New Asian Cities

New Asian Cities

Through my attendance at MIT’s World Real Estate Forum, I was introduced to new research that is collected in the book entitled, Toward Urban Economic Vibrancy, Patterns and Practice in Asia’s New Cities, Edited by Siqi Zheng and Zhengzhen Tan. The several papers that make up the book include sections on finance, structure, Public Private Partnership, design, success measurements, industrial policy, location, and case studies.
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A Backwater No Longer

A Backwater No Longer

As industrial moves from being an operations decision to a financial product, it’s no longer a sleepy backwater of the investment world. Institutional Capital has permanently changed markets from locally owned and operated to globally owned and tenanted. It’s a 40-year trend beginning with the first wave of Japanese corporations and now exploding with institutional capital since the 2008 Financial Crisis. The influence of institutional capital makes it a different business. The driver is no longer business operations but financialization.
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Industrial Building Portfolios – In Heavy Demand

Industrial Building Portfolios – In Heavy Demand

Industrial Building Portfolios, $50MM and greater, are where the action is today. Institutional investors need scale and the only place to find it, as far as industrial, is in the portfolios of National Operating Companies and Private Partnerships. Institutional Investors stand between the real estate and fixed obligations to satisfy pension, insurance, and retirement plans. It’s major financial plumbing and as the obligations grow so does the need for product. Roll ups, a familiar consolidation vehicle in corporate America, is now the preferred way for large real estate investors to buy. Unknown to many, national industrial building ownership is consolidating and almost all local developers/investors sell into these relatively few pools as a final exit.
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New Industries and the Spaces They Occupy

New Industries and the Spaces They Occupy

This October in New York City, SIOR, in partnership with the MIT Center of Real Estate, will be offering a program called New Industries and the Spaces They Occupy. In preparation, two members of the Tech Committee, Gary Schacker and Jim Klein; and Steve Weikal, Head of Industry Relations from the MIT Center had an advanced tour of the largest, Innovation-Anchored real estate developments in New York – Industry City and the Brooklyn Navy Yard. Very special thanks goes out to Michael and Bill O’Brien, Brooklyn natives and second generation SIORs, who organized and joined us on the tours.

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Winter News 2016 – Industrial Real Estate Profits

Winter News 2016 – Industrial Real Estate Profits

development Deal Strategy

The current cycle is being propelled by three major conditions: Space Scarcity, Capital Markets Pressure and Rent Surge. Market dynamics are still very favorable for development and will only be disrupted if demand begins to weaken. Otherwise, strong fundamentals are the prevalent condition in most major U.S. markets.
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Big Industrial Land

Big Industrial Land

Introduction

This is clearly an exciting market, finally. Land and buildings are trading robustly in all corners of US Industrial.. There are three reasons to explain the activity – moderate growth; dearth of recent, new construction; and lots of institutional finance. There is virtually no product available, especially for newer generation buildings. As far as capital, it’s a wave of money that wants to be invested in industrial.
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The Challenge of Ecommerce Real Estate

The Challenge of Ecommerce Real Estate

cluster map postcard (3)

We’ve been examining some of the larger ecommerce distribution companies and while it is a very notable trend in the industry, we’re finding the current leasing impact is substantially less than the publicity it currently garners. But this is still early in the migration to a new distribution platform and a lack of building supply is holding back ecommerce adoption especially in infill markets. Ecommerce users generally want a lot of loading, high clearances, and large employee parking lots. These are not buildings typically found on the market and in this period of extreme shortage, there is no incentive for developers to develop anything “out of the box”. However, those few developers who have been willing to take the risk and build ecommerce buildings on spec have been richly rewarded.
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INTRODUCING MAPP 1.0

INTRODUCING MAPP 1.0

 
Over the summer we created a commercial real estate mapping application that combines the important commercial real estate information  for Los Angeles County in one place. It is designed to help buyers, tenants, developers, and investors get a spatial view of the real estate commitment they are about to make. We call this map application MAPP 1.0.
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Economic Development in Greater Los Angeles

Economic Development in Greater Los Angeles


More so than ever before, cities are vying for companies that create jobs. There’s the policy aspect that favors clean and green jobs. Then there’s the backroom bargaining that favors successful outcomes. Companies that can offer employment would do well to study some of the recent newsworthy examples. They include the failed attempt by Los Angeles to attract AnseldoBreda, local jostling to snare Tesla Motors, competition for Eli Broad’s museum, Los Angeles Stadium in the City of Industry, and the smaller manufacturing  deals coming through the CRA of Los Angeles. Each one is fairly lucrative to the company and does not necessarily fit any set model. They are similar to the large retailers, like Costco or Walmart, who were able to negotiate attractive packages for redevelopment funds, property tax breaks, and property development benefits. I haven’t seen any studies if these retail developments met city economic expectations, but certainly the recent raise in sales tax makes up any marginal differences. It pays to understand the multitude of incentives available from local, state and national agencies.
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