Hiedi Winston and Debbie Maggard of NAI Pleasant Valley represented the Buyer Millennium on their purchase of 3 parcels totaling 10.4 acres on Mills Road in Avon, Oh. All utilities are on site. The land sold for $655,200. The sale price represents the lack of industrial inventory in NE Ohio. Since 2004, Millennium has provided network owners & contractors with broadband network materials, geospatial engineering, and more. To learn more about Millennium check out their website. https://www.mymillennium.us/.
The capital markets function within commercial real estate (CRE) is such a huge part of the property industry these days but is still quite poorly understood by those on the outside. Yes, there is a certain magic to bringing all the right elements together to support a smart capital market deal, but that doesn’t mean it’s a mystery or unknowable. Conquering capital markets is a matter of strategy and value. You just need the right partners to guide you.
Course 101
Let’s get back to basics: If you are talking about capital markets as a general term (not necessarily within real estate), then you are describing a place for buying and selling stock, bonds, and debt instruments. A stock exchange, like the NASDAQ, is a type of capital market.
Zoom back into CRE
Within CRE then, you can see how capital markets are places for brokering financial deals specifically in property. When a brokerage, like ourselves, offers capital markets as a service this means we are providers of capital solutions relating to property. This can mean solutions for investors and for occupiers and may include advising on investments, recapitalizing, or debt placement – what’s on offer really depends on the brokerage and its own expertise in-house.
A capital markets service provider needs two overarching things for success: A depth of knowledge (expertise in the financial specifics and deal types), and a breadth of network (access to the right people and right primary and secondary markets).
Emerging trends
From crowdfunding to app-based finance, capital market professionals are also facing a wave of innovation and change, largely driven by factors like digitization and the fourth industrial revolution.
“Evolving technology means the barriers to entry are coming down, but expertise and experience continue to be what sets capital market service providers and consultants apart,” explains Jay Olshonsky, President & CEO of NAI Global. “That’s what you want on your side when you’re looking for the capital solution you need.”
by Alec Pacella for February 2021, Properties Magazine, Financial Strategies
The 2020 election will long be remembered for a host of reasons. If you can put aside all of the noise and focus specifically on the numbers, an interesting thing occurred. The Republican candidate garnered over 72 million votes, which is the most votes ever cast in the history of the U.S. election. Except, of course, for the Democratic candidate in this year’s election, who garnered over 81 million votes.
Data is being called the secret weapon of all contemporary businesses.
Within the commercial real estate scene, data has become the foundation of the industry’s progress. However, the focus is moving away from data collected from the building’s tenants. Right now, the industry is concerned with data surrounding the building itself.
Nothing is more valuable than data… expect maybe how you leverage it. As data becomes a vital commodity for commercial real estate, we’re all challenged to find better applications for data and analysis.
Here’s how data is expected to become increasingly pivotal for commercial real estate success into 2021 and beyond.
What Kind of Data is Collected?
Data collection in CRE will be spanning everything from operations, utilities, security, tenant movement, and more. In short, if it’s happening in a building, data will be collected.
Improving a building’s efficiency will only be possible through astute data collection and observation. Data allows commercial buildings to be responsive. This enables CRE to begin taking a preventative stance over maintenance, energy usage, and tenant management. By working with data, CRE pros can find perfect solutions to their issues.
Data shows us what we need to know and analysis shows us what we need to do. Shaping data-driven strategies and protocols are the only way to improve a commercial portfolio’s efficiency and profitability.
Helping CRE Cope with COVID
However, those baselines of CRE’s data collection are being expanded in the wake of 2020’s pandemic. As data becomes increasingly important, access to building data will be vital for both owners and tenants – especially in the era of the coronavirus.
Data has an amazing capacity to help us mitigate the risks of COVID. Air quality control, social distancing surveillance, and even predictive tracking of outbreaks are all a part of the new normals of CRE’s data collection. Whether it’s in the office space, retail, industrial, or multifamily, data will play a frontal role in keeping the people of CRE safe.
Data’s Place in the Future
As CRE evolves its data leverage, the role that information plays in the industry is expected to become more centralized. An organized and accessible database of collected information will help commercial real estate adapt to the future’s unexpected circumstances.
Data will be in charge of solving the biggest problems weighing down on the commercial real estate industry. Buildings are pressured to be more sustainable, more secure, and better equipped to operate safely during the pandemic-recovery period.
The end result of data integration with CRE will be a more resilient and stable industry. When individual assets begin flexing their data capacities, the entire network of commercial buildings will become stronger. Better building operations means better buildings, and it’s all thanks to data.
The human mind can’t comprehend everything. Fortunately, data is adding a strategic dose of clarity, helping CRE professionals maintain control even in the face of mass uncertainty.
Don’t underestimate the power data will yield over tomorrow’s commercial real estate arena. Make sure that you’re leveraging your commercial portfolio’s data well to prepare for the coming CRE trends.
Every generation makes a mark on commercial real estate. We’ve just adapted to the new lifestyle cultures that Millennials demanded, but now, the industry is approaching another shift. As the latest group is coming of age and attending college, they’re creating waves within the student housing sector.
Born between 1996 and the early 2000s, Gen Z isn’t like their predecessors. This generation, upwards of 90 million strong in the U.S. alone, isn’t being won over by the glitz and glam of entertainment rooms and luxury amenities. Instead, they’ve got their eyes on education, careers, and investing in the future.
As Gen Z’s specific wants and needs are dominating the student housing market, it’s changing the way that communities look, feel, and function. Here’s a look at the student housing market right now:
Student Housing Right Now
Like all of CRE, student housing has been through a tough year. This sector suffered massive disruption as the pandemic swept through the country. With markets closed and classes taking place online, many of student housing’s potential tenants left their college towns to shelter with family.
And, those who didn’t leave suddenly had new demands for their communities. Taking classes online meant that college students needed a place that could function as both a home and classroom. Lightning-fast WiFi and cell connection were a bare necessity for academics, and socially-distant essentials like on-site dining options became a must.
It’s true that today’s new demands for student housing were ushered in by the pandemic. But, the shift away from frivolity and towards efficiency was bound to take place within the student market, anyways. These new needs are shaped around Gen Z – the new generation dominating college campuses.
Gen Z’s Influence
Student housing, meet Gen Z.
Gen Z is serious about putting in work, so it shouldn’t be a surprise that this group is looking for utility, accessibility, and productivity in a student housing community. Right now, Gen Z is gearing up to be the best-educated generation yet – out beating the enrollment volume of Baby Boomers, Millennials, and Gen Xers.
The iGeneration, as Gen Z is often called, is swarming university campuses in greater numbers than ever before. There’s strong competition between student housing communities to attract this promising tenant pool – and property owners are ready to meet their demands.
With Gen Z and post-COVID adapting on the radar, here’s what student housing should prepare for:
1. Bolster Tech Infrastructures
Tech investment is pivotal for winning over Gen Z. Make sure your community is suped-up with technology integration.
2. Look to Lifestyle Needs
Amenities will move away from party areas and towards the necessities. Laundry, food and dining, and interior designs are stealing the spotlight.
3. Multi-Function Spaces
With COVID’s stay-at-home culture sticking around, Gen Z needs their spaces to fit multiple functions. Contemporary student housing needs to foster academic work, relaxation, and a healthy dose of fun. Flexibility is key.
Gen Z is a force to be reckoned with, so be sure that your student housing community is meeting their standards.
NAI Pleasant Valley - Cleveland, OH 