Category: News

Remember the 2019 Office? JLL Survey Suggests That it’s Long Gone

Posted on by Sarah

Has office work changed forever? Are companies taking a new approach when searching for new office space? Those are questions that JLL asked in its recently released The Future of Work Survey 2022. And according to the opinions of more than 1,000 strategic decision-makers in businesses across the globe, it looks like COVID-19 and the resulting work-from-home movement have brought big, and more than likely permanent, changes to the office world.

The office world of 2019? That’s likely not coming back anytime soon, according to JLL’s report.

In its report, JLL says that hybrid working is here to stay and that companies that want to attract the best workers should focus on investing in quality office space, something that should be a priority over simply expanding their footprints. The report found, too, that companies are ready to create office spaces that focus more on collaboration and less on busy work.

The numbers from JLL’s survey of business decision-makers paint a clear picture of an office environment that has changed rapidly during the last two years.

According to JLL, 53% of organizations will make remote working permanently available to all employees by 2025, while 77% agree or strongly agree that offering remote and hybrid work is now a key to attracting and retaining talent. The survey found, too, that 69% of organizations have already introduced or will introduce this year technology to boost in-office collaboration.

Survey respondents have also taken a new view of the office space, with 45% saying that the primary purpose of this space is to facilitate collaborative working. This means that companies are recognizing that there is some work that employees can do just as well from their homes as they can from a cubicle or conference room. When it comes to working together on projects and ideas, though? Respondents said that working in office is best to promote fresh ideas and brainstorming.

In good news for CRE professionals, the majority of survey respondents said that they expect to maintain at least some office space. JLL’s survey found that 72% of respondents agreed that in the long term, the office will remain central to their organization. The type of office space companies seek, though, will probably change. A total of 77% of respondents to JLL’s survey said that investing in quality office space is more important than expanding their total footprint.

And 73% of respondents said that they have planned or are planning to make all office spaces open and collaborative with no dedicated desk spaces.

JS International Grill Leased 3200 SF at 100 S Central Expressway in Richardson

Posted on by Sarah

JS International Grill, LLC a limited liability company leased 3200 square feet at 100 South Central Expwy in Richardson, Texas. Keith Otto with Otto International Realty LTD. Company represented the tenant and Wil Logan represented the landlord, Hartman Income REIT.

Financial Pain on the Way? Trepp Survey Suggests it’s True

Posted on by Sarah

Is more pain coming for commercial real estate companies? A new survey suggests that an uncertain economy will bring plenty of it before 2022 ends.

That doesn’t mean, though, that commercial real estate professionals don’t have hope that this pain will be relatively short-lived.

According to a new survey from Trepp, commercial real estate professionals are concerned about rising interest rates and inflation, and expect that both will hurt their businesses before 2022 ends. But they also think that commercial real estate will escape the worst effects of these economic headwinds.

That’s according to the Trepp 2022 CRE Sentiment Survey. From July 13 through Aug. 1, Trepp polled its more than 20,000 clients, blog readers and listeners for their opinions on the near-term future of the commercial real estate and commercial mortgage-backed securities markets.

And what did respondents say? In little surprise, 70% of them said that they expect the office sector to suffer the most from economic challenges throughout the remainder of 2022. This sector, of course, has been hit hard throughout the COVID-19 pandemic, with many employees still working from home. Respondens said that they expect the next several months to remain challenging for this sector.

A total of 83% of survey respondents predicted that during the next six months that delinquencies will increase in both the commercial real estate and commercial mortgage-backed securities industries.

And more than half of respondents said that economic conditions and higher interest rates would impact their businesses negatively.

There was some hope, too, from the survey. For U.S. equities, almost two-thirds of respondents predicted that the S&P 500 would not fall below 3200. Only 27% believed oil would top $150 a barrel. And the results were evenly divided between those who felt that the 10-year Treasury would rise above 4.5%.

A total of 58% of respondents predicted that the multifamily sector will see the highest transaction volume during the next six months. And in a glimmer of hope for the office sector, 70% of participants reported that they are working in the office at least three days a week.

Just under three-quarters of respondents said that their firms were either unchanged or growing when compared to 2021. A total of 88% of participants said that they are either keeping their companies’ current headcount or hiring new employees as needed. Despite this, more than half of respondents said that economic conditions will have a negative impact on their businesses by the end of 2022.

How to Keep Dallas-Fort Worth at the Top

Posted on by Sarah

You’re sitting in your office having a cup of coffee and reading the newspaper. Great news all around. Your city is a top-five metropolitan area in the country and growing. Job growth is phenomenal. Shiny new buildings everywhere.

North Texas 2022? Perhaps, but also Detroit 1950.

Living in North Texas today, it’s easy to take for granted that we lead the nation in job growth and in-migration. Since 2010, the U.S. Census Bureau estimates the population of the Dallas-Fort Worth metro area has grown by 23.1%—the most of any metropolitan area in the country for the same period.

It’s expected that DFW will overtake Chicago as the nation’s third-largest metro area by the 2030s.

Much of this growth is attributed to the uptick of companies and workers relocating from other states. Our region has a lot of positive benefits that attract businesses and people – we have all heard them many times: low regulatory climate, no state income taxes, affordable housing, and a diverse economy. Click to read more at www.dmagazine.com.

Edge Realty Partners Secures Leasing Assignments for Over One Million Square Feet in North Texas

Posted on by Sarah

Edge Realty Partners, a leading commercial real estate firm providing national brokerage, development, and investment sales services, announced an agreement with DLC Management Corp. to lease more than one million square feet in two premier power centers in North Texas – The Village at Allen and White Rock Marketplace.

The Village at Allen
Built in 2009 and totaling more than 836,000 square feet, the Village at Allen has become an important commercial hub in the Allen market. The center’s tenants range from well-known shopping destinations to entertainment, dining, and fitness, in addition to being home of the fan-favorite hockey team, the Allen Americans. Retailers include Target, Dick’s Sporting Goods, Five Below, Burlington, T.J.Maxx, and Best Buy. The Village at Allen is also home to a variety of restaurants including Kelley’s at the Village, Uncle Julio’s, and BJ’s Restaurant & Brewhouse.

White Rock Marketplace
Also managed by DLC Management Corp. and owned by an affiliate, White Rock Marketplace is located at the northwest quadrant of Garland and Jupiter Roads in Dallas. The shopping center totals 274,822 square feet, and is anchored by Home Depot, and complemented by additional shopping, fast-food favorites, and fitness centers. Retailers include Planet Fitness, Shoe Carnival, Marshalls, and Burlington.

geniant Joins Forces with Eastlake Studio to Transform the Nature of Design Consulting

Posted on by Sarah

Today, geniant, a next-generation experience consulting company, announced the acquisition of Eastlake Studio, a Chicago-based architecture and interior design firm. Together, the forward-thinking teams will collectively transform the nature of experience consulting by integrating architecture and digital solutions to deliver exceptional experiences for employees and customers.

“We’re entering a new era in workplace design,” says geniant CEO of Physical Space David Dewane. “To meet future demands, we must think about the employee experience holistically – space, people, and technology. Eastlake is a best-in-class design firm that instantly brings geniant’s capabilities to a new level.”

“As we’ve been examining unique hybrid work models, we are finding that additional skill sets and methods are needed to truly understand the evolution of the modern workplace,” says Eastlake Studio Architect and Principal Kevin Kamien.

“geniant provides our team with experience research expertise that, when integrated with architecture and design, can shape the future for organizations in this critical moment in history,” added Eastlake Studio Interior Designer and Principal Christina Brown.

As consultants who have partnered with top companies around the country, geniant believes that the experience and performance of information workers can be radically improved. The modern office has not kept pace with the rapid changes in technology and lifestyles. The pandemic exposed this misalignment and has called the status quo into question.

To effectively adapt the employee experience to this new reality, geniant employs contextual research methods, producing crucial, actionable insights for optimal workplace performance — this has specific implications for workplace design, as well as cultural and change management programs.

“As designers, our curiosity has led us to deliver award-winning solutions for our clients over the past 35 years,” says Eastlake Studio Principal Emeritus Tom Zurowski. “This next step is a natural evolution. It allows our teams to gain even more insights into the clients we’re designing workspaces for,” added Jon Salzmann, principal emeritus of Eastlake Studio.

Eastlake Studio recently received an Interior Design Firm of the Year award at the 2022 Chicago Commercial Real Estate Awards and frequently has projects awarded by the International Interior Design Association (IIDA) and the American Institute of Architects (AIA). The firm’s work has appeared in publications including Metropolis, Interior Design, Architect, and Crain’s Chicago Business.

“Experiences happen in physical spaces, between people and through technology, shaping the world we live in,” says Chairman and Co-CEO David Lancashire. “The addition of Eastlake Studio is a key step in our strategy to provide a complete suite of services to help businesses optimize their entire brand experience.”