The SIOR Canada West Chapter Eats Business for Breakfast
With ever increasing attendance rates, the SIOR Canada West Chapter’s Breakfast Webinar Series has proven to be a resounding success. Members have been briefed on topics ranging from debt market indications and interest rates to lender categories and insurance protection. Most recently, Jonathan Ryder of Dentons spoke about lease changes during COVID-19. Key topics included reviewing leases, health emergency clauses in leases, and the pros and cons of business interruption insurance. Ryder noted that force majeure clauses may provide tenants with some relief for non-monetary responsibilities but are unlikely to allow for deferral or abatement of monetary obligations. Thus, tenants should not rely on force majeure events to excuse late payments of rent.
A Bifurcation of the Market, Says the SIOR Connecticut/Western Massachusetts Chapter Membership Survey
The SIOR Connecticut/Western Massachusetts Chapter released the results of its semi-annual membership survey of market conditions. The survey indicated that while the COVID-19 pandemic and related government-imposed restrictions continue to influence market activity in all sectors, office has been much harder hit than its industrial counterpart. Lease rates and sales prices are predicted to remain stable or increase in industrial markets, whereas a majority of members anticipate a decline for office. Additionally, vacancy rates are likely to be higher in office markets. Overall, respondents did not foresee any new development or growth in the coming year, though some remain hopeful.
State of Colorado Development Luncheon with the SIOR Colorado Chapter
Bill Mosher of Trammell Crow Company delivered a local expert’s perspective on the state of Colorado development to an audience of 35 members at the Denver Country Club. In addition to discussing market trends, Mosher gave an outlook for 2021 development and addressed how the Denver development market is currently faring during the COVID-19 pandemic.
Industrial and Logistics Market Insights from the SIOR European Regional Chapter
The past year has demonstrated the importance of ensuring the continuity and resilience of the global supply chain. Recently the SIOR European Regional Chapter held an industrial and logistics roundtable discussion with TSL to discuss these current market trends and their influence on delivery time and supply chain logistics. Following the roundtable, a panel on the European marketplace was held. Attendees of the March event learned that Germany saw a dramatic shift from classic logistics towards e-commerce in 2020, data centers are growing in the Netherlands, and the United Kingdom has seen trends towards the development of “big box” and higher sheds. All three countries are experiencing an on-going shortage of land for development, with older buildings demolished in favor of high-rises and increased pressure to use more brownfield sites.
Former Navy SEAL Robert J. O’Neill Inspires Two Southern California Chapters
One of the country’s most highly decorated Navy SEAL combat veterans, former SEAL Team Six leader Robert J. O’Neill, spoke to over 125 virtual attendees from the SIOR Greater Los Angeles and Inland Empire & Orange County Chapters. In his speech titled “Never Quit: The Story of a Life Built on Successful Missions,” O’Neill translated his stories of preparation, perseverance, and teamwork into everyday business practices. His advice: people skills matter; prepare, but don’t over-plan; take the emotion out of professional decision-making; and no matter what, never quit.
Experts Weigh in During the SIOR New Jersey Chapter’s Annual Kickoff Event
To start off the new year, the SIOR New Jersey Chapter conducted a virtual panel discussion featuring esteemed experts from New Jersey’s industrial and office sectors to address the state of the market as it relates to lease rates, global investments, environmental remediation, and logistics. One panelist, Paul “PJ” Charlton of CenterPoint, remained optimistic that industrial will continue to outperform, adding that tenant demand will be high, with rental rates outpacing inflation and rental growth in other sectors. Overall, he remarked that the market is in a low return, low cap rate environment and will remain as such for the near future.
Fireside Chats with the SIOR New Jersey Chapter
In the first episode of the SIOR New Jersey Chapter’s new fireside chat series, economist Mark Dotzour discussed the current economy and the long-term outlook due to the COVID-19 pandemic. Dotzour predicted that the outlook for job growth in 2021 will be characterized by two V-shaped recoveries followed by a jobless recovery. In the second installation, SIOR Global CEO Robert Thornburgh, SIOR, shared his knowledge and insight on attracting, mentoring, and retaining top sales teams in today’s rapidly changing world. Thornburgh acknowledged that recruiting is often the hardest aspect of the business and doing it successfully requires building trust and delivering consistent messaging that resonates with the audience. Thornburgh’s advice to young brokers: “Model the right behavior; all you have is your reputation.”
The SIOR Northern California Chapter Kicks Off 2021 With Virtual Event
Paul Single of City National Bank moderated the SIOR Northern California Chapter’s annual kick-off event. Panelists Todd Berryhill of Scannell Properties, Travis Durfee of Prologis, and Jim Terry of Ware Malcomb, provided key insights into the anticipated recovery later this year. Single predicted a K-shaped recovery due to the recession, but noted that inflation is a non-event and interest rates will remain low. Increased consumer spending, particularly in e-commerce, has resulted in low retail inventories with manufacturing struggling to keep up. Berryhill remarked that demand for same-day deliveries will require more facilities, with higher building component costs. Terry observed that multi-level structures are making their way to the West Coast, with some buildings in San Francisco already being retrofitted. Overall, the mood was optimistic for a gradual recovery later this year and into early 2022.
“It’s a Trap!” Cybersecurity with the SIOR NYC/Downstate Chapter
As many businesses have transitioned to telecommuting over the last year, Paul Hacker of Axis Insurance spoke to 20 participants in the SIOR NYC/Downstate Chapter about the importance of understanding cyber liability trends and how to obtain cybersecurity insurance. In the last year, cybersecurity breaches have cost at least $250,000 each and an average of three claims are filed each week. Criminal companies often employ a strategy known as social engineering, using familiarity and urgency to bait employees into turning over the “keys to the kingdom.” To combat this, states have begun implementing their own variations of General Data Protection Regulation (GDPR). Strategies to mitigate risk include dual factor authentication, employee training, and cyber insurance. Hacker advises looking into first-and third-party costs, credit monitoring, and dependent systems when purchasing cybersecurity insurance.
CRE Trends, Challenges, and Opportunities: SIOR Pittsburgh/Western Pennsylvania Chapter’s Forecast for 2021
Having faced unprecedented challenges in 2020, changes to the business landscape and to the commercial real estate market will endure for years to come. Despite current conditions, industry insiders see signs for optimism with the potential for economic recovery, pandemic control measures, and rising demand in key CRE sectors. To this end, panelists Gus Faucher of The PNC Financial Group and Mark Anthony Thomas of the Pittsburgh Regional Alliance, along with moderator Bill Flanagan of the Allegheny Conference on Community Development, addressed 35 participants from the SIOR Pittsburgh/Western Pennsylvania Chapter on the topics of short- and long-term industry growth and the opportunities that lie in 2021 and beyond. Faucher noted that corporate borrowing costs have decreased due to COVID-19 and interest rates are supportive of economic growth. Opportunities to expand lie in markets that are strong in the city, such as life sciences, IT, and robotics.
SIOR San Diego Chapter’s 2021 Forecast: A 2-Day Symposium
The SIOR San Diego Chapter’s virtual market forecast symposium spanned two days, with the industrial insights on the first day and office on the second. Randy LaChance, SIOR; Rob Hixson, SIOR; and Chris Roth, SIOR, presented market perspectives on broader themes such as e-commerce, as well as more locally specific topics, including how growth in Mexico is driving change in Otay, Calif. Office panelists Bill Rodewald, SIOR; Tim Olson; and Derek Hulse examined forecasts of future development in San Diego, growth over the next 12 months, and trends of softening economics, such as concessions and reduced rental rates. The discussion, moderated by Chris High, SIOR, highlighted the lasting effects COVID-19 may have on the significant number of high-rise buildings in the downtown area and addressed how the Kearny Mesa Community Plan, which calls for more density and upgraded use, will affect the market.
Metro Market Forecast from the SIOR St. Louis Chapter
In lieu of its traditional Metro Market Forecast event, the SIOR St. Louis Chapter provided a brief synopsis of 2021 updates and market predictions across all commercial real estate sectors to its members. Office vacancy rates have increased slightly from 2020; however, the workforce is expected to return to their offices by Labor Day. St. Louis’ industrial sector has seen increased tenant demand along with increased rent growth, particularly in buildings under 100,000 SF, which will in turn drive the construction of bulk warehouse facilities this year. With average asking rents decreasing by 3.2%, the retail market experienced its largest decline since 2020. E-commerce growth and strategic redevelopment of struggling malls is expected to continue; urgent care and outpatient medical facilities are becoming one of the fastest growing industry segments occupying retail space.
The SIOR Western Missouri/Kansas Chapter Gives Back
For its annual Community Service Day, the SIOR Western Missouri/Kansas Chapter teamed up with Harvesters Community Food Network for the second year in a row. Harvesters, a certified member of Feeding America, is a regional food bank that serves northwestern Missouri and northeastern Kansas and provides food and household products to over 760 nonprofit agencies. Ten SIOR members spent the morning loading over 350 boxes with a variety of food and drinks to help those in need.