4 Ways to Disrupt the Commercial Real-Estate Market

With many companies using the Covid-19 pandemic as an opportunity to downsize their offices and transition to a more remote workforce, some real-estate companies have undeniably struggled.

To say that commercial real estate has undergone significant disruption over the last year feels like an understatement, to say the least. With many companies using the Covid-19 pandemic as an opportunity to downsize their offices and transition to a more remote workforce, some real-estate companies have undeniably struggled.

On the other end of the spectrum, ever-increasing demand for apartment housing has helped fuel record-breaking real-estate investment volume in recent months.

All of this goes to show that 2021 is rife with both challenges and opportunities — and that the commercial real-estate industry is poised for even more disruption.

Here are four ways you can get in on this disruption.

  1. Invest in co-working spaces
    The way people work has changed dramatically over the last few years. Click to read more at www.entrepreneur.com.

The Pandemic Push: U.S. Eaters Driving Back Up to the Fast-Food Chains

The COVID-19 pandemic has hit different retail sectors in different ways. And many retailers are counting on a strong holiday shopping season to rescue their years. But one slice of the retail world has thrived during the pandemic: fast-food restaurants with drive-throughs.

That’s confirmed by the latest research from TOP Data, which analyzed the number of visits U.S. consumers made to the 20 biggest fast-food restaurants in the country. The result? Since the start of 2021, U.S. consumers have increased their visits to fast-food restaurants by 33.06 percent.

TOP Data separated fast-food chains into four major categories: burger chains, Mexican food chains, fried chicken chains and pizza chains. The company found that U.S. visits to burger chains have increased a whopping 54.5 percent since the start of 2021.

Consumers have visited Mexican food chains 32.1 percent more since the start of 2021 and fried chicken restaurants 29.5 percent. U.S. visits to pizza chains have jumped 16.2 percent since the start of the year.

Of course, TOP Data is comparing these visits to the ones consumers made to these restaurants in 2020. That does skew the numbers a bit. Last year, many consumers stayed home because of the pandemic. It makes sense, then, that visits to fast-food restaurants would jump this year.

But the jumps TOP Data has seen are impressive. TOP Data points to the changes many restaurants made last year to combat the pandemic. These include a greater reliance on drive-through service, curbside pickup, an increae in their delivery services and new menu items.

Which restaurant chains, then, have seen their business soar the most so far this year? In the burger chain category, Sonic leads the way. TOP Data found that the number of visits U.S. consumers made to this chain so far in 2021 have jumped by 102 percent when compared to the visits they made last year.

McDonald’s came in second in the burger category, seeing its visits jump 59 percent this year, while Wendy’s pulled into third place with visits rising by 43 percent.

In the Mexican food category, El Pollo Loco saw visits by diners rise 39 percent so far in 2021, while Taco John saw these visits increase by 37 percent and Del Taco by 32 percent.

KFC saw the most growth in business so far this year in the fried chicken category, with visits by consumers jumping 49 percent in 2021. Chick-fil-A saw its visits jump by 33 percent, while Popeyes saw its visits rise by 23 percent.

And for pizza chains, Papa Murphy’s led the way with a jump of 19 percent in visits so far this year. Visits to Pizza Huts jumped 18 percent, while those to Little Caesers Pizza increased by 16 percent.

Tight, Dynamic & Evolving: Texas Industrial Experts Discuss Record-Setting Market

Industrial CRE experts in Texas have seen just about everything over the course of their careers. Even so, where the market stands today is a first for many.

“With some of our older vintage/infill product, we are seeing rental rate increases of 40 to 60 percent on average,” shares Canon Shoults, managing principal at Holt Lunsford Commercial. “Whether renewals or new deals, lease rates have been on the move every 30 to 60 days.”

That’s just one example of the red-hot industrial sector, what JLL-Austin executive vice president Ace Schlameus describes as “tight, dynamic and evolving.”

“Like every market, the e-commerce explosion is driving demand, but in Austin we have the added increase with the population growth due to the masses of people moving to Central Texas,” Schlameus adds.

Davis Bass, industrial project partner at HPI in Austin, sees the same driver: “With more rooftops in Austin, the city needs more places to store toothbrushes, restaurant supplies, building materials, and other goods.”

Zane Cole, who is also an EVP with JLL-Austin, attributes some of the demand to a spike in automobile manufacturing and vendors looking to be a part of production that is starting as soon as the end of the year. Click to read more at www.rednews.com.

Savills Expands Junior Broker Development Program to Three Additional Markets in the US

NEW YORK, Oct. 28, 2021 /PRNewswire/ — Savills announced that it expanded its Junior Broker Development Program (JBDP) to three additional markets in the US, doubling down on its commitment to recruit, train, and invest in the next generation of Savills associate brokers. Also, for the first time, the global real estate advisory firm opened the program to existing, non-brokerage employees in North America interested in sales, consulting, or complementary roles.

During its inaugural 2020 class, Savills selected eight young professionals in New York City and two in Washington, DC, to participate in the 15-month salaried rotational program, which provided recent college graduates the opportunity to advance their commercial real estate careers. Of the 10 participants, 90% were women or from racially diverse backgrounds. Today, 100% of the candidates who completed the program are now working in full-time positions for the company.

“Having colleagues with different perspectives and lived experiences at the decision-making table is crucial to the vitality of our firm and the future of our industry,” said Mitchell E. Rudin, chairman and CEO, Savills North America. “By expanding the Junior Broker Development Program, we are working to create substantive changes that will open up opportunities for young women and minority groups to enter the industry with equal and equitable chances for success.”

This year’s JBDP class has 11 participants across Chicago, Houston, Los Angeles, New York, and Washington. Each will have the opportunity to rotate across several of the firm’s service lines, including brokerage, research, cross-border tenant advisory, industrial services, capital markets, portfolio solutions, consulting, workplace strategy, business development, and client technology solutions. Click to read more at www.inforney.com.

New Residential Communities Spur Increased Commercial Land

It doesn’t take much of a drive to escape out of the fourth-largest city in the U.S. and head into nature.

“Heading just north of The Woodlands, there is absolutely beautiful, rolling topography,” says Peter Barnhart, Executive Vice President and Partner at Caldwell Companies.

That’s the setting for Chambers Creek, Caldwell’s newest 1,200-acre active adult community in Willis, TX offering 4,000 homes to those age 55 and better. The premier 55+ community, which will be the largest of its kind in the Houston area, features amenities such as a golf course designed by Tom Lehman, a marina connected to Lake Conroe, miles of hiking and biking trails, and so much more.

“It’s the prettiest piece of property we’ve developed in Houston,” says Barnhart. “It has a 20-mile view from a hill that looks out over Lake Conroe. It’s loaded with lakes. We’re creating a lifestyle like I’ve never seen in Houston, and we’re anticipating more of a national draw.” Being the largest active adult community developer in this region for over 15 years now, Caldwell has a passion for providing housing designed specifically for those 55 and up.

Looking at the tract, he says it checked all the boxes of a great site, but the biggest selling point was the spectacular location. Not only does the site have great access to Interstate 45 it is also located right in the path of growth. The Conroe/Willis area is one of the fastest-growing cities in the country. Conroe’s population has more than doubled since 2000 according to the Conroe Economic Development Council. Click to read more at www.rednews.com.

WeWork Stock Starts Trading, Two Years After an Aborted I.P.O.

Two years after WeWork’s attempt to become a public company flamed out spectacularly, the co-working giant started trading on the stock market on Thursday, hoping that investors will now believe in its prospects.

The earlier effort collided with concerns about WeWork’s breakneck growth, its huge losses and the alarming management style of its co-founder Adam Neumann. WeWork has new leaders who have pared back its expenses and hope to exploit an office space market that has been upended by the pandemic. But the company still has lofty growth targets, big losses and many empty desks in its 762 locations around the world. And WeWork made it through the last two years only because of huge financial support from SoftBank, the Japanese conglomerate that is WeWork’s largest shareholder.

“We got here on a different road than we anticipated, but we’re here,” Marcelo Claure, WeWork’s executive chairman and a senior SoftBank executive, said in an interview Thursday with CNBC.

Instead of an initial public offering, WeWork entered the public markets by merging with a special-purpose acquisition company, or SPAC, something of a craze these days. It is expected to raise as much as $1.3 billion from the deal, a sum that includes stakes held by the investment firms BlackRock and Fidelity. At Thursday’s stock price, WeWork was worth about $9.5 billion, a fraction of the $47 billion valuation placed on the company before investors soured on it in 2019. Click to read more at www.nytimes.com.