January 8th, 2018
Each week, I select a few articles that rise above the fray and hopefully help you on your journey in the CRE world. They pull from one of four "corners:" corporate real estate, technology, management science and anything positive. I welcome your comments on these articles and the submissions of others (with credit to you if I post them). I wish you a terrific week!What’s the Verdict on Urban vs. Suburban CRE Investment?"In the past, urban assets have outperformed suburban asset returns in both office and multifamily sectors. From 1996 to 2016, suburban multifamily fell behind its urban counterpart by 80 basis points, while the suburban office sector underperformed urban by 110 basis points.The present spread between urban and suburban multifamily is consistent with its long-term average at 81 basis points, meaning there is currently no worthwhile advantage to investing in suburban assets when considering the long term." www.nrei.com
San Francisco’s Skyline, Now Inescapably Transformed by Tech"SAN FRANCISCO — The skyscraper came late to this city, a shipping and manufacturing hub for much of its existence. The wealthy roosted on the hills and the masses toiled on the flats and the docks. Everyone lived close to the ground in a setting renowned for its natural beauty.
Now the things being shipped are virtual, and vast amounts of office space are needed to design, build and market them. Salesforce, a company that did not exist 20 years ago, will take up residence on Jan. 8 in the new Salesforce Tower, which at 1,070 feet is the tallest office building west of the Mississippi." www.nytimes.com
[tweet_box design="box_09" float="none"]Salesforce, a company that did not exist 20 years ago, will take up residence on Jan. 8 in the new Salesforce Tower, which at 1,070 feet is the tallest office building west of the Mississippi[/tweet_box]
Piedmont CEO Says Supply, Demand in Equilibrium Across Office Sector"From a balance sheet perspective, Piedmont is “probably in the best position we’ve ever been,” according to Miller. The company expects to close on the sale of 14 assets in early January, which should reduce Piedmont’s leverage to its lowest level to date, he noted.As for individual market performance, Miller noted that the Sun Belt region is probably the strongest right now. Chicago and Minneapolis are performing “quite well,” while Houston is probably the weakest market, he said. Washington, D.C. continues to be “a little bit of a drag on us,” Miller added." www.reit.com
[tweet_box design="box_09" float="none"]It's true that, since the rise of the Internet, we are #working from home more than we did before. But computers and smartphones didn't replace the office—they've just kept us tethered to it when we're not there #cre[/tweet_box]
The Future Of Home Business Technology"The idea of a physical workplace is being replaced by the idea of conducting businesses from your own home. It's easier now -- we can create a virtual office and marketplace through the internet. You can take care of all aspects of the business from home and find the right balance between personal and professional life.
Not only do home business owners save time and energy, but they are putting technology to the right use." www.inc.com
Not Driving to Work Is the Hot New High-End Job Perk“The percentage is down a little for lower- and middle-income workers since 2005, although it's hard to detect much of a trend in either direction since the last recession. Among those making $75,000 or more, though, there's been a significant decline since 2005, and it is continuing. Just as a reality check for Bloomberg's many well-remunerated readers: Only 18.4 percent of U.S. workers made $75,000 or more in 2016, according to the ACS; the median was $35,815. (These numbers are all for individuals; median household incomes, also released last week, are higher.)
So while a big majority of higher-income workers still drives to work, that percentage is shrinking in a way that it isn't for lower-income workers. How are those higher-income workers getting there instead? Well, public transportation....." www.bloomberg.com
Your success blesses others. I wish you a great a hugely impactful week!Ken