New Uses for Vintage Warehouses

Often overlooked in partisan fights over government spending are matters where there exists bipartisan agreement. Congress’ failure to agree on the proper size of government hampers movement on issues where most agree government plays an instrumental role. An example of this is the need for increased spending relating to infrastructure in and around our nation’s ports and inland waterways.      

In an ongoing effort to discover and make more transparent the real drivers behind rising real estate taxes on properties owned or developed by its members — and paid, more often than not, by the thousands of business tenants they house — the NAIOP Minnesota Chapter has not only gained support among state legislators, but even won over some of the local government officials most directly affected.      

If cities are in a constant state of flux, shouldn’t the built environment flex along with them? It turns out that adaptable architecture might be more prevalent than we think. Concepts from New York and London illustrate that semipermanent structures present viable options for housing, as well as temporary and ad hoc activities, from art exhibits to sporting events.      

Against the backdrop of the Great Recession, Hines creates a $1 billion pedestrian-friendly, mixed-use complex on 10 acres in downtown Washington’s commercial, cultural, arts, and entertainment epicenter.      

As cities around the world deal with population booms, governments, civic groups, developers, and research organizations have turned their attention to the idea of counteracting suburban expansion with targeted, concentrated urban development, marked by mid- to high-rise multi-tenant buildings with structured or centrally-located parking.      

Businesses and consumers are inundated with “green,” whether watching TV or going to the car wash. It’s enough to force many to simply tune-out, ignoring calls for lower carbon footprints, recycling, and driving less. So what does this mean for commercial building owners?      

The industrial market continues its recovery nationwide, driven by tenant demand for more space to accommodate growth and the need for more efficient locations and buildings to reduce costs. According to the most recent NAIOP Industrial Space Demand Forecast, “the U.S. industrial market is poised for significant growth, with annual net absorption forecast to reach 150 million and 175 million square feet in 2013 and 2014 respectively.”      

In an era of hypertechnology, Opus Development Corporation is doing its best to enable future residents of a luxury residential building, now going up in downtown Minneapolis, to use foot power to access the city’s office towers, shopping, and parks — and to reconnect with the environment and each other.      

Old warehouses are excellent candidates for adaptive reuse, especially those that are well located and eligible for historic tax credits.      

Despite roadblocks over ten years, including community opposition, environmental concerns, and the economy, Westfield delivers a unique retail complex offering a resort-like experience.      

Tim Huffman, executive vice president, national director, Technology Solutions Group at Colliers International, gets about a call a day from a developer-owner that has an older building with a good power supply and floors capable of supporting significant weight. The developer-owner has heard that the data center business is thriving and wants to convert his building.      

When thinking about energy efficiency in commercial real estate, we typically focus on building retrofits or best practices that benefit the property owner. Despite their obvious importance from a cash flow perspective, historically, tenants have not been part of the energy efficiency/green conversation. With the advent of the “green lease,” tenants are beginning to recognize they can benefit directly from leasing space in high performance buildings.      

With tenants in most markets continuing to favor new over existing office space or opting to renew in place, how can a building owner close a deal, apart from offering low rates, free rent, and significant tenant improvement dollars? Plenty, according to David Pogue, CBRE; Thomas Kruggel, Hines; and Mike Lipsey, The Lipsey Company, a training and consulting firm for commercial real estate professionals.      

The future of the real estate industry lies with the next generation of professionals set to graduate from university degree programs. In order to attract these students to real estate, the industry must find ways to engage them and increase their interest. NAIOP Colorado has developed a program that does just that — and has done so for the past 10 years.      

What contributors to the U.S. economy will give us a broader recovery and what is the outlook on inflation? These are just a few of the topics discussed by Dr. Sam Chandan, president and chief economist of Chandan Economics and associated faculty of real estate, The Wharton School, during a presentation to the NAIOP Corporate Board of Directors at the NAIOP National Forums Symposium held in Chicago, IL.      

For the mass transit rider seeking just-in-time service, there are a flood of new smart phone apps hitting the market to convey when the next train or bus is due to arrive.      

All workspaces must be productive and efficient to maximize a company’s return on investment. In a recent webinar, Austin-based Asure Software, which offers scheduling and workplace management software, offered 10 strategies to get the most out of company office space.      

A table showing the top North American ports, ranked by annual container volume on 20-foot equivalent units (TEUs).      

Looking for Capital? Capital Connections - the NAIOP guide to financing lists dozens of firms around the country.      

To foreign investors, commercial real estate in the U.S. looks like “the cleanest shirt in the dirty clothes pile,” as one such investor told Jim Fetgatter, chief executive of the Association of Foreign Investors in Real Estate at a recent investment conference. That should not have come as a surprise, considering that AFIRE’s annual survey among its 200 members showed that four of the five cities selected as the top global cities for investment dollars are in the U.S.      

Stephen A. Crosby has served as President, CSX Real Property since 2000, responsible for sales, leasing and development of surplus CSX properties. He also oversees acquisition of property for industrial development, licensing of rail corridor use for utilities, pipelines or telecommunication transmission lines and numerous other property-related responsibilities.      

Real estate is shifting from a founder-based to successor-based business, with 60 percent of today’s CEOs gone by 2020 and 30 percent fewer practicing firms. This is just one of the intriguing facts shared by Chris Lee, CEO of CEL & Associates, Inc. at the recent National Forums Symposium.      

Some highlights from NAIOP 2013 National Forums Symposium in Chicago, IL.