Susan Velasquez

Cesar Barillas

Mary Grace Leorna-Camata

Kelly Clare

Marissa Lopez

Jenny Le

Earl Gratuito

Jamal Thompson

A Glimpse at What's Ahead

JLL: Recent Trends Bode Well for Commercial Real Estate

The commercial real estate sector might be in a better position than previous predictions reflect if the economy maintains the buoyancy displayed early in the fourth quarter of 2022. JLL noted in an economic snapshot it released December 1 that there are reasons for optimism based on encouraging data during the last two weeks related to a producer inflation slowdown, firm footing of retail sales as the holiday shopping season moves forward and durable goods orders exceeding expectations in October. In addition, inflation is easing faster than expected on a month-over-month and year-over-year basis, it said. But JLL, which in November confirmed its own job cuts this year, also said the Federal Reserve Board “continues to see housing inflation as a key part of the inflation puzzle that needs to be solved.”

Electrification of Heat Talks Spreading

In the next three to five years, more U.S. jurisdictions will be enforcing natural gas bans and more building projects will require electrified heat, a Trane Technologies applications engineer warns. This is a key part of the decarbonization effort unfolding globally. Building owners, companies and property managers will continue to face pressure from various fronts to report emissions, set sustainability goals, and take transparent and measurable action to stem carbon and greenhouse gas emissions. For building owners in the commercial real estate industry, this means new and different types of air conditioning equipment will be required in new buildings. There isn’t a comprehensive federal strategy in the U.S. to address carbon reduction. But such mandates have already gained a foothold in regions including California, Oregon, Washington state, Massachusetts and New York City. More details are here.

Join the Challenge, Make the Change

Reducing carbon emissions head-on is much easier when you sign up for BOMA International’s first Global Carbon Reduction Challenge. By joining this challenge, you become a sustainability pioneer and demonstrate your dedication to reducing carbon emissions and helping save the planet one building at a time. Take this giant step toward demonstrating that the real estate profession is having a positive impact on carbon reduction. Move the needle—one building at a time.

Green Lease ‘Revolution’ Sprouts More Collaboration

As green leasing grows in importance, stakeholders who might historically have held vastly different viewpoints related to its significance—from building owners to property managers to tenants—increasingly are working together. A senior vice president of operations and sustainability for a realty trust company says he has noticed a green lease "revolution" during the last six or seven years, as tenants develop their own environmental, social and governance (ESG) goals and demand as much or more from managers and owners. All sides seem willing to listen, he explains, because they can’t continue under an antiquated way of thinking where occupants aren’t “allowed” to touch the thermostat or turn off the lights. Read here why green leasing is becoming a team-oriented game.

Marcus & Millichap:

Office Space Evolution Continues

Entering 2022, occupied square feet in U.S. office buildings was 126 million less than it was during pre-pandemic levels, and net absorption has been moderate since. But there is reason for hope, according to a new Marcus & Millichap report. Local and regional organizations increasingly are attracting tenants, researchers said, because offices can still provide critical infrastructure, a secure place to store sensitive information, hubs for team collaboration and training. The report also noted, however, that since the pandemic suburban properties have proved more resilient than their counterparts in central business districts (CBDs). This gradual shift to the suburbs by some entities is being fueled by millennials, many of whom are increasingly seeking more space and homeownership. It added that a growing number of tenants with mid- and low-tier leases in CBDs are terminating those leases when they’re up for renewal. They’re heading for the hills to boost staff retention and lower overhead costs. Read more here.

Good News for Commercial Real Estate

Offices Still Play Central Role in Future of Businesses

Mental Wellness at Work Growing in Importance

Revolutionary shifts tied to COVID-19 are reshaping office designs, work schedules and employee safety protocols. In the commercial real estate sector, the one constant during the pandemic and beyond must be to ensure that the mental health and emotional well-being of property teams are not overlooked. While there’s no one-size-fits-all solution, according to experts, ignoring mental health needs in the workplace eventually results in higher costs and lower productivity, not to mention reduced morale and health issues. During this Mental Illness Awareness Week, discover how to control and mitigate the physical effects of stress and read more about how one property professional helped his staff bounce back after their mental and emotional well-being began to flag in the midst of the pandemic.

I’m just returning from my trip to Prince Edward Island for BOMA Canada’s 2022 BOMEX Conference, which featured great programming with a real focus on sustainability, resilience and reinventing office buildings and the cities around them. This idea of reinvention, which we also explored in our latest Deep Dive, is truly top of mind globally, including in South Africa, where I’ll be visiting next week for SAPOA’s annual convention. In today’s vlog, I share some insights about how the commercial real estate industry around the world is embracing this time of change.

Together, they would be the largest proposed property tax increase in L.A.’s history. ULA and SP will drive up the cost of everything we buy and use – from housing to groceries, from gas to daycare – costs for renters and small businesses would climb by at least 6% a year. And make no mistake, ULA and SP will increase property taxes for L.A. renters, homeowners, and small businesses — dismantling decades of Prop 13 protections!

With inflation raging at 9% a year, we should not raise any property taxes that make it more expensive to live or work in L.A.!

Click here to learn more about Prop 13!

Employee fear of being exposed to COVID-19 at work could stall employers’ current return-to-office efforts, a new Gallup poll suggests. One third, or 33%, of employees polled said they are “very” or “moderately” concerned about exposure, compared with the 36% who said this in November 2021. Gallup’s quarterly COVID-19 tracking poll was conducted July 26 through August 2, 2022. More than 3,600 adults were polled, including 1,274 workers. Employees worried the most about exposure to COVID-19 were women (41%), as compared to only 26% of men. A rise in COVID-19 infection rates this fall could boost remote employees’ resolve not to return to the office just yet, Gallup said, and influence some office workers to return to working from home. Read a full summary of the results.

The commercial real estate industry must create an experience in workplaces so more employees want to return to their offices. So said Andrew Cooke, senior vice president of management services for real estate investment and management firm Hines, when he sat down with BOMA International to talk about return-to-office trends. As he explained, businesses must be flexible about allowing employees to telework. And commercial real estate can help lure tenants back to their offices by investing more in technology, especially since an increasing number of tenants expect it as an amenity today. Watch his interview now.