Amenities: More Over-the-Top Than Ever
Attempts to one-up other management companies to gain new student tenants have reached new heights, says the Wall Street Journal. Landlords are now partnering with corporations like Uber, Best Buy and bike-sharing service Zagster to offer promotions and discounts to students living in their buildings.
Good or bad approach? Some management companies love the way this helps them compete at a low cost, while others are skeptical of interfering with students’ consumer relationships. Where is this all going? Find out
Photo: Al Payne of A.F. Payne Photographic Inc.
Should We Scale Back?
National Real Estate Investor interviewed several student housing owners to analyze trends. While most say student housing is gaining value and becoming a more mainstream asset, Campus Apartments CEO David J. Adelman notes that high-level amenities often increase construction costs and only appeal to high-income students. Find out more here. Read more
E-commerce sales continue to grow—by an estimated 4.2% in the second quarter—while overall retail sales grew just 1.6%, according to the Commerce Dept. Online sales still only make up 7.2% of total sales; however, this shifting in consumer behavior and supply chain usage has retailers and CRE developers rethinking how to reach those powerful consumers. Here’s a look at current trends:
Third-party logistics providers see strong demand due to changes in the supply chain. 3PLs are in big demand right now for transportation, warehousing, and fulfillment services, particularly in the next-day and same-day delivery arena. 3PLs are in the highest demand in dense metro areas like Chicago, New York, Dallas, and New Jersey. Click here for more on where this is headed.
E-commerce boosting sales of traditional retailers as some successfully tap into the supply chains. Big U.S. retailers such as Home Depot, Target, and Wal-Mart are building fulfillment centers to package and ship goods to consumers more productively and profitably. Home Depot and Target saw their online sales grow by 25% and 30%, respectively, in the second quarter. Click here for more.
Bricks and mortar retail redevelops to compete. Westfield Corp. will spend millions on LA’s Century City Mall to compete with local retailers and the rapid growth in e-commerce. Click here for more on their attempts to make the mall an irreplaceable “lifestyle center” (which cannot be duplicated online).
Millennials are the hot commodity these days, but what do they want in office space? Scott-Spector, principal of New-York-based architectural firm Spector Group, describes how to appeal to Millennials in workspace design:
- Amenities. And more amenities—Bring on the fully stocked kitchens, the pool tables and the health clubs in the building.
- Collaboration spaces –so they can share ideas and work in flexible group arrangements
- Flexibility—to move desks around, pull up benches, etc.
What NOT to include?
- Private/enclosed spaces
- Poor lighting
- A shortage of free food! (A good salary and an awesome climbing wall are not enough, apparently).
See this story for more on Millennials. And, still more on this topic out of Atlanta.
(Pictured above: an open office in the UK, not affiliated with the referenced articles)
Strong multifamily growth supported by urbanization and continued job growth. Atlanta is reflecting the national trend of city migration. Millennials desire long-term renting in the city with access to trendy amenities and nearby city entertainment, and Baby-boomers are following suit. According to a CBRE report, the apartment vacancy rate is 4.8% with a home-ownership rate of 63.4%–the lowest since 1967. Popular Atlanta submarkets for Millennials and other renters include Buckhead, Midtown, Old Fourth Ward, and Inman Park. Find out more here.
Millennials are a target for this Buckhead development in Atlanta
Find out more on this Buckhead multifamily development.
Next-generation office developments are the trend in city centers like Orange County.
Irvine Co. is developing six next-generation office structures. Nicknamed “next-gen” office buildings, these developments intend to balance productivity and efficiency along with modern collaborative features in the workplace—features including cafes, wellness-centers, and other indoor and outdoor activities. The developers say the campuses they are building are not totally unlike college campuses. The “amenities race” is not limited to multifamily. Check it out in this office development story.
Retailers are following you online—and here’s why that’s good. Forbes’ writer Erika Morphy moves us past Amazon and digs into how technology, such as SmarterHQ, can help online retailers predict buying patterns and serve up online options accordingly. Check out this e-commerce and overall retail story.
Coastal markets hot for retail investment–As retail rebounds post recession, Real Capital Analytics looks at what markets are hot. Seven of the top 10 are coastal, with Chicago, Dallas and Houston the exceptions. The top? Manhattan, which accounted for 42 percent of the total investment sales. Click here for more.
By Ryan Ori
Originally published online on February 5, 2014 by Crain’s Chicago Business
A New York investor paid about $85 million for the 1.6 million-square-foot Solo Cup warehouse in south suburban University Park, the largest sale of a single-tenant industrial property in the Chicago area in eight years. An affiliate of W.P. Carey & Co. bought the distribution center at 701 Central Ave., the New York-based real estate investment trust said today. The seller was a venture of Chicago-based investor and investment manager Fulcrum Asset Advisors LLC.
It is the largest sale of a distribution center leased by one tenant in the Chicago area since early 2006, according to New York-based research firm Real Capital Analytics Inc. A three-building Kraft Foods Inc. warehouse in Aurora sold for about $93.9 million in January 2006, according to Real Capital.