preventive maintenance, property inspections and work order management. Following are best practices to help commercial operators maintain peak building performance and gain portfolio-wide oversight. Tip #1 Automate service requests through a tenant portal. Reduce manual tasks for your staff and increase convenience for your tenants with online work order requests and automated scheduling. Improve communication via email and SMS messaging and ensure tenants are satisfied with your maintenance performance. Reduce man hours needed to manually field requests from email or by phone Simplify the feedback loop through follow-up tenant surveys and promote satisfaction Tip #2 Automate notifications for incoming work orders and set rules around completion. Auto-assign work orders to technicians so they can get started quickly with all the details they need. Track work to completion and eliminate time-consuming manual processes including paperwork and phone calls. You can easily track pending requests, alerts and exceptions. Shorten work order cycles by improving communication between maintenance staff and tenants Help improve tenant satisfaction by preventing requests from falling through the cracks Tip #3 Schedule preventive maintenance and inspections without paperwork. Save time by scheduling recurring property maintenance and standardizing inspection routines. Satisfy all types of inspection requirements including annual, regulatory and due diligence. Use workflows with flexible templates to ensure that inspections cover every detail, every time. Save money and man hours by extending the...

According to Naseem Wenzel, Executive Director and Head of Real Estate Assets at Lionpoint Group, “ESG is coming fast and furious, which leaves investment managers, real estate owners and operators and service providers in a position of either being reactive or proactive.” What position is your company in? In OSCRE’s May 25 Innovation Forum, ESG: Insights to Assess Your Readiness, the panel, moderated by Wenzel, discussed what’s needed to move the industry forward. The speakers represented “a mix of perspectives from change leaders in the industry” including Chris Devine, head of client analytics, Cushman & Wakefield, Rick Ferrino, senior VP technology, Blackstone and Soheil Pourhashemi, senior VP business technology, Brookfield Properties. When asked individually about their company’s approach to ESG, the panelists touched on creating long term strategies, dealing with resource issues including staffing and training to focus on ESG and the overall need to automate data collection, analytics and reporting. The speakers agreed that evolving practices and focusing on how data flows — including real-time reporting from assets, are important initiatives. With regard to governance, the panel discussed measuring and normalizing data, creating data standards and developing organizational maturity. One speaker commented that ESG practices are integral to building a resilient business and creating value for investors. ESG is also a critical aspect of capital fundraising. For service providers, the focus is on the occupier side and how to get data standards in place, with information flowing from investors to occupiers. All the panelists agreed that automating data collection and reporting is key. Survey responses on ESG readiness   In OSCRE’s recap of the session, the audience’s answers to the polling questions included these key takeaways: 53% of respondents described their organization’s level of preparedness as just getting started and 0% reported that...

Adaptability bolsters the longevity of any organization. Yardi commercial market experts have observed that many urban and suburban office owners are transitioning to more flexible site models. The smoothest transitions occur when they are supported by integrated technology. Brian Sutherland, vice president of commercial sales at Yardi notes, “We will continue to see a lot more flexibility in the future of office. There is increasing demand for flexible workspace. Clients seek asset management and construction products as their urban and suburban offices convert into more versatile, mixed-use spaces.” Office spaces embrace the transition to more flexible workspaces Among office spaces, suburban sites have remained steady during the pandemic. Though they were not as vulnerable as their urban neighbors, many suburban office owners are exploring flexible spaces to adapt to tenant demand. As many tenants implemented remote work policies for employees, the daily demand for office space declined. Months later and moving forward, many tenants have announced hybrid office models that permit occupants to share socially distanced workspaces on a staggered schedule. Common areas are expanding to accommodate healthy and flexible work conditions. Some urban offices are taking the shift to adaptable spaces even farther. “To leverage current conditions, owners transform office assets into mixed-use facilities including traditional offices, flexible workspaces, retail and even multifamily,” reports Robert Teel, vice president of global solutions at Yardi. Technology tools to support the transition to flexible workspaces The transition to more accommodating spaces has resulted in an increased demand for technology. Solutions for construction management provide visibility into projects and cost management as owners transform buildings to meet the changing needs of the market. Short-term leasing and space management solutions help owners drive revenue in any space while promoting occupant safety. Vendor management, vendor compliance and procurement systems...

COVID-19 has had a jarring impact on commercial real estate in the form of health risks, stunted growth prospects, permit and construction delays, reduced income for property owners and the acceleration of e-commerce at the expense of physical stores, among other disruptions. The pandemic precipitated what global management consultant firm McKinsey & Company calls “an unprecedented crisis for the real estate industry.” What will the CRE landscape look like when the pandemic fades? For one thing, new building codes designed to limit the risk of future pandemics could affect standards for HVAC, square footage per person and amount of enclosed space. Office building tenants will almost certainly be driven “to look beyond their traditional building preferences. In this new environment, tenants will gravitate towards the properties that best solve for flexibility, adaptability, and well-being,” according to Erin Saven and Evan Danchenka of Gensler, a global architecture, design and planning firm. Maria Sicola, a founding partner of real estate planning services provider CityStream Solutions and sales and training consultant Integrity Data Solutions, believes tenants will likely make their space “more personalized and less communal – we will likely not return to all-private offices and fancy conference rooms. But all space – personal and meeting — will need to be viewed with more breathing room.” And, of course, cleanliness will command more attention than ever. Commercial Property Executive predicts that “some products and techniques that have been used in medical office buildings and in hospitals are going to be brought to the office sector,” such as microbe-resistant door handles and elevator buttons and sanitation with ultraviolet light. Amenities as differentiators Building owners and developers, for their part, would be well advised to explore “new real estate design strategies that can differentiate them from the competition and...

It’s a tale of two outlooks for the industrial and office real estate sectors, reported the experts from Yardi Matrix and CommercialEdge in a commercial real estate webinar presented on Nov. 11. As the end of 2020 nears, each market has a different trajectory. For owners and investors in the office sector, the full impact of the pandemic and its impact on the way employees work, especially in the knowledge and technology sectors, has yet to be unveiled. Major office properties tend to operate on long leases, so while rent remittance has been generally solid this year, as leases come to term in 2021 things could change. The big question, said Yardi Matrix vice president Jeff Adler, is what use of office space looks like in the future. One thing 2020 has taught us is that it likely doesn’t look like the old model of spending five days a week in a cubicle. “There is a re-evaluation of ‘what is the purpose of space?’ Was the purpose of that space that people got things done there? Or was it a culture purpose? If it was simply to do a task, it’s become clear that task can likely be done at home. How space is used, why space exists and why you need it in the first place is going to be reimagined,” Adler said.  “What kind of office footprint do you actually need to achieve the business goals that you have?” The answers to those questions will determine the floorplans and lease terms of offices post-pandemic. Also at play: where they’re located (public transit use is still dramatically decreased) and how many workers will come to the office on any given day. Right now, going back to a 5-day office work week seems highly...

Arcadia Management Group has expanded its use of the Yardi product line with Yardi Investment Manager. Arcadia will continue to grow its service offerings to be a one-stop shop for investment and property management operations. Investment Manager will take the investment side of Arcadia’s business model to the next level for third-party clients as well as investors and strategic partners. The accessible online portal provides a secure way for investors to retrieve investment and portfolio metrics and related documents anywhere, from any device. Arcadia will be able to automate the subscription agreement process and easily view and track all key fundraising milestones. “Investment Manager provides internal stakeholders with an intuitive, easy to understand view into our most complex deals and joint ventures. The user-friendly online portal gives our investors and external partners timely access to data they need, which allows us to further expand our fund management offerings,” said Gary Shaw, president of Arcadia. With Investment Manager, Arcadia continues to increase efficiency by leveraging industry-leading technology. It will provide a platform for internal collaboration and investor transparency. This will allow Shaw and his team to expand and improve client relationships and service. “We are very excited that Arcadia has chosen Yardi to expand their investment management services, and we look forward to further empowering Arcadia’s growth and success,” said Robert Teel, senior vice president of global solutions for Yardi. Download a brochure to learn more about Yardi Investment Manager. About Arcadia Established in 1986, Arcadia Management Group is based in Phoenix, Arizona and manages over 40 million square feet of commercial real estate across the United States.  Arcadia’s business model is unique in that the company’s core business is third-party property management services. This management-centric approach, without internal brokerage or leasing, makes Arcadia attractive...

Yardi is proud to be the Diamond Plus Elite Sponsor of the first Realcomm | IBcon hybrid conference. Due to the unique and challenging circumstances this year, the event will begin October 26 in a virtual setting with in-person sessions starting October 28 at the Marriott Gaylord Rockies Resort in Aurora, Colo. This premier event hosts hundreds of commercial and corporate real estate executives to discuss technology, automation and innovation. As part of the event, Yardi will have numerous speaking opportunities: Monday, October 26 Senior director Arjun Rao will host a CEO/COO roundtable discussion titled “The Future of Office Leasing: Challenges and Opportunities Explored,” focusing on leasing, demand for space in urban and suburban markets, as well as key factors for restructuring leases. A CIO roundtable focused on the outlook for private equity and the impact of technology on big spend will be hosted by Rob Teel, senior vice president of global solutions. Teel will also participate in a Realcomm LIVE interview to discuss current trends in the real estate industry. Founder and president Anant Yardi will join global thought leaders sharing their visions for the future of real estate technology, the economy and the workplace experience beyond the pandemic. Tuesday, October 27 Anant Yardi will join a panel titled “Industry Leaders Weigh in on Surviving and Thriving in Uncertain Times” to discuss how the real estate industry is trying to define the new normal. Wednesday, October 28  Brian Sutherland, industry principal for commercial, will also take part in a Realcomm LIVE interview session to discuss Yardi’s position in commercial real estate during the pandemic. Check out the full conference agenda, which will be updated continuously as more speakers and sessions are added. Visit Realcomm for more information or to register for the...

Wireless technology is an intrinsic part of everyday life. Whether it’s for mobile work, communication, entertainment or staying informed, the ability to have wireless connectivity anywhere we go is critical. The landscape of wireless is changing. It is faster and more widely available now than it ever has been in the past. Let’s explore how the new normal in wireless is shaping the commercial real estate industry for landlords and tenants. One of the ways in which connectivity has affected consumers is the time they spend in an establishment. A shopping mall for example, will see their crowds linger if they have better service inside the building or stores. Sporting venues throughout the world are spending millions of dollars on infrastructure enhancements to be able to give fans the ability to keep up with other games in real-time, a reason many fans cite as a motive to stay home and watch multiple games simultaneously. Brian Schwartz, vice president of IT at Macerich, said on a recent Realcomm webinar that there are several ways to enhance connectivity. Improving Wi-Fi, distributed antenna systems (DAS), CBRS and newer tech like LPWAN and expanding use of sensors, will all play a role for the connected customer. LPWAN is key for transmitting significant amounts of data over long distances and was created for machine learning and IoT interconnectivity. They are able to support a large number of devices at ultra-low power. It has become an expectation that venues provide Wi-Fi connectivity. It should be readily accessible and free to use, which means it doesn’t generate revenue, but it could be a source of gathering analytics. Property managers should require users or guests to sign in using an email or phone number, opt into a newsletter or some sort of...

Bend, Oregon is well-known for its gorgeous mountains, forests and rivers, well-balanced and high quality of life, and prospering remote work culture (even prior to COVID-19). So, it’s no surprise that despite the pandemic, real estate is continuing to thrive in Central Oregon. Nearby cities Redmond (home to the Bend/Redmond regional airport), Sisters (a charming tourist destination) and Prineville (hometown of Les Schwab tires and now the location of a major Facebook data center) are seeing a boost as well. The team at Compass Commercial Real Estate Services, a new Yardi CRE client, knows that firsthand. They have been providing asset management, construction, brokerage and leasing services since 1996. Currently, their management portfolio includes 700,000 square feet of office assets, 500,000 square feet of retail, and 500,000 square feet of industrial. “We originally started out managing single individual assets, and as Bend grew, we began moving into the next generation of institutional buyers  and local owners with portfolios,” said Jackie Niebling, Vice President of Asset and Property Management and a principal broker for Compass Commercial. “Bend has become a hotbed for individuals seeking work-life harmony. We’re seeing a great deal of activity from outside investors wanting to invest in Bend so that they can relocate here and enjoy our lifestyle,” Niebling summarized. A privately held company, Compass Commercial is not only the largest CRE provider in the region but also a leading authority on regional real estate activity. They even publish a quarterly guide to local rent and transaction activity aptly titled “Compass Points,” which offers a comprehensive snapshot of CRE trends. The most recent edition focused in on the impacts of the pandemic on Central Oregon real estate. And apart from smaller office leases, things appear to be holding up well. Retail and...

It’s hard to imagine entering August with the COVID-19 pandemic still causing mass disruption throughout the commercial real estate industry. While there are varying degrees of guidelines and protocols for reopening buildings, the general consensus is that a large percentage of tenants needed help to navigate these times. Whether it was in the form of rent concessions, deferrals or any other tactic to prevent going under, tenants are reaching out to property managers more than ever. As part of Yardi’s Innovator Sponsorship of the July CRETech virtual conference, Brian Sutherland, commercial industry principal, had a chance to host a discussion with Paul Gaines, managing director of asset management for Accesso Partners. Accesso, based out of Hallandale, Florida, manages a portfolio of over $3.3B in assets across 21 cities in 8 states. Managing Deferral Requests Gaines explained they initially had 150 tenants across the portfolio who requested rent relief. Accesso then requested three things: 1) Ask the tenant to look thoroughly at their insurance coverage for any pertinent information. 2) Ask the tenant to apply for government assistance. 3) Ask the tenant to send complete financial documentation to Accesso so they could work on a plan together. Gaines revealed that his company had been able to reach agreements with 35 tenants on lease amendments or deferrals, without granting any abatements. While it’s a difficult time for all, it is important to realize the difference between those who truly need assistance and those who simply aren’t able to use their office space but are continuing business operations successfully. Thanks to quick and concise decision making within the executive team at Accesso and consistent communication with tenants, Gaines said they have seen 96-97% timely collection across the portfolio since work from home orders were enacted. The senior...

What do we know about 5G connectivity at this stage in its development? First, we know it’s nowhere near the capacity it will have in the coming years. Second, we know that it will provide an incredible speed increase over 4G (potentially 100x faster downloads). Third, we can safely presume it will have a significant impact on commercial real estate. In a recent session at the 2020 Virtual BOMA Conference, Yardi solutions consultant David Franklin explained how 5G is already beginning to transform the industry and reshape communication standards. A world of new possibilities “The change to 5G will be as significant as the change from analog to digital,” Franklin said. While timing is still unpredictable, 5G will become ubiquitous. Existing cell towers may not have to be replaced and, while there will be millions of new towers that pop up, 5G connectivity will be available everywhere. This is due to the fact connection points will become easily installed anywhere from light poles to bus stops. The world of 5G connectivity will enable new apps and facilitate robotics and other AI and IoT enhancements. While 4G brought the capacity to video conference and download and upload at new speeds, 5G is going to top that by “connecting massive amounts of devices with very low latency,” Franklin explained. The progress made by 5G will empower a huge number of low-cost devices with low energy consumption related to IoT. The Internet of Things is already comprised of an extensive list of interconnected devices, but with 5G becoming more prevalent, this will enable more data collection, deeper data analysis, faster communication and, of course, new devices and tasks. Real estate operation already relies on IoT-related components such as thermostats, security cameras, lighting controls and energy conservation systems....

Your tenant in the eastern wing is chronically cold. You’re fighting an uphill battle for safety as your tenant’s employees bring personal heaters into the space.  In the western wing, however, your tenant’s employees can’t get cool enough. They complain of high energy bills while swearing the humidity will lead to mold problems. Uncomfortable tenants are more than a headache. They are a threat to your bottom line. Thermal comfort can impact your tenants’ desire to renew their leases. Additionally, a commercial property with low thermal comfort may indicate inefficiencies in its climate controls or building envelope. High turnover and an inefficient building will adversely affect your bottom line. Thermal Comfort + Your Bottom Line The American Society of Heating, Refrigerating and Air-Conditioning Engineers defines thermal comfort as the condition of mind that expresses satisfaction with the thermal environment. It is subjectively assessed by using the Comfort Scale or Thermal Index, both of which evaluate temperature, humidity, air velocity, and radiant temperature. As comfort is subjective, a commercial building’s thermal comfort ranking will vary from person to person. Health and Safety Executive recognizes an international standard which suggests that a building has “reasonable comfort” when at least 80 percent of its occupants are thermally comfortable. Improving Thermal Comfort in Commercial Properties There are three ways to notably improve tenant comfort and protect your investment: 1. Identify and Fix Leaks Address leaks in the building envelope. Contact a contractor to identify areas where your heating and cooling efforts are defeated by oversights in construction or maintenance. Resealing windows and adding weather stripping to doors, for example, are two quick fixes for drafts. Leakage significantly decreases the energetic efficiency of an HVAC system. As a result, the HVAC system may be working overtime to regulate indoor conditions. Have your units...

The U.S. office property market stayed on the upswing in July, with asking rates increasing 1.1% year-over-year. Office-using jobs increased 1.7% in the same period, driven by the computer design services portion of the professional business services segment, according to a new national report from Yardi® Matrix.  Additional good news includes a robust late-cycle construction pipeline comprising 174 million square feet of space. That will represent a 2.8% increase in inventory when delivered. Manhattan, N.Y., with 24.2 million square feet, and Boston and San Francisco, with 11.5 million square feet and 10.9 million square feet, respectively, are the leaders in that category. Office space deliveries in the first seven months of 2019 totaled 33.8 million square feet, broken down by central business district (6.5 million square feet), urban (14 million square feet) and suburban areas (13.3 million square feet). Office sales valued at $46.5 billion took place through July, only slightly off last year’s pace. Roiling capital markets haven’t affected demand for office space so far. “Economic growth has been running at an annualized rate of about 2.5%, and fundamentals such as employment and consumer spending remain healthy, so a recession does not appear to be on the immediate horizon,” the report says. Find out what else is happening in the dynamic U.S. office market in the most recent Yardi Matrix national office...

Did you know that adding sustainable features to your property can improve tenant retention? It’s true! If you’ve been brainstorming ways to increase lease renewals and decrease overhead costs, green upgrades may be the answer.  The Benefits of Sustainability Tenants look favorably upon earth conscious workspaces. DTZ, an international leader in commercial real estate services, analyzed responses to the 2015 Kingsley Associates’ tenant survey. Researchers discovered a strong correlation between sustainability and client satisfaction. Respondents expressed greater satisfaction with sites that offered environmentally conscious upgrades and services. Fortunately, there are several sustainable features that you can offer that also benefit you! Check out the suggestions below: Promote paperless services. Online services such as online rent payment, online maintenance requests, and online communication are easy ways to decrease deforestation and keep paper out of landfills. Clients will love that online services are quick, simple, and easy to track. You’re improving efficiency for staff while cutting costs on supplies, printing, and fewer late payments. Implement intelligent utility billing. Catching leaks, billing errors, and monitoring consumption through submetering are just a few benefits of energy management systems. Systems’ automated cost recovery programs can save thousands. Make ride share easier. The share economy is estimated to become a $335 billion industry by 2025. Show that you’re savvy to what clients want by promoting ride share at your property. Designate a few easily accessible spaces for ride share drivers. Shared rides decrease traffic congestion. Conduct an energy and resource audit. No one likes to be audited. Fortunately, this audit is a great way to shave overhead costs and gain points with occupants. Have a third-party conduct a water and energy audit of your property. Professionals can catch leaks and wasted resources to help you save money, and then pass...