<span class="hide-blog-title">The Commercial Inspector</span>CRE tips and news by National Property Inspectionshttps://npicommercial.com/blog/postsAdaptive Reuse: Giving Old Buildings New Lifehttps://npicommercial.com/blog/posts/PostId/1573/adaptive-reuse-giving-old-buildings-new-lifeCommercial Real Estate News,Property InvestmentWed, 26 Jul 2023 20:16:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">ADAPTIVE REUSE: GIVING OLD BUILDINGS NEW LIFE</span></strong></span><br /> <em class="fa fa-calendar"></em> July 26, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a>, <a href="https://npiweb.com/Blog/Posts?Category=commercial-real-estate-news">Commercial Real Estate News</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business-tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/save-money">save money</a>, <a href="https://npiweb.com/Blog/Posts/Tag/building-renovation">building renovation</a>, <a href="https://npiweb.com/Blog/Posts/Tag/office-space">office space</a>, <a href="https://npiweb.com/Blog/Posts/Tag/restaurant">restaurant</a>, <a href="https://npiweb.com/Blog/Posts/Tag/multi-family-property">multi-family property</a>, <a href="https://npiweb.com/Blog/Posts/Tag/apartment">apartment</a></p> <p>Adaptive reuse is on the rise in commercial real estate as somewhat radical shifts continue to reverberate throughout various CRE subsectors. With the mercurial nature of <a class="color-secondary" href="https://npicommercial.com/blog/posts/what-to-know-about-office-to-residential-conversions">office</a> and <a class="color-secondary" href="https://npicommercial.com/blog/posts/the-bright-future-of-fitness-real-estate-why-gyms-and-fitness-centers-are-excelling-in-2023">retail space</a> utilization, finding creative ways to repurpose properties without starting from scratch is certainly in the air.</p> <p>This is where “adaptive reuse” comes into play. Do you own a warehouse that’s become an underused capital sink? Restore and renovate the property so that you can reopen it as trendy luxury apartments! Defunct businesses like switchboard operator buildings sitting empty? Rather than tearing it down, reopen it as a unique coffee shop or restaurant. Adaptive reuse is all about creativity and innovation while preserving the interesting historic buildings that can bring a neighborhood or a city its unique character.</p> <p>There are many ways for CRE investors to utilize an adaptive reuse mindset in today’s volatile market, and the benefits of this strategy just might have a considerable impact on their ROI.</p> <p><span class="emphasis-secondary">Common Applications for Adaptive Reuse Today</span><br /> The first form of adaptive reuse that we’re seeing pop up over and over recently is the multi-family conversion. Office buildings have continued to struggle filling up post-pandemic, and features like high ceilings, which are somewhat common in offices, are highly sought after in multi-family properties. The thought is that while it’s hard to say when some companies will decide to move back into offices in full force, multi-family properties are a more consistent need that is far less likely to hit a similar lull in the near future.</p> <p>Other types of properties that are looking to apartment conversions as a new lease on life include hotels, old warehouses, and even movie theaters. Per CRE analysts at <a class="color-secondary" href="https://www.rentcafe.com/blog/rental-market/market-snapshots/adaptive-reuse-apartments/" target="_blank">Rent Cafe</a>, major cities like Los Angeles, New York, and Chicago are leading the way in new adaptive reuse apartments, and though the initial 2019/2020 surge wasn’t ultimately sustained, these conversions remain prevalent.</p> <p>Another utilization of adaptive reuse is seen in restaurant and coffee shop conversions. These span the gamut of commercial real estate with everything from old post offices to banks to former railway corridors being transformed into trendy eateries. These atypical locations can become a hotspot quickly, drawing attention from a young clientele in an area that was previously defunct. But the uniqueness factor that these businesses gain isn’t the only reason why business owners look at adaptive reuse for their ventures.</p> <p><span class="emphasis-secondary">Advantages of an Adaptive Reuse Strategy</span><br /> As mentioned, one great benefit of an adaptive reuse strategy is the ability to create a desirable, unique experience for customers. We discussed previously <a class="color-secondary" href="https://npicommercial.com/blog/posts/competitive-socializing-a-passing-trend-or-a-commercial-real-estate-boon">how millennials and Gen Zers are placing increased value on unique experiences</a>, and their ability to share their experiences over social media offers a new avenue of “free” advertising that is incredibly desirable for business owners. Making a splash online can be tough for property owners who don’t have a comfort or knowledge in marketing, so inherent advantages like these shouldn’t be overlooked.</p> <p>Beyond these locations being an aesthetic draw, the reuse of existing buildings requires fewer materials and produces less waste in comparison to full teardowns and reconstruction (when the circumstances are right). With sustainability in mind, adaptive reuse might be the best way to reduce pollution and update neglected properties.</p> <p>Finally, retrofitting properties for new purposes through adaptive reuse strategies can help communities revitalize themselves while holding onto their history. Older buildings require demolition if they fall into disuse and disrepair, but with a little investment, historical locations can have a new life and serve a new purpose for a new generation. There’s something about bringing the old and neglected back to life that helps communities come together and invites more local participation. A strong sense of community is vital for small business success.</p> <p>Investors who are looking to diversify their portfolio may benefit from looking at local historical or vacant properties in need of a little love. Not only could it be a shockingly strong performer, these properties can become catalysts that renew an entire community.</p> <p><em>Inspectors from NPI have the expertise and versatility to perform thorough inspections for commercial properties across all sectors - multi-family, office, industrial, retail, hospitality, mixed use, and special purpose facilities. Contact <a class="color-secondary" href="https://npicommercial.com/contact">your local NPI inspector</a>, or speak with our <a class="color-secondary" href="https://npicommercial.com/Services/Multi-Location-Services">National Accounts department</a> to see how we can fulfill your needs!</em></p> 1573The End of the Student Loan Pause and Its Expected Impact on CREhttps://npicommercial.com/blog/posts/PostId/1554/the-end-of-the-student-loan-pause-and-its-expected-impact-on-creCommercial Real Estate News,Property InvestmentWed, 19 Jul 2023 17:44:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">THE END OF THE STUDENT LOAN PAUSE AND ITS EXPECTED IMPACT ON CRE</span></strong></span><br /> <em class="fa fa-calendar"></em> July 19, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=commercial-real-estate-news">Commercial Real Estate News</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/save-money">save money</a>, <a href="https://npiweb.com/Blog/Posts/Tag/retail-space">retail space</a>, <a href="https://npiweb.com/Blog/Posts/Tag/hotel">hotel</a>, <a href="https://npiweb.com/Blog/Posts/Tag/apartment">apartment</a></p> <p>On October 1st, the student loan pause that stretched back to early 2020 will come to its climactic end, leaving many economic analysts as well as borrowers anxious about the future. An extra few hundred dollars of costs affecting the budgets of roughly 44 million Americans is sure to send ripples throughout many industries. And for commercial property investors, staying up to date on the latest speculation tends to have its value. Looking forward, here’s how the end to The Pause might impact a few key real estate sectors.</p> <p><span class="emphasis-secondary">Forecasting the Effect on Multi-Family Properties</span><br /> As we’ve discussed, property owners are <a class="color-secondary" href="https://npicommercial.com/blog/posts/what-to-know-about-office-to-residential-conversions">getting creative</a> with ways to add to multi-family property inventory as other sectors have been negatively impacted by inflation. While it’s true that most still consider multi-family properties a smart add to any investor’s portfolio, recent conversion strategies and new builds have prioritized higher-end units, which doesn’t balance well with student loan payment continuation.</p> <p>Those impacted by student loans are likely to look for ways to save, which may mean downgrading their living situations by moving from Class-A locations to Class-B, or from Class-B to Class-C. Millennials and younger renters who have opted to rent alone may also choose to share costs by finding roommates or moving in with family. Depending on the demographics of your multi-family locations, a shuffle in tenants seems very possible with higher-end locations more likely to see an increase in vacancies.</p> <p><span class="emphasis-secondary">Changes in Plans and Excess Spending</span><br /> Borrowers are sure to either cut on spending for non-essentials or accrue additional debt, which means that retailers could be disproportionately affected. From clothing stores, to the hospitality sector (and travel industry), to car dealerships, excess spending is due to see a considerable decline as people learn to adjust to their budget. Marketers will look to emphasize the essential nature of their products and services as consumers are sure to take time reprioritizing their outgoing funds.</p> <p>Larger purchases are also likely to take a hit as those looking to retire or pursue an advanced degree will instead wait until their finances are in order. While the overall impact on the economy as a whole should be negligible due to funds only being redistributed from these areas to loan repayments, low to medium income earners should feel the largest impact. This leads to the natural question of home ownership, and how the reinstatement of payments might limit those looking to make a transition from renter to owner.</p> <p><span class="emphasis-secondary">Projected Impact on Residential Market</span><br /> While this may be something of a surprise, the residential market is actually not very likely to be heavily impacted by student loan repayments. Inflation and high mortgage rates have already made homeownership a tall task for most younger prospective buyers, which means that most analysts agree, those that were avoiding purchasing a home during the student loan freeze likely weren’t in a position to buy anyway.</p> <p>Inflation, mortgage rates, and overall availability all need to shift for residential sales to see a noticeable increase, it seems. As a spot of good news for renters, though, signs seem to be pointing towards a drop in rent prices in a few key cities, and some (like <a class="color-secondary" href="https://www.cnn.com/2023/06/22/homes/existing-home-sales-may/index.html" target="_blank">reporters at CNN</a>) are seeing home prices lowering steadily. Given time to adapt, spending is likely to normalize again. For how long this adaptation will take, follow along as we watch the latest commercial real estate trends and news!</p> <p><em>No real estate purchase is safe without a comprehensive inspection revealing insights on the condition of the property. To work with America’s premier name in commercial property inspections, <a class="color-secondary" href="https://npicommercial.com/contact">contact NPI today</a>!</em></p> 1554How to Identify a Good Commercial Property Investmenthttps://npicommercial.com/blog/posts/PostId/1550/how-to-identify-a-good-commercial-property-investmentProperty InvestmentWed, 21 Jun 2023 17:16:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">HOW TO IDENTIFY A GOOD COMMERICAL PROPERTY INVESTMENT</span></strong></span><br /> <em class="fa fa-calendar"></em> June 21, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/save-money">save money</a>, <a href="https://npiweb.com/Blog/Posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a></p> <p>When running a business, owners are constantly looking for ways to diversify their income so that sudden changes in market demand don’t result in a death knell for their operation. For those with an entrepreneurial spirit, looking for ways to diversify their personal income often leads them into property investment. But how do new investors know how to make the right investment and avoid being saddled with a property that becomes more of a hassle than an asset?</p> <p>In property investment investors often compare residential and commercial purchases. Commercial properties are a great option for investors due to their higher returns compared to residential properties, their longer lease terms, and the diverse approaches available like with <a class="color-secondary" href="https://npicommercial.com/blog/posts/the-pros-and-cons-of-triple-net-leases-for-tenants-and-property-owners">Triple Net Leases</a>. (If you’re still torn on residential vs. commercial property investment, real estate investment experts over <a class="color-secondary" href="https://www.fortunebuilders.com/commercial-vs-residential-real-estate/" target="_blank">at FortuneBuilders</a> have a great breakdown on the pros and cons of each model!)</p> <p>For new investors looking to get into the space of commercial property investment, identifying a strong deal can feel like a big task. To get started strong, here are some key considerations.</p> <p><span class="emphasis-secondary">Learn About the Industry</span><br /> Before even thinking about making that first purchase, prospective investors have plenty of research to do about commercial real estate in general, and then plenty more about their own unique market. Although it’s easy to find broad-stroke statements about the current state of commercial properties (for example, industrial properties are the highest performing investments, and retail is struggling), markets everywhere vary. For that first investment, it’s best to try and compare properties in as similar a situation as possible.</p> <p>Commercial property value is primarily determined by factors like usable square footage, age and condition, location, and profitability of its tenants. Although finding a perfect match may be difficult, investors should try to find another property that matches as many of these traits as possible to get a better idea on an accurate valuation. Even similar properties in a nearby town can vary considerably in value due to unforeseen circumstances.</p> <p>Just as when entering any industry, finding a successful mentor is key to anyone looking to overcome a learning curve. Mentors are people who have experience with successful investments and managing a portfolio, ideally in a similar area and with the sorts of properties.</p> <p><span class="emphasis-secondary">Familiarize Yourself with the Stats</span><br /> After becoming more confident with the way commercial property investments realistically work, investors will need to get acquainted with three key statistics: Net Operating Income, Capitalization Rate, and Cash-on-Cash Return. Each of these figures are used to identify a smart investment, and they can build off of one another.</p> <p>A property’s Net Operating Income (NOI) is the value of a property’s revenue (rent, parking, laundry, etc.) after deducting expenses related to operating the facility (maintenance, insurance, utilities, taxes, etc.). If an investor takes values from a full year’s estimated totals and they see a positive NOI, then they may have found a property worth pursuing.</p> <p>After calculating a property’s NOI, investors can use this figure to determine the Capitalization Rate as well (also known as the Cap Rate), which helps determine a rate of return. Although this rate shouldn’t be the sole factor to determine whether an investment is worthwhile, many investors use this as a quick and easy point of reference for their properties. Cap Rates are calculated by dividing the NOI with an appraised value, and can also be used to determine when a return should be expected.</p> <p>Borrowing is a very common factor that needs to be tracked in a commercial property investment. This is why the Cash-on-Cash Return metric is commonly relied upon to determine whether an investment was or was not successful, and it’s considered one of the most important commercial real estate calculations. Put simply, this percentage is calculated by dividing a property’s NOI, by the total dollar amount invested. The higher this percentage, the better!</p> <p><span class="emphasis-secondary">Understand Your Own Skills and Preferences</span><br /> While these figures and general principles should set investors in the right direction for their next investment, it is far from the full set of considerations. Every sector of commercial property investment and management has their own unique quirks and concerns, meaning the most successful investors will be able to play to their own strengths, rather than rely on a generic gameplan.</p> <p>Some might be interested in investing and adding value to a property to make their profits, while others are more confident in relying on appreciation. Many investors find a home specializing in multi-family properties, but considering how well the industrial sector has been performing, investors with the know-how and comfort could see considerable return there as well. Model your investments based on your unique strengths to match a promising property, and you’re sure to accomplish your goals!</p> <p><em>Nothing cripples a strong commercial investment like unexpected maintenance issues. Start with a <a class="color-secondary" href="https://npicommercial.com/contact">commercial property inspection</a> to keep your investments secure!</em></p> 1550Investment Opportunities in Student Housinghttps://npicommercial.com/blog/posts/PostId/1549/investment-opportunities-in-student-housingCommercial Real Estate News,Property Investment,Property ManagementWed, 14 Jun 2023 17:12:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">INVESTMENT OPPORTUNITIES IN STUDENT HOUSING</span></strong></span><br /> <em class="fa fa-calendar"></em> June 14, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-management">Property Management</a>, <a href="https://npiweb.com/Blog/Posts?Category=commercial-real-estate-news">Commercial Real Estate News</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/multi-family-property">multi-family property</a>, <a href="https://npiweb.com/Blog/Posts/Tag/apartment">apartment</a>, <a href="https://npiweb.com/Blog/Posts/Tag/special-purpose-facility">special purpose facility</a></p> <p>One of the keys to having success in commercial property investments is to stay on top of market trends and forecasts. While unpredictability in recent years has meant that diverse portfolios are the most resilient, investors are slowly discovering stability and confidence in some surprising places. Of late, many property investors are turning to student housing for their next option, and it’s little wonder why.</p> <p><span class="emphasis-secondary">Why Student Housing?</span><br /> In comparison to other commercial properties, student housing has recovered at a much quicker pace from the effects of lockdowns and the pandemic. While there has been a consistent struggle <a class="color-secondary" href="https://npicommercial.com/blog/posts/spring-office-utilization-is-growing-what-is-the-future-of-remote-work">between CEOs and office workers</a> as preferences for hybrid and full-time remote work have grown in prevalence, students’ choices aren’t changing when it comes to their education. According to the <a class="color-secondary" href="https://nces.ed.gov/programs/coe/indicator/cha#:~:text=Between%20fall%202010%20and%20fall,percent%20to%2016.8%20million%20students." target="_blank">National Center for Education Statistics</a>, even though college enrollment dropped by 15 percent from 2010 to 2021, enrollment is on track to increase by 9 percent throughout the next decade.</p> <p>Though undergraduate students are more willing to incorporate remote learning into their collegiate experiences than in previous years (as reported by education analysts <a class="color-secondary" href="https://www.edsurge.com/news/2022-12-20-why-college-students-turned-from-being-down-on-remote-learning-to-mostly-in-favor-of-it#:~:text=If%20you%20go%20back%20to,they%20didn't%20like%20it." target="_blank">at EdSurge</a>, among others), the lack of sustained impact that universities are seeing from the pandemic seems to prove a unique resiliency from education-related property ownership. Commercial and residential real estate are both very much influenced by interest rates and the ebb and flow of supply vs. demand - things out of the control of the average investor. As projections seem to suggest though, the need for student housing is only growing, and universities are struggling to keep up. Next to a lack of stability in retail and office properties, student housing may be rising in prominence for investor portfolios.</p> <p><span class="emphasis-secondary">Special Considerations with Student Housing Investment</span><br /> Some investors see student housing as a valuable asset with a more reliable cycle of tenants in comparison to traditional multi-family properties. For those interested in stepping into this space, they should be aware that strategies that might work for apartment buildings or condominiums, don’t necessarily work when transitioning into student housing.</p> <p>Although there should be a more consistent audience of tenants each school year, property owners should be aware of massive turnover in occupancy each summer. In addition, while students are generally much more lenient when it comes to the quality of their housing options (the alternative for many is living in the dorms, after all), opting for cheaper materials and lower amenities may also invite reckless treatment from tenants, and more frequent repairs.</p> <p>The prospect of working with a younger than usual tenant base and managing a different maturity level can be enough to dissuade some from investing in student housing altogether, but there are built-in assurances worth considering as well. For example, although undergraduates are usually too young to have a reliable credit record to reference, their parents should ensure that rents are reliably paid. Though there are unique traits when it comes to managing a student housing property, the level of interest in this field is undeniable.</p> <p><span class="emphasis-secondary">Strategies for Success with Student Housing</span><br /> If you’re looking to invest in student housing, there are a few things to keep in mind for the best ROI. First, recognize the benefits that come with regular tenant turnover. Some states prohibit adjustments to rental fees within a lease agreement. Regular vacancies and renewals mean that property owners have more opportunities to adapt to changing rental standards.</p> <p>When it comes to competing for attention and keeping vacancies at a minimum, it’s important to prioritize things that are important to a younger client base. Access to laundry, especially appliances within each unit, is particularly appealing for students who are looking to save time on chores. When it comes to on-location amenities, consider fitness facilities as well as quiet common spaces for studying to fill the majority of your tenants’ needs.</p> <p>Finally, although most properties will benefit from an experienced property manager, student housing may require someone on-hand to be a little more involved than usual. For property investments that may be one of your more reliable purchases, student housing could be a surprising winner.</p> <p><em>Some commercial properties require more maintenance than others. To get a clear picture of your properties, there’s no better option than ordering an inspection. Contact <a class="color-secondary" href="https://npicommercial.com/contact">your local NPI inspector</a> for a quote today!</em></p> 1549Restaurant Design Aspects That Draw In Customershttps://npicommercial.com/blog/posts/PostId/1548/restaurant-design-aspects-that-draw-in-customersProperty Investment,Property ManagementWed, 07 Jun 2023 17:09:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">RESTAURANT DESIGN ASPECTS THAT DRAW IN CUSTOMERS</span></strong></span><br /> <em class="fa fa-calendar"></em> June 7, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=property-management">Property Management</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/restaurant">restaurant</a>, <a href="https://npiweb.com/Blog/Posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a>, <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a></p> <p>The restaurant industry is one of the most saturated, cutthroat, and intensely competitive industries out there. While there is plenty of misinformation about just how difficult it is to succeed in the food service business, it is widely recognized that the vast majority of restaurants close within their first five years of operation. Per the National Restaurant Association’s latest statistics, <a class="color-secondary" href="https://restaurant.org/research-and-media/research/industry-statistics/national-statistics/" target="_blank">7 out of 10 restaurants</a> are individually owned and unassociated from any chain operations.</p> <p>Considering these hurdles, restaurant owners are wise to pursue strategies that set their business apart from the competition as they work toward sustained success. While food and customer service should be every restaurateur’s main focus, their establishment’s physical design has a bigger effect on foot traffic than they might think. For any restaurant owners that are looking to attract new customers, consider these tips for an improved look.</p> <p><span class="emphasis-secondary">Starting with the Standards (And Why They Work)</span><br /> Depending on the style of restaurant you’re looking to open, certain repetitive features immediately come to mind. Glass front doors, a mixture of table seating and booths, and either warm lighting for fine dining settings, or neon accent lighting for sports bars are all common features. While many implement these options simply because they’ve become a comfortable standard in their slice of the culinary world, there is also a good amount of logic that supports these tried and true features.</p> <p>Many restaurants understand the importance of a grand entrance, and often this includes a glass front door and plenty of window space in the entrance. An early look inside the building allows for passersby to get a taste of the attractive interior design, and (hopefully) the bustling, popular atmosphere within. General lighting and strategic accent lighting is used to further invest into whichever specific mood and clientele desired.</p> <p>For example, warm lighting (yellows and golds) have the power to make spaces feel more intimate, which is needed in fine dining settings that tend to pull tables further apart for increased privacy. In contrast, (while this strategy may seem a bit counterintuitive) bright lighting is fantastic for fast food or fast casual-style dining, due to how it causes customers to be more on alert, ready to grab their food and leave. Restaurants that focus on takeout don’t want their customers to linger, and their interior design can support efficiency, without being off-putting.</p> <p>Nearly all restaurants benefit from natural lighting, and warm colors (reds, yellows, and oranges) incorporated into interior designs are said to make customers hungrier, which is why so many restaurants use red in their logos. Getting these staples right are sure to aid in a restaurant’s success, but long-lasting businesses need to differentiate themselves from the pack.</p> <p><span class="emphasis-secondary">Finding Where to Stand Out</span><br /> Lately, there have been many trends making their way into the restaurant design scene that compliment past standards, without interfering with efficiency for the kitchen and serving staff. For the vast majority of restaurants, the kitchen and dining hall is kept in strictly separate rooms to avoid distraction. However, open kitchen concepts can make the cooking process part of a restaurant’s draw. For some, the added talking points and natural trust built through this transparency is more than enough to balance the loss from noise pollution and privacy.</p> <p>When it comes to color, modern trends have leaned heavily towards high contrast, with neutral designs and bold colors positioned selectively to direct customers’ attention to interesting interior features, or displayed artwork. With the increasing prevalence of social media among millennials and Gen Z, it’s particularly important for restaurant owners to provide “share-worthy” situations. Whether a restaurant specializes in certain particularly photogenic dishes, or they’ve leaned into a unique theme, customers that share their excitement for a product or location to their friends and followers online provide invaluable organic advertising.</p> <p>Murals, local art displays, and even live music performances all play into that desire for experiences that customers are more than willing to pay for today. Just like any other commercial property, <a class="color-secondary" href="https://npicommercial.com/blog/posts/how-to-use-public-art-to-increase-your-curb-appeal">using art</a> to create a more striking, memorable image is a great way to create distinction for a business.</p> <p><em>A great product and an appealing environment mean very little if a restaurant’s basic functions break down unexpectedly. To stay ahead of your business’ essential maintenance like HVAC systems, ventilation, and plumbing, start with an <a class="color-secondary" href="https://npicommercial.com/contact">NPI commercial property inspection</a>.</em></p> 1548How Pickleball Is Filling a Void in CREhttps://npicommercial.com/blog/posts/PostId/1527/how-pickleball-is-filling-a-void-in-creCommercial Real Estate News,Property InvestmentWed, 31 May 2023 16:55:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">HOW PICKLEBALL IS FILLING A VOID IN CRE</span></strong></span><br /> <em class="fa fa-calendar"></em> May 31, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=commercial-real-estate-news">Commercial Real Estate News</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/building-renovation">building rennovation</a>, <a href="https://npiweb.com/Blog/Posts/Tag/retail-space">retail space</a>, <a href="https://npiweb.com/Blog/Posts/Tag/special-purpose-facility">special purpose facility</a></p> <p>It’s official. For the third year in a row, the fastest growing sport in the United States is pickleball (according to enthusiasts of the sport at <a class="color-secondary" href="https://www.pickleheads.com/blog/pickleball-statistics" target="_blank">Pickleheads</a>). Odds are good that you’ve already heard of the trend, had a friend fall victim to its not-quite tennis, not-quite ping pong charm, or maybe you’ve been bitten by the pickleball bug yourself. Despite plenty of skepticism, this fad has refused to die down, and commercial real estate investors are starting to take notice. But why pickleball, and what sort of impact can this casual recreational activity have on the CRE landscape? Today, let’s take a swing at de-mystifying the surprising impact of pickleball.</p> <p><span class="emphasis-secondary">What is Pickleball, Anyway?</span><br /> For those who are more than an arm’s length away from the game, pickleball may just seem like a game with a funny name that’s too similar to a number of other more well-established sports. Are there really enough things that make pickleball unique enough to have a draw all on its own? Well, based on its sustained growth, signs seem to indicate that it does.</p> <p>Pickleball is a sport that can be played competitively with two individuals facing off, or in the form of doubles, with four total players. With a court size matching the measurements of a standard badminton court (44-feet long, 20-feet wide) and a net raised 34-36 inches high, pickleball courts take up around a quarter the size of a tennis court, resulting in players much closer to one another throughout the course of a match.</p> <p>After an under-handed serve with a paddle a bit larger than a table tennis racket, something like a wiffle ball sails diagonally across the court and suddenly, you’ve got a game of pickleball. From there, most pickleball matches will appear similar to tennis, badminton, or ping pong games, maybe with a heightened focus on the net game and a few additional odd terms thrown in there (such as “Dink,” “Falafel,” or “Kitchen”). At first glance, it might be difficult to see why this sport has caught on like it has over any number of other sports. The answer seemingly points to the perfect game for a peculiar time.</p> <p><span class="emphasis-secondary">Why is Pickleball Becoming So Popular?</span><br /> One characteristic that makes pickleball so unique is its ability to allow many different types of people to compete with one another. Because of the smaller size of the court, kids aren’t as disadvantaged, and older people who have a bit more trouble making quick cross-court movements also have more room to participate. Thanks to its similarities to other recognizable sports, the barrier to entry is low, and the materials required to play don’t require a large investment.</p> <p>With all of those benefits mentioned, likely the biggest reason for pickleball’s explosion in popularity traces back to that close proximity inherent in the sport. After the sense of isolation that many felt during lockdowns, the public flocked to new social experiences, some which have come to be known as <a class="color-secondary" href="https://npicommercial.com/blog/posts/competitive-socializing-a-passing-trend-or-a-commercial-real-estate-boon">competitive socializing</a>. Meeting this demand, businesses have formed around these newer models of casual competition to great success. People want to spend time around one another and, thanks to how easily anyone can step onto the court and participate, pickleball just might tap into this market demand better than anyone else.</p> <p><span class="emphasis-secondary">Why Are CRE Investors Excited About Pickleball?</span><br /> To many, pickleball feels like it’s picking up steam with no clear end in sight - and commercial real estate investors are taking appropriate action. With stores like Bed, Bath & Beyond and Foot Locker closing, malls and other larger commercial properties continue to struggle with traditional brick and mortar retail tenants that used to provide reliable foot traffic. Property owners who are searching for a use for their spacious vacant floor spaces may be able to look to pickleball for answers.</p> <p>As mentioned, pickleball courts only take up a quarter the size of a tennis court, and some investors are taking the plunge by repurposing unused big box store space for courts in their malls. By attracting a diverse array of consumers, property owners believe that a rise in foot traffic for active, recreational activities could result in revitalization for neighboring businesses and finally utilize spaces that are now sitting unused.</p> <p>CNN’s Nathaniel Meyersohn points toward <a class="color-secondary" href="https://www.cnn.com/2023/05/13/business/pickleball-malls-retail-bed-bath-beyond/index.html" target="_blank">pickleball projects</a> taking up anchor space in Connecticut, Missouri, New Jersey, and New Hampshire as a few examples where property owners see the value in this continuing trend, with more conversions planned in Alabama, Texas, and Minnesota within the next year. Some of the most successful CRE investors tend to find value in following the pulse of the public. With pickleball, some current questions in commercial real estate might have an answer.</p> <p><em>National Property Inspections is the nation’s leading voice on commercial property inspections. Connect with our <a class="color-secondary" href="https://npicommercial.com/Services/Commercial-Building-Inspections">National Accounts department</a> to discuss how we can satisfy your needs.</em></p> 1527Hotels Are Stepping Up For The “Work From Anywhere” Erahttps://npicommercial.com/blog/posts/PostId/1526/hotels-are-stepping-up-for-the-work-from-anywhere-eraCommercial Real Estate News,Property Investment,Property ManagementWed, 24 May 2023 16:48:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">HOTELS ARE STEPPING UP FOR THE "WORK FROM ANYWHERE" ERA</span></strong></span><br /> <em class="fa fa-calendar"></em> May 24, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=commercial-real-estate-news">Commercial Real Estate News</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-management">Property Management</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/hotel">hotel</a>, <a href="https://npiweb.com/Blog/Posts/Tag/office-space">office space</a></p> <p>It’s no secret that the hospitality industry has battled through a tough season in recent years. With economic strain right on the back of lockdowns, hotels have made their long climb back to stability as people slowly became comfortable with traveling again, then looked to make up for lost time. Despite an expected downturn this year, <a class="color-secondary" href="https://www.forbes.com/advisor/credit-cards/inflation-has-not-deflated-americas-travel-plans-2023/" target="_blank">Forbes</a> points toward a recent study where 49% of Americans still plan to travel even more in 2023.</p> <p>Things are looking up in hospitality. Still, hotels are finding that experimenting and innovating are a necessity - and a foothold for future success just might be found in taking advantage of another commercial property sector that’s been rocked by recent CRE shifts. As workers are moving out of the office and into their homes (or anywhere else), the hospitality industry has discovered an opportunity.</p> <p><span class="emphasis-secondary">How Are People Working Today?</span><br /> Companies everywhere have had to adapt quickly in order to operate virtually. Now, changing preferences and demands from workers mean that the traditional full-time, in-office working experience isn’t a reasonable expectation anymore. As office property managers fight for a <a class="color-secondary" href="https://npicommercial.com/blog/posts/spring-office-utilization-is-growing-what-is-the-future-of-remote-work">return to in-person work</a> (along with many company managers and owners), other properties are coming up with flexible workspace alternatives.</p> <p><a class="color-secondary" href="https://npicommercial.com/blog/posts/coworking-spaces-what-they-are-and-how-to-manage-them">Coworking spaces</a> that remote workers can utilize if they want to get out of the house offer a professional atmosphere and similar amenities to a traditional office. With these types of options to choose from, some workers have become “digital nomads,” without any singular, consistent workspace. Millennials prioritize experiential lifestyles in their spending, and for many, their ability to travel while working is a powerful motivator. Though it is unclear whether these attitudes are a passing trend, some hoteliers are thinking that catering to remote and hybrid workers is a competitive option.</p> <p><span class="emphasis-secondary">How Hotels Can Meet Remote Workers’ Needs</span><br /> Many hotels already have a leg up on the competition since many amenities that draw in traditional hotel guests are similar to what coworking spaces implement to attract remote workers. Chief of their modern standards, hotel guests demand high-end internet that is reliable and powerful enough to fit their entertainment needs while on vacation. Maintenance issues related to this should be resolved quickly, and communication needs to be smooth.</p> <p>For remote workers, the robust internet networks that hotels have invested in makes working in these locations a safer prospect compared to some of the spotty service experienced in random coffee shops. Hotels are also often outfitted with private office spaces and conference rooms, as well as coffee and snack bars, allowing for all of the necessary features of a traditional workspace while on the road.</p> <p><span class="emphasis-secondary">How Hotels Are Adapting</span><br /> With that said, hotels aren’t relying only on their pre-existing features to market to workers who want to take advantage of travel opportunities. <a class="color-secondary" href="https://workanywhere.marriott.com/" target="_blank">Marriott’s “Work Anywhere”</a> initiative offers special day rate passes to remote workers, as well as printers, fax machines, and scanner access.</p> <p>Considering the success of coworking spaces, hoteliers are replicating features that are drawing workers into that industry as well. Remote work can be isolating, and many are drawn to more lively environments (at least occasionally) to accelerate their productivity. In this way, hotels with office space options closer to the action might have an even larger draw for some looking for a sense of community. Workers can lead a more flexible, fulfilling lifestyle today - and hotels are ready to provide.</p> <p><em>Contact our national accounts department to <a class="color-secondary" href="https://npicommercial.com/contact">schedule</a> with the nation’s leading name in commercial property inspections. To stay in tune with the latest news and trends in CRE, stick <a class="color-secondary" href="https://npicommercial.com/Blog">right here</a>.</em></p> 1526Cinema CRE Is Getting A Sequelhttps://npicommercial.com/blog/posts/PostId/1524/cinema-cre-is-getting-a-sequelCommercial Real Estate News,Property InvestmentWed, 10 May 2023 16:44:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">CINEMA CRE IS GETTING A SEQUEL</span></strong></span><br /> <em class="fa fa-calendar"></em> May 10, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a>, <a href="https://npiweb.com/Blog/Posts?Category=commercial-real-estate-news">Commercial Real Estate News</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/special-purpose-facility">special purpose facility</a></p> <p>Since the global pandemic led to an unexpected shift in revenue and in the way average people choose to spend their money, the movie industry has struggled mightily to recover. Per the <a class="color-secondary" href="https://www.hollywoodreporter.com/movies/movie-news/movie-theater-screen-losses-ticket-prices-1235346523/" target="_blank">Hollywood Reporter</a>, the US has lost approximately 2,165 theater screens (or around 5% total) since 2019 within exhibitor locations, and nationwide, the largest theater franchisors are looking to reduce quantity to recoup losses and direct their focus on premium experiences. The way that this translates over to commercial real estate is massive due to the impact that empty theaters have on neighboring businesses.</p> <p>Business owners and commercial property managers alike are wondering whether the cinema still can be relied upon as the consistent anchor to boost foot traffic and drive revenue. To get a better idea of the forecast of cinema CRE, let’s take a look at how theater property owners are adjusting their approach.</p> <p><span class="emphasis-secondary">Movies Are Coming Back, And The Experience Is Better</span><br /> Theater revenue has slowly improved over the past few years, but the industry has yet to replicate pre-pandemic numbers. This underperformance has been attributed to a number of factors, from a lower number of new film releases each season (another echo of the pandemic) to a change in preferences from theatergoers. As some theater owners have concluded, people are looking for higher quality experiences to bring them back to the cinema over waiting for online releases (especially since some new releases are immediately available through streaming).</p> <p>While plenty of theaters have been exchanging hands, there are a few near-universal upgrades, including heated reclining seats, larger screens, better sound equipment, and expanded variety for concessions. Many theaters are coordinating memorable events to coincide with new releases, giving guests an experience more akin to an exclusive party than your standard movie viewing. For example, Pruneyard Cinemas in Campbell, California created food and cocktail pairings for the release of the Barbie movie. They also provided an elaborate selfie photobooth and encouraged attendees to wear their best Barbie getup (per <a class="color-secondary" href="https://www.mercurynews.com/2023/07/20/pruneyard-cinemas-isnt-toying-around-with-its-barbie-themed-cocktails/" target="_blank">Mercury News</a>).</p> <p>Beyond general upgrades, some locations have seen success with incorporating additional attractions like rock-climbing walls, bowling lanes, and bumper cars as with EVO Entertainment Group’s location in North Texas (as reported by the <a class="color-secondary" href="https://www.dallasnews.com/news/2021/06/30/austin-based-theater-chain-expanding-to-north-texas-with-bumper-cars-arcade-and-bowling/" target="_blank">Dallas Morning News</a>). In short, there are fewer screens overall, but the improved product is the primary strategy to draw in customers. Due to the investment needed, it seems that only larger theater franchises are expected to survive (although this trend isn’t necessarily new, according to a recent article by <a class="color-secondary" href="https://www.avclub.com/can-the-neighborhood-movie-theater-be-saved-1850213006" target="_blank">the AV Club</a>). For the smaller theaters that can’t find new operators, owners need to find ways to repurpose these spaces.</p> <p><span class="emphasis-secondary">Small Businesses Are Stepping In To Fill The Gaps</span><br /> Theaters take up a considerable amount of space and are custom-built for their specific service, which means converting these properties for different purposes can be difficult. Still, theaters across the US have transitioned into restaurants, office spaces, retail outlets, and even multifamily housing to help combat the ongoing housing crisis. (<a class="color-secondary" href="https://npicommercial.com/blog/posts/what-to-know-about-office-to-residential-conversions">Read more here</a> about how developers are using vacant office space to offer luxury living spaces!)</p> <p>Elsewhere, businesses are actually looking for ways to capitalize on the nostalgia that older cinemas provide and working it into their own marketing. For example, <a class="color-secondary" href="https://www.thecyclecinema.com/about-us" target="_blank">Cycle Cinema</a> of Wesley Chapel, Florida hosts a spin class in what was formerly Theater 5, “...with mind-blowing music video sessions and other mesmerizing visuals.” Movie theaters might be changing their look and diversifying their services, but it seems these properties still have a space in the market for a long time to come.</p> <p><em>For your next remodel or commercial property acquisition, remember to contact <a class="color-secondary" href="https://npicommercial.com/Services/Commercial-Building-Inspections">NPI's National Accounts Team</a> to coordinate any of your inspection needs!</em></p> 1524Building Satisfied Tenants For Your Commercial Propertyhttps://npicommercial.com/blog/posts/PostId/1523/building-satisfied-tenants-for-your-commercial-propertyCommercial Inspection,Property Maintenance,Property ManagementWed, 03 May 2023 16:39:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">BUILDING SATISFIED TENANTS FOR YOUR COMMERCIAL PROPERTY</span></strong></span><br /> <em class="fa fa-calendar"></em> May 3, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=property-management">Property Management</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-maintenance">Property Maintenance</a>, <a href="https://npiweb.com/Blog/Posts?Category=commercial-inspection">Commercial Inspection</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/exterior maintenance">exterior maintenance</a>, <a href="https://npiweb.com/Blog/Posts/Tag/npi-national-accounts">NPI national accounts</a>, <a href="https://npiweb.com/Blog/Posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a></p> <p>It’s no surprise that the secret to success in the commercial real estate industry is through retaining quality tenants. Advertising, maintenance, and upgrade strategies are all centered around finding tenants who are responsive and reliable, then keeping them long term. The costs accrued from advertising and identifying new tenants can be eye-opening, and leaving space vacant for too long means missing out on income. This is all why seasoned commercial property owners and managers know that good commercial tenants don’t grow on trees.</p> <p>Happy tenants are less likely to make a change or look for different options, which is why the most successful property owners and managers prioritize tenant satisfaction. If you’re looking for ways to lower your turnover rate and keep your best tenants, consider incorporating a few of these strategies into your management process.</p> <p><span class="emphasis-secondary">Practice Effective Communication</span><br /> Responsiveness is a trait that will lead to success in many different industries, but when it comes to tenant satisfaction, this might be the most important factor to focus on. Tenants largely want their privacy and room to operate their businesses as they see fit, but when they reach out with a concern or complaint, radio silence is a common cause for frustration.</p> <p>Property owners and managers who establish a clear and consistent line of communication, then react to requests in a prompt manner will build trust in their tenants. For many landlords, improved communication in the modern age comes from improved technologies like mobile apps. According to a survey <a class="color-secondary" href="https://www.forbes.com/sites/forbesbusinesscouncil/2022/06/21/what-landlords-and-employers-think-about-the-current-state-of-office-spaces/?sh=3baf1fbd2852" target="_blank">reported by Forbes</a>, 80% of landlords believe employers are interested in building-related mobile applications. Finding ways to streamline communication, especially when dealing with a large number of tenants, can be difficult. For some, new technologies are a pathway for making communication clearer and easier compared to sending mass emails or returning calls.</p> <p><span class="emphasis-secondary">Consider Offering Incentives</span><br /> Tracking industry standards for rental and lease fees is always important for landowners to remain competitive in their regions, but for lessees that always pay on time, offer constructive feedback, and act with professionalism, special allowances might be worth considering. Again, the costs that go into replacing tenants is nothing to scoff at, and chances are good that new tenants will bring their own set of quirks (both good and bad).</p> <p>To help retain quality tenants that behave well and have already established a positive relationship, consider offering discounted rates for rental or covering portions of utility fees. Beyond financial breaks, landowners can look into upgrading internet speeds or improving upon the quality of common areas or landscaping. (For more ideas on how to upgrade your landscaping, check out <a class="color-secondary" href="https://npicommercial.com/blog/posts/how-to-use-landscaping-to-increase-your-curb-appeal">this article</a>!)</p> <p>Your best tenants may also have relationships with others who could be quality future tenants. Employing a referral program can be a great way to make your best tenants happy while also filling vacancies with new tenants that should continue that high standard of behavior.</p> <p><span class="emphasis-secondary">Make Your Tenants’ Experience Positive</span><br /> Overall, the best way to keep tenants satisfied is to manage your commercial property well! <a class="color-secondary" href="https://npicommercial.com/blog/posts/how-to-be-proactive-with-property-maintenance">Perform maintenance proactively</a>, rather than reactively to save money and avoid downtime of key utilities crucial to your tenants running their businesses. A great way to stay ahead of breakdowns and costly repairs that might require extended closure is by <a class="color-secondary" href="https://npicommercial.com/Services/Commercial-Building-Inspections">scheduling</a>recurring commercial property inspections. No one likes being caught by surprise. Referring to experts to keep informed on your property’s condition is invaluable for maintaining a quality commercial property.</p> <p>Additionally, listening to tenants’ requests and concerns is important when it comes to selecting the right amenities to offer when upgrading the property. Free and expanded parking can be great, but if tenants aren’t bothered by their current parking situations, there might be other amenities worth exploring. <a class="color-secondary" href="https://npicommercial.com/blog/posts/the-bright-future-of-fitness-real-estate-why-gyms-and-fitness-centers-are-excelling-in-2023">Fitness centers</a> are also valued highly for many, but investing in expensive gym equipment that goes unused isn’t worth the effort.</p> <p>By upholding a standard of adaptability and understanding, you’ll have a much better time keeping your key tenants happy with their choice to stay. Plus, your best advocates will always be your current, happy tenants. Cut down on vacancies by keeping your current tenants satisfied for sustained success.</p> <p><em>Whether you’re looking for a PCA or an FCA, National Property Inspections is your go-to resource for experienced commercial property experts across the US and Canada. Give our team a <a class="color-secondary" href="https://npicommercial.com/contact">call today</a> to arrange your next inspection! </em></p> 1523Competitive Socializing: A Passing Trend, Or A Commercial Real Estate Boon?https://npicommercial.com/blog/posts/PostId/1480/competitive-socializing-a-passing-trend-or-a-commercial-real-estate-boonCommercial Real Estate News,Property InvestmentWed, 22 Mar 2023 21:07:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">COMPETITIVE SOCIALIZING: A PASSING TREND, OR A COMMERCIAL REAL ESTATE BOON?</span></strong></span><br /> <em class="fa fa-calendar"></em> March 22, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=commercial-real-estate-news">Commercial Real Estate News</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a>, <a href="https://npiweb.com/Blog/Posts/Tag/restaurant">restaurant</a>, <a href="https://npiweb.com/Blog/Posts/Tag/special-purpose-facility">special purpose facility</a></p> <p>What’s popular in the world of commercial real estate is dependent on both cultural needs and capitalizing on trends that effectively draw in an audience. One trend making waves is “competitive socializing,” but are these venues a passing fad, or a sign of a rapid transformation in the entertainment sector? Let’s take a look at what exactly this broad concept is, and why it’s making such a splash in commercial real estate.</p> <p><span class="emphasis-secondary">The History of Competitive Socializing</span><br /> Competitive socializing is a term that commercial real estate investors and property owners have likely come across in association with many of the new “experience-based” businesses growing in popularity. Commonly considered a fusion of hospitality and entertainment, competitive socializing venues look to combine high-quality or niche food and beverages with a unique game or experience.</p> <p>The bones of this concept have been around for some time in the states through restaurants like Chuck E. Cheese or Dave & Buster’s, where customers can enjoy a meal along with classic arcade-style games. Prior to then, though, the term was first used in the U.K. where pubs have long been central gathering points for games and drink.</p> <p>Today, unique concepts that try to fill the need of an outgoing social experience are cropping up in the US and across the globe, and their success is hard to ignore. For the most part, these venues are modeled around a single classic game or sport (e.g. Topgolf with golf, Chicken N Pickle with pickleball, AceBounce with table tennis, and Flight Club with darts), and the casual competition seems to have capitalized on a deep desire for interaction.</p> <p><span class="emphasis-secondary">Finding an Audience and Filling a Need</span><br /> Though the basic concepts around competitive socializing aren’t new, there is a fair question as to why this has become so much more popular in recent years. According to a pre-pandemic <a class="color-secondary" href="https://eventbrite-s3.s3.amazonaws.com/marketing/Millennials_Research/Gen_PR_Final.pdf" target="_blank">Harris Poll</a> which surveyed Americans based on their preferences on spending money, a shocking 78% of millennials said they preferred “experiences over things.” After losing opportunities to pursue these “experiences” during the pandemic, competitive socializing venues have stepped in as the perfect answer to their entertainment priorities.</p> <p>In a <a class="color-secondary" href="https://cushwake.cld.bz/The-Edge-Magazine-Vol-8/48/" target="_blank">study</a> conducted by Cushman & Wakefield, one of the world’s largest CRE firms, competitive socializing concepts have seen a growth of 386% since 2021. While this growth can be associated with a number of different things, the conditions of other industries in commercial real estate have certainly been to the benefit of these venues. The continuing struggles seen by traditional indoor malls have led to large, anchor tenants moving out and other businesses that formerly occupied sizable lots have turned into vacant spaces. Competitive socializing businesses, meanwhile, demand considerable space and, thanks to their popularity, provide a boost in foot traffic for their neighbors as well.</p> <p><span class="emphasis-secondary">The Circumstances for Success</span><br /> Competitive socializing businesses can be a boon to a neighborhood or complex, but there are a few attributes that tend to lead to success. Similarly to other restaurants or bars, location has a strong influence on these new venues’ prosperity. Audience demographics can vary depending on the venue’s concept, but the most important thing to consider is whether its location means easy access to its core customer base. In general, highly urbanized areas with dense population, high foot traffic, and a younger clientele is ideal.</p> <p>After a location that’s conducive to activity and with easy access to customers has been secured, the venue needs to nail its concept. Ideally, these businesses need their “experience” to be easy to capture in a snapshot and shareable to their customers’ social media outlets as an additional marketing outlet. For millennials and Gen Z, their ability to record and broadcast their experiences can be just as important (or even more important) than the experience itself.</p> <p><em>At National Property Inspections, our CRE professionals have the expertise and experience needed to perform a meticulously efficient commercial property inspection, and adapt to meet the needs of each unique case. <a class="color-secondary" href="https://npicommercial.com/contact">Contact Us Today</a> to schedule your next inspection!</em></p> 1480Is Automated Marketing Worthwhile in Commercial Real Estate?https://npicommercial.com/blog/posts/PostId/1471/is-automated-marketing-worthwhile-in-commercial-real-estateProperty Investment,Property ManagementWed, 08 Mar 2023 21:40:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">IS AUTOMATED MARKETING WORTHWHILE IN COMMERCIAL REAL ESTATE?</span></strong></span><br /> <em class="fa fa-calendar"></em> March 8, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=property-management">Property Management</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business-tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/real-estate-trends">real estate trends</a></p> <p>The world of marketing is only growing, and the demands of these jobs are rapidly expanding by all measurable perspectives. According to the <a class="color-secondary" href="https://www.bls.gov/ooh/management/advertising-promotions-and-marketing-managers.htm#tab-6" target="_blank">United States Bureau of Labor</a>, advertising, promotions, and marketing manager positions are projected to grow by 10 percent within the next decade. Despite this the majority of marketers in Commercial Real Estate are still either working solo or with only one other marketer. The industry is shifting rapidly, and to keep up with new demands, many marketers are looking to automation in order to compete.</p> <p>With new technology and tactics, it’s natural to ask whether marketing automation is worth it. To understand why commercial real estate is taking a hard look at marketing automation, let’s see how these new technologies might be the next big game-changer for CRE.</p> <p><span class="emphasis-secondary">Providing Versatility and Adaptation</span><br /> It may seem to some that “Automated Marketing” is an ambiguous buzzword - something intimidating and confusing to approach. This is understandable, as the term is broad and refers to a wide array of potential techniques that can be used to bolster your CRE marketing strategy. Automated marketing can be used to build websites, submit repetitive data for listings, manage social media profiles, and that’s just the start of it!</p> <p>Depending on your current marketing strategy, your team can find a way to automate different tasks to strengthen your ongoing efforts. Any repetitive, tedious task that eats up valuable time can become automated with the right software. Just like any new technology, these softwares are constantly adapting to the needs of the industry. Automated marketing is more developed in other industries in comparison to commercial real estate, but many project that these technologies are only on track to become more prevalent.</p> <p>According to <a class="color-secondary" href="https://www.gartner.com/en/newsroom/press-releases/2020-12-02-gartner-reveals-only-18--of-brands-have-mastered-thei" target="_blank">Gartner</a>, a leading voice in automated marketing, only 18% of brands feel that they are getting the most out of their marketing technology resources. This discrepancy is likely even greater in the field of commercial real estate as its shift to online only since 2020 finally forced the industry to begin adopting these new tactics.</p> <p><span class="emphasis-secondary">Unlocking Efficiency and Clarity</span><br /> One strong form of marketing automation for commercial real estate is email marketing. With automation, companies can set up triggered emails set to respond to specific parameters. While manual emails and personal touches are crucial in developing relationships (which lead to conversions), people are limited in how quickly they can respond.</p> <p>According to <a class="color-secondary" href="https://www.webfx.com/blog/marketing/marketing-automation-statistics/" target="_blank">WebFX</a>, a leader in digital marketing, 91% of companies that use automated marketing consider these tools to be “very important” to the overall success of their marketing strategies. Automated marketing emails can be sent out much more quickly at greater volumes, and this increased efficiency can lead to higher clickthrough rates, higher open rates, and many more leads.</p> <p>The wonderful thing about many of these softwares is also their ability to track performance. At a glance, your team can see which campaigns performed well, and which ones missed the mark so that your overall strategy can be fine tuned. Automated marketing could be seen as a tool to take commercial real estate marketing to another level.</p> <p><span class="emphasis-secondary">Freeing Up Marketers to Innovate</span><br /> Finally, some might see these new tools as a sign that their jobs are in danger. The statistics can be eye-popping, and if automated marketing makes a considerable portion of a marketer’s job redundant, wouldn’t logic indicate fewer marketers would be needed in the field?</p> <p>Many industries are much further along with their adoption of automated marketing. The result of this tool tends to be an evolution in duties, rather than an elimination. Automation removes the tedious, repetitive tasks, but creative work is still best accomplished by people. With more time to dedicate towards adapting your strategies in competitive markets, your strategies should see better results. Though time will ultimately be the judge on how well automated marketing does in the commercial real estate sphere, all signs point towards it being a great accelerating tool.</p> <p><em>National Property Inspections is the best source of expert commercial property inspectors nationwide. <a class="color-secondary" href="https://npicommercial.com/contact">Contact NPI</a> to schedule your next commercial property inspection today!</em></p> 1471The Pros and Cons of Triple-Net Leases for Tenants and Property Ownershttps://npicommercial.com/blog/posts/PostId/1466/the-pros-and-cons-of-triple-net-leases-for-tenants-and-property-ownersProperty Investment,Property Maintenance,Property ManagementWed, 22 Feb 2023 15:24:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">THE PROS AND CONS OF TRIPLE-NET LEASES FOR TENANTS AND PROPERTY OWNERS</span></strong></span><br /> <em class="fa fa-calendar"></em> February 22, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npiweb.com/Blog/Posts?Category=property-management">Property Management</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-maintenance">Property Maintenance</a>, <a href="https://npiweb.com/Blog/Posts?Category=property-investment">Property Investment</a> | <em class="fa fa-tags"></em> <a href="https://npiweb.com/Blog/Posts/Tag/business-tips">business tips</a>, <a href="https://npiweb.com/Blog/Posts/Tag/exterior-maintenance">exterior maintenance</a>, <a href="https://npiweb.com/Blog/Posts/Tag/interior-maintenance">interior maintenance</a>, <a href="https://npiweb.com/Blog/Posts/Tag/cleaning">cleaning, </a><a href="https://npiweb.com/Blog/Posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a></p> <p>For anyone new to the world of commercial real estate, triple-net leases are a concept worth exploring. Also referred to as “NNN” leases, triple-net leases have become very popular for property owners and tenants alike. To determine which type of lease is right for your needs, let’s take a minute to discuss what a triple-net lease is—and why they’re growing in popularity!</p> <p><span class="emphasis-secondary">What is a Triple-Net Lease?</span><br /> Triple-Net leases are a type of rental agreement where the tenant is responsible for paying property taxes, insurance, and all maintenance fees associated with the rental property. These differ from standard commercial lease agreements where these costs are usually covered by the property owner or manager. To compensate for these additional incurred costs and responsibilities, the tenants’ rental fees are oftentimes lower than standard rental agreements.</p> <p>As you might have guessed, the triple-net lease is more demanding for tenants than single-net or double-net leases. In either of these cases, the tenant would instead be responsible for one or two costs respectively (between property taxes, insurance, and maintenance items).</p> <p><span class="emphasis-secondary">The Benefits of Triple-Net Leases</span><br /> Property owners seem particularly interested in this type agreement because of the hands-off approach that they can have with the property. Property management and maintenance is often a hassle that property owners would prefer to avoid. In triple-net lease agreements, these tasks are shifted to the tenants. Since property owners are not responsible for the ongoing upkeep of the property, they can devote their time toward other business ventures or properties that require more attention instead</p> <p>For tenants, many prefer the extra control that they gain with a triple-net lease. They can select their preferred insurance carrier, and they control the maintenance and overall appearance of the property they occupy. While they do have to manage additional costs, lowered base rental fees are meant to balance these responsibilities.</p> <p><span class="emphasis-secondary">The Drawbacks of Triple-Net Leases</span><br /> While many property owners like the idea of avoiding property management, most tenants also prefer not to take on those obligations. Because of this, acquiring reliable, long-term tenants can be difficult and vacant spaces can stay empty for longer.</p> <p>For tenants, while they gain a stronger sense of ownership with triple-net leases, they’re still dependent on their landlords for certain things. Property owners are still responsible for contesting new property tax appraisals. Therefore, these property owners who don’t benefit from lowered taxes may not be as incentivised to arrange a private appraisal. This attitude may be short-sighted, since when their tenants then leave, the property owners may then have to deal with unnecessarily high property taxes first-hand.</p> <p>Property owners can often experience a few surprises when tenants leave a triple-net lease property. Tenants who don’t keep up good building maintenance may leave property owners with a big mess to deal with.</p> <p>Every strong tenant-landlord relationship should be built on trust and understanding. With triple-net leases, this starting point is no different. Depending on your situation, triple-net leases for property owners can be a great opportunity for steady income with minimal oversight! For tenants, the added bonus of lower rental fees and greater control over their rental property may outweigh the expense of added maintenance and tax costs.</p> <p><em>Remember to contact National Property Inspections for any of your property inspection needs! NPI has access to a nationwide network of home inspection experts. <a class="color-secondary" href="https://npicommercial.com/contact">Contact us today</a> to schedule your next property inspection!</em></p> 1466CRE Projections 2023: An Industry Outlookhttps://npicommercial.com/blog/posts/PostId/1462/cre-projections-2023-an-industry-outlookCommercial Real Estate News,Property InvestmentWed, 15 Feb 2023 15:27:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">CRE PROJECTIONS 2023: AN INDUSTRY OUTLOOK</span></strong></span><br /> <em class="fa fa-calendar"></em> February 15, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npicommercial.com/blog/posts?Category=commercial-real-estate-news">CRE News</a>, <a href="https://npicommercial.com/blog/posts?Category=property-investment">Investment</a> | <em class="fa fa-tags"></em> <a href="https://npicommercial.com/blog/posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a>, <a href="https://npicommercial.com/blog/posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npicommercial.com/blog/posts/Tag/business-tips">business tips</a></p> <p>The Commercial Real Estate market saw plenty of ups and downs in 2022. Industrial-class properties performed well and office spaces saw a modest comeback. Still, pandemic recovery has been an ongoing process and 2023 will be more of the same on that front. For the latest updates on the variable nature of CRE, let’s break down the projections for each class.</p> <p><span class="emphasis-secondary">Are We Heading For A Recession? </span><br /> It has been called the million dollar question for some time, but there has been wide disagreement about whether a recession is imminent in 2023. Analysts have been using the distinctions of “deep” or “shallow” to define the severity of a potential recession, but others have predicted avoiding the possibility altogether. Consensus is pointing towards a better atmosphere than 08’s recession, but there is still plenty of debate about what 2023 holds.</p> <p>For a start, market surveyors <a class="color-secondary" href="https://www.forbes.com/advisor/investing/are-we-in-a-recession/" target="_blank">at Forbes</a> have compiled a comprehensive overview of positive and negative indicators. With a rapidly improving labor market and signs pointing towards increased public spending, tempered expectations for the overall economy would be advisable.</p> <p><span class="emphasis-secondary">The Future of Office Spaces </span><br /> Perhaps the most interesting evolution within Commercial Real Estate has been the office space. After a massive hit to the industry as a whole due to the pandemic, there have been wide efforts towards limiting remote work that should continue revitalizing this sector. CEOs have been discussing their company’s strategy for returning their workers to the office. Whether through threatening layoffs or through incentives, it will be interesting to track which strategies see the most success.</p> <p><a class="color-secondary" href="https://hubblehq.com/blog/famous-companies-workplace-strategies" target="_blank">Market researchers at Hubble</a> have been tracking major company strategies for moving back to the office. Though there isn’t a ton of certainty in the CRE industry for 2023, widespread efforts like these bode well for office spaces. While it is unclear how closely office working standards will return to pre-pandemic conditions, the level of flexibility with hybrid and fully remote work is unlikely to continue.</p> <p><span class="emphasis-secondary">Stabilizing Multifamily Rent </span><br /> A recent topic of discussion breaking across federal party lines has been the soaring rent prices. Across America, tenants are largely spending more than a third of their income on housing due to the soaring rates in recent years. Motions proposed by the white house should stabilize this sector and drive down vacancies in theory. However, there may be an issue with a lack of alternatives in the marketplace.</p> <p>Expect multifamily properties to remain strong and steady, with potential variability based on upcoming measures from the federal government. The actual impact of the proposed “Renters Bill of Rights” remains to be seen. At the very least, expect good news for tenants.</p> <p><span class="emphasis-secondary">Brick-and-Mortar Resurgence in Retail </span><br /> Projections regarding the demise of brick-and-mortar seem to have been greatly exaggerated. With a move towards remote life and the increase in online spending, many predicted that retail would struggle to recover in the long term. However, 2022 proved that in-person retail could recover more quickly than anyone previously expected.</p> <p><a class="color-secondary" href="https://www.forrester.com/blogs/predictions-2023-shift-in-retail-models/" target="_blank">Market analysts at Forrester</a> have released their 2023 projections, predicting that three-quarters of sales in the US will take place in person rather than online. As a result of these findings, retail properties should continue their recovery in the same way that office spaces should rebound.</p> <p>While many aspects of CRE remain ambiguous for 2023, there is room for optimism. Whether 2023 does see a downturn or not, a strong 2024 is certainly in view.</p> <p><em>To remain competitive in a volatile real estate market, instill tenant confidence by keeping consistent with property maintenance. <a class="color-secondary" href="https://npicommercial.com/contact">Schedule</a> your next property inspection with NPI today! </em></p> 1462How To Capitalize On Migration Trendshttps://npicommercial.com/blog/posts/PostId/1461/how-to-capitalize-on-migration-trendsCommercial Real Estate News,Property InvestmentWed, 08 Feb 2023 15:18:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">HOW TO CAPITALIZE ON MIGRATION TRENDS</span></strong></span><br /> <em class="fa fa-calendar"></em> February 8, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npicommercial.com/blog/posts?Category=commercial-real-estate-news">CRE News</a>, <a href="https://npicommercial.com/blog/posts?Category=property-investment">Investment</a> | <em class="fa fa-tags"></em> <a href="https://npicommercial.com/blog/posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a>, <a href="https://npicommercial.com/blog/posts/Tag/business-tips">business tips</a>, <a href="https://npicommercial.com/blog/posts/Tag/real-estate-trends">real estate trends</a></p> <p>In recent years, population shifts in the United States have led to surprising repercussions within commercial real estate. While some trends were simply accelerated due to the coronavirus pandemic, some regions have seen higher growth than anyone could have expected. Between office spaces, retail properties, and restaurants, here are a few strategies that investors should consider to capitalize on the great migration.</p> <p><span class="emphasis-secondary">The Pandemic’s Effect on Population Shifts </span><br /> According to <a class="color-secondary" href="https://go.placer.ai/wp/domestic-migration-trends-june-2022" target="_blank">Placer.ai</a>, an industry leader in commercial real estate and demographic analytics, migration patterns within the United States may not have been altered as much as they seem to be based on recent news stories. The recent exodus from California to Texas and the major lull in the Northeast in favor of sunny Florida actually tracks well with what was seen prior to the pandemic. The jarring change has been the pace at which populations have been shifting.</p> <p>Placer reported that of new residents moving to Texas, 11.1% were from California, with a large portion moving directly to the Dallas-Fort Worth area. Overall, Texas and Florida both saw a sizable growth from the West and Northeast, with a growth of over 1.6 million new residents. Projections show that spillover from these major population centers has already resulted in secondary destination growth in cities like Mount Juliet and in Guadalupe County.</p> <p>A more obvious trend pulling from the pandemic, however, is the growth of small towns. While Texas and Florida have seen massive population gains throughout the past few years, Montana, Utah, and Idaho were the states that saw the most rapid proportional growth.</p> <p>Real estate investment analysts at <a class="color-secondary" href="https://propertyclub.nyc/article/zoom-towns-guide" target="_blank">PropertyClub</a> discuss the growing trend of “Zoom Towns,” in these areas. They say that, as a result of new work-from-home trends and workers searching for more affordable living, new “destination cities” have grown in popularity, such as Boise, Idaho; Carmel, Indiana; Olathe, Kansas; and Burlington, Vermont.</p> <p>While some of these trends were expected to an extent, local markets are reeling at the expedited rates. To satisfy new needs and to capitalize on growing demands, new opportunities are available to the savvy investor.</p> <p><span class="emphasis-secondary">A New Population with New Demands </span><br /> The best way to target strong commercial real estate investments varies depending on region, but standard rules still apply to these new shifts. Areas seeing population growth should see higher demands in multi-family housing as well as office spaces. These demands will branch out to touch the retail and restaurant sectors as a result.</p> <p>These standard results shouldn’t be all that’s taken into consideration, however. Smaller towns and secondary markets are seeing considerable growth at rates that they are generally unprepared for. While larger population centers can generally handle these rapid influxes of new residents, proportional gains in smaller markets have the potential to cripple communities. Investors that target these surging smaller markets have the benefit of lower competition and potentially cost mitigation incentives from local governments.</p> <p>Still, investors looking to get ahead of these new residents should remember to consider where their populations are coming from to understand potential new preferences. For example, Texas’ new Californian population has brought with them their love of brands like In-N-Out and Trader Joe’s. Both brands have seen considerable growth within Texas as a result. Similar to a growing demand of senior living in Florida, demographic shifts should always be taken into account when prioritizing tenants.</p> <p><em>National Property Inspections has access to a nation-spanning network of property inspection professionals, trained on the different intricacies and demands of every type of building. Schedule your next <a class="color-secondary" href="https://npicommercial.com/contact">commercial inspection</a> with one of our experts today! </em></p> 1461The White House Rental Plan: What Does It Mean For CRE?https://npicommercial.com/blog/posts/PostId/1460/the-white-house-rental-plan-what-does-it-mean-for-creCommercial Real Estate News,Property Investment,Property ManagementWed, 01 Feb 2023 15:07:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">THE WHITE HOUSE RENTAL PLAN: WHAT DOES IT MEAN FOR CRE?</span></strong></span><br /> <em class="fa fa-calendar"></em> February 1, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npicommercial.com/blog/posts?Category=commercial-real-estate-news">CRE News</a>, <a href="https://npicommercial.com/blog/posts?Category=property-investment">Investment</a>, <a href="https://npicommercial.com/blog/posts?Category=property-management">Management</a> | <em class="fa fa-tags"></em> <a href="https://npicommercial.com/blog/posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a>, <a href="https://npicommercial.com/blog/posts/Tag/multi-family-property">multi-family property</a>, <a href="https://npicommercial.com/blog/posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npicommercial.com/blog/posts/Tag/business-tips">business tips</a></p> <p>On January 25, the Biden-Harris administration released a <a class="color-secondary" href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/01/25/fact-sheet-biden-harris-administration-announces-new-actions-to-protect-renters-and-promote-rental-affordability/" target="_blank">statement</a> outlining their new plan to promote a more “renter-friendly” multifamily environment. Echoing notions from the “Blueprint for a Renters Bill of Rights,” this statement outlines different action strategies that combat recent “egregious rent increases” which they say have been more common within the industry.</p> <p>The pandemic has left its impact on many industries, and the rental sphere is no different. With new federal influence entering into the multifamily real estate industry, some investors may worry that this interference could destabilize a normally steady sector of CRE. To begin demystifying the results of these recent initiatives, let’s discuss the details of the White House’s new plan.</p> <p><span class="emphasis-secondary">The New Federal Oversight </span><br /> The primary and immediate result of this announcement is the new tasks assigned to the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). Both agencies will begin to collect information, tracking things like methods used for tenant background checks, influence of a tenant’s source of income, and results of algorithmic tenant screenings. These efforts are intended, in part, to cut down on unfair and unequal treatment, viewed to have grown in recent years.</p> <p>Many are criticizing these moves as only reinforcing laws covered by existing federal or state entities, and there seems to be fear of adverse results due to the potential of “bureaucratization” of the current renting system. Whether these moves for new systems will be able to protect renters (as intended) or not remains to be seen, but there is a clear connection between these moves and the philosophy that inspired them.</p> <p><span class="emphasis-secondary">Blueprint for a Renters Bill of Rights </span><br /> The underlying laws that have inspired this recent statement are built from what has been dubbed the “Blueprint for a Renters Bill of Rights.” The key pillars of this initiative are as follows:</p> <ul> <li><strong>Safe, Quality, Accessible, and Affordable Housing </strong><br /> No family should pay more than 30% of their income on housing, housing should meet safety standards, and the application process should be reasonably simple. </li> <li><strong>Clear and Fair Leases </strong><br /> Leases should not include hidden fees or language that is too difficult for navigation within the general public. </li> <li><strong>Education, Enforcement, and Enhancement of Renter Rights </strong><br /> Federal, state, and local governments are tasked with the responsibility to inform renters of their rights and to defend them from discriminatory practices. </li> <li><strong>The Right to Organize </strong><br /> Renters should not be penalized for joining a tenant-focused organization, and their voices should be heard. In addition, the spirit of this pillar is to facilitate further discussion between renters and multifamily building management. </li> <li><strong>Eviction Prevention, Diversion, and Relief </strong><br /> Renters should be properly equipped with options to avoid losing access to their housing. Overall, the eviction process should be fair, with reasonable and clear guidelines understood by all parties.</li> </ul> <p>Multifamily units may struggle as a result of these changes, or empowered tenants may lead to reduced vacancies and a healthier industry. CRE investors should keep a close eye on the extent of these actions and any subsequent moves likely to follow.</p> <p><em>The best way to ensure safe and happy tenants is to have confidence in the condition of your property. <a class="color-secondary" href="https://npicommercial.com/Services/Commercial-Building-Inspections">Schedule your next commercial property inspection</a> with National Property Inspections - our nation-spanning network of experts is happy to assist! </em></p> 1460China’s Re-Opening and Its Effect On Commercial Real Estatehttps://npicommercial.com/blog/posts/PostId/1459/chinas-re-opening-and-its-effect-on-commercial-real-estateCommercial Real Estate News,Property InvestmentWed, 25 Jan 2023 15:06:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">CHINA’S RE-OPENING AND ITS EFFECT ON COMMERCIAL REAL ESTATE</span></strong></span><br /> <em class="fa fa-calendar"></em> January 25, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npicommercial.com/blog/posts?Category=commercial-real-estate-news">Commercial Real Estate News</a>, <a href="https://npicommercial.com/blog/posts?Category=property-investment">Investment</a> | <em class="fa fa-tags"></em> <a href="https://npicommercial.com/blog/posts/Tag/hotel">hotel</a>, <a href="https://npicommercial.com/blog/posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npicommercial.com/blog/posts/Tag/business-tips">business tips</a></p> <p>In early January, China officially announced that they were lifting many long-standing restrictions connected to the coronavirus pandemic. For many in the commercial real estate industry, this news was received with much enthusiasm, as it meant the world’s second largest economy might finally be re-entering international trade en masse.</p> <p>From a tourist perspective alone, China has long been the world’s premier spender in international travel. <a class="color-secondary" href="https://qz.com/1698423/chinese-visits-to-the-us-are-down-3-percent-in-2019" target="_blank"> As journalists at Quartz report</a>, prior to the pandemic, Chinese tourists spent an eye-popping 36 billion dollars in the United States alone. Investment in commercial real estate has always seen considerable activity both ways, as investors from the world’s two largest economies continually search for opportunities in either nation.</p> <p>When China closed its borders in response to the pandemic, the impact stretched across industries. <a class="color-secondary" href="https://www.wsj.com/video/series/news-explainers/big-spending-chinese-tourists-are-coming-back-but-slowly/38552637-24FC-484A-B8A9-B6022BF9AEF0" target="_blank">The Wall Street Journal reports</a> the staggering drop from 170 million trips inbound and outbound from China in 2019 to only 8.8 million in 2021. Investors in both China and the US have been limited in their foreign investment opportunities since then, being unable to physically visit survey opportunities in regions where they were previously active.</p> <p>With this news, hotel owners and commercial property investors are wondering how their assets might be impacted for the better.</p> <p><span class="emphasis-secondary">The Expected Impact</span><br /> While Chinese tourists have expressed clear interest in resuming international travel, it is unlikely that their frequency and rate of spending will reach pre-pandemic levels soon. <a class="color-secondary" href="https://www.msn.com/en-us/video/travel/us-china-talk-of-better-ties-but-things-keep-getting-worse/vi-AA172F00?t=6" target="_blank">In an interview with Bloomberg</a>, the Vice President of the Asia Society Policy Institute explains the varied points that have been dampening the potential economic resurgence from Chinese investors and tourists.</p> <p>She explains that, while this re-opening is good news for the Chinese people, their current economic struggles will likely result in a more tepid re-entrance into the international marketplace. Cutler’s laundry list of domestic distractions for China includes low consumer demand, a stressed property sector, high youth unemployment, and unfavorable demographic trends.</p> <p>Still, the news is not all so dire.</p> <p>While this news might not be the first sign of a global real estate boom that some hoped it would be, it should mean another step towards recovery for China and its international trade partners. The tourism and international commercial real estate spheres should both see moderate immediate impacts. In addition, although we will likely never see a full return to pre-pandemic spending from China in the US, a healthier economic relationship could be fully restored by 2024.</p> <p>While political tensions will always impact trade between China and the West, China is likely to continue to be a large influence in most foreign markets. Investors should continue to track this situation and any other upcoming commercial real estate news to ensure their best ROI.</p> <p><em>National Property Inspections has a network of trained property inspectors that provide unmatched service nationwide. <a class="color-secondary" href="https://npicommercial.com/contact">Let us know</a> how we can help coordinate your upcoming inspections today!</em></p> 1459Save On Taxes With Cost Segregationhttps://npicommercial.com/blog/posts/PostId/1447/save-on-taxes-with-cost-segregationCommercial Inspection,Property Investment,Property Maintenance,Property ManagementWed, 11 Jan 2023 17:07:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">SAVE ON TAXES WITH COST SEGREGATION</span></strong></span><br /> <em class="fa fa-calendar"></em> January 11, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npicommercial.com/blog/posts?Category=property-maintenance">Maintenance</a>, <a href="https://npicommercial.com/blog/posts?Category=property-investment">Investment</a>, <a href="https://npicommercial.com/blog/posts?Category=property-management">Management</a>, <a href="https://npicommercial.com/blog/posts?Category=commercial-inspection">Inspection</a> | <em class="fa fa-tags"></em> <a href="https://npicommercial.com/blog/posts/Tag/business-tips">business tips</a>, <a href="https://npicommercial.com/blog/posts/Tag/save-money">save money</a>, <a href="https://npicommercial.com/blog/posts/Tag/exterior-maintenance">exterior maintenance</a>, <a href="https://npicommercial.com/blog/posts/Tag/interior-maintenance">interior maintenance</a></p> <p>In the world of commercial real estate, any opportunity to save money can be retooled back into properties to improve amenities, elevate tenant experience, or even invest in new ventures. Cost segregation is a tax-saving method that is not taken advantage of as often as it should. In partnership with Scarpello Consulting, National Property Inspections is now offering cost segregation services to preferred commercial property clients.</p> <p>Cost segregation can seem like a complex topic to those unfamiliar with the concept, but it is more straightforward than the name might suggest. To discover whether you may qualify for cost segregation, let’s take the time to discuss what it is and how it works.</p> <p><span class="emphasis-secondary">What Is Cost Segregation? </span><br /> Cost segregation is a tax savings tool used to reduce the income tax liabilities of property owners by accelerating depreciation deductions. A cost segregation study is conducted to evaluate a qualifying property and track its components on a shortened scale, usually after 5, 7, or 15 years rather than the traditional 27.5 or 39 year period. This allows owners to write-off components much earlier than usual, saving considerably on property taxes.</p> <p>While there is an initial cost with a cost segregation study, the tax savings property owners will receive over the long term makes the strategy worthwhile.</p> <p><span class="emphasis-secondary">How Does Cost Segregation Work? </span><br /> With NPI’s partnership, Scarpello Consulting will perform a study to identify assets in a property that qualify for shorter depreciation periods. The team may review things like property records, property inspections, blueprints, and potentially conduct new inspections, working with expert tax advisors and engineers. The study that they conduct provides the proof needed for reclassification, often leading to considerable first year tax savings.</p> <p><span class="emphasis-secondary">How Do You Qualify For Cost Segregation? </span><br /> To determine whether you qualify for a cost segregation study, there are a few categories that should first be met. A building must have a minimum purchase price of $750,000 for eligibility, and the property needs to have been purchased, constructed, or renovated since 1987.</p> <p>In addition, you must have a taxable income and plan on keeping the property for the next few years to benefit from tax savings. As a commercial property investor or owner, odds are great that your properties will qualify for a cost segregation study. Anyone who has taken the time to review cost segregation will know that the return on investment for a cost segregation study is impressive. Any investor or property owner interested in taking advantage of this often missed tax-saving opportunity should <a class="color-secondary" href="https://npicommercial.com/Cost-Segregation" target="_blank">reach out to Scarpello Consulting</a> for an estimate to see whether this strategy is best for their situation.</p> 1447Underestimated Investments in Commercial Real Estatehttps://npicommercial.com/blog/posts/PostId/1446/underestimated-investments-in-commercial-real-estateProperty Investment,Property ManagementWed, 04 Jan 2023 17:00:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">UNDERESTIMATED INVESTMENTS IN COMMERCIAL REAL ESTATE</span></strong></span><br /> <em class="fa fa-calendar"></em> January 4, 2023 | <em class="fa fa-folder-open"></em> <a href="https://npicommercial.com/blog/posts?Category=property-management">Management</a>, <a href="https://npicommercial.com/blog/posts?Category=property-investment">Investment</a> | <em class="fa fa-tags"></em> <a href="https://npicommercial.com/blog/posts/Tag/business-tips">business tips</a>, <a href="https://npicommercial.com/blog/posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a>, <a href="https://npicommercial.com/blog/posts/Tag/office-space">office space</a>, <a href="https://npicommercial.com/blog/posts/Tag/retail-space">retail space</a>, <a href="https://npicommercial.com/blog/posts/Tag/hotel">hotel</a></p> <p>Anyone who has spent some time in the commercial real estate sphere will know that the key to sustained longevity comes from one simple word: diversification. While specializing in a niche can help investors and property owners develop unique knowledge, an unfriendly season in their selected industry can prove disastrous.</p> <p>In turbulent economic times, the importance of diversification becomes all the more important. However, overly risky investments and haphazard experimentation might not sound the most enticing at the moment. For some comparatively lower risk investments, consider these underestimated investments to increase your ROI.</p> <p><span class="emphasis-secondary">Use The Space You Already Have </span><br /> If you haven’t invested in ATMs or vending machines already, now might be a good time to look into it. With such a small space demand and the convenience potential for your tenants, these amenities sound like a positive addition to properties before even considering the modest monetary returns.</p> <p>With leasing or purchasing options available, property owners can take the most advantage out of these investments in areas with considerable foot traffic. For vending machines, while cash-only receivers are cheaper, models with card readers are much more accessible today. Again, while the returns are minimal, these additions have the opportunity to more than pay for themselves.</p> <p><span class="emphasis-secondary">Don’t Become A Dead Zone </span><br /> Cell phones have become universal in the modern age, and a sure way to create a frustrated tenant is to lease a property with spotty coverage. Contact cell tower suppliers to get an idea of what sort of demand there is in your area to potentially work towards either a freestanding or rooftop installation.</p> <p>Over time, the growing familiarity with cell towers has greatly reduced the perceived “eyesore” they may have brought in the past. If your property has the room, these towers can result in a considerable kick-back and a positive impact on your resale value.</p> <p><span class="emphasis-secondary">Invest In Land Development </span><br /> One investment sphere that is too frequently overlooked is that of undeveloped land. The benefits of this sort of investment are aplenty, from the lack of maintenance demands commercial properties need to the flexibility raw land provides.</p> <p>Investors could partner with a farmer to develop the land, or consider going through the rezoning process and installing water and sewage lines for future development. Simply laying the groundwork for future development can be a relatively simple way to get a return from other investors that see potential in the area.</p> <p>Another strategy that you can employ with land investment is to buy and wait. Depending on the area, competition for raw land can be scarce, and savvy investors could purchase land at a discount, only to resell it or wait for it to appreciate. The flexibility that this sort of investment allows is nearly endless, and with a bit of creativity, a considerable return on investment should follow.</p> <p>To keep up on the latest commercial real estate trends or to check in for new investment strategies, we publish new articles every week.</p> <p><em>For whatever your property, stick with National Property Inspections for all your commercial inspection needs. <a class="color-secondary" href="https://npicommercial.com/contact">Schedule your next appointment</a> with an expert in your area today!</em></p> 1446Short-Term Leasing Opportunities With Airbnbhttps://npicommercial.com/blog/posts/PostId/1441/short-term-leasing-opportunities-with-airbnbCommercial Real Estate News,Property Investment,Property ManagementWed, 28 Dec 2022 20:38:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">SHORT-TERM LEASING OPPORTUNITIES WITH AIRBNB</span></strong></span><br /> <em class="fa fa-calendar"></em> December 28, 2022 | <em class="fa fa-folder-open"></em> <a href="https://npicommercial.com/blog/posts?Category=property-investment">Investment</a>, <a href="https://npicommercial.com/blog/posts?Category=commercial-real-estate-news">CRE News</a>, <a href="https://npicommercial.com/blog/posts?Category=property-management">Management</a> | <em class="fa fa-tags"></em> <a href="https://npicommercial.com/blog/posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npicommercial.com/blog/posts/Tag/office-space">office space</a>, <a href="https://npicommercial.com/blog/posts/Tag/commercial-real-estate-tenants">commercial real estate tenants</a>, <a href="https://npicommercial.com/blog/posts/Tag/business-tips">business tips</a></p> <p>For property owners of multi-family real estate, a new option to drive down vacancy might have been introduced by short-term subletting service Airbnb. Referring to the new service as “<a class="color-secondary" href="https://news.airbnb.com/introducing-airbnb-friendly-apartments/" target="_blank">Airbnb-friendly apartments</a>,” Airbnb is advertising the service as a potential perk for tenants looking to make extra money while anticipating a tough economic season.</p> <p>This service is only offered at properties partnered with Airbnb, likely with liability and legal hurdles in mind. Still, depending on the negotiated rates, property owners have the potential to receive up to a 20% portion of booking revenue from any tenant activity on Airbnb. For investors and property owners interested in the potential behind this service, here is a brief overview of the publicly released details.</p> <p><span class="emphasis-secondary">Why Become A Partner Property? </span><br /> From a property owner’s perspective, there seem to be a few potential benefits in partnering with Airbnb. According to their advertising, a partnership with Airbnb is the best way to maximize value for each unit, believing that the opportunity should be a draw for potential tenants. Additionally, the association with a brand like Airbnb may provide an extra level of recognition and credibility for the property as a whole.</p> <p>With increased resident satisfaction and the chance to share the additional revenue, which could increase the overall Net Operating Income (NOI), Airbnb offers property owners the option to <a class="color-secondary" href="https://www.airbnb.com/d/multifamily" target="_blank">“demo”</a> with one of their region-specific leads.</p> <p>At this point, these short-term Airbnb-friendly apartments consist of 175 buildings across 25 markets in the United States, including Houston, Phoenix, and Jacksonville. Some prominent building partners include Greystar and Equity Residential, and participation in the program seems to be growing.</p> <p><span class="emphasis-secondary">What Are The Concerns? </span><br /> Concerns related to this sort of investment are as varied as the perceived benefits, however. Aside from some tenants potentially being turned off from needing to share space with a more varied clientele, there has been a negative association with Airbnb and the sometimes destructive parties that their guests have hosted.</p> <p>Recently, <a class="color-secondary" href="https://news.airbnb.com/official-codification-of-party-ban/" target="_blank">Airbnb has codified a party ban</a> throughout their services to combat this reputation and save on liability costs, but property owners may still be wary of participating in the program due to this association. Airbnb has also received criticism on “hidden” cleaning fees charged to hosts for each visit, which might lead to increased frustrations for unaware tenants.  </p> <p>Some states actually hold laws that restrict apartment rentals for under 30 days, leading to court disputes among the Brodsky Organization in New York (<a class="color-secondary" href="https://therealdeal.com/2022/09/27/brodsky-brings-challenge-to-nyc-airbnb-law/" target="_blank">as reported by real estate news outlet “The Real Deal”</a>).</p> <p>The program is still new and likely finding its sealegs, but interested parties may want to inquire to see if their properties might be a good fit. In an age where flexibility is a constant priority, cases like these will remain highly monitored in the midst of a continuously shifting commercial real estate market.</p> <p><em>For a full understanding of your property’s condition, and to reduce potential liability, remember to schedule your annual commercial property maintenance inspection. National Property Inspections can pair you with an inspection expert through our network which spans the United States and Canada. <a class="color-secondary" href="https://npicommercial.com/contact">Schedule your next inspection appointment today</a>!</em></p> 1441Why Brick-And-Mortar Retail Isn’t Going Anywherehttps://npicommercial.com/blog/posts/PostId/1435/why-brick-and-mortar-retail-isnt-going-anywhereCommercial Real Estate News,Property InvestmentWed, 14 Dec 2022 18:58:00 GMT<p><span style="font-size:26px;"><strong><span style="line-height: 1;">WHY BRICK-AND-MORTAR RETAIL ISN’T GOING ANYWHERE</span></strong></span><br /> <em class="fa fa-calendar"></em> December 14, 2022 | <em class="fa fa-folder-open"></em> <a href="https://npicommercial.com/blog/posts?Category=commercial-real-estate-news">CRE News</a>, <a href="https://npicommercial.com/blog/posts?Category=property-investment">Investment</a> | <em class="fa fa-tags"></em> <a href="https://npicommercial.com/blog/posts/Tag/real-estate-trends">real estate trends</a>, <a href="https://npicommercial.com/blog/posts/Tag/business-tips">business tips</a>, <a href="https://npicommercial.com/blog/posts/Tag/retail-space">retail space</a></p> <p>Pointing out that the COVID-19 pandemic had far-reaching effects on the economy is not a new revelation, but it begs repeating as we encounter and adapt to our evolving industries. In the retail sphere, the public had to drastically change their routines to meet their basic needs, and in turn, vendors had to learn new ways to meet the altered demand.</p> <p>In many ways, this forced adaptation has been a good thing for consumers. More options are available today than ever before when it comes to the retail shopping experience, whether it’s the expanded role of e-commerce, curbside pickup, or increased online integration from brick-and-mortars.</p> <p><a class="color-secondary" href="https://www.trade.gov/impact-covid-pandemic-ecommerce" target="_blank">According to the International Trade Administration</a>, while e-commerce was already seeing a steady increase in retail market share, 2020 marked nearly a 5% growth (from 13.6% to 18% total market share. Rather than dropping to pre-pandemic levels, e-commerce has continued where it left off, moving back to its more consistent growth levels, and it’s predicted to continue at a similar rate.</p> <p>While acknowledging these trends, retail property owners may worry what this could mean to their brick-and-mortar investments. Although it is true that the retail sphere is rapidly shifting, current trends seem to show that in-person shopping will continue to be a vital piece of the industry.</p> <p><span class="emphasis-secondary">The Rise Of Omnichannel Strategies </span><br /> Increased presence of traditionally in-person-only businesses on the internet over the past few years have been well documented. But, what some might find to be surprising is that the inverse has become a more recent shift. Startups that began solely as e-commerce businesses have made moves to gain a physical, in-person presence.</p> <p>Namely, Cotopaxi has expanded into brick-and-mortar locations, and <a class="color-secondary" href="https://www.prnewswire.com/news-releases/simon-and-leap-team-up-to-bring-digitally-native-brands-to-bricks-and-mortar-301679712.html" target="_blank">as discussed in a recent release</a> from real estate investment trust Simon, other online exclusive businesses like True Classic Tees, ThirdLove, Sugarfina, and Goodlife, are all making similar investments. This is all a part of the rise of “omnichannel strategies” in retail, as businesses continue to search for the best techniques for the greatest ROI.</p> <p><span class="emphasis-secondary">What Are Omnichannel Strategies? </span><br /> For the best marketing, businesses are rejecting the brick-and-mortar/e-commerce binary, learning that both may be needed for success in the current retail market. This is the thought that underpins the overall philosophy of omnichannel strategies.</p> <p>An omnichannel strategy is, in short, a marketing strategy that uses more than one single venue as cooperative sources of seamless shopping for the consumer. This can look like a number of different things, but most commonly this means that a business uses their own website, their social media, and a brick-and-mortar location. An omnichannel plan would allow a customer to find an ad online, order from the website, and pick up their item at the store, in a smooth, easy-to-follow process.</p> <p>The in-person retail model here works alongside e-commerce models so that businesses can capitalize on the strengths of each form, while avoiding their weaknesses.</p> <p><span class="emphasis-secondary">The Future of Retail CRE </span><br /> Commercial Real Estate Investors should not shy away from the retail market by any means due to the rise in e-commerce. As every industry has had to learn coming out of the pandemic, adaptation and innovation continues to be the key to success in CRE.</p> <p>While Black Friday in-store shopping underperformed compared to expectations, <a class="color-secondary" href="https://www.bisnow.com/national/news/retail/foot-traffic-reblack-friday-retail-may-never-return-to-former-glory-as-online-sales-best-brick-and-mortar-for-another-year-116568" target="_blank">according to CRE analysts at Bisnow</a>, this marks a shift in behavior around the holiday, rather than a shift in overall seasonal sales. Mindsets have changed, and with that, businesses have had to change, too.</p> <p>Although the consumer retail experience will undoubtedly look different in the next 10 years than it does today, experts agree that brick-and-mortar businesses will continue to be a vital part of that design, providing presence, accessibility that e-commerce cannot match, and a confidence in quality.</p> <p><em>For your retail property’s next inspection, NPI has a network of trained professionals across the United States and Canada. <a class="color-secondary" href="https://npicommercial.com/contact">Schedule your appointment</a> with our industry-leading experts today.</em></p> 1435