Nearly 120 nominations were received by NAIOP for chapters in the small, medium and large division category, as well as recommendations for chapter of the year and outstanding performance by a volunteer, chapter executive and chapter president.
"NAIOP has a long tradition of honoring its chapters, and this year's event was no exception," said Thomas J. Bisacquino, NAIOP president. "Every nomination this year was excellent, and our volunteer panel of judges were challenged to narrow down the award winners. On behalf of the association, I congratulate each and every nominee, and offer special recognition to the 25 chapters who were honored during our celebration."
The following is a list of NAIOP Chapter Merit Award winners:
Chapter of the Year - honors a chapter in each category for their outstanding work, participation and achievements. The winning chapters each receive a $1,000 education grant to further educational programming on the local level, as well as a trophy that is displayed in NAIOP's corporate office and the chapter's local office.
- NAIOP Oregon (small chapter winner)
- NAIOP New Mexico (medium chapter winner)
- NAIOP Minnesota (large chapter winner)
- Outstanding Contribution by a Chapter Executive: Kathie Barstnar, NAIOP Colorado
- Outstanding Contribution by a Chapter President: Richard Lechtman, NAIOP New Work City
- Volunteer of the Year: Gordon Hess, NAIOP San Francisco Bay Area
- NAIOP Tulsa : Tulsa Commercial Properties
- NAIOP Inland Empire: NAIOP Inland Empire
- NAIOP Arizona: Supplement in Arizona Commercial Real Estate Magazine
- NAIOP Greater Toronto
- NAIOP San Francisco Bay Area
- NAIOP San Diego: "Adopt a Marine Buddy" Program
- NAIOP Central Florida: Real Estate School at University of Central Florida
- NAIOP Update New York: Habitat for Humanity Event
- NAIOP Minnesota: DL Membership Growth and DL Committee
- NAIOP Central Florida: Development 101 Series and DL Programs
- NAIOP Northern Ohio: DL Membership Growth and DL Events
- NAIOP Colorado: Annual Real Estate Challenge
- NAIOP New Mexico: Annual Seminar on the State of the Markets
- NAIOP Connecticut & Suburban New York: Developer Showcase Programs
- NAIOP New Jersey: Chapter Advocacy Fund, Legislative Programs and Stateside Jobs Initiative
- NAIOP New Mexico: Chapter PAC and Legislative Successes
- NAIOP North Carolina Piedmont Triad: Legislative Coalition
- NAIOP Washington State: Membership Retention Program and Targeted Prospecting
- NAIOP New York City: Chapter Awareness and Membership Growth
- NAIOP New Jersey: WeekEnder Brief: News for NAIOP New Jersey Leaders
- NAIOP Vancouver: Annual Municipal Survey
- NAIOP Georgia: School Challenge Program
- NAIOP Southern Nevada: Annual Spotlight Awards
- NAIOP San Francisco Bay Area: Real Estate Challenge Program
- NAIOP Northwest Florida: Event to Raise Funds for Statewide Organization
- NAIOP SoCal: Corporate Sponsorship Program
- NAIOP Nashville: "Season Pass" Corporate Sponsorship Program
- NAIOP Hawaii: Corporate Sponsorship Program
- NAIOP Colorado: ResourceSmart Colorado
- NAIOP New Mexico: Sustainability Seminars and Governor's Blue Ribbon Task Force
- NAIOP North Carolina Piedmont Triad: Chapter Web Site
- NAIOP San Francisco Bay Area: Chapter Web Site
- NAIOP Colorado: Integrated Communications
The Chapter Merit Awards are a traditional highlight of the association's Chapter Leadership and Legislative Retreat, which brings together more than 265 chapter leaders and executives representing NAIOP's 56 chapters throughout the United States and Canada.
This annual gathering provides exceptional education sessions and the opportunity to network with chapter leaders from across the country. The educational sessions are broken down into concurrent sessions focusing on the specific chapter roles of each attendee. This year's sessions focused on Leadership, Government Affairs, Management and Membership.
Attendees join together for keynote sessions throughout the event. Keynotes at this year's conference included political analyst Charlie Cook; Dr. Ann Atkinson from Atkinson & Associates LLC; and Chairman of the National Republican Senatorial Committee, Senator John Cornyn (R-Texas).
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
"The Center for Education offers an integrated source for world-class continuing education," said Thomas J. Bisacquino, NAIOP president. "This innovative center was created for professionals involved in all aspects of commercial real estate who are pursuing comprehensive industry education to give themselves a competitive advantage in today's market."
A wide range of programs on relevant topics - from development to finance to construction management - will be offered through The Center for Education in both live online formats, as well as the traditional classroom setting, to accommodate individual learning styles and preferences.
In 2010, these programs will be presented in the form of eight NAIOP courses, 14 Education Webinars and six adapted courses available through NAIOP's Chapter Education Partnership. The Center assigns an educational credit value for all of its offerings, and these values are measured in the form of both Professional Development Hours (PDH) and Continuing Education Units (CEU). NAIOP is also a registered provider of Learning Units (LU) through the American Institute of Architects' Continuing Education Service. In addition, programs are structured to accommodate individual learning levels, from introductory to expert and are open to NAIOP members and non-members.
For those wanting to pursue a more rigorous path of continuing education and enhance their professional standing, The Center for Education also offers participants the option of earning two certificates to confirm completion of the challenging curriculum of core courses. Students can pursue an Advanced Certificate of Study in Commercial Real Estate Development through NAIOP by completing 73 hours of study via a planned curriculum of core courses, electives or Chapter Education Partnership courses and Webinars. Another certification is available through NAIOP's Online Executive Graduate Certificate program, held in partnership with the University of Denver.
For more information on The Center for Education, including a complete listing of course and Webinar offerings, visit www.naiop.org/thecenter.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
The Promise captures the specific steps NAIOP will take in 2010 to protect the interests of its members and the industry-at-large, and to provide solutions that sustain its members businesses and facilitate returning the industry to good health.
"NAIOP recognizes the unprecedented challenges facing the commercial real estate development industry," said Thomas J. Bisacquino, NAIOP president. "The obstacles - frozen capital sources, a turbulent global economy and the decline in transactions and employment - are beginning to show signs of improvement, yet their sustained impact will yield a considerable recovery period. In difficult times, NAIOP members need their association more than ever."
In 2010, NAIOP will:
- Seek Solutions to the Credit and Capital Crisis
NAIOP's government affairs team will continue to work for public policy solutions that increase capital sources, create jobs and assist commercial real estate in its recovery. In addition, NAIOP maintains a Commercial Credit and Capital Advisory Board of experts to interpret trends and advise members on strategies for accessing capital.
- Provide Critical Education and Information
NAIOP has expanded its array and delivery method of industry education to include online courses and Webinars, chapter-delivered programs and traditional, live courses and conferences. NAIOP will continue its popular online "Solutions Series" briefings that offer real-time viewpoints and practical strategies about industry trends, opportunities and strategies.
- Identify Innovation and Trends that Yield Opportunity
NAIOP will share news on innovation, positive trends and key strategies that will advance the industry via member communications and the NAIOP Web site. The NAIOP Research Foundation will continue to produce forward-looking studies and vital reports that identify future development opportunities, assess employment trends and reveal the vital role commercial real estate plays in the economy.
- Protect the NAIOP Member Advantage
NAIOP is offering complimentary membership to long-standing NAIOP members who become unemployed, while they are seeking employment within the industry. Additionally, NAIOP will dedicate resources to support Developing Leader members (members age 35 and less) and strengthen the chapter structure so that members are afforded local, regional and North American networking and education opportunities.
A video message from Bisacquino and the full text of the Promise are available online.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
HERNDON, Va., October 28, 2009 – NAIOP, the Commercial Real Estate Development association, has named its 2010 Executive Committee, led by Lawrence Pobuda, partner with Minneapolis-based Stewart Lawrence Group. Pobuda will serve as chairman for the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate.
Pobuda accepted the leadership gravel from 2009 Chairman Douglas Howe, CEO of Touchstone Corporation, during NAIOP's Development '09: The Annual Meeting for Commercial Real Estate, held earlier this month in Chicago.
"NAIOP is delighted that Larry is serving as our corporate chairman," said Thomas J. Bisacquino, NAIOP president. "His extensive involvement in the commercial real estate industry and his contributions to NAIOP are a tremendous strength, and we look forward to his astute and forward-thinking leadership throughout 2010."
Pobuda joined NAIOP in 1994 and is an active member of NAIOP Minnesota. He is a member of the Office Development I National Forum and an alumnus of the Harvard University Leading a Real Estate Company program.
"Our industry is facing tremendous challenges in 2010 - economic forces unlike anything we've seen before, a legislative climate that is creating additional headwinds and frozen credit markets," said Pobuda. "As chairman, it's my goal to ensure that NAIOP members are prepared to face these challenges. I remain optimistic, yet realistic, about the future and am confident that NAIOP's ongoing pledge to provide its members with real-life education, unmatched networking and strong legislative advocacy that will affect positive change and drive our industry."
Twelve Leaders Named to Executive Committee
In addition to Pobuda, 11 NAIOP members and NAIOP President Bisacquino will lead the association as members of the Executive Committee. In their roles, these members will work with the corporate committees and NAIOP's corporate staff to plan and execute 2010's programs and activities.
Members of the Executive Committee are as follows:
| Chairman-Elect Alex Klatskin Forsgate Industrial Partners Teterboro, N.J. |
Treasurer Gregory Walz Northwestern Investment Management Co. Milwaukee, Wis. |
| Immediate Past Chairman Douglas Howe Touchdown Corporation Seattle, Wash. |
Vice Chair, Membership and Chapter Relations Steve Martin SDM Partners Atlanta, Ga. |
| Vice Chair, Government Affairs Bill Hunt Elmhurst Group Pittsburgh, Pa. |
Vice Chair, Business Development Gary M. Edwards Western Realco Newport Beach, Calif. |
| Vice Chair, Education Jean Kane Welsh Companies LLC Minneapolis, Minn. |
Vice Chair, Industry Task Force Ralph Heins Primera Companies, Inc. Dallas, Texas |
| Vice Chair, National Forms Stephen Bronner Parmenter Realty Partners Dallas, Texas |
Vice Chair, Sustainable Development Rod Lawrence The JBG Companies Chevy Chase, Md. |
| Secretary and Vice Chair, Information and Research Gene Reilly AMB Property Corporation Boston, Mass. |
For more about NAIOP, visit the online press room at www.naiop.org/pressroom.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
HERNDON, Va., October 27, 2009 – The NAIOP Research Foundation is pleased to announce the appointment of Dr. Urs Gauchat as one of its Distinguished Fellows, effective January 1, 2010.
The NAIOP Distinguished Fellows program serves as a bridge between the practicing commercial real estate community and the academic community. Distinguished Fellows are active in NAIOP, including presenting to the association's leadership via the Board of Directors or National Forums, participation on NAIOP's corporate committees and providing advice, feedback and information to NAIOP regarding research being conducted in commercial real estate.
Gauchat serves as a dean and professor of Architecture with New Jersey Institute of Technology's School of Architecture. In addition to previous academic teaching experience with New Jersey Institute of Technology, Harvard University's School of Design and Boston Architectural Center, Gauchat served as president of Gauchat Architects from 1978 - 1998. He received his Master of Architecture degree from Harvard University's School of Design and a Bachelor of Architecture degree from the University of Sydney in Australia.
Gauchat has appeared as a guest lecturer for countless organizations through his esteemed career, including the American Institute of Architects, Boston's Architectural Center and the United Nations. He has authored/co-authored numerous articles and papers on a wide range of architectural subjects and also devotes his time to several professional and community organizations including AIA New York's Board of Trustees, Essex Community College's Advisory Board and the D & L Foundation, among others.
Shirley A. Maloney, executive director of the NAIOP Research Foundation, said, "We are honored to have Dr. Gauchat accept the invitation to become a NAIOP Distinguished Fellow. The Distinguished Fellows are integral in connecting the business and academic communities, enabling NAIOP members and the Fellows to stay informed of the trends and information that affect the commercial real estate industry."
About the NAIOP Research Foundation
The NAIOP Research Foundation was established in 2000 to provide objective information and thoughtful insight about issues that affect professionals and organizations in the commercial real estate industry now and in the future. For more information, visit www.naioprf.org.
About NAIOP:NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
HERNDON, Va., October 27, 2009 – Despite lagging commercial real estate conditions and diminishing rents and values in every market sector, some signs of optimism emerge from developers, owners and investors who expect slight GDP growth and an improvement in credit liquidity in 2010, according to the annual "Vital Signs" survey conducted by NAIOP, the Commercial Real Estate Development Association.
Respondents say that an increase in consumer and business confidence will likely result in an increase in household and corporate spending throughout 2010. Although the capital market disruption in fall 2008 produced destabilized industrial and office markets and new development in 2009 was sparse, 44 percent of respondents say that borrowing in 2010 will be somewhat more available with funds chiefly from banks, private investors and insurance companies.
Government stimulus packages had little effect on the respondents' businesses, with 71 percent feeling no impact and less than one-third reporting that they'd directly or indirectly participated. Only 8 percent reported participating directly with government programs, such as TALF and funded or expedited infrastructure projects.
In its eighth year, the Vital Signs survey, conducted in early September by NAIOP and compiled by CB Richard Ellis Investors and CBRE Research, brought together the unique assessments of 397 developers, owners and investors.
"The Vital Signs survey is an effective annual barometer of what our industry is seeing every day," said Douglas Howe, NAIOP chairman and president, Touchstone Corporation, Seattle, Wash. "Obviously the volatile markets of the last year have created great concern for those seeking capital, and the decline in development is the consequence. While the overall consensus of this survey is somber, there's hope that most indicators will at least stabilize in 2010."
"NAIOP members are feeling the pressure from rapid shifts in the economic and property market environment, as the Vital Signs Survey results show," said Doug Herzbrun, global head of research for CB Richard Ellis Investors, a subsidiary of CB Richard Ellis. "Within these generally subdued responses, there are important differences between regions and property types that provide us with valuable insights into the environment next year and beyond."
The Report Findings
The economy has at best bottomed out. About 37 percent of members pointed out the United States is in a recession, while 58 percent sees the economy as flat. It is expected that the end of 2009 will yield slight GDP growth and this will continue to improve in 2010.
The credit crisis remains a huge factor. In 2008, only 28 percent of the respondents felt that borrowing was getting better. In 2009, that number remained basically the same (29 percent). In 2009, 64 percent of respondents felt that borrowing money was the same or somewhat easier than a year ago. Confidence improved for 2010, with 80 percent of this year's respondents indicating that borrowing money will remain difficult or become somewhat more available, mainly coming from banks, private investors and insurance companies. The lack of financing is still a major concern for 2009 respondents, behind the economy and demand.
Industrial markets continued to weaken in 2009, with a little optimism for 2010. The majority of respondents felt that industrial rents declined in 2009. This is consistent with the increase in industrial availability rates this year, driven by the decline in retail spending, slashed inventories and import reductions. In 2010, almost 32 percent of respondents feel that rents will improve as industrial availability rates start leveling off. New industrial development remains slow in 2009 and will be almost non-existent in 2010. The manufacturing sector is expected to improve during the rest of 2009 and into 2010 due to a variety of factors such as the "cash for clunkers" program (which basically eliminated the excess automotive stockpiles); a ramp up in corporate technology spending; and improving global export markets.
Office has been decimated by a lack of demand. Almost all the respondents saw office rents deteriorate in 2009; most expect rents to level off in 2010 with a few markets expecting a slight increase. Office vacancy rates are expected to continue to increase in 2010 and level off by the end of the year. Much of the increase in vacancy rates continues to be in markets heavily impacted by the residential meltdown, but financial, technology and even energy centers are hardly unscathed. The biggest concerns in 2010 were from Southeast/Florida, Pacific/California and Western Canada where respondents expect continued softness in demand and rental rates. Concerns include prolonged job losses and a fragile recovery with business confidence remaining weak, affecting long term decisions and potential expansions. Office demand is expected to remain muted in 2010.
Investment activity remained weak in 2009 but 2010 looks better. Overall investment activity is down 90 percent compared to a year ago. Deals are limited despite a slight thaw in equity and debt capital availability as compared to a year ago. The challenge remains the continued gap of seller and purchaser expectations. The most active office product being transacted remains prime, stabilized assets with credit tenants where there is some competition among buyers. Also, a probable wave of troubled assets is coming on the block. Values have deteriorated due to lack of investment demand, surging cap rates, the softening of rents and widely anticipated income decreases during the next year. Investment demand declined in all property types in 2009 compared to 2008 as investors maintained a wait-and-see attitude. The average transaction size has also decreased in the past year due to the limited availability of prime investment product and the constraints in capital availability. While investment interest has recently increased, it has not resulted in any improvement in transaction volume to date.
New development in 2009 was virtually non-existent. Although a substantial amount of space was completed during the past 12 months, new development undertaken has been modest in 2009. This falls in line with the rental rates deteriorating and no immediate improvement expected. Virtually none of the respondents viewed office or industrial development positively - a far cry from the heady years when development interest was in the mid 40 percent range. Interestingly, 56 percent viewed mixed-use development favorably while 30 percent viewed biotech/life sciences facilities positively in terms of development. A shortage of health care and research product, combined with aging demographics becoming a more paramount demand driver, should re-ignite construction in these sectors, potentially before the office and industrial sector.
For further information from the survey or to learn more about NAIOP, visit www.naiop.org. Members of the media interested in receiving a complimentary copy should contact Kathryn Hamilton at (703) 904-7100, ext. 165, or hamilton@naiop.org.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
HERNDON, Va., October 14, 2009 – NAIOP, the Commercial Real Estate Development Association, the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate, today announced a special membership offer that allows prospective members who join NAIOP now to receive the rest of 2009 for free.
"NAIOP understands the challenges facing the commercial real estate development industry in today's uncertain economy," said Thomas J. Bisacquino, NAIOP president. "By joining NAIOP today, new members can take advantage of innovative educational programs, access up-to-the-minute information on pertinent industry trends and enjoy all of NAIOP's countless membership benefits at no cost for the rest of 2009 with our special membership offer. Joining NAIOP is the best investment commercial real estate professionals can make for their business and their career - there is no greater ROI."
The outstanding benefits of NAIOP membership include:
- Exceptional networking opportunities to develop key business relationships and share experiences with colleagues across North America who are among the industry's key players;
- NAIOP's commitment to members, the Four Point Promise, which states specific steps NAIOP continues to take to protect the interest of its members and the industry-at-large, and provides solutions that sustain its members' businesses and facilitate returning the industry to good health;
- Unparalleled legislative representation on key industry bottom line issues at the federal, state, local and provincial levels;
- Special targeted programming and unlimited education for professionals on all levels - from Developing Leaders to CEOs;
- Online membership directory of industry leaders;
- Access to educational opportunities that span from online Webinars and Solutions Series to short courses and conferences - connecting members to the industry's top decision-makers;
- Cutting edge research on timely topics, ranging from employment trends to examining the critical role commercial real estate plays in today's economy.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
HERNDON, Va., October 9, 2009 –The NAIOP Research Foundation announced today the appointment of Collin Barr as one of the Foundation's 35 Governors.
Barr is president, Minnesota Region, of the Ryan Companies US, Inc., located in Minneapolis. In this role, he provides executive leadership to the Minnesota Regional office, encompassing the disciplines of development, architecture and engineering, construction and property management. A member of NAIOP since 1997, he is also a member of the Build to Suit Forum.
The mission of the NAIOP Research Foundation is to foster building better communities through practical research and education that advances the quality and makes evident the benefits of commercial real estate ownership and development. Individuals who make a substantial contribution to the endowment fund of the NAIOP Research Foundation are invited to accept the lifetime distinction of Governor. Governors are eligible to serve as Foundation Trustees and help shape the Foundation's future research agenda.
Shirley A. Maloney, executive director of the NAIOP Research Foundation, said, "Contributions to the Foundation enable this important group to establish an endowment fund for the future. The Research Foundation plays a vital role in providing resources to shape our communities."
The NAIOP Research Foundation was established in 2000 to provide objective information and thoughtful insight about issues that affect professionals and organizations in the commercial real estate industry now and in the future. The Foundation's research, education and outreach activities enable the commercial real estate industry to stay competitive by identifying future opportunities and strategies to capitalize on them.
The Completed Research section of NAIOP's Research Foundation Web site comprises complimentary research reports, please visit www.naiop.org/foundation/completedresearch.cfm.
The Research Foundation is classified as a 501(c)(3) organization and accepts tax deductible contributions in support its work. Please visit the Foundation's Web site for more information about ways to become involved.
About the NAIOP Research Foundation:
The NAIOP Research Foundation was established in 2000 to provide objective information and thoughtful insight about issues that affect professionals and organizations in the commercial real estate industry now and in the future. For more information, www.naioprf.org.
About NAIOP:NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
HERNDON, Va., October 1, 2009 – NAIOP, the Commercial Real Estate Development Association, is bringing its annual real estate conference to the Sheraton Chicago Hotel & Towers in Chicago, October 14-16, 2009. To address the opportunities and challenges involved in conducting transactions in the distressed assets market, a new panel, Meet the Players in the Distressed Assets Market, has recently been added to the Development '09 conference program.
The dedicated panel comprising Development '09 sponsors with expertise in dealing with distressed assets will answer questions about potential buyers that include:
- Who is buying?
- What qualifications are they looking for?
- When will the capital sitting on the sidelines start to flow?
- What property types will get bought up first?
- How will the assets be valued?
- What are the expected rates of return?
"NAIOP recognizes that trends and opportunities in the commercial real estate industry seem to be changing on a daily basis" said Thomas J. Bisacquino, NAIOP president. "Development '09 offers industry professionals the most up-to-date information on market trends and the economy, along with real-world strategies and solutions for doing business in today's unique environment. The topic of distressed assets is one of the many relevant front-page trends in commercial real estate today that industry leaders will dissect at the conference."
In addition to the Distressed Assets Panel, the conference features timely education sessions as well as the return of the popular "CEO Insight" Sessions. CEOs representing some of the most notable companies in commercial real estate will share their unique experiences from their many years in the industry, along with strategies they have employed within their own companies to meet the challenges in today's market during these candid sessions. This year's lineup of CEO Insight presenters includes Michael Brennan, Brennan Investment Group; Bruce Cohen, chairman of the board and chief executive officer, Wrightwood Capital; Michael Mullen, CenterPoint Properties; Aaron Paris, Paris Development II; and Stephen Quazzo, Transwestern Investment Company LLC.
Attendees will also gain valuable insight on the state and future of the industry and the latest economic forecasts during the conference's Keynote Sessions. The list of distinguished keynote presenters scheduled to appear includes: Mark Dotzour, Ph.D., chief economist, Texas A&M University; John Kasich, former Congressman, chairman of the House Budget Committee and FOX News contributor; and Roy March, chief executive officer, Eastdil Secured.
Media are invited to attend Development '09: The Annual Meeting for Commercial Real Estate at no charge, but must be pre-registered. To register, contact Kathryn Hamilton at hamilton@naiop.org or (703) 904-7100. For additional conference information, or to learn more about NAIOP, visit www.naiop.org.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
WASHINGTON, D.C., September 22, 2009 – The NAIOP Research Foundation announced today the appointment of Roger D. Christianson as one of the Foundation's 34 Governors.
Christianson is the managing director of The Public Private Development Collaborative, a real estate development and services firm focused on providing facilities for governmental, non-profit, education and other institutional users. He joined NAIOP in 1992 and is a member of the Industrial Development I Forum and the Arizona Chapter.
The mission of the NAIOP Research Foundation is to foster building better communities through practical research and education that advances the quality and makes evident the benefits of commercial real estate ownership and development.
Shirley Maloney, executive director of the NAIOP Research Foundation, said, "Contributions to the Foundation enable this important group to establish an endowment fund for the future. The Research Foundation plays a vital role in providing resources to shape our communities." Individuals who make a substantial contribution to the endowment fund of the NAIOP Research Foundation are invited to accept the lifetime distinction of Governor. Governors are eligible to serve as Foundation Trustees and help shape the Foundation's future research agenda.
The NAIOP Research Foundation was established in 2000 as a 501(c)(3) organization that accepts tax deductible contributions. Its purpose is to support individuals and organizations engaged in real estate development, investment and operations. The Foundation strives to make available the very best research information regarding how real properties - especially office, industrial and mixed-use properties - impact and benefit communities throughout North America.
The Completed Research section of NAIOP's Research Foundation Web site features useful information, please visit www.naiop.org/foundation/completedresearch.cfm. For details on the Research Foundation, contact NAIOP at (703) 904-7100 or visit www.naioprf.org.
About the NAIOP Research Foundation:
The NAIOP Research Foundation was established in 2000 to provide objective information and thoughtful insight about issues that affect professionals and organizations in the commercial real estate industry now and in the future. For more information, www.naioprf.org.
About NAIOP:NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
HERNDON, Va., September 18, 2009 – Finding credit in today's market. The buying and selling of distressed assets. The current state of the office and industrial markets. These are just a few of the topics that will be examined among commercial real estate's leaders at NAIOP's Development '09: The Annual Meeting for Commercial Real Estate.
NAIOP, the Commercial Real Estate Development Association, is bringing its annual real estate conference to the Sheraton Chicago Hotel & Towers in Chicago, October 14-16, 2009.
"NAIOP recognizes that trends and opportunities in the commercial real estate industry are continuously evolving in light of the economic events that have transpired in the past year," said Thomas J. Bisacquino, NAIOP president. "Development '09 will focus on the most up-to-date market information and financial forecasts, delivered by some of biggest leaders in the industry in an effort to provide commercial real estate professionals with present day solutions and strategies for the future."
About the conference program:
- Meet the Players in the Distressed Assets Market. The buying and selling of distressed properties will play a significant role in the commercial real estate market during the next 18-24 months. A conference panel comprising Development '09 sponsors with expertise in dealing with distressed assets will answer questions about potential buyers for distressed assets, sources of capital and commercial property types that will likely sell first, along with how the value of these assets will be determined.
- Hear Top CEOs in Intimate "CEO Insight" Sessions. CEOs representing some of the most notable companies in commercial real estate will share their unique experiences from their many years in the industry, along with strategies they have employed within their own companies to meet the challenges in today's market during these candid sessions. This year's lineup of CEO Insight presenters includes Michael Brennan, Brennan Investment Group; Bruce Cohen, chairman of the board and chief executive officer, Wrightwood Capital; Michael Mullen, CenterPoint Properties; Aaron Paris, Paris Development II; and Stephen Quazzo, Transwestern Investment Company LLC.
- Understand What's Next for the Economy and Industry. Three celebrated keynote speakers will provide their unique perspectives on the political and economic changes that are influencing commercial real estate today. The list of distinguished keynote presenters scheduled to appear includes: Mark Dotzour, Ph.D., chief economist, Texas A&M University; John Kasich, former Congressman, chairman of the House Budget Committee and FOX News contributor; and Roy March, president, Eastdil Secured.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
WASHINGTON, D.C., September 14, 2009 – NAIOP will honor 16 commercial real estate industry professionals as winners of the association's 2009 Developing Leaders Award. The award recipients were chosen by a selection committee comprised of NAIOP members and industry leaders.
NAIOP established the award in 2006 to recognize rising professionals who have distinguished themselves within their profession and who show great promise as influential leaders in the commercial real estate industry. NAIOP members, age 35 and under, were encouraged to apply for the award and were evaluated on the following criteria: leadership, professional competency, career goals, education, NAIOP participation, community involvement and judge's discretion of merit.
The recipients of the 2009 Developing Leaders Award are:
- Tony Carlson - Associate, Grandbridge Real Estate Capital, Minneapolis, Minn.
- Megan Creecy - Principal, EJM Development Company, Scottsdale, Ariz.
- Jeff Davis - Principal, Davis Property & Investment, Kent, Wash.
- Laurel Edwards - Associate, Colliers International Realty Advisors, Calgary, Alberta
- Ashley Grigsby - Associate, MidFirst Bank, Houston, Texas
- Brian Hall - Associate, Lee & Associates, Riverside, Calif.
- Jon Kelty - Associate, RCDolner LLC, Newark, N.J.
- Alex Kopicki - Principal, Manekin LLC, Columbia, Md.
- Morgan Landers - Principal, Brownfield Partners, Denver, Colo.
- Scott Maloney - Associate, mbi | k2m Architecture Inc., Cleveland, Ohio
- Jason Newcomer - Principal, Natural Capital Management, Westminster, Colo.
- Gabriel Philibert - Associate, First Commercial Bank, Bloomington, Minn.
- Scott Schwendiman - Associate, Kennecott Land/Rio Tinto, South Jordan, Utah
- Troy Smothers - Principal, Wrightwood Capital, Chicago, Ill.
- Nyls Snyder - Principal, Welsh Companies, Minneapolis, Minn.
- Michael Weishaar - Associate, Colliers Turley Martin Tucker, Indianapolis, Ind.
Recipients of NAIOP's Developing Leaders Award will be celebrated at Development '09: The Annual Meeting for Commercial Real Estate where they will benefit from unique networking opportunities and publicity surrounding the award. Development '09, which takes place October 14-16 in Chicago, features three days of education, interaction and events all tailored to help NAIOP members achieve success. Top-notch educational offerings, keynote speakers and opportunities to view new markets provide invaluable experiences designed to keep NAIOP members ahead of the industry curve.
For more information on the Developing Leaders program please visit www.naiop.org/DL. For more information on Development '09: The Annual Meeting for Commercial Real Estate please visit www.naiop.org.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
WASHINGTON, D.C., September 4, 2009 – The NAIOP Research Foundation announced today the appointment of Robb Merritt as one of the Foundation's 34 Governors.
Merritt is the vice president of Merritt Properties LLC in Baltimore, Md. He is involved in the day-to-day business of the firm with executive responsibilities and also plays a primary role in acquisitions and development. He has served as president of NAIOP Maryland and currently serves on the chapter's Legislative Committee and on the NAIOP Industrial Development III National Forum.
The mission of the NAIOP Research Foundation is to foster building better communities through practical research and education that advances the quality and makes evident the benefits of commercial real estate ownership and development.
Shirley Maloney, executive director of the NAIOP Research Foundation, said, "Contributions to the Foundation enable this important group to establish an endowment fund for the future. The Research Foundation plays a vital role in providing resources to shape our communities." Individuals who make a substantial contribution to the endowment fund of the NAIOP Research Foundation are invited to accept the lifetime distinction of Governor. Governors are eligible to serve as Foundation Trustees and help shape the Foundation's future research agenda.
The NAIOP Research Foundation was established in 2000 as a 501(c)(3) organization that accepts tax deductible contributions. Its purpose is to support individuals and organizations engaged in real estate development, investment and operations. The Foundation strives to make available the very best research information regarding how real properties - especially office, industrial and mixed-use properties - impact and benefit communities throughout North America.
The Completed Research section of NAIOP's Research Foundation Web site features useful information, please visit www.naiop.org/foundation/completedresearch.cfm. For details on the Research Foundation, contact NAIOP at (703) 904-7100 or visit www.naioprf.org.
About the NAIOP Research Foundation:
The NAIOP Research Foundation was established in 2000 to provide objective information and thoughtful insight about issues that affect professionals and organizations in the commercial real estate industry now and in the future. For more information, www.naioprf.org.
About NAIOP:NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
HERNDON, Va., August 25, 2009 – NAIOP, the Commercial Real Estate Development Association, the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate, today announced that it has selected two development companies as the recipients of its annual Sustainable Development Award.
ProLogis is being honored for its industrial project, the S. C. Johnson & Son, Inc., building in Sturtevant, Wis.; and Forest City Covington is being recognized for its office building that houses Fidelity Investments at Mesa del Sol in Albuquerque, N.M.
The award will be presented during a special ceremony on Thursday, October 15, at NAIOP's Development '09: The Annual Meeting for Commercial Real Estate, in Chicago.
"These projects symbolize the innovation, creativity and sustainable approach that our members are utilizing to develop model properties," said NAIOP President Thomas J. Bisacquino. "The Sustainable Development Award is one of many ways that NAIOP exemplifies its commitment to sustainable development. NAIOP and its member companies are strong proponents of energy efficiency and are committed to continuing to couple increased efficiencies with the overall prosperity of the industry."
ProLogis Develops Modern, Sustainable Distribution Center for S. C. Johnson & Son, Inc.
The S. C. Johnson & Son, Inc., building, developed by ProLogis, is a state-of-the-art, 432,000-square-foot distribution center located in Sturtevant, Wis.
The structure is certified LEED-NC Gold® and promotes energy efficiency with incorporated sustainable features through the following channels:
- Use of high-quality materials to reduce replacement and maintenance costs, including a durable roof.
- Installation of energy-efficient lighting, HVAC systems and other sustainable features that are expected to achieve 38 percent greater energy efficiency than industry standards, resulting in substantial energy cost reductions for S. C. Johnson.
- Diversion of more than 85 percent of construction debris from landfills and recycled for future use. In addition, 42 percent of the content utilized for the completed structure was recycled and more than 46 percent of construction materials were manufactured within 500 miles of the project site.
- Inclusion of 60 clerestory windows, 42 vision panels in the dock doors and 22-foot glass storefronts in the building's design that allow employees to use natural light as a source of interior illumination.
- Constructed with a white, thermoplastic polyolefin (TPO) roof, which reduces the urban heat island effect, minimizing the load on the building's cooling/heating system and often providing a more comfortable work environment.
- Geothermal HVAC system was installed in the building's office area and has proven to be very effective in saving energy costs and improving the internal air quality at the facility.
Forest City Covington's Mesa del Sol to Incorporate Best Practices in Sustainable Urban Development
Mesa del Sol is a mixed-use, master-planned community project in Albuquerque, N.M. The project is being developed on once state-owned land by a public-private partnership led by Forest City Covington, which is a joint venture between units of Covington Capital and Forest City Enterprises. The Fidelity Investments building is a two-story, 217,892 square foot office building that is targeted to be the first LEED® Gold office building within the development.
The building includes the following sustainable features:
- Use of construction materials, including concrete and steel, that were selected based on their post-industrial and post-consumer recycled content, reducing the strain on energy resources. Additionally, 94 percent of all shell construction waste material was recycled.
- A chilled water system with cooling towers for air conditioning.
- Recessed windows to provide shade from direct summer sun that feature insulated window glazing to keep out heat in the summer and cold in the winter.
- When fully operational, the building is expected to use 28 percent less energy than a typical building of similar size.
- High-efficiency fixtures throughout the entire building, resulting in a 30 percent savings in water.
- A visitor parking lot created from pervious concrete, which allows rainwater to seep into the ground, thereby recharging ground water and reducing stormwater runoff.
Sustainability and green living are basic core values for the Mesa del Sol community, as they are for Forest City. It is a commitment that has grown with the company's adoption of the principals of sustainability into the projects it develops and the properties it manages, balancing environmental resources, economic objectives and social systems - the so-called triple bottom line of people, planet and profit."
2009 Marks Fifth Annual Award for NAIOP
NAIOP established the Sustainable Development Award in 2005 to recognize the growing number of firms engaged in green development. NAIOP and its member companies are committed to developing model properties adhering to the highest standards in the industry and believe that socially conscious development is essential to the economic vitality of the industry.
Applicants were judged on a number of criteria, including company commitment to sustainability, site sustainability and materials use, innovation, water efficiency, energy efficiency, economic viability, innovation and other sustainable attributes. Entries for the award were reviewed by industry leaders, including members of the U.S. Green Building Council.
Previous recipients of the award include: (2005) Corporate Office Properties Trust for its development at 318 Sentinel in Annapolis Junction, Md.; (2006) Hines for their project at 1180 Peachtree in Atlanta, Ga.; (2007) the Georgetown Company, New York, N.Y., for their speculative project, the Lazarus Building, and Liberty Property Trust for the build-to-suit JohnsonDiversey project in Milwaukee, Wis.; (2008) Aardex LLC of Golden, Colo., for its speculative project, The Signature Centre, and Hamilton Partners its build-to-suit project, HSBC-North America Headquarters, in Mettawa, Ill.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, www.naiop.org.
HERNDON, Va., July 13, 2009 – NAIOP, the Commercial Real Estate Development Association, today announced that Highwoods Properties has been selected as the 2009 Developer of the Year.
Highwoods Properties is a publicly-held, fully-integrated self-administered real estate investment trust (REIT) founded in 1978 in Raleigh to develop, lease and manage their inaugural 122-acre Highwoods Office Center. In June 1994, the company began trading on the New York Stock Exchange under "HIW."
Since 1995, the company's portfolio has grown through development and acquisitions, with the company expanding into the Atlanta, Des Moines, Greensboro, Greenville, Kansas City, Memphis, Nashville, Orlando, Richmond, Tampa and Winston-Salem markets. Today, Highwoods Properties owns or has an interest in 382 properties encompassing 35.4 million square feet of office, industrial and retail space, and 580 acres of development land and is the largest owner and operator of suburban office properties in the Southeast.
In 2008, Highwoods reported annual revenues of $461 million and boasted a total market capitalization of $3.6 billion.
"Highwoods is clearly a leader in both the real estate and general business communities, proven by its ability to outperform no matter what the real estate cycle," said Thomas J. Bisacquino, NAIOP president. "Highwoods is recognized throughout the industry for its development of outstanding projects, and it is NAIOP's privilege to recognize the company for its contributions to both the real estate development community and NAIOP."
NAIOP will present the 2009 Developer of the Year award to Ed Fritsch, Highwoods' president and chief executive officer, and other members of the Highwoods' team on Thursday, October 15, at NAIOP's Development '09: The Annual Meeting for Commercial Real Estate in Chicago.
"Since 1978, Highwoods has been focused on developing a top-quality portfolio that mutually serves the best interests of our customers, investors and communities," said Fritsch. "We are both flattered and proud to be recognized by NAIOP, such a highly-respected organization within our industry."
Presented annually to one member-developer company that best exemplifies leadership and innovation in the commercial real estate industry, the Developer of the Year award is determined by a five-member selection committee of industry peers that uses six criteria to evaluate entries: industry and business leadership; involvement in NAIOP; quality of products and services; financial consistency and stability; ability to adapt to market conditions; and social consciousness. Past winners of the award include Liberty Property Trust; Ryan Companies; Bentall Capital; ProLogis; Colonial Properties Trust; and Lowe Enterprises.
Company Focuses on Quality Products, Solid Foundation
During the last several years, Highwoods' CEO Fritsch and his senior leadership team have been focused on retaining the best assets in the most desirable submarkets, while disposing of non-core land and buildings at historically high pricing levels. The proceeds from these transactions were used to dramatically strengthen the balance sheet and fund a robust development pipeline. Since January 2005, Highwoods has delivered $633 million of office and industrial properties encompassing 4.1 million square feet.
Highwoods' portfolio is diverse, and the company boasts in-house capabilities of turn-key development, site selection, land purchase and inventory, design and space planning, financing, and renovation and reuse, among others. Some of the company's notable projects include Raleigh's RBC Plaza and GlenLake Four; the Centers for Disease Control and Federal Aviation Administration in Atlanta; and Cool Springs III and V in Nashville.
Financial strength is a critical advantage offered by Highwoods, as the company has significant in-place financial capacity for funding customers' space needs. As a leading commercial real estate company maintaining a strong and flexible balance sheet and offering a high-quality portfolio, Highwoods stays focused on being in the right financial position at all times to service its customers.
In 2009, the company's goals include continuing to upgrade the quality of the portfolio, delivering $93 million of new development and selling $50-100 million of older, non-core assets.
The Developer of the Year is also recognized for its demonstration of a strong commitment to its local communities and NAIOP, both on the chapter and corporate levels. Community involvement is a Highwoods tradition and an important part of the company's corporate culture. Many of Highwoods' employees also serve on NAIOP's local and corporate boards and committees, and are active members in multiple markets across the country.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
About Highwoods Properties:Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered real estate investment trust ("REIT") that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. At March 31, 2009, the Company owned or had an interest in 382 in-service office, industrial and retail properties encompassing approximately 35.4 million square feet. Highwoods also owned 580 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Missouri, Mississippi, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit www.highwoods.com.
HERNDON, Va., June 17, 2009 – NAIOP, the Commercial Real Estate Development Association, is bringing its annual industrial real estate conference to the Hyatt Regency in Long Beach, Calif., on June 23-24. I.con: The Industrial Real Estate Conference, held in partnership with NAIOP SoCal, is an annual event that brings together industrial commercial real estate leaders from across North America to explore shared challenges unique to the industrial sector.
One of the many highlights of this year's conference includes the Industry Leaders Panel, comprised of some of the most distinguished leaders in industrial real estate market: Al Beaudette, Attentus Advisors; Edward Roski, Majestic Realty Company; Michael Mullen; CenterPoint Properties; and Ted Antenucci, ProLogis. These esteemed icons of industrial real estate will address the current economic downturn and its effect on the industrial market in addition to sharing experiences and lessons learned from their many years in the industry and strategies they have employed within their own companies to meet the challenges in today's market.
"NAIOP recognizes the challenges facing industrial real estate professionals in today's uncertain global economy," said Thomas J. Bisacquino, NAIOP president. "This year I.con is proud to feature some of biggest leaders in industrial real estate who will provide invaluable insight and personal experience on successfully doing business in a rapidly-changing industrial market."
The event will also spotlight Southern California's global ports and world-class transportation systems through I.con's project tours. Attendees will have the opportunity to tour one of the largest proprietary container facilities in the world during the APM Terminals/Pier 400 Tour. The Value-Add Conversions Tour will take showcase underutilized industrial buildings that were converted to high-velocity distribution centers in the South Bay submarket of Los Angeles, Calif.
Media are invited to attend I.con at no charge, but must be pre-registered. To register, contact Kathryn Hamilton at hamilton@naiop.org or (703) 904-7100. For additional conference information, or to learn more about NAIOP, visit www.naiop.org.
About NAIOP:
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 14,500 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
HERNDON, Va., May 20, 2009 – The NAIOP Research Foundation released two reports that examine national and metro predictors of commercial real estate development and provide key macro economic variables that historically drive real estate demand.
The reports were sponsored by the Foundation and prepared by Glenn R. Mueller, Ph.D., University of Denver, and Andrew G. Mueller, Ph.D. Candidate, Colorado State University. Both of the full reports, and a collective executive summary document, are available for complimentary download at www.naioprf.org.
National Predictors
The intent of the first study, National Predictors of Commercial Real Estate Development, was to determine if there are specific economic indicators that would reliably predict commercial real estate development in the four major commercial property types - office, warehouse, retail and apartments - at the national level. Economic data was collected from various government and private sources and has provided a relatively broad sampling of more than 50 available economic variables that might logically predict commercial real estate development.
Results found that office stock growth has been cyclical, growing at an annual rate as high as 8 percent in the early 1980s to as low as 0.25 percent in the early 1990s. Warehouse stock has grown from a high of 6 percent to a low of 0.5 percent; retail stock's growth range has been 4.5 percent to 1.5 percent; and apartments' growth range has been 4.2 percent to 0.1 percent. Theoretically these cyclical growth patterns for the property types follow major economic cycles.
The economic variables studied in the report yield varying results in their ability to predict development of commercial properties. Through both visual and statistical analysis of the relationships between economic indicators and commercial stock growth, it is likely that some of the economic indicators in this study will provide good insight into the future development of commercial properties, according to the researchers.
The visual analysis of real estate completions showed the cyclical nature of development, with all four property types' completions peaking in 1986-1987 and 2001, and bottoming between 1993-1994 and 2005. The researchers found that peaks and bottoms in completions tended to happen earlier in apartment and warehouse than in office and retail, which could be due to a shorter development time for apartment and warehouse completion. It does appear that developers are reacting to positive economic indicators in unison in all four property types.
Peaks and troughs for the economic indicator employment growth consistently occur before the peaks and troughs for completions of the three commercial property types. Although not having a consistent lag time between peaks and bottoms in each cycle, employment growth appears to lead to increases in completions of the three property types two to four years later.
Metropolitan Predictors
The second study, Metropolitan Predictors of Commercial Real Estate Development, follows the study on national economic indicators of real estate development by looking at new development in individual metropolitan statistical areas (MSA).
The study groups MSAs by similar economic base industries and analyzes whether the available local economic indicators are highly correlated with the local development growth for city groups over time. The analysis of MSAs with the same economic base industries yields some insight into the drivers of commercial stock growth across these MSAs.
- Overall, employment growth in the various economic base industries yielded the highest correlations with office and warehouse stock growth, and less so with apartment and retail stock growth.
- Of the five strongest economic indicators, the local population age cohort of 25 to 34 year olds yielded the highest correlations with commercial stock growth (mainly office, warehouse and apartment) across all MSAs.
- In some cases, gross metro product and population growth also yielded high correlations, indicating that these economic indicators may be leading or coincident indicators of new commercial stock growth in many MSAs.
- Natural resources and mining economic base MSAs have the highest average correlation in commercial stock growth from 1980 to 2008, with professional and business services MSAs coming in second.
- Warehouse stock growth also has the highest average correlation amongst MSAs with professional and business services as an economic base industry.
- Stock growth in apartments is most highly correlated among MSAs with professional and business services economic bases, followed by trade, transportation and utilities.
Results show that it may be that the space must be completed before the employees can be hired and that is why employment growth does not lead supply growth in some MSAs. The researchers' hypothesis is that the economic indicators that are best at predicting commercial real estate development will be slightly different for each MSA, but that the several indicators that were significant in the study are a good start at developing metropolitan level models of commercial real estate growth.
About the NAIOP Research Foundation:
The NAIOP Research Foundation was established in 2000 as a 501(c)(3) organization to support the work of individuals and organizations engaged in real estate development, investment and operations. The Foundation's core purpose is to provide these individuals and organizations with the highest level of research information on how real properties, especially office, industrial and mixed-use properties, impact and benefit communities throughout North America. For more information on how to contribute or for complimentary research reports, visit www.naioprf.org.
About NAIOP:NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
HERNDON, Va., May 13, 2009 – NAIOP, the Commercial Real Estate Development Association, is bringing its annual industrial real estate conference to the Hyatt Regency in Long Beach, Calif., on June 23-24. I.con: The Industrial Real Estate Conference, held in partnership with NAIOP SoCal, is an annual event that brings together industrial commercial real estate leaders from across North America to explore shared challenges unique to the industrial sector.
This year's conference will focus on the current economic downturn and its effect on the industrial market in terms of finding opportunities in capital markets, the economy's influence on transportation and logistics trends and the vital impact the economy has on demand for industrial space.
"NAIOP recognizes the challenges facing industrial real estate professionals in today's uncertain global economy," said Thomas J. Bisacquino, NAIOP president. "This year's I.con conference will deliver timely economic insights and up-to-the-minute industry information vital for anyone doing business in the changing industrial market."
I.con will also host an Industry Leaders Panel, comprised of visionary leaders Al Beaudette, Attentus Advisors; Edward Roski, Majestic Realty Company; Michael Mullen; CenterPoint Properties; and Ted Antenucci, ProLogis. The panel will discuss the state of the industrial sector and how current market conditions are affecting their companies' short and long-term plans.
The event will also spotlight Southern California's global ports and world-class transportation systems through I.con's project tours. Attendees will have the opportunity to tour one of the largest proprietary container facilities in the world during the APM Terminals/Pier 400 Tour. The Value-Add Conversions/Intermodal Tour will take showcase underutilized industrial buildings that were converted to high-velocity distribution centers in the South Bay submarket of Los Angeles, Calif.
Media are invited to attend I.con at no charge, but must be pre-registered. To register, contact Kathryn Hamilton at hamilton@naiop.org or (703) 904-7100. For additional conference information, or to learn more about NAIOP, visit www.naiop.org.
About NAIOP
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 14,500 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
HERNDON, Va., April 22, 2009 – The NAIOP Research Foundation released a report, sponsored by the Foundation and prepared by Cushman & Wakefield, that examines how changes in the global trading environment have affected the industrial real estate market.
The report, New Age of Trade: The Americas, explores both the macro- and microeconomic factors that influence production, trade and supply chain management, as well as the major trends that are expected to considerably influence the supply chain and warehousing needs of the future.
The report also takes into consideration recent economic factors, including increased fuel costs, the recession and an overall global financial downturn, that have slowed demand and growth rates to the lowest since 2002.
"Obviously today's economy will alter business and supply chain management in the coming years," said Thomas J. Bisacquino, NAIOP president. "However, given advancing technology, modern transportation and growing consumer demand in emerging economies, the new age of trade is here to stay."
The entire report is available for complimentary download on the NAIOP Research Foundation Web site. Among the noteworthy findings are the following:
Global Trading
Since the 1994 signing of the North America Free Trade Agreement (NAFTA), the United States has increased trade with Mexico and Canada by $314 billion, or nearly 12 percent per year - accounting for 38 percent of all U.S. import and export trade.
NAFTA, in addition to China's emergence as an immense producer of goods at low cost, the end of the Cold War and the emergence of the Internet and other technologies, triggered a new age of trade. Between 1994-2007, the volume of U.S. goods imported and exported increased by more than $1.5 trillion, or about $120 million per year.
Trade growth with Asia has resulted in a vast flow of goods through ports in the western United States. In 1997, China became the largest exporter of goods to the United States, surpassing Canada for the first time in history. Within the Amercias, trade in 2007 was 74.5 million TEUs (twenty-foot equivalent units), a 116 percent increase from 1997.
The economic downturn in 2008 has influenced global supply. After a decade of growth, ocean trade growth is expected to stay flat in 2009, and consumer spending - a major driver of the world economy - is expected to remain restrained. Although demand has slowed, trade patterns for industrial market development will continue to evolve to support current and anticipated future demand.
The Impact on Real Estate
Increased global trade has been instrumental in reshaping trade and strengthening economic activity, with subsequent impact on the U.S. industrial real estate market. New industrial opportunity will result from increased investments in rail and port infrastructure, the widening of the Panama Canal and the need to situate goods in order to reduce transportation costs.
Mexico stands to benefit the most from a high-cost transportation environment that forces companies to reassess the location of their production facilities. Mexico offers low-wage labor and direct access to markets in the United States. Specifically, border markets of Juarez and Monterrey could have the greatest benefit, followed by Tijuana, Guadalajara and Reynosa.
Within North America, the strong manufacturing base in the industrial Midwest could benefit, and areas in the Southeastern United States could benefit from lower union membership rates and continue to attract manufacturing and automobile production. Mixing modes of rail, sea and trucking to maximize transportation savings is growing in popularity, likely to benefit the largest ports and inland hubs with the best rail access. Southern California and Seattle/Tacoma could see an increase in loads moving toward traditional inland hubs of Chicago, Atlanta and Dallas via rail. Increased sea-oriented approaches would bring goods through the Panama and Suez canals, straight to major East coast ports of New York/New Jersey, Savannah and Hampton Roads, Va.
A mode mix also affects the need for mega-distribution centers and increases the demand for smaller facilities. The idea is that smaller, or less-than-truckload (LTT), loads going from mega-distribution centers are less efficient than full trucks delivering goods to small centers located closer to consumers. This will benefit smaller regional distribution centers, including Denver, Charlotte, Portland and Kansas City.
Alternative Port Demand
Ports, waterways, rail and trucks - the backbone of the logistics chain - are going through major growing pains to keep pace with global demand. Surging international ocean trade has made Mexico's ports increasingly attractive to global shippers, especially for cargo originating from Asian countries. Mexican ports offer a labor cost advantage, with wages less than one-quarter of those in the United States - and less congestion than California ports.
Container traffic at Mexico's busiest port in Manzanillo surged 13 percent in 2007, and Puerto Lazaro Cardenas' container tonnage volume grew by 68 percent. This port has a key asset - its on-dock rail facilities are provided by a subsidiary of American railroad Kansas City Southern, providing direct links to the southern United States.
Canada's Prince Rupert facility, located 540 miles north of Vancouver, is the first North American port designed exclusively for intermodal rail shipments. Its impact will be felt greatest on the Canadian National Railway's network in Chicago, Memphis and Toronto.
Inland hubs will result from increased rail use and intermodal investments. Chicago's dominance will remain unchallenged, with additional markets making significant public and private investments in roads, rail and intermodal terminals. Dallas is well-positioned, as is Atlanta, Kansas City, Memphis and San Antonio. Additional logistic opportunities will arise in Caribbean transshipment hubs and resulting from an expanded Panama Canal.
Findings Presented
Findings from New Age of Trade: The Americas will be presented as part of a panel at NAIOP's upcoming I.con-the Industrial Conference, June 23-24, in Long Beach, Calif. The panel will delve into current transportation and infrastructure (water, rail and roads) issues that impact industrial real estate, including capacity constraints at Los Angeles/Long Beach, inland ports, future port development and how fuel prices will change the trucking industry.
Panelists for the session include Jon DeCesare, chief executive officer, World Class Logistics Consulting; Maria Sicola, executive managing director, Cushman & Wakefield; and Neil Doyle, executive vice president, Infrastructure & Transportation, CenterPoint Properties.
About the NAIOP Research Foundation
The NAIOP Research Foundation was established in 2000 as a 501(c)(3) organization to support the work of individuals and organizations engaged in real estate development, investment and operations. The Foundation's core purpose is to provide these individuals and organizations with the highest level of research information on how real properties, especially office, industrial and mixed-use properties, impact and benefit communities throughout North America. For more information on how to contribute or for complimentary research reports, visit www.naioprf.org.
About NAIOPNAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
About Cushman & WakefieldCushman & Wakefield is the world's largest privately held commercial real estate services firm. Founded in 1917, it has 230 offices in 58 countries and 15,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within four primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, valuation services, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, and Consulting Services, including business and real estate consulting. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Center at www.cushmanwakefield.com.
HERNDON, Va., February 27, 2009 – Thomas J. Bisacquino, president of NAIOP, the Commercial Real Estate Development Association, issued the following statement on President Obama's proposal to increase the level of taxation on carried interest compensation, which would impact many partners in real estate development ventures:
"President Obama's proposed budget would tax a "carried interest," currently treated as capital gains, as ordinary income. While media reports often only link carried interest compensation with Wall Street hedge fund managers, this proposal would have a broad devastating impact on commercial real estate development.At a time when the real estate industry is struggling, this would increase taxes on entrepreneurs from the current level of 15 percent to as high as 39.6 percent. This would be a severe blow to entrepreneurs wanting to undertake new deals, which are the source for much of the industry's job creation. Straightforwardly, many development projects will not be undertaken if this becomes law. Proposals to tax carried interest at ordinary income rates, without regard or differentiation as to the nature of the underlying investment, would adversely impact the flow of capital to real estate deals.
The Obama administration recently undertook efforts to alleviate the severe credit crisis now affecting commercial real estate by expanding the activities of the Term Asset Backed Lending Facility (TALF) to include commercial real estate debt - an action NAIOP applauded. This most recent proposal by the Obama administration to increase taxes on the industry is totally at odds with their prior actions, which was recognition of the difficulties currently affecting the credit and capital markets in commercial real estate.
A healthy real estate economy is vital to a prosperous U.S. economy and produces an immense ripple effect with job creation and personal earnings that quickly roll over into increased consumer spending. The most recent data available cites total real estate construction spending of $1.16 trillion - approximately 8.5 percent of the nation's Gross Domestic Product. Commercial development supports 4.89 million full-time equivalent jobs in the United States and generates personal earnings of $170.1 billion."
About NAIOP
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 18,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
HERNDON, Va., February 24, 2009 – NAIOP, the Commercial Real Estate Development Association, today released a report that demonstrates the levels of energy efficiency that standard office buildings can reach while remaining economically feasible.
The study was initiated to determine if commercial development could achieve reduction targets of 30-50 percent above the ASHRAE 90.1-2004 standard - the benchmark often cited in legislation and other calls for mandatory reductions.
Using a recently completed four-story, 95,000-square-foot, Class A office building as the prototype, the research modeled the prototype in three climate zones represented by Chicago, Ill.; Baltimore, Md.; and Newport Beach, Calif.
Findings show that although significant energy efficiencies can be achieved (varying by climate zone), reaching a 30 percent reduction above the ASHRAE standard is not feasible using common design approaches and would exceed a 10-year payback. The study concluded that achieving a 50 percent reduction above the standard is not currently reachable.
"The study provides an unbiased insight into the energy targets practical to commercial development today," said Thomas J. Bisacquino, NAIOP president. "Identifying an energy reduction level that is both environmentally responsible and equitable to the developer is essential in protecting the prosperity of commercial real estate."
About the Study
The study was conducted by ConSol, a California-based independent energy-modeling firm, using the Department of Energy's EnergyPlus v2.2, a building energy simulation program for modeling building energy uses.
Modeling included enhanced wall and roof insulations; varying levels of exterior glazing; higher-efficiency window assemblies; reduced air infiltration via the installation of an air barrier; reduced lighting power densities; higher-efficiency HVAC equipment; and photovoltaic electricity energy generation.
Using technologies and methods to increase effectiveness, the maximum efficiency reached was 23 percent in the Chicago model. Results across the climate zones vary by more than seven percent, given baseline energy uses in domestic water heating; lighting; heat generation; air conditioning; and fans, dampers and HVAC equipment.
Overall, energy savings, cost increases and payback periods are:
- Chicago: 23 percent in energy savings; $188,523.45 cost increase; 8.8 year payback;
- Baltimore: 21.5 percent in energy savings; $165,148.13 cost increase; 11 year payback;
- Newport Beach: 15.8 percent in energy savings; $169.898.13 cost increase; 12.2 year payback.
Study results show that employing solar generation technologies could close the gap between the efficiencies achieved in the study and the 30 percent above the ASHRAE 90.1 -2004 standard. However, at an installed cost of more than $1 million and a payback of up to 100 years, it far exceeds practical and economical limits.
Additionally, elements of a holistic, integrated design approach that could yield higher energy efficiencies were identified as impractical in the study's building prototype, which represents more than 50 percent of total new Class A commercial construction. For example, in the Newport Beach model, a geothermal system (a component of a holistic approach) required more than two additional acres of space - an impossibility for the project site.
"We recognize that some buildings are able to achieve higher energy efficiencies by employing various holistic design approaches," said Bisacquino. "These approaches could become more economically feasible with new technologies and federal, state and local incentives."
NAIOP commissioned the study as a proactive approach to engage the commercial development industry in advancing an economically prosperous and sustainable built environment. "We are encouraged that study results show that increased energy efficiency and building profitability are not opposing concepts," said Bisacquino.
NAIOP has an ongoing commitment to providing its members with tools, resources and education to aid in the employment of best practices for energy efficient development. In June 2008, NAIOP introduced an Energy Policy that encourages the development industry to employ every technically feasible, cost-effective, sustainable strategy available to increase energy efficiency of new and existing buildings, and advances public policies that accelerate ongoing energy efficiency and sustainability gains.
To view the full report, visit the NAIOP Web site.
About NAIOP
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 18,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
HERNDON, Va., February 10, 2009 – NAIOP, the Commercial Real Estate Development Association, voices its support for the expansion of the Federal Reserve's consumer-lending program - known as the Term Asset-Backed Securities Loan Facility (TALF) - to finance the purchase of commercial mortgage-backed securities (CMBS), announced today by Treasury Secretary Timothy Geithner.
"CMBS are the source for much of the financing for commercial real estate projects," said Thomas J. Bisacquino, NAIOP president. "The expanded availability of these funds is critical to supporting the industry's performing assets and enabling commercial real estate to avoid the severe liquidity shortfall that would have resulted from continued frozen capital."
More than 320 leaders from NAIOP's 54 U.S.-based chapters are in Washington, D.C., today and Wednesday for meetings on Capitol Hill to share NAIOP's positions on the credit crisis, energy, taxes and transportation and infrastructure. The credit crisis affecting commercial real estate is the most important issue facing the industry.
In 2009, hundreds of billions of dollars of performing commercial real estate debt will mature and will need to be refinanced. Combined, banks and the CMBS market account for 75 percent of all outstanding commercial real estate loans.
"The health of the commercial real estate industry is critical to the nation's financial system," said Bisacquino. "NAIOP commends President Obama for this strategic action that will prevent the problems of the financial markets from causing unnecessary defaults in commercial real estate, further damaging our economy."
NAIOP has been working with a coalition of real estate allies to raise concerns about the growing impact of the credit crisis on commercial real estate and urging federal action, including the expansion of TALF, since November 2008.
About NAIOP
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 18,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
HERNDON, Va., January 26, 2009 – NAIOP today announces NAIOP's Four-Point Promise to our Members During these Difficult Times.
The Promise captures the specific steps NAIOP will take in 2009 to protect the interests of its members and the industry-at-large, and to provide solutions that sustain its members businesses and facilitate returning the industry to good health.
"NAIOP recognizes the unprecedented challenges facing the commercial real estate development industry," said Thomas J. Bisacquino, NAIOP president. "While frozen capital sources, a turbulent global economy and the decline in transactions and employment have significantly affected our businesses and the industry's immediate future, we are confident that NAIOP members need their association more than ever to overcome these challenges and be prepared for tomorrow."
In 2009, NAIOP will:
1. Respond to the Credit and Capital Crisis"NAIOP's commitment to its members parallels the valuable, enduring role commercial real estate plays in our nation's economy," said Bisacquino. Commercial real estate has a tremendous impact on our nation's economy, with construction-related spending reaching $549 billion and adding 839 million square feet of existing building space in 2007, the latest comprehensive data available. It is one of the leading employers in the United States, supporting 4.89 million full-time equivalent jobs in 2007, and generating personal earnings of $170.1 billion.
NAIOP has established a member-driven Commercial Credit and Capital Advisory Board of capital experts to interpret fast-moving markets and how they affect the industry. NAIOP met with the Obama administration and Congress to ensure they understand the vital role commercial real estate plays in the economy, and will continue to protect the industry's interests with strong advocacy efforts that safeguard against public policies adverse to commercial real estate.2. Present Crucial, Relevant Viewpoints and Education
NAIOP is launching a new audio series of "Economic Insights," up-to-the-minute, straightforward economic reports on news that affects the industry. Specialized education on surviving in tough markets, presented by seasoned industry veterans, will be delivered via Web-based sessions, acknowledging reduced travel policies while maintaining the high-standard of education expected from NAIOP.3. Deliver Meaningful Research
The NAIOP Research Foundation has produced new studies on commercial real estate's economic contributions to the nation and macro-economic indicators that drive new development. This information will enable the industry to identify tomorrow's development trends and how to be positioned for capitalizing on ensuing business opportunities.4. Offer Exceptional Membership Services
NAIOP will offer support that allows members to continue membership in tough times, and put forward career tools and professional development resources.
About NAIOP
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 18,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
HERNDON, Va., January 5, 2009 – NAIOP today announces a new name and brand identity that clearly represents its membership’s expansion in to a broader scope of commercial real estate development.
Formerly known as the National Association of Industrial and Office Properties, the association will now be known solely as NAIOP. A definer, the Commercial Real Estate Development Association, complements the name and signifies the association’s strategic shift of encompassing all professionals within the industry.
“NAIOP is the leading association for the development industry, extending its reach beyond office and industrial product types into mixed-use, medical office, retail and more,” said Thomas J. Bisacquino, NAIOP president. “We recognize that our members engage in diverse development opportunities, and our brand expansion supports our vision of advancing responsible commercial real estate development.”
Today, NAIOP comprises 18,000 members in its extensive 56 chapter network across North America. Its principal membership are developers, owners and investors of all product types in commercial real estate, in addition to a wide-ranging scope of professionals who support the industry, including architects, brokers, engineers, land planners, contractors and suppliers.
Commercial real estate has a tremendous impact the nation’s economy, with construction-related spending reaching $549 billion and adding 839 million square feet of existing building space in 2007, the latest comprehensive data available. It is one of the leading employers in the United States, supporting 4.89 million full-time equivalent jobs in 2007, and generating personal earnings of $170.1 billion.
“NAIOP is committed to the ongoing success of the industry, given the obvious financial benefits a healthy industry has on the U.S. economy,” said Bisacquino. “We pledge to provide commercial real estate with the tools and connections critical to their businesses, and represent our members’ legislative interests in the key issues impacting development today. NAIOP’s development-focus enables us to serve as the industry’s central association for news, practical research and powerful public policy efforts that better the communities in which we work and live.”
About NAIOP
NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial and mixed-use real estate. NAIOP comprises 18,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.