In Greek mythology, the great inventor Daedalus and his son Icarus attempted to escape the island of Crete using wings made out of wax and feathers. While testing the wings, Daedalus warned his son of complacency and also of hubris, suggesting that he fly neither too low nor too high.
At nearly 100 years old, like-kind exchanges have become a subject of much debate recently as tax reform has taken center-stage under the Trump administration. Tax reform is on the agenda for Congress in 2017 and it must consider whether to repeal, preserve, or expand the provisions of the section of the United States Tax Code known as “1031”.
I used to really enjoy the television show, The Jetsons. Perhaps I’m dating myself with that statement, but the Jetsons – George, Jane, Judy and Elroy, were an average family living in a really cool, high tech society. The intro to the animated series demonstrated just how progressive the future was expected to be, depicting the characters wearing clothing that’s more in line with something out of the Hunger Games than anything we might know today.
Light-emitting diodes (LEDs) are today’s fastest growing lighting technology. In fact, at the end of last year, industry analysts at Goldman Sachs recognized the adoption of LEDs as being among “…the fastest technology shifts in human history.” The company then went on to state that market share for LEDs will reach 69% by 2020, and nearly 95% by 2025. That’s amazing growth considering that in 2010, LEDs had a near zero market share. If you’ve been considering LED lighting for your property, here’s some information to help your decision making.
With the arrival of sunnier days, our thoughts turn to the outdoors. Cookouts, days at the beach or the park are appealing distractions after our winter shuttering. While blooming flowers and greening lawns signal the arrival of spring and eventually summer, the warmer weather also brings some unfavorable pests and nuisances. Homeowners will be quick to point out that mosquitoes and other airborne and terrestrial tormentors can make outdoor living almost unbearable if the proper defensive measures aren’t taken. While flying, crawling, slithering creatures are realities of our personal interaction with nature, they are also very real concerns for commercial property owners and managers.
The telltale signs of spring are upon us. Punxsutawney Phil and his groundhog brethren have crept from their dens and afforded us various predictions on the coming of the season. We’ve celebrated St. Patrick’s Day and set our clocks ahead. And, while some regions of the United States are getting their last dustings of soggy wet snow, others are enjoying the colorful, early blooms of crocus and forsythia. Each of these events lets us mark time on our mental calendars, but they also remind us that Spring is traditionally a time of renewal and a great time to evaluate and remediate the maintenance needs for our commercial real estate properties.
There’s a great scene from the movie Money Ball in which Billy Beane, played by Brad Pitt, and his head scout argue over how Billy’s data-driven approach to talent scouting and acquisition disregards the experience and intuition of his lifelong “baseball men.” What’s really intriguing about the scene is when Billy looks the scout in the eye, throws his hands in the air and in a matter-of-fact manner tells the naysayer to “adapt or die”. The statement is part foreshadowing and part revelation as the scout is let go in the next scene and the 2002 Athletics eventually go on to break the American League record for most consecutive games won.
We are pleased to announce we were awarded the management assignment for the University Plaza Shopping Center in Winston-Salem, and the 274 Eastchester Shopping Center in High Point.
University Plaza contains 215,854 leasable square feet. Its tenant roster includes Burlington Coat Factory, Food Lion and Office Depot. The Meridian Realty Group was also awarded the leasing assignment for the center.
The 274 Eastchester Shopping Center contains 63,306 leasable square feet. It is anchored by Office Depot. Other major tenants at the center include Dunkin Donuts, Dollar Tree, Plato’s Closet and Hooters. The center is 85% leased.
It has been a slow and steady process, but new office construction is finally approaching its long-term average in the U.S.
In fact, newly constructed office space exceeded demand in the first quarter of 2015.
Approximately 15 million square feet of new office space came on-line in the U.S. during the first three months of 2015. This surpassed net absorption by 3 million square feet for the same period.
There was approximately 108 million square feet under construction at the end of the first quarter 2015. This equates to an increase of 17% compared to the same period a year ago. This is quite an improvement from the historical low of 50 million square feet in 2010.
Increasing office rents are making new construction a viable alternative to purchasing an existing building. If this trend continues, the amount of office space under construction will continue to move closer to the quarterly historical average of 122 million square feet under construction.
Commercial real estate practitioners are frequently asked how commercial properties are rated. While there can be some variation by market, properties are typically classified for comparison purposes using one of two classification systems. The two systems are Metropolitan and International.