A thriving job market is great for commercial real estate, especially when it demands industrial sites. After decades in China, several American-owned manufacturers are bringing their jobs back to American soil. Property developers and owners in a few unlikely areas are benefiting from reshoring efforts.  Why the Switch? The American skilled labor workforce has always had its appeal. That skills, however, sometimes came at a cost that seemed prohibitive to many manufacturers. Times are changing. Manufacturers are discovering that automation may help them experience significant savings on labor costs. Automated plants, staffed by a small group of highly qualified tech professionals, can cost less than foreign factories with thousands of laborers. A growing number of companies are finding that the costs of manufacturing—coupled with transportation and distribution expenses—don’t offer the savings that they once did. Tray Anderson, lead of logistics and industrial services in the Americas for Cushman & Wakefield, suggests that reverse logistics are a key factor in reshoring decisions. “Typically, we see an appetite for reshoring if there is an eight to 12 percent difference in overall costs [compared to manufacturing products outside the U.S.],” said Anderson. That margin has decreased when manufacturers consider capital investment, labor costs, logistics, storage, depreciation, operations, and product returns as well as losses from product obsolescence that occurs when shipping products between continents, he says. Then there are the tariffs. A poll issued by the American Chamber of Commerce and its partner in Shanghai reveals the impact of recent tax. This year, about 40 percent of respondents state that they “are considering or have relocated manufacturing facilities outside of China.” Comparatively, the 2018 survey stated that only 30 percent of manufacturers had considered “partial relocation.” America has further sweetened the pot for companies with local and...

The National Apartment Association Education Institute (NAAEI) now issues monthly reports called the Apartment Jobs Snapshot. The report includes an overview of the job market as well as a special highlight for a key position within the industry. Creating the Report The report addresses concerns faced by NAA members for years: a lack of comprehensive employment data and a shortage of accessible resources on our industry. Paula Munger, Director, Industry Research and Analysis explains, “We hear often from our members how challenging it is to attract, recruit and retain talent in this very competitive environment. There is a shortage of labor in the apartment industry as it continues growing in this cycle. As the Snapshot evolves over time, it can be used as a benchmarking tool based on location, job title, salary, time to fill and any number of other variables.” Rather than presenting a white paper, the NAAEI report features engaging infographics that are colorful, informative, and concise. “Since it’s basically real-time data, the goal is to release it as soon as we can at the close of every month,” says Munger. “We wanted a very easy-to-digest, quick ‘snapshot’ of the current apartment job market.” First Edition Higlights The first report, issued in February, shows over 4,600 jobs are available in the nation’s apartment industry. That’s an 18 percent increase in job postings over the previous month. Demand increased across the board but particularly for maintenance supervisors. There are more than 580 job listings for maintenance supervisors spread across the United States. Next in demand came leasing consultants with more than 530 job postings. Some cities carry the bulk of job demand. Denver leads the percent of total real estate jobs in top metros with a staggering 48 percent. Denver is followed by...

Where are the most affordable places to live in the U.S.? Demographia’s 13th Annual Affordability Survey brought to light a list of affordable markets in the U.S. based on their median multiple, a number obtained by dividing the median house price by the median household income. The Median Multiple is widely used for evaluating urban markets and has been recommended by the World Bank and the United Nations. According to the survey, there are 82 affordable housing markets in the country. Racine, Wisc., is the most affordable of them this year, followed by Bay City, Mich. Decatur, Ill., Elmira, N.Y., and East Stroudsburg, Pa. America’s Kringle Capital is No. 1 With a population of less than 80,000, Racine is officially the most affordable city to live in based on median house price and median household income. If you decide to settle here, you’ll be 22 miles south of Milwaukee and 77 miles north of Chicago. Located at the mouth of the Root River, on the shore of Lake Michigan, the city is most famous for its Danish pastries. In fact, its nickname is derived from the kringle, an oval-shaped, buttery, flaky delicacy. But Racine is more than finger-licking desserts. The city boasts a zoo, a beautiful lakefront, a picturesque lighthouse, museums and historic architecture. Affordability Perks Bay City, Mich., ranks second in the top 5 most affordable cities. According to recent data published by mlive.com, the city is oversupplied, which keeps home prices and rent levels very low. City officials are struggling to eliminate blight, increase home values and attract new homebuyers. So if you’re thinking about moving to a riverfront property in a quiet town, now’s the time to do it. The third most affordable city in the U.S. this year is Decatur,...

What happens when interior design mimics software development and architecture merges with technology? For the founders of WeWork, the end result is a property management hybrid that owes more to start-ups than real estate agencies. With an estimated worth of $16 billion, founders Adam Neumann and Miguel McKelvey have managed to elevate the business of renting office space in a way that appeals to millennials and embraces the versatility and tech-savvy innovation of Silicon Valley. Unlike other workspace rental companies, WeWork aims to provide more than just a desk and some Wi-Fi. WeWork memberships provide a whole host of benefits. WeWork’s 50,000 members can expect “super-fast Internet,” cleaning services, on-site community managers, and free coffee, tea, fruit water and, of course, beer on tap – all for tiered fees ranging from $45 to $1000 per month. Tailor Made Office Space For quick deployment, uniformity is an essential aspect of the company’s business model. As it turns out though, a typical WeWork office is not so typical. The Williamsburg locale features all the accoutrements of the hipster lifestyle – craft beers, exposed brick, and wood paneling abound – but WeWork offices are customizable based on location and need. Customization is achieved through innovative use of Building Information Modeling (BIM). BIM trades blueprints for digital models. Through digitization, building designers can plan for the lifespan of a project, from construction to cost management and facility operations. The ability to adapt appealed to WeWork’s founders. After collaborating with architectural design firm Case on several WeWork locales, they eventually purchased the company. “When you go to a normal architecture firm they aren’t going to be innovative in terms of their systems,” McKelvey told Wired. “They’re not going to be thinking of the whole lifespan of this project, or how do...

Employment survey results from the National Multi Housing Council reveal what apartment industry insiders already know – a strong rental climate nationwide is driving job growth. In other words, it’s a great time to become a multifamily professional, or take advantage of new opportunities to expand your skills, relocate to a new market, or move up to a higher level position. The NMHC’s 2012 Apartment Compensation Survey documented job and compensation growth, anticipated future hiring, benefits and perks, creation of new positions, and more.  Jobs are being created in online marketing/social media management, systems technology, maintenance and management. “Digital marketing experts are in demand, as are technical trainers, who help staff members at the site level learn how to use software and interfaces relevant to their jobs,” Esther Bonardi, industry principal for RentCafe, told us recently. Data for the NMHC report was drawn from 93 apartment companies with a combined 50,000 employees. Among the findings offered to the public: 65 percent of the firms surveyed grew their staff last year Firms that added employees grew their staff size by an average of 11 percent Salaries for leasing, maintenance, and property management grew an average of 3 percent 62 percent increased their merit bonus pool 77 percent of firms reported improved financial returns in 2011 78 percent expect those returns to improve again for 2012 Common perks offered for employees in the multifamily industry include education assistance, housing discounts, telecommuting, flex hours and wellness programs. How common are they? Among survey respondents: 53 percent of apartment firms offered a wellness program 49 percent allowed telecommuting 23 percent offered  flexible hours Over 60 percent offered education assistance to various staff 74 percent offered housing discounts to on-site staff The full survey summary is for sale and...