Posts

The Rise and Fall of Ghost Kitchens: A Post-Mortem Reflection

October 18, 2023

From time to time a trend pops up in commercial real estate that’s interesting or strange enough to get a conversation going. Throughout the pandemic, when businesses were struggling everywhere, the trend that captured the imagination of entrepreneurs in the midst of a chaotic restaurant industry was “ghost kitchens” (we wrote about it, too!). While restaurants, retail stores, and other businesses tried to adapt to new expectations from their customers, the freedom and flexibility from ghost kitchens made some believe that they would make up 20% of the restaurant industry by 2025 (per CNN). After such lofty predictions, it may be a shock to see businesses like Kitchen United, Butler Hospitality, and CloudKitchens pulling back in a big way after their own considerable investments in the ghost kitchen concept. So, what happened? And what can we learn from this trend’s near meteoric rise and sudden fall? What are Ghost Kitchens?To recap, ghost kitchens (also known as cloud kitchens, virtual kitchens, and dark kitchens) are businesses that offer a delivery-only menu, with no available dine-in options for their customers and no unique signage on their location for identification. Because of this (although these businesses existed before the pandemic), ghost kitchens rose

Haunted Places Series: Mizpah Hotel

October 4, 2023

Location: Tonopah, NevadaArchitectural Style: Renaissance RevivalBuilt: 1907 One of the best things about investigating the paranormal is the opportunity to take a deeper look into the past. For our first entry of 2023, we take a brief look into the old West, the mining boom of the late 19th century, and a little town with a big history. Grab your trusty steed and saddle up! This week, we visit Tonopah, Nevada’s Mizpah Hotel. The TownWhile admiring the Mojave Desert, it’s hard to imagine why anyone would want to put down their roots in a place so inhospitable. Yet in the mid-1800s, a movement was pulling people to just these sorts of places. The promises of riches, a new life, and freedom seemed out there for the taking. And so people were flooding en masse out West for the treasures hidden in the hills of the coast. Dotted across California and Nevada, small towns cropped up to support the efforts of hard-working miners. One such settlement that cropped up in this way was the town of Tonopah. A Shoshone word, meaning something along the lines of “greasewood water,” Tonopah began with the discovery of a silver-rich ore vein after prospector Jim

Maintaining Building Entryways: The Importance of a Good First Impression

August 2, 2023

As property managers and business owners, whether you’re running an office space, a hotel, or an apartment complex, setting a good first impression is important when it comes to bringing in new customers and quality tenants. We’ve already talked about things like landscaping and parking lot maintenance, which are essentials for putting a property’s best foot forward. Additionally, public art continues to be a powerful way to make a splash within the community and increase curb appeal. Still, when it comes to making a statement on a business’ culture there is perhaps nothing as impactful as a clean, professional entryway. Building owners want visitors to be impressed and instilled with confidence when they first walk in the door – not to be inclined to reconsider their options. The good news is that keeping an entryway up to snuff doesn’t have to break the bank. Follow these quick points to help secure high-quality tenants and attract more customers! Entrance Mats are an Unsung PowerhouseWhen picturing how you want your entryway to look, it’s important to consider all that this area needs to accomplish. Not only does your entry need to look good, it also needs to handle a large amount of

Adaptive Reuse: Giving Old Buildings New Life

July 26, 2023

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 office and retail space utilization, finding creative ways to repurpose properties without starting from scratch is certainly in the air. 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. 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. Common Applications for Adaptive Reuse TodayThe 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

The End of the Student Loan Pause and Its Expected Impact on CRE

July 19, 2023

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. Forecasting the Effect on Multi-Family PropertiesAs we’ve discussed, property owners are getting creative 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. 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

Why Commercial Property Inspectors Perform the Best Luxury Home Inspections

July 12, 2023

Moving into a new home is an exciting moment, but handling the logistics of each step can be a handful. When moving into a luxury home, it’s important to order a comprehensive home inspection for every purchase, but finding a professional equipped to do the job isn’t always so simple. If you’re struggling to find the right professional to perform a luxury home inspection, opting for someone with a background in commercial property inspections should be a top requirement. Luxury home inspections may have more in common with a commercial inspection than a standard home inspection due to a number of factors, including the property’s size, unique systems, and amenities, which are often modeled after commercial locations. To dive more into why commercial inspectors should be your go-to contact, let’s discuss a bit more about the process of a luxury home inspection. Why is it Important to Get a Luxury Home Inspection?Every homebuyer, whether they are purchasing a new or historic home, should always order a home inspection before closing. Homes experience a natural wear and tear over time that owners tend to ignore or overlook until these problems lead to major expenses or even safety hazards. On top of

NIMBY vs YIMBY: Why Affordable Housing is a Must for Commercial Viability

July 5, 2023

Comfort and familiarity are things that people cling onto for comfort. While most are willing to venture out to a new restaurant or clothing store from time to time to “mix it up,” wider lifestyle changes are generally met with major push-back. In the realm of real estate, this fact is perhaps the most clear in instances of new construction near residential communities. Often, residents of existing communities fight to preserve the familiar feel of their neighborhoods through protesting affordable housing developments, new high-rises, or any unwanted businesses. These conflicts are natural issues for developers and property investment groups, and while these residents may not realize it immediately, derailing growth often comes back to harm their communities beyond what they expected. Change can be tough, but many cities formerly resistant to developments (notably wealthy enclaves) are starting to shift their views to their benefit. What is NIMBY?NIMBY, also sometimes known as nimbyism, is a term used in reference to groups in a community that fight in an organized manner against new developments that threaten their way of life in some manner. Standing for “Not In My Back Yard,” NIMBY started mostly to defend against environmental and public contamination in the

The E-Commerce Effect: How Online Shopping is Impacting Warehouses and Retail

June 28, 2023

Technology has a habit of drastically altering our lives. Do you recall the way you spent your idle time five years ago? A decade ago? Twenty years? Between the rise of streaming, the prevalence of social media, electric vehicles, and the era of artificial intelligence, some technologies are so commonplace that it is hard to imagine life without them, while other innovations make projecting industry trends a tall order. Making smart moves in any industry means staying on top of these innovative technologies and tracking trends. For the commercial real estate industry, one form of doing business that’s undoubtedly been sending ripple effects throughout the industry is E-commerce. What is E-Commerce, and How Has it Changed?E-commerce is an abbreviated term meaning “electronic commerce,” and refers to the rising industry of online shopping, where consumers can purchase from their favorite brands, select a delivery location of their choice, and even offer direct feedback on their experience all without leaving their desktop. Today, businesses are practically required to use an online store in order to see success, and some businesses have been able to operate entirely as an online entity – without any physical presence whatsoever. Due to the incredible ease of

How to Identify a Good Commercial Property Investment

June 21, 2023

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? 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 Triple Net Leases. (If you’re still torn on residential vs. commercial property investment, real estate investment experts over at FortuneBuilders have a great breakdown on the pros and cons of each model!) 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. Learn About the IndustryBefore even thinking about making that first purchase, prospective investors have plenty of research to do about

Investment Opportunities in Student Housing

June 14, 2023

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. Why Student Housing?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 between CEOs and office workers 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 National Center for Education Statistics, 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. Though undergraduate students are more willing to incorporate remote learning into their collegiate experiences than in previous years (as reported by education analysts at EdSurge, among others), the lack of sustained impact that universities are seeing from the pandemic seems to prove a