Posts

Malls Aren’t Dead: The Rise of the Reimagined Shopping Experience

May 8, 2024

It seems the rumors of the modern shopping mall’s demise have been greatly exaggerated. For years, the rise of convenient e-commerce alternatives cast a shadow over the once-bustling indoor mall. Vacancies increased, and foot traffic steadily declined. The pandemic further fueled the narrative of the shopping mall’s inevitable death, a stark contrast to its heyday as the North American public square in the 80s and 90s. However, a recent study by Placer.ai, an analytics company specializing in commercial real estate data, paints a brighter picture. They compared indoor mall, open-air shopping center, and outlet mall visits in 2024 to pre-pandemic (2019) levels. The results show shoppers are returning, with open-air centers exceeding 2019 numbers for the first time in Q1 of 2024. Indoor malls and outlet malls are lagging behind, but indoor malls have rebounded significantly, going from nearly 30% less traffic in Q1 2021 to only 5% below 2019 numbers in Q1 2024. While many malls are thriving in 2024, the growth isn’t universal. Let’s explore the factors contributing to success in this evolving market. A Smaller, More Streamlined InventoryIt’s important to note that not all malls are experiencing the recovery. Industry analysts suggest there are still too many

Skybridges: “Solving” the Modern Downtown

April 24, 2024

Over the past hundred years or so, human life has changed radically. From the farms to the city, from simple dugout homes in the prairies to towering high-rise skyscrapers in bustling downtowns, there are many aspects of the modern world that would leave the architects and engineers of yesteryear amazed. Still, that hasn’t stopped many from imagining what our future cities might look like, not to mention guessing at how we might solve the problems we face today. According to the President and Designated Expert of the Council on Tall Buildings and Urban Habitat (CTBUH), one feature that may grow in prominence within cities around the world is the skybridge. In the CTBUH Journal, Wood writes: “For more than a century, architects and urban visionaries have foretold of three-dimensional cities, with tall buildings linked by skybridges forming a new kind of urban fabric. Rapid urbanization and new technological advances have converged to reignite the potential of such constructions at the urban scale.” Antony Wood’s 2020 comments carried an excited vision for skybridges moving into the future, but have these predictions become a reality, or are we still waiting to see their full potential? What is a Skybridge?For the uninitiated, skybridges

AI & CRE: How Artificial Intelligence Will Shake Up Commercial Real Estate

April 10, 2024

Artificial intelligence (AI) has been a hot-button topic of discussion, in not only educational settings, but the workplace. Business owners and investors want to stay ahead of the curve, and employees fear becoming redundant, but to make a long story short, no one knows fully what to expect with AI. For those who are using AI in their businesses already, early tools are being lauded as time-savers, improving productivity in many different areas and limiting time spent on mundane tasks. According to Forbes, the AI market size is on track to reach $407 billion by 2027 (from $86.9 billion in 2022), which means that all industries are going to have to learn to adapt. With a new industry that’s growing so quickly, AI is going to demand its own space to expand physically. To answer this growing demand, here’s how the CRE space will answer. Answering AI’s Growing Space DemandArtificial intelligence tools need developers and specialists working in those fields, which makes tech centers particularly reactive to industry growth. Areas like the San Francisco Bay area, Boston, Seattle, and New York will need to provide adequate working options for tech employees. In the past, this meant that investors could expect

Single-Tenant vs. Multi-Tenant Properties: Using Your Goals to Influence Your Investments

March 27, 2024

As property inspectors, we have significant experience in navigating the wider real estate industry and getting to know the needs of real estate agents, homeowners, brokers, and property investors. People in all roles can see success with real estate investments, but to find the best investment strategy, it’s crucial to first identify just what kind of property owner you plan on being, especially when it comes to your long-term goals. While there are many different classes of commercial real estate that property owners tend to specialize in, the first major factor that new investors need to consider is whether they want to target single-tenant or multi-tenant properties. Both varieties offer their own strengths and weaknesses, but to determine which type is best for your situation, start by deciding how “hands-on” you’d like to be. The “Hands-On” FactorSingle-tenant properties tend to utilize a unique type of lease contract known as NNN or Triple-Net leases, which gives property management and maintenance responsibility to the tenant. Although some lease agreements still require action from landlords, these triple-net leases mean that single-tenant property ownership is extremely hands-off, allowing landlords plenty of freedom to pursue other business interests but a low level of control on

Taking Steps to Improve Your Property’s Walkability

March 13, 2024

Across commercial real estate sectors, various amenities rise and fall in prominence each year as investors track what attracts top-tier tenants and drives business. In the face of increasing urbanization where city center locations are in high demand, one property trait that’s been steadily gaining attention is walkability. But what does it look like when a property has good walkability, and is there anything that owners and investors can do to improve this feature? Let’s delve deeper into this subject to provide some clarity. What is Walkability?Walkability is an overarching term referring to a property’s proximity to other businesses that serve its tenants and visitors, and to the number and quality of pedestrian-friendly characteristics present. For apartment buildings, this might include benches or bike racks around the exterior, and parks or grocery stores nearby. For office buildings, a coffee shop opening on the ground floor could be a prime example. The benefits of investing in walkability are numerous. It reinforces healthy habits, has positive environmental effects, and revitalizes communities. However, the real reason why walkability is becoming a bigger focus today is the trackable evidence it has on investors’ pocketbooks. How Does it Impact Commercial Real Estate (CRE)?The importance of

Historic Restoration: How People Save Buildings with a Story

February 28, 2024

It’s been a long road, but after fires devastated the Notre Dame Cathedral back in 2019, the historic landmark is finally preparing to reopen its doors later this year. Restoring and renovating historic buildings can be costly and time-consuming, but the cultural, educational, and economic benefits down the road often make the effort worthwhile. A building doesn’t need to be internationally recognized like the Notre Dame Cathedral to justify the investment of a restoration, though! Every city has its own share of locations that carry historical significance. But preserving history isn’t the only reason property owners find these projects worthwhile. According to the Environmental Protection Agency (EPA), building preservation can also improve sustainability on top of the community revitalization and economic benefits. For any property owners interested in restoring or updating a historic property, here are a few things to consider! Modernize with CareA common misconception during restoration is that modern amenities are out of the question, but this isn’t the case. Building system standards are improved upon every year for safety and efficiency, and restorations are the perfect opportunity to bring historic properties up to speed. The challenge comes with updating without compromising the building’s integrity. Depending on the

Commercial Maintenance Tips: How to Care for Your Commercial HVAC System

February 14, 2024

Maintaining a commercial property involves overseeing various complex systems, but none are perhaps as crucial for occupant comfort and health as a well-functioning HVAC system. For property managers or owners unfamiliar with the intricacies of commercial HVAC, this guide provides essential information and helpful tips. Understanding Commercial vs. Residential HVACHomeowners accustomed to their residential HVAC unit might underestimate the power needed to cool a commercial space. While several factors differentiate residential and commercial units, size is the most striking. Due to larger areas, commercial properties often require units up to ten times heavier than residential ones. These units use more powerful components and often work in tandem to handle the demands of large buildings. Unlike residential systems, which often utilize “packaged” all-in-one units for both heating and cooling, commercial systems typically divide these functions among various units. These units, usually located on rooftops for noise reduction and space optimization, generally fall into three categories: Common Issues and PreventionCommercial HVAC systems, regardless of the type, are generally larger and more powerful than their residential counterparts. Here are some common issues and their causes to facilitate early detection: By understanding the unique needs of commercial HVAC systems and implementing preventive measures, property

Revenge Travel & Why Experience Spending Could Be a New Normal

January 31, 2024

Since international lockdowns during the pandemic caused millions to delay or cancel vacation plans, people have flocked to airports. A trend known colloquially as “revenge travel” has resulted in a surge of people reconnecting with family and friends, seeking out adventure, and pursuing “payback” for lost opportunities. This fad has proven to be a boon to the recovering post-pandemic hospitality and travel industries, but as time goes on, many are beginning to wonder if the benefits of revenge travel may be coming to an end. So, let’s look at the facts and factors at play. Is 2024 the year we finally say goodbye to revenge travel, or is there evidence to suggest a new normal in travel and hospitality? Factors Putting Revenge Travel to BedWhile the term “revenge travel” was born on social media, the impact felt by hotels and airlines everywhere has been very real and tangible. According to a recent Deloitte study, the percentage of Americans who planned to stay in paid lodging during summer travels increased for the third straight year, and the average number of trips increased in 2023: from 2.3 trips in 2022 to 3.1 in 2023. The steady climb of vacationing since 2021 may

When You Should Hire A Professional Cleaning Service For Your Commercial Property

January 17, 2024

Running a successful business takes a lot of time and effort, and often involves optimizing as much as possible in order to maximize that bottom line. Because of this, many business owners and building managers, unfortunately, keep sanitation in house for far longer than they probably should. The truth is that commercial cleaning services can actually improve productivity for businesses and end up paying for themselves in the long run! If you’re thinking it might be time to pull the trigger and hire out for your property’s cleaning, here are some points to keep in mind. How to Know You’re ReadyMost businesses aren’t operating in filth or disrepair, but that doesn’t mean that most businesses won’t greatly benefit from hiring a cleaning service partner. People tend to make due with the conditions that they are in and shift around their daily tasks to do what’s needed to keep their property presentable while still doing their own job. The problem is that employees and tenants who are already stretched thin accomplishing tasks that they were actually hired to do aren’t likely using their time well by cleaning their workspaces. Quality commercial cleaning services know how to do their jobs in a

Bolstering Your Portfolio with Mixed-Use Properties

January 3, 2024

They’ve been popping up more and more in downtowns everywhere, and it’s no surprise. Mixed-use properties, or properties that incorporate more than one asset type – often with both residential housing units and commercial units – seem to be one route investors are turning to for answers to an inconsistent and unpredictable real estate market. Mixed-use properties not only provide those traditional benefits of allowing a more diverse market of renters and a more reliable portfolio staple, but many are coming to recognize the unique draw mixed-use properties can have for tenants. The Benefits of Mixed-Use PropertiesWith a larger barrier-to-entry for first-time homeowners today (see some of the latest research from experts over at Nerd Wallet), more people are opting to rent for longer. For renters who are used to living in more urbanized areas, mixed-use properties are becoming a natural draw. Buildings that include residential units and businesses like gyms, coffee shops, or grocery stores are extremely attractive to renters for a more convenient lifestyle. They also cut down on emissions for a greener, eco-conscious lifestyle. From a commercial tenant’s perspective, location and access to potential customers is always a major draw. One’s imagination can quickly go wild when