Development Magazine Summer 2012

Perspectives

Worth Repeating Summer 2012

Solutions Series Program, “Tales from Canada: Retailing is Different Up North” – May 8, 2012

Commenting on specific construction tips for building a project in Canada, “Costs vary widely by Province; plan for the elements (pile the site when the ground is frozen to prevent sinking equipment at the thaw); install deep utilities before the frost hits; import granular fill or lime to provide a workable surface in the Spring; prepare pavement operations before mid-October; and use winter-ready material for building facades.”

“Achieving success in retail development in Canada begins with good communication. Canadians place a premium on one-to-one connections so taking time to develop strong relationships will pay off in the long run. Be sure to explain your project goals and expect to make multiple trips – phoning it in won’t work.”

Brian Fleener, vice president of store design, MulvannyG2

Solutions Series Program, “Healthcare Capital Markets Update” – April 17, 2012

Discussing the 2012 and 2013 outlook, “New capital (pension fund and off-shore equity) will set pricing. Some REITs may look to take some chips off the table for non-strategic assets. Investors will look closer at floor plates in older MOBs as independent practices will consolidate and target larger spaces.”

Remarking on the real estate opportunity, “Health systems will look for experts to help them operate and own their real estate which typically makes up 40 to 50 percent of the assets on their balance sheet.”

Regarding the reasons for cap rate compression, “Hospitals with good credit are moving off campus to outpatient settings and institutional investors are allocating more of their core funds to the healthcare sector than in years past. Cap rates for on- and off-campus product are lower across the board and there is aggressive pricing, especially for core product.”

Chris Bodnar and Lee Asher, first vice presidents, healthcare capital markets, CBRE 

“Logistical Leverage: Trends Affecting Supply Chain, What It Means for Industrial Real Estate” Webinar – March 13, 2012

Remarking on the impact of the Panama Canal, “The expansion may be a bit overstated. Current infrastructure is effective and in place. Asset-intensive capacity migrations take time -- more time when their ROI is incremental.”

Commenting on the role of Millenials in traditional manufacturing/distribution jobs, “Millenials are a complex generation with some conflicting characteristics. They want freedom and flexibility, but they also want direction, rules and responsibilities spelled out explicitly. ‘It’s all about me,’ might seem to be the mantra of this demanding bunch of young people, yet they also tend to be very civic-minded and philanthropic.”

Discussing location drivers for industrial space users, “Typically, the decision comes down to the relative importance of operating factors (labor supply; customer proximity and utility and transportation service providers) and operating costs (electric power; supply chain costs; labor costs; taxes on land, equipment, inventory and building; and state government incentives).”

Peter W. Quinn IV, executive managing director, global supply chain solutions, and John Morris, senior managing director, global consulting group, Cushman &Wakefield, Inc.

 

From the Archives: Perspectives Articles from the Previous Issue

group of young people

New Voices - Developing Leaders Focused on Building Connections and Knowledge in 2012 

Since 2005, the NAIOP Developing Leaders (DL) program has engaged the fast-thinking, multi-tasking generation of commercial real estate professionals age 35 and under. In January, NAIOP polled the DLs on where they find valuable career resources, what technology keeps them in the loop, and where they see their careers heading as the industry somewhat stabilizes.

Chairman Bill Hunt

At Closing – The Chairman’s Perspective 

During Bill’s year as Chairman-Elect, he visited with the NAIOP senior management team on three occasions. During his last trip, much of the conversation revolved around implementation of NAIOP’s new Strategic Plan. Among the numerous initiatives, there is a theme of support to the chapters, specifically with advocacy, education and training of the chapter executive directors and presidents.