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- Rooftop Revenue: Make Underutilized Space Profitable Through Energy Harvesting (2010) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Marci DeVries, Hawkeye Construction
Energy harvesting has only recently become financially viable for commercial property owners due to new tax incentives and lower cost of materials. Investors outside of real estate are interested in investing their funds into energy harvesting opportunities, and the most efficient plane for reduced-impact installation is on large-span rooftops such as warehouses, commercial office complexes and mixed-use properties. This paper examines ownership models, installation considerations, maintenance issues, effects of these devices on roof integrity, reliability of power generation and expected financial returns. The white paper provides a balanced, non-biased report to help owners/developers make a decision about which devices to install on their properties, and generally whether or not to pursue energy harvesting on their properties at all.
- Logistics Trends and Specific Industries That Will Drive Warehouse and Distribution Growth and Demand for Space (2010) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: L. Nicolas Ronderos, Regional Plan Association
For the last three decades, structural changes in the U.S. economy have heightened the importance of goods distribution as an economic engine, rather than simply as a cost of production. This research project identified the logistics trends and specific industries that will drive warehouse and distribution growth and demand for space over the next decade. The Regional Plan Association conducted a comprehensive analysis to refine understanding of the current square feet by employee ratios used for warehouse and distribution planning in the U.S and more generally the inventory of logistics buildings and its characteristics over the last decade. Employment data was analyzed at the National level to determine the industries that are expected to expand or contract between 2008 and 2018.
Recognizing that no other real estate sector faces the potential for greater adjustment and transformation of its markets in 2010, the study results will positively impact NAIOP members and the commercial real estate industry by providing an objective assessment of the potential drivers for the demand of space and growth of the industry.
- Assessing Key Employment Trends Driving Commercial Real Estate Development (2009)
Submitted by: Dr. Donald Jud, University of North Carolina at Greensboro
As the economy adapts and changes in response to the pressures of globalization, climate change, new government initiatives, and other factors, the spatial pattern of workspace demand is constantly shifting. Developers are challenged to supply the proper kind of workspace where it is needed most in a changing economic environment. Knowledge of current employment trends helps developers and investors make more informed decisions about the provision of space to better meet future needs as they arise.
The research explored the trends in industrial, office, and total employment from 2000 through the present. Using data on county and metropolitan employment from the Bureau of Labor Statistics, the research indicated:
- Which metropolitan areas have recorded the most rapid/slowest growth in industrial, office, and total employment;
- How the growth of industrial, office, and total employment in central-city counties compares to employment growth in counties on the metropolitan fringe;
- How the pattern of non-metropolitan growth compares to that of metropolitan areas;
- How the growth pattern of the last decade has changed with the onset of the current recession beginning in December 2007;
- Which factors best explain the employment growth patterns of the past decade and which best account for any recent changes;
- Which is the relationship between industrial and office employment growth and the demand for industrial and office space and how this relationship varies across areas and regions of the country.
The following PDF reports are available for this research project. (To download Adobe Acrobat Reader, click here.)
- Mixed-Use Price Premiums (2009) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Dr. Dominic F. Minadeo, Colliers Turley Martin Tucker
To determine if mixed-use is now a viable option for most real estate developers, this study of eight office markets in the Southeast and Midwest employed a hedonic pricing model to exact the rent premium associated with commercial buildings in mixed-use developments. The results uncovered the effect of a mixed-use development on rents for the final product, testing the question, "Does one square foot of office or retail in a mixed-use development garner higher rents per square foot than a comparable product in a single use development?" Thus, NAIOP members will be better able to gauge a building's relative competitiveness and more accurately estimate fair market rents. Furthermore, one ultimately hopes to determine if the price premium is adequate for overcoming higher construction costs and zoning hurdles often associated with mixed-use developments.
- Going Green: Tips, Tools & Examples from the Field (2009) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Abigail C. Johnson, Abacus Property Solutions
A successful green project means different things to different stakeholders. From a sustainable design standpoint, the goal of building green is to decrease or eliminate a building's environmental footprint. From an economic perspective, a successful green building should produce incremental returns through cash flows and disposition value. As evident by the increase in registered projects in the U.S. Green Building Council's LEED rating system, mushrooming of sustainable and LEED-accredited consultants, and significant media attention, the green building movement continues to move forward. Over the last few years, large commercial real estate companies have also begun to green their portfolios, both existing buildings and new construction. The main objective of this research project was to understand when, if and how various green strategies could be used to improve the sustainability of a building while still meeting financial hurdles.
- Predictors of Commercial Real Estate Development (2009)
Submitted by: Andrew G. Mueller and Dr. Glenn R. Mueller, University of Denver
The research project empirically investigated the macroeconomic indicators that drive new development of commercial real estate to determine whether the timing of new commercial development is linked to certain economic drivers having a greater effect on the office, industrial, retail and multi-family property types. Economic determinants of development for each property type at the national and MSA level are discussed along with practical approaches on how to use the research findings. The approaches to using these indicators could help NAIOP members with forecasting future demand for commercial real estate space and also better determine future leasing expectations, competition in specific markets and across property types, and aid in the development of more accurate feasibility studies for future projects.
The following PDF reports are available for this research project. ( To download Adobe Acrobat Reader, click here.)
- Exploration of LEED Design Approaches for Warehouse and Distribution Centers (2009) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Edmund Klimek, AIA,KSS Architects
The research examined sustainable design practices particular to distribution centers and offered recommendations organized around the LEED Core and Shell approach. The research reviewed the LEED CS checklist and presented points that could readily be achieved within standard design/construction approaches, points that could be viewed in an interpretive manner that addresses the unique characteristics of the building type, and offered approaches that would be unique to Distribution Centers. Fundamental to the research was the understanding that distribution centers are essentially different than heavily occupied buildings, that they use energy and resources differently, and that the criteria for site selection suggests different approaches. Also fundamental was the concept that while they work differently, the same underlying principles for sustainability could be applied and that they can have a significant environmental impact.
The report is currently in the review process with the U.S. Green Building Council (USGBC). Representatives of the USGBC conveyed that the approach adopted by the research was in keeping with their desire to create "Bookshelf" LEED guidelines. These would be used in concert with current LEED-NC and would offer specific interpretations and additional points that would pertain to specific project typologies. LEED for Distribution Centers would become one of those "Bookshelf" guidelines.
- The New Age of Trade: The Americas (2009) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Maria T. Sicola, Executive Managing Director, Research, Cushman & Wakefield, Inc.
The research assessed North and South America as a dynamic trading block and begins with an economic backgrounder that focuses on major trends in international trade, the impact of Asian imports, and the role of major ports in international trade flows. The report also covers trends and issues influencing warehousing such as the impact of NAFTA on the U.S. and Mexico; the expansion of the Panama Canal; the emergence of the Caribbean as a transshipment hub; and South America's growing role as a major importer and exporter of goods. All topics are followed by a brief discussion of the impact on real estate, including a mention of countries or cities that stand to benefit the most. The report provides strategic intelligence for NAIOP members regarding the most significant trends shaping industrial markets across North America.
- The Contribution of Office, Industrial and Retail Development and Construction to the U.S. Economy (2008 edition) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Stephen Fuller, George Mason University
The value of commercial buildings is much more than the sum of their construction outlays or their assessed valuation. Commercial real estate development, construction and operations create a ripple effect in the economy. This contribution consists of annual direct spending for new development and construction and annual expenditures to operate existing buildings. Additional important economic benefits – the ripple effect - are also derived from the respending of the salary and wages supported by direct construction and operating outlays and purchases of construction-related materials and services from vendors. The combination of these direct and indirect (and induced) outlays constitutes the total output or contribution to the national economy. The objective of this research project is to calculate the contribution of office, industrial and retail commercial buildings to the national and respective state economies, and to provide a document that commercial real estate, from association leaders to all NAIOP membership, can use to explain the economic and fiscal importance of commercial buildings to local, state and national audiences.
- Measuring the Impact of Hispanic Population Growth on the Location of and Demand for Commercial Real Estate in the U.S. (2008) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: G. Donald Jud, PhD, Bryan School of Business and Economics, University of North Carolina at Greensboro
Hispanics now comprise the country's largest and fastest growing minority group. The purpose of this research is to assess the economic impact of Hispanic population growth on the location and demand for commercial real estate in the United States. Using input/output analysis, the research detailed the economic impact across various geographic areas including the 50 states and major metropolitan areas. For each geographic area, the research indicates the income and employment impacts on major industrial sectors and estimates the demand for industrial and office space. The research also calculates Hispanic population multipliers showing the impact on employment and industrial/office space per unit of population growth. Thus, the research provides a foundation for estimating the likely impact of future growth in the Hispanic population. NAIOP members will be better able to position their businesses to take maximum advantage of the expected future trends in the growth of the Hispanic population.
- Commercial Real Estate in a Flat World: The Implications of Economic Globalization for Industrial, Office and Mixed-Use Real Estate in North America (2008) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: David Pearce Snyder
This research examined the 10 "flatteners" advanced by Thomas Friedman in his book, "The World Is Flat," and compared his conclusions with published statistical forecasts . The report identified valid trends and implications for owners and developers of industrial, office and mixed-use properties. The research also examined how the projected adoption of six rapidly maturing applications of the World Wide Web - infomating, outsourcing, home-basing, off-shoring/in-shoring, e-learning and e-tailing - can be expected to impact the staffing and facilities (and ultimately, the demand for space) of five major classes of enterprise in the five sustainable markets (as identified in earlier research completed for the NAIOP Foundation): retail trade; professional, scientific and technical services; employment services; finance, insurance and banking; and transportation and warehousing.
- Green Building Incentives That Work: A Look at How Local Governments Are Incentivizing Green Development (2007) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Jerry Yudelson, Yudelson Associates
This study uncovered the scope of green building incentives being offered across state and local governments in the U.S. as of August 2007 and assesses what optimal mix of economic and procedural incentives may further green building goals in other municipalities, while assisting developers who want to “build green.” The report also contains an Appendix of local government programs, policies and incentives by state and city.
- An Analysis of Mixed-Use Development: Concepts, Ideas, Issues and Metrics (2007) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Joseph S. Rabianski, PhD, CRE, Department of Real Estate, Georgia State University
What factors make mixed-use development popular and financially feasible? What challenges, obstacles or barriers affect mixed-use development? What physical, economic, design and market factors lead to the financial success of a mixed-use development? This research project addressed these questions through a literature review of various commercial real estate industry publications. The report also incorporates some commentary resulting from personal interviews and a convenience sample survey of NAIOP members involved in mixed-use development projects.
- The Boom and TICs: Will They Continue? (2006) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Mark Levine, PhD, Burns School, University of Denver (NAIOP Distinguished Fellow)
The purpose of this research is to determine the qualifications of a transaction to fall within Code 1031 as a tax-deferred exchange when employing a TIC. Likewise, this research will look to implications that such a transaction might not, in all circumstances, constitute a qualified Code 1031 tax-deterred exchange, which would, thus, be disqualified by the IRS. Given that over $4 billion of exchanges occurred in 2005, the implications of an adverse IRS determination are draconian and would generate potentially large amounts of tax, interest and penalties, along with liability for the advisers (whether in real estate, law, accounting and/or brokerage) who advised the parties to use a TIC with a tax-deferred exchange.
- Adequate Public Facilities Ordinances: The Challenges of Concurrency (2006)
Submitted by: Richard Buttimer, Steven Ott, and Dustin Read, University of North Carolina Charlotte
Many growing communities are faced with the challenge of providing public services to their expanding population. Adequate Public Facilities Ordinances (APFOs or Concurrency Regulations) have emerged as a popular planning technique, designed to ensure public infrastructure is in place before new development is allowed. Requiring concurrency between infrastructure development and new construction is an appealing option for planning officials because it prevents a community from being overwhelmed by growth. Despite these benefits, APFO regulations have been confronted by both legal attack and policy debate. Real estate developers, affordable housing advocates and “smart growth” proponents have all challenged the wisdom and legality of APFOs. This research project will review current literature, and examine the legal, economic, and social implications of adequate public facilities ordinances. It seeks to answer the question, “Can APFOs serve as a legitimate growth management technique?” This research is funded by an intern grant from the national NAIOP organization, and administered by the Government Affairs department.
Adequate Public Facilities Ordinances in North Carolina: A Legal Review (PDF - To download Adobe Acrobat Reader, click here.)
The Effect of Growth Management Strategies: Adequate Public Facilities Ordinances and Impact Fees: A Review of Existing Research
- Commercial Real Estate Career Education and Resource Guide (2006)
Submitted by Norm Miller, Ph.D., The Homer Hoyt Institute for Real Estate
This book and Web site, anticipated in Fall 2005, will provide a resource that high school counselors can use to better understand the professional paths that someone in the commercial real estate industry might follow. University students may also benefit by knowing more about the various career opportunities in appraisal, brokerage, leasing, corporate real estate, development, real estate finance, real estate law, institutional investment, property management, consulting and planning and more. Published by the Hoyt Institute for Real Estate, HIRE, part of the Homer Hoyt Institute based in N. Palm Beach Florida, this is a cooperative effort sponsored in part by NAIOP.
- NAIOP Terms and Definitions: U.S. Office and Industrial Market (2005) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Deloitte & Touche and Real Estate Investment Advisors, Inc.
NAIOP Terms and Definitions: U.S. Industrial Market is a comprehensive glossary of industry terminology crafted to enable more transparency in property data. This document will ensure that the industry works from a common starting point when developing business. Standardization of terms and the resulting transparency of information, therefore, may contribute significantly to increased capital flow, improved liquidity and enhanced credibility for the industry at large. NAIOP encourages you to adopt and implement these terms, and encourage others to do so as well.
NAIOP Terms and Definitions: U.S. Office Market is a comprehensive glossary of industry terminology crafted to enable more transparency in property data. This document, the first of its kind, will ensure that the industry works from a common starting point when developing business. Standardization of terms and the resulting transparency of information, therefore, may contribute significantly to increased capital flow, improved liquidity and enhanced credibility for the industry at large. NAIOP encourages you to adopt and implement these terms, and encourage others to do so as well.
- How to Calculate the Economic Contribution of Office, Industrial, and Retail Real Estate to the Local Community (2005)
Submitted by: Stephen Fuller, George Mason University
In this era of anti-development sentiment, it would be very valuable for the development community to have a tool to demonstrate to public officials, the local media and citizens the overwhelmingly positive contributions that commercial real estate makes to a community. This project has two parts. First, we developed a form listing the sources of the contributions that office, industrial, office/tech and retail make to their communities through taxes, job growth, etc. Second, a White Paper instructing Chapters about how to locate the specific information needed to fill in the form was written.
- Developing Influencer Relationships to Accelerate Development Success (2005) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: Jonathan Feinstein, SVP, Vanasse Hangen Brustlin; Partner, Triluna;
Lois Kelly, Partner, Triluna;
and
Walter J. Carl, PhD, Assistant Professor, Northeastern University
The growing influence of community leaders, government representatives, citizen action groups, media reporters, environmental regulators and watchdog groups can stop a development project in its tracks - or, accelerate its success. The purpose of this research was to:
- Quantify the value of effective influencer relationships to the commercial real estate industry.
- Pinpoint the development areas that are most affected by influencer relationships - positively and negatively.
- Provide case studies of how developers have successfully worked with influencers to move projects forward.
- Examine how developers can more effectively build working relationships with environmental and Smart Growth opinion leaders.
- "The Rebirth of Older Industrial Cities: Exciting Opportunities for Private Sector Investment" (2004) (PDF - To download Adobe Acrobat Reader, click here.)
Submitted by: David Soule, Joan Fitzgerald, and Barry Bluestone from the Center for Urban and Regional Policy, Northeastern University
The goal of this project was to identify the key “deal breakers” that act as barriers to urban development and to identify potential public and private sector strategies aimed specifically at overcoming these obstacles to inner city corporate investment. These barriers can be overcome if city leaders take a proactive, aggressive stance to meeting the complex needs of firms looking to start up operations, relocate, or add new facilities. Firms are willing to consider older industrial sites and abandoned “greyfield” commercial districts if municipal leaders and state agency personnel can work with them as a team to expeditiously solve problems related to
zoning regulations, brownfield remediation, permitting, and an array of related factors. The research focused on sites identified by officials in Boston, Chelsea, Holyoke, Lawrence, and New Bedford, and on six key industrial sectors, all identified as strategic by the state government: health care/life sciences; biotechnology; information technology; financial services; traditional manufacturing, and travel and tourism.
- Financing Regional Infrastructure (2002)
This research project addresses the need for infrastructure planning and financing that is frequently linked to the question of regionalism because these components cut across local government boundaries. This leads, in turn, to local and regional discussions about whether planning, financing and implementation of such infrastructure systems can and should be handled locally.
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