Category Archives: Uncategorized

New Tech Office Space – Web 2.0 or Déjà vu?

As I take a visual tour of the coolest offices in Tech, I can’t help but be reminded of the last time we saw mass amounts of money spent on office digs for companies that, in some cases, have yet to prove out their business model. For all the triple bottom line awareness this generation of tech entrepreneurs are supposed to have, some of these moves look vaguely like Ego 2.0 more than Web 2.0. Its not an investment deal breaker but does it show something of a leaning from irreverent to irresponsible? Sure, the flavor and finish of most of this is not extravagant in comparison with their hiring moves or investment fervor. And I’m not trying to say that these companies don’t do well by creating an environment that keeps and kindles creativity and commitment. I’m all about that.  What I am saying is that keeping that in check with bottom line business decisions and sound workplace strategy will be the way to keep the lights on. These kinds of companies are my clients so I guess I’m just saying hey, don’t forget the ‘bubbly’ lessons of the past while your charging prosperously into the future.

Flikr photo cred: Mark McLaughlin

Technology of Real Estate and the Real Estate of Technology

Much has been written and reported on developments in Intelligent Buildings. The modern age of commercial real estate design, construction, function and management has evolved to include technology as the main utility that serves all other utilities. CRE in Minneapolis, MN and elsewhere is attempting to develop, compete and retrofit itself into a new era where efficiency and experience meet environmentalism and economic merit. Tolerance for cost and adoption is guided by the value of the real estate or driven by the demand of the market. It would appear it will be a situation where the integration of technology of real estate has a sound methodology for its self correcting progression.

The real estate of technology, on the other hand, would appear more susceptible, or at least less synergistic between the two parts. Yes, data center design, latency issues, disaster recovery management and virtualization are constantly progressing but it feels more like catch-up. Energy efficiency, geography, power sources are all real estate related issues that when you actually look at where a lot of the Internet traffic is routed, it looks more like cart paths than grids. Yes, the power grid, power centers of commerce and information need drive the development but with data centers now going near the Arctic Circle, its apparent data needs, and can, be anywhere.

Its almost scary to think of the all the information going through a place like 60 Hudson Street. The linked video is great little overview that got me thinking about all this and saying, DATA WILL BE THE NEXT DRIVER OF COMMERCIAL REAL ESTATE ABSORPTION/DEVELOPMENT if it is not already. What do you think?

60 Hudson Street and the Hidden Internet

flikr photo credit: UggBoy♥UggGirl [ PHOTO // WORLD // TRAVEL ]

Generation Y Wants Flexible, Modern Offices

….These include efficient use of office space, more flexible workstations (not necessary smaller), sustainable practices and more data center development. – The conclusions of a study done recently by Colliers and reported in GlobeSt.com. We’ve been writing and reporting on it for some time. Your commercial real estate costs, employee recruitment, company’s future depends on it.

flickr photo cred: Cross Duck

WHY ARE WE IN THE CRE BUSINESS?

To know WHAT we do, take a look at www.adamcommercial.com.
To know a bit about WHY we are in the business, see below:
We do it because we want commercial spaces to inspire people.

We do it because real estate should be adaptive, be renewed and be smarter.

We do it because real estate is a vehicle to artistic expression, financial prosperity, and fostering community.

We do it because real estate should be efficient and elegant with all its systems.

We do it because transactions should be respectful to all its participants.

We do it because integrity is what makes the structures and relationships last.

We do it because new ways of doing it are how the old ones got started.

We do it because creative vision can be made into commercial value.

Okay. What’s your WHY?

fickr photo cred: Ame Otoko

ULI Emerging Trends 2011 best CRE bets

ULI(Urban Land Institute) issues an annual trends and forecast publication called Emerging Trends in Real Estate. The report is a highly regarded forecast on real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas and other real estate issues in North America. The report surveys 800+ professionals of the related industries.  Here are some of their main insights and suggestions for 2011 along our interpretation of them.

  • Buy well-leased core assets and look for 6 to 7% cash flows – because that is a good return on a sound investment…once again…. cash flow rules.
  • Lock-in leverage – Mortgage rates can’t get much lower and cyclical bottom is the optimum time to leverage properties in order to magnify future value gains as property fundamentals ameliorate. In other words, with low interest loans, inflation charged valuations and even smaller returns are a larger victory.
  • Provide debt and recap equity – Players who fill the gap on assets with lowered cost bases can obtain excellent risk-adjusted returns up and down the capital stack, including mezzanine debt and preferred equity, if not loan to own opportunities. In other words, its a good time to get back in if you are a player.
  • Focus on global gateways, 24-hour markets – Everybody wants to be in the primary coastal cities with international airport hubs. If your market is not one of the logical candidates for this, its time to recommit yourselves on figuring out how your market will compete in a global market and attract international desires.
  • Favor infill over fringe – The ‘move back in’ trend gains force as twenty-something Echo Boomers want to experience more vibrant urban areas and aging Baby Boomer parents look for greater convenience in downscaled lifestyles. Cities with more multi-modal living options are a better investment than hoping for the suburbs and the larger square footage users to come back after the cycle. Adaptive reuse and smaller footprints are here to stay.
  • Patience is a virtue – Transaction activity will increase and more value add and distressed deals will appear. Don’t chase deals, that’s how bad ones are made.
  • Buy or hold REIT – Survey respondents expect solid cash flowing returns.They have cash to capitalize first on the market as it is today and the are an efficient hedge.
  • Buy land – It won’t get any cheaper than now, but prepare to wait for the right development opportunity.Dirt cheap is when nobody wants it, so that’s when you buy it.
  • Exercise caution on distressed loan pools – They could be a recipe for disaster if you don’t underwrite the assets properly. See chasing deals comment above and know we have short memories about collections of risky assets.

The reminder from the report is that this may be the beginning of the Era of Less but its more than likely that we had too much in the Era of Excess. We are now working our way through the Period to Deal with the Mess. Our reminder is there is commercial real estate opportunity in every era.

Getting comfortable in a new skin….

Nordeast Retail Space

 

The lights are on but with the website change over we have moved from Blogger to WordPress. Please excuse the generic skin for the moment. We’re diligentlyworking on getting a new theme imported…..please stay tuned, visit our other media and previous blog posts. All previous content has be imported into the new blog. BTW, the Nordeast retail space has a couple of great vacancies.

Working on a new design

And new features with focus. Stay posted or don’t. We’ll be here working it out, working on deals for great developments and on the hunt for cool space. Email if you want to hear about the ones that are not making it on to our site. Work in progress not a work neglected.

Oh boy!…or Girl as the case may be!

Now she is only 6,570 odd days away from an institution of higher learning. That is if she wants to go or if higher learning will still have the same shape, feel and application that it does today. Regardless, she and many others until she gets there will most likely need to live away from home during their time of educational experiences. This need combined with the housing desires of aging boomers to be ‘connected’, will mean more emphasis will be placed on higher density living with higher level amenities in areas close to universities and campus communities. That said, where can we take the independent living situation and combine it with the online educational world that we see more and more of? Will this mean new campus type housing situations without real campuses? People will always crave social activities (meeting, eating, drinking, etc) in communal spaces but the time they will do it will be temporary or only during different phases of our life. Why shouldn’t our living quarters take the same role? It does but not with real pay off in the same way we are preached about home ownership. Is it because of the desire to have our rent be an investment? Why not get landlords then to have good paying students earn credit toward…good credit or mortgage qualifications. That way, they can be earning and learning while they are learning to earn. I may just be babbling like a new dad with little sleep but it always somehow comes back to real estate opportunity. Its in the interest of my girl’s future that this babble takes its course…be it online or on campus.

Want to pursue this course with me? Send word, I’ll be up.

My neighbor, my hood.

Its no secret the middle class is shrinking. According to the Brookings Institute, what seems to be new information is the middle class neighborhoods are shrinking faster. Does this mean we need to find new reasons to stay in the suburbs or does it mean we need to make the suburbs more friendly to the increasingly polarized society? If you’re out on National Night Out tomorrow look, or better yet ask, around to find what seems to be missing in your suburban world.

Adam’s currently more frequented neighborhood is the 5th floor at Abbott while we await our next addition to our first ring population. Reporting will regain its frequency once we’re all back in da’hood.

You’ve heard it before just not this way.

Land, then, is not merely soil; it is a fountain of energy flowing through a circuit of soils, plans, and animals.

- Aldo Leopold

As it turns out, land is also a conduit of economy with growing importance. Maybe more respect to its value will result. Maybe we think before we dig. Maybe the way we sell will be drastically altered. Maybe homes will become more fluid vehicles of investment. Maybe.