Lorin Schultz, CCIM Joins NAI Pleasant Valley as Vice President
AKRON, OHIO – October 22, 2021, NAI Pleasant Valley, a leading global commercial real estate brokerage firm, announced today that Lorin Schultz, CCIM joined the firm as Vice President. “We are excited to welcome Lorin back to the NAI Global family,” said President Alec Pacella.
Lorin has significant experience in commercial real estate, particularly in the office market around Akron. She joins NAI Pleasant Valley after spending several years at Colliers and NAI Cummins, where she secured purchases of substantial properties, including Merriman Valley Parkwood Plazas, and procurement of leases for companies such as Tegron and J.M. Smucker Company. Previous to joining the real estate profession, Lorin was a broadcast journalist for NBC stations in Columbus and Youngstown, Ohio.
Lorin holds a Bachelor of Arts Degree in Mass Media Communications from The University of Akron. She became a licensed realtor in 2003 and later earned CCIM designation in 2009. Lorin currently belongs to the National Association of Realtors and Leadership Akron NEXT 10.
About NAI Pleasant Valley
NAI Pleasant Valley is the Northern Ohio office of NAI Global, the leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs, locally and globally.
From smart buildings and smart cities to AI and machine learning, there’s little room for doubt that the world is rapidly moving towards a fully tech-enabled society. Forward-looking commercial real estate (CRE) professionals are embracing these new capabilities, and revolutionizing the way we add value to commercial real estate operations.
In the previous article, we discussed the impact of IoT (the Internet of Things) and Artificial Intelligence (AI) in CRE. In part three of this ongoing series, we examine the role robotics plays in moving real estate into the future.
One of the areas where the use of robotics in CRE has really taken off is drone-assisted operations. Drone technology is being used to target some key challenges faced in the industry.
Processes that used to be far more complicated and expensive, like aerially mapping a property, can now be accomplished in a fraction of the time, and at a lesser expense. Part of the benefit is that drones allow developers and marketers to tell a story, as the development unfolds week by week in stunning images from on-high. Large construction sites can also be more easily managed when material stocks and inventory are being monitored with drones.
Another use of the tech is cutting down the time spent on surveying properties for maintenance and compliance purposes. Aerial surveys can easily reveal damage or deterioration and allow owners to address the problem sooner.
Drones equipped with specialized imaging cameras can also detect major issues like gas leaks or help pinpoint areas of heatloss for energy optimization. Given the drive towards cleaner, more energy-efficient buildings, this is a technology that is likely to become a cornerstone of future CRE operations.
Robots have also gained some traction working in building interiors. Machine technology can be used to map interior spaces and even, to present them to prospective tenants.
San Francisco-based operator Zenplace uses small telepresence robots to show properties, complete with a screen for the realtor to interact with clients – all from the convenience of the office. This means a more convenient process for prospective tenants, who can gain access to a property using an app on their phone while cutting down travel time for the agent.
A bot by any other name
Another area where robotics is taking CRE by storm is software robots aka “bots”. Robotic Process Automation (RPA) is the use of bots to automate mundane and repetitive tasks that would otherwise need to be done by human workers. This means time-intensive work like document management or invoice processing can be outsourced, leaving brokers free to focus on larger strategic goals and more creative problem-solving.
Using RPA, brokerages can also extract large amounts of untapped data from existing databases. This is likely to be an increasingly useful application in years to come, as digitization in CRE increases and large volumes of new data start pouring in from a slew of smart buildings being added to existing portfolios.
What the bots can’t currently do is analyze that data – the creative interpretation that task requires is best left to humans.
Reimagining Logistics Assets
On the back of a burgeoning e-commerce industry, robotics is also adding value through streamlined logistics processes. The landscape of logistics assets is changing, with a movement towards micro-distribution centers and multi-purpose retail spaces opening up new opportunities.
In a research report from the Commercial Real Estate Development Association (NAIOP) these new trends, and the robotics enabling them, are explored in detail. Some key findings are that previously underutilized spaces, including areas in malls or old parking garages, are finding new purposes as distribution sites that help solve the Last Mile problem of logistics.
Given their location in urban and suburban centers, these new types of logistic assets are blurring the lines between logistics and retail. Landlords and owners can now install logistics mini-sites in existing buildings, largely thanks to automated storage and retrieval systems that shrink the operational footprint. It’s a new way of imagining space and how assets can best be put to work.
An additional interesting trend is that larger logistics assets are now often being established further away from city centers. While this may sound counter-intuitive, with greater automation the need for on-site staff decreases, and companies can take advantage of cheaper land and operations costs in more remote areas. The NAIOP report goes on to quote ABI Research’s projection that, by 2025, some 4 million commercial robots will be hard at work in over 50 000 warehouses.
The human face of robotics
By now, you could be forgiven for thinking that this sounds like the start of a robot revolution that will put a lot of people out of work in the long run. The truth is, we are far from independently functioning robotics and AI.
Advances in these technologies allow people to do their jobs faster and more easily, taking a lot of the monotonous aspects out. As rapid-fire data-handling, logistics, and site management become the norm, there will also be an even greater need for people to oversee those processes. And the potential robotics offer for improving CRE operations means more ways to add value for customers and CRE professionals alike.
Nestled on Panama’s Pacific coast, Panama City is a bustling commercial hub that houses the regional headquarters of multinational giants like Caterpillar, Dell, BMW, and Philips. The city combines an eclectic mix of towering high rises, commerce districts and old, colonial areas like the charming Casco Viejo.
An international trade hub
Progressive tax laws and the ease of setting up a business in the country have contributed to robust growth. The country is a top economic performer in Latin America and holds a unique position of global trade importance due to the presence of the recently-expanded Panama Canal and the world’s second-largest free trade zone.
Panama has therefore established itself as a trade and logistics hub, with a lot of the resultant economic activity concentrated in, or near, Panama City. Thanks to this focus on a services-based economy, Panama also attracts large amounts of foreign direct investment (FDI), leading the Central American region in 2019 with $4.835 billion claimed.
The flip-side of having an economy rooted in world trade and foreign investment is that the pandemic hit Panama particularly hard. The country recorded a 17.9% GDP contraction in 2020.
CRE crunch through the pandemic
Due to the hard lockdown measures implemented from March 2020, real estate sales in Panama City came to a halt. As in many other cities, industries like tourism also took a hefty hit, and the retail sector faced challenges as the hard lockdown extended into June.
For Panama City’s office market, the pandemic came at a particularly inopportune moment, hot on the heels of an oversupply phase in 2019. The boom in office construction was the result of a period of sustained growth during 2013-2015, which saw a large amount of development undertaken in subsequent years.
At the end of 2020, the office property sector recorded a vacancy rate of 24.2%, with increasing competition between rentals. This includes Class A and A+ offices, which showed a 25.7% to 26.5% increase in vacancies quarter-on-quarter by Q4 2020.
Similarly, in the first quarter of 2021, general property prices in the city have dropped, following a 10-15% drop-off in rents in 2020.
A strong recovery expected
Despite the hard impact of the pandemic, the overall investment sentiment in 2021 is positive. Early in the year, Panama gained a vote of confidence with the extension of a $2.7 billion precautionary credit line by the International Monetary Fund (IMF).
The city has also resumed key development projects, like a twin cruise ship pier that will open up new tourism opportunities to bolster the local economy. And as far back as May 2020, Forbes listed Panama City as a strong contender for an investment with a short-term horizon, even in the midst of the pandemic downturn.
Charting a course
This strength is reflected in the extensive measures being taken by the Panamian government to encourage investment and build confidence.
According to President Laurentino Cortizo: “We have an economic recovery plan that has five pillars. We cannot talk about economic recovery if we do not have a good vaccination strategy […] that’s the base of that. We do have programs for small, medium-sized enterprises. We have infrastructure projects that generate quite a lot of employment. We have also […] some resources for our financial sector, and the bigger economic activities, for example construction. And the last one […] is related to the attraction of foreign direct investment.”
The reopening of international travel in October 2020 also saw an influx of FDI, as buyers jumped at the lower prices on offer in the Panama marketplace. Property tax exemptions and the opportunity to obtain resident status through real estate investment are additional contributing factors to the country, and Panama City’s, appeal.
IoT in CRE: The smart development, and smarter CRE professional
It is a well-established fact that digital transformation and the integration of technology have impacted almost every aspect of human life including our workplaces – and commercial real estate (CRE) is no exception.
With this in mind, we’re taking a look at the emerging technologies that are changing property in a new series of blog posts. This is the first, and in it we will look at the current and future possibilities of internet of things (IoT) technology in CRE.
Smart things 101
First off, let’s start with a basic definition of IoT. IoT makes “dumb” things “smart”, or disconnected things into connected ones. It includes a range of sensors and communication modules so that physical things – doors, parking booms, lighting arrays, heating, ventilation, and air conditioning (HVAC) systems, boilers, etc. – can be monitored and controlled remotely.
IoT also supports further digital transformation, such as machine learning in which data can be used to teach a system to the point of a high degree of autonomy.
Green ambitions and controls
IoT has a large number of applications in our CRE developments already, but one of the most common (and commonly understood) is how they can aid in managing energy and systems like lighting and HVAC – from the simplest option of running on a thoughtful schedule to dynamic adjustment in response to factors like the weather and footfall.
SpaceIQ is a company that offers a suite of software solutions for companies that want to improve workplace productivity. They talk about the efficiency these types of systems provide, explaining: “sensors that integrate with your lighting system can track room occupancy and activity. Based on the occupancy data, the sensors can automatically turn lights on and off. Having lights automatically turn on only when rooms or spaces are in use can translate to significant energy savings”.
These types of sensors can be used to adjust cooling and heating too, based on the real-time occupancy of a building. This is not just efficient energy use but can boost the experience of a space, for workers in an office and for shoppers in a retail center.
This is why IoT in facilities management is becoming an exciting area, as well as a means to maximize profit and curtail costs. With well implemented data collection, we are now able to produce “digital twins” to our buildings, or a virtual representation of a building that can show in real time the state of that building and its systems.
Forbes has a recent article on this, quoting John D’Angelo, US real estate leader from Deloitte Consulting. D’Angelo explains that insights gleaned from using IoT data can be used to track “how the building operates to make [..] operations more efficient, improve occupant (shopper, resident and patient) experiences and identify issues or potential issues”.
Wide use potential
Yahoo Finance – quoting from a new market study published by Global Industry Analysts Inc., (GIA) – says that the “IoT Analytics Market” is expected to be worth some $40.6 Billion by 2024. The breakdown of the in-demand IoT functions to watch over the next two years as “demand response, distributed energy generation and storage, smart meters, and fleet management” predicting these “will emerge as largest IoT spending categories”.
“Applications with medium-term potential include automated inventory management, and predictive equipment maintenance,” they add.
Although the potential for these systems is almost limitless, we must caution that connecting a boiler – for example – to the internet for remote monitoring and maintenance, also means opening that boiler and system up to the possibility of bad actors or “hackers”.
One needn’t look beyond the headlines for multiple examples of how important this factor is – as the recent Colonial Pipeline attack so clearly illustrated.
Any connected system will require security too, ideally from an expert in IoT systems – as the connection protocols for physical objects (whether retrofitted with comms tech or designed to be smart) can be vastly different from those of our phones and computers.
Data from the seventh annual industrial market report by WealthManagement.com Real Estate (WMRE) remains clearly bullish on the industrial sphere of commercial real estate (CRE), particularly on the points of sentiment, occupancy, and rent growth.
The report is based on an April 2021 survey distributed to readers of Wealth Management Real Estate. Respondents include private investors, financial intermediaries, developers, lenders, occupiers, and service providers, with over 50% of respondents in senior management and ownership roles.
It is in keeping with other market analysis sources. The industrial deal volume was up 18%, in comparison with 2015 to 2019 averages, according to RCA’S most recent U.S. Capital Trends report
Ecommerce at the core
The prospects of e-commerce and fulfillment, they write, were strong drivers before Covid-19: “The demand for home delivery of more types of goods and services provided extra fuel for fires that were already burning even before COVID-19… The strong and consistent performance also caught the eyes of new investors looking for a safe haven.”
The report draws from the U.S. Census Bureau information which shows how e-commerce made up 14% of total retail sales in Q4 2020 (up from 11.3% in Q4 2019), and from other sources that suggest e-commerce is to grow to some 21% of global sales by 2025.
Around the world, top corporates seem to be continuing their acquisitive streak in this space:
A mid-Aug release from Amazon announced their plans for a robotics fulfillment center and five new delivery stations in Florida.
Australia and the UK are also seeing news of large industrial deals, as companies seek strategic assets for “e-commerce, on-shore manufacturing and a desire to be positioned close to the end-consumer”.
Expansion is expected to last
Even with the need for social distancing measures on the decline, the WMRE report’s respondents show faith in “a lot of runways to go for what’s already been a long run of expansion for the sector”.