A standout memory of my youth was going to the movie theater to see “Caddyshack.” While I’m sure some of you are rolling your eyes right now, others are smirking as you picture Judge Smails and the gang. The movie was one of the hits of 1980, grossing $40 million. Seeking to capitalize on this success, “Caddyshack II” was released a few years later. My memory of that was much different. To read the fully article, click here http://digital.propertiesmag.com/publication/?m=15890&i=714009&p=46&ver=html5
We’ve been on a mission lately, to share best practices and some of our favorite commercial real estate (CRE)-related technology tools in a series of blogs. This is our fifth in the series, and explores the uses of Salesforce. For clarity, this is NOT a paid or sponsored blog. We are motivated only by sharing information with our network. We want to hear from you too: What are your favorite tech tools? Is there a CRE digital solution we should know about?
Below we provide just a few reasons why they make our top tech list, and you can also visit them directly on http://www.salesforce.com/.
What is Salesforce?
First off, the basics: Salesforce – the company – is listed on the New York Stock Exchange, and Salesforce – the platform – is essentially a customer relationship management (CRM) tool. It is enterprise-focused, providing companies with the means to streamline all their sales and marketing functions, in order to promote goods, services and more sales – and because it is cloud-based, it’s accessible to anyone anywhere with a browser.
It is, we’ve read, the top CRM platform in the world. If you need to communicate with customers and manage your customer base, automate processes, or manage events, these are all to be found under the Salesforce umbrella.
Real estate is a field that has traditionally been seen as high customer touch and low tech – especially on the residential side of the industry. The scope of the CRE market however demands a lot more than a mental rolodex. A CRM strategy informs how you manage your stakeholder engagements and a CRM system, like Salesforce, brings together all customer touchpoints – email, website, phone, social, and more – and gives you a single, smart view of all interactions with an individual.
For both clients and for customers, you can see how powerful that would be. No more wondering if your colleague followed up or what the last status of your discussion was. It will all be viewable and linked in one place.
In June 2021, Salesforce also announced the launch of their Einstein Relationship Insights (ERI) tool which makes use of artificial intelligence (AI) research to gather meaningful insight into the relationships you enjoy with companies, customers, and prospective clients. This will be a very interesting addition to watch. Venturebeat says “ERI can help sales reps close deals faster by acting as a virtual agent for salespeople in all industries, scanning news articles, social media, collaboration apps, email, and other online sources to uncover and deliver account and contact information”.
The kind of data that goes into a CRM – and can be extracted from one – can give your marketing and communications the edge. For example, you can capture a client’s personal contact preferences, so you always know what’s the best way to start a chat on their preferred medium.
Salesforce also offers things like an email studio so you can send gorgeous and relevant mailers – as well as mobile, social, and advertising studios – and a journey builder so you can guide customers through the steps, channels, and departments as needed.
What is your top tech tool for CRE? Share your favorites with us.
Real Capital Analytics (RCA) has released their latest US National All-Property Index data for industrial, apartment, retail, and office sectors, which shows index growth of 8.4% year-on-year to April 2021.
The biggest gains were evident in Industrial (up by 9.4%), which we all know has been one of the few spaces for which Covid-19 proved to be a boon. But GlobeSt analysis of Crexi data and Moody’s Analytics suggests that a “market correction” may be on the cards
In the monthly Crexi National Commercial Real Estate report, they write, ‘for industrial… prices dropped 6.68% over April Figures, forcing cap rates up slightly in response”. However, occupancy rates in Industrial have increased over six months, by some 11.59%, and the asking rate per square foot is not at its highest levels since before the pandemic.
Multifamily prices, by contrast, increased some 10,5% but their occupancy rate declined slightly.
Moody’s data also shows that rent for warehouse/distribution was “positive nationally for every quarter” of 2020, and they anticipate it will also prove to be the “strongest rent of all asset classes this year”, with rental growth of 2.8% predicted.
Areas that are particularly well placed for Industrial and warehousing spaces – or those that have higher demand – will reap the rewards of this ongoing strength.
Florida, for example, reportedly has much need of at-home deliveries. Lawyer Bruce Lowry in a recent article said: “This area has spiked. The vacancy rates are extremely low, if not at zero, for warehouse space.”
He argues that this trend will hold for the immediate future as older consumers have become comfortable with delivery services “rather than having to go into a store”, and that the need for warehouse space to address this is not yet up to demand.
Other factors to consider is the rise of “subcategories” like eWarehousing, fulfilment, outsourced or third-party logistics. As smaller companies adjust to offer robust online sales and delivery, or through microfulfilment, shared space providers are having to grow and accommodate newcomers.
Those who have run on a “just in time” model, are having to find space for large stockpiles, and the last mile means that industrial is coming into closer proximity to the city centers and suburbs they’ve never featured in before.
For a rundown of the options, this GlobalTradeMag article offers an accessible guide to the types of industrial sub-categories that are going to be of increasing interest.
Say “Bahamas” and you probably have a mental image of cocktails on the beach – which is not a bad association at all – but there is much more to this island destination than being a vacation hotspot.
The Commonwealth of The Bahamas – the official name – is located in the West Indies. It is the richest country in the region, with a GDP ranked 14th in North America – built primarily on tourism and financial sectors (specifically offshore banking). The nation is renowned as a tax haven, with no income, corporate, wealth, or capital gains tax – a strategy that has earned them both fans and critics.
Here’s what you need to know about commercial real estate (CRE) trends and news in this region…
Travel restrictions easing
The Bahamas is one of the first countries to lift the restrictions on international visitors who are fully vaccinated. In May 2021, the new regulation became effective which means those travelers “who are fully vaccinated and have passed the two-week immunity period will be immediately exempt from testing requirements for entry and inter-island travel”. Fully vaccinated travelers must still apply for the Bahamas Travel Health Visa with proof of vaccination, at travel.gov.bs.
This is a welcome relief for the hotel and tourism sectors which is a critical part of the economy – making up some 51% of GDP – and it should provide a kick start for tourism related CRE deals that were stalled or delayed as a result of the global Covid-19 pandemic.
Thinking outside the box
The government is keen to incentivize land sales at the moment, and is using fresh techniques to promote business, such as offering discounts on land parcels to young professionals in the western area of New Providence.
Prime Minister Dr. Hubert Minnis announced in December 2020 that new development was on the cards in this region which constitutes “crown land”. “Crown land is really the people’s land, it’s not individuals, it’s the people and we just want to ensure that the people receive their land,” he said, adding that the government would promote duty-free building and automatic mortgage qualification for applicable targets of the development.
The Bahamas Real Estate Association’s (BREA) president Christine Wallace-Whitfield has spoken in support of the proposal which would put homeownership within reach for more Bahamas residents. This would also likely create development opportunities down the line which is a positive for the construction and CRE industries.
On a slightly lower note, there is currently a robust debate around plans recently proposed in the House of Assembly (during the 2021-22 annual budget presentation) that the government could potentially recoup outstanding property taxes directly from the tenants of commercial office and retail properties. The Tribune reports that this would involve paying monthly rentals directly to the Department of Inland Revenue (DIR) rather than the “delinquent landlord – until the debt is settled”. A collection of prominent CRE professionals have spoken out in criticism of the proposal, and it is an ongoing matter.
Also among the budget updates were new tax provisions that would see VAT on realty transactions increasing. The BREA said that the “sector would accept the tax hike if it was accompanied by an improvement in the ease of doing business”.
These are the kind of legislative and regulatory matters that require robust local knowledge, which is why NAI Global always advocated dealing with regional experts, like NAI Bahamas Realty Commercial.
Australia is certainly feeling the effects of the global climate crisis in recent years. The sensitive and beautiful ecosystem enjoyed by the “Aussies” has been ravaged by heat waves and wildfires and drowned in record-breaking floods – not to mention the tragedy that is the widespread bleaching of corals on the Great Barrier Reef, the result of rising ocean temperatures.
Perhaps this is why Australians are getting serious about cracking down on common pollutants and regulating the ecological impact of the industry. The latest news in this regard is the tough energy standards introduced by the City of Sydney (the government of Australia’s most populous city), and support for these coming from the leading property companies in the region.
Zero net emissions
Commercial Real Estate Australia published an article in late May 2021 detailing how the commercial real estate (CRE) and property leaders in the city have come out in support of the tough new energy standards that will apply to all development applications – from as early as the start of 2023. Specifically, the City[MOU1] is targeting zero net emissions for the entire local government area by 2035.
The report reads: “For the first time, City of Sydney is proposing that DAs to build or redevelop hotels and shopping centers must achieve a minimum National Australian Built Environment Rating System (NABERS) environmental rating, in this case, four stars. It also wants to increase the existing NABERS rating for office buildings from five stars to 5.5 stars by the start of 2023.”
Sydney Mayor Clover Moore says this makes economic sense, as well as environmental, and will help “save more than $ 1.3 billion on energy bills for investors, businesses and occupants between 2023 and 2040”.
Lead by the people
What’s particularly interesting about this, and other eco-friendly news emanating from Down Under, is that these gains appear to be driven at a regional and personal level, more than from the incumbent government which has been described as “one of the most climate-skeptical political groups in the developed world”.
For example, green energy is a big talking point in residential and commercial real estate (CRE) spheres, with considerable demand from consumers. One in four Australian homes now have rooftop solar energy supplies, says Recharge News. Clean energy is now almost a third of the power mix in the country.
The real estate industry is considered a thought leader in this space in Australia and has been recognized by bodies like the Global Real Estate Sustainability Benchmark (GRESB), in which they have topped the charts for a decade.
Australia’s Green Building Council calls GRESB “the global benchmark for environmental, social and governance (ESG) performance of real assets, defining and measuring standards for sustainability performance”, explaining that this assessment metric includes not just property, but also real estate investment trusts (REITs), funds, and developers – representing assets in excess of AUD $6 trillion.
Australian companies are also prominent in the Dow Jones Sustainability Index – another indicator, perhaps, of how the [professional and personal] tail can wag [government] dog in pursuing greener CRE.