Dennis Kaiser of Connect Media asked Rising to share a few insights on the Los Angeles market in our latest 3 CRE Q&A.
By Chris Rising
In December, Congress passed the most comprehensive change in the tax code since 1986. While we do not yet know for sure how those changes will affect commercial real estate, the general consensus here at Rising is that the overall impact will be positive. We may see corporations utilize the extra cash from their tax cuts for built-to-suit developments or new headquarters, or grow their employee base and expand their leased space. This means there could be slightly more demand from the tenant side in both the capital and leasing markets.
There are many trends shaping the real estate market. Most of these trends are being driven by the advancement of technology – specifically by the millennial generation's use and interpretation of cloud-based and mobile-focused technology. Everything from communication to transportation is evolving and we're keeping our finger on the pulse and looking where the “puck” will be headed.
While it may seem every building lobby has transformed in the way they look, feel, and operate, we have observed that this is simply not the case. Many properties are behind the times in their approach to management, the lobby in particular. Whether it’s poor lighting, unfriendly staff, or an overall stuffy experience, this lack of care in management for the what is often a visitor or potential tenant’s first impression not only leads to a poor user experience, but an overall decrease in property value.
Building lobbies have historically been used solely as an entry from the outside and a means to get to the elevator and go straight up to the floor you need to get to. In recent years, developers began thoughtfully transforming lobbies into spaces that people actually utilize beyond just a passageway.
Millennials are now the largest generation by population in the United States, clocking in at 92 million in 2017. The sheer volume of this generation makes it the largest workforce this country has ever seen. And while there’s power in numbers, millennials are impacting businesses in other ways. Their lifestyle, which prioritizes differently than their parents’ did, is reshaping commercial real estate. At Rising, we’ve been watching these changes for a while now. Here’s how we see millennials changing the CRE landscape.
When you think of 3rd Party Property Management, you think collecting rent, coordinating with janitorial and security services, and addressing complaints from your tenants. However, good property management is more than just the sum of its parts... It involves a combination of best practices that will keep your tenants happy with what they're investing in. Here are a few ways to help you identify ways in which your property management team might be failing, and how to improve this tenant-landlord relationship for the benefit of both parties:
For most people, life in Los Angeles is synonymous with traffic. Year after year, LA tops “Cities with the Worst Traffic” lists, the most recent instance being just last month, as reported by Business Insider. Residents know that traveling across town at any time of day is a gamble as far as commute times go, and getting a hotel room for a morning meeting in Santa Monica is not unheard of for a business owner based outside of downtown. Los Angeles is changing drastically because of traffic and is showing no signs of slowing down.
As virtual reality becomes more mainstream, its reach will surely extend beyond media and entertainment. At Rising, we believe this technological advancement can and will have positives effects on commercial real estate, particularly when it comes to leasing and team building. It’s important to us to always look ahead, and here are the ways we see VR changing the way we see office space.
Connect Media attended Allen Matkins’ 2017 View from the Top real estate conference in Beverly Hills. We asked CRE market leaders to share their insights about what to expect in 2018. Watch today’s video to hear what Kilroy Realty’s John Kilroy, Rising’s Christopher Rising, Allen Matkins’ Tony Natsis and NKF’s Kevin Shannon think about what’s on CRE’s horizon. Yesterday, our video was on the market’s biggest trends and deals.
By Chris Rising
Based on the news, the future of physical retail looks grim. The last two years have been commonly referred to as a “retail apocalypse,” and experts are quick to declare that “retail is dead” at every chance on TV. And they’re not entirely wrong. Stores like J.C. Penney, Payless, and Macy’s that used to have a presence in every shopping center on every corner are now filing for bankruptcy or closing stores at an alarming rate. The 1,300 or so shopping malls in America are struggling to fill vacancies and bring in customers.