JLL Valuation Advisory Hires Managing Director to Lead its Institutional Sector

JLL Valuation Advisory announced today that it has hired managing director Tasha Gould, MAI, to lead its institutional sector for its U.S. valuation advisory services and is focusing on providing technology-driven solutions to best serve institutional clients.

Gould is responsible for managing and expanding institutional client relationships and partnering with sector and market leads to provide superior client outcomes. She now plays a critical role designing and executing a sector growth strategy, building relationships and managing delivery quality. She also plans on recruiting and mentoring team leads and collaborating with technology and operations to improve JLL Valuation Advisory’s platform and drive culture.

Gould has amassed 19 years of experience in institutional valuations, financial analysis and planning, audit and compliance, strategic partnerships, project management, client relationship building and more. She previously served as director of valuations for Invesco Real Estate, where she led a team of 12 valuation managers and analysts while overseeing valuations for Invesco’s direct real estate. Prior to that, she was the senior appraiser for Principal Real Estate Investors managing the valuation process for their North American portfolio that included office, retail, industrial and multi-housing assets. She is based in Dallas, Texas.

Starved for Space: Demand for Industrial Still Far Outpacing Supply

Not even the disruptions of the COVID-19 pandemic, Russia’s attack on Ukraine and rising inflation have stalled the still red-hot industrial market, according to the first quarter national industrial report released recently by Newmark.

The United States saw 103.5 million square feet of industrial absorption during the first quarter of the year. According to Newmark, this marks the fourth consecutive quarter that the country’s industrial market has reached more than 100 million square feet of absorption.

That 103.5 million square feet was actually a decline of 33% from the all-time quarterly absorption amount registered in the third quarter of 2021. But Newmark says that this amount of absorption is still about double the pre-pandemic quarterly average of 2019.

At the same time, the U.S. industrial market’s vacancy rate fell to a record 4%, while asking rents jumped 12.8% on a year-over-year basis to $9.26 a square foot.

This isn’t surprising: As Newmark says in its report, the national industrial market is starved for space, with many major markets having little to no immediate occupancy opportunities for tenants. Competition for this space has driven industrial rents well past the nation’s high inflation rate.

Developers aren’t shy about building new industrial spaces, either. Newmark reported that the national industrial construction pipeline measured 546.1 million square feet as of the end of the first quarter. Developers also delivered 81.1 million square feet of industrial space during the quarter.

Newmark highlighted several big industrial transactions during the quarter, including two in the Midwest.

In Columbus, Ohio, Related Companies purchased the 2.07-million-square-foot Eddie Bauer/PacSun Distribution Center for $90.5 million, a price of $44 a square foot. And in Milwaukee, Phoenix Investors purchased the 1.5-million-square-foot Briggs & Stratton manufacturing facility for $24 million.

Newmark also pointed to several Midwest markets as having especially low industrial vacancy rates as of the end of the first quarter. This includes Chicago, with a vacancy rate of 4.4%; Cincinnati, 3.7%; Cleveland, 4.4%; Columbus, 2.4%; Detroit, 4.3%; Indianapolis, 3.6%; Milwaukee, 2.8%; Minneapolis, 3.6%; Nashville, 4.4%; and St. Louis, 3.5%.

Omnichannel and Metaverse: The Future of Retail?

Retail is constantly evolving, and businesses have to remain agile to meet the ever-changing demands of collective consumerism.

It’s no longer about the product, but the customer and businesses are relying on both a strong online presence and strategically located brick-and-mortar shops to drive sales.

Some retailers treat their physical locations like marketing space, enticing customers who then return home to buy their products online. Others are focusing on ship-to-store and enhanced delivery options — both options that have flourished since the start of the pandemic.

Omnichannel is not only the key to success in today’s climate, but it’s necessary for survival. In fact, it’s likely that it will become the new normal. Elan Rasansky, Principal at ARC Real Estate Group, said it’s all about the consumer experience, driven, in part, by platforms like Instagram and TikTok.

E-commerce and digital marketing have grown exponentially over the years, but ultimately, the modern consumer desires a brand relationship that goes beyond the digital sphere. No matter which way you shake it, the trends boil down to humans’ desire for connection, both online and in-person — especially on the tail-end of COVID-19.

Experiential retail is at the center of it all. People are looking for restaurant-tainment. Ambiance. Their next shareable photo. The full package is especially demanded by today’s consumer. Businesses that offer unique, energetic experiences have the upper hand.

“If you’re a local bar, you must have something to Instagram,” Rasansky said. “Consumers are obsessive, and they’re always looking for the ‘wow’ factor. If a brand doesn’t connect with the consumer, they’ll suffer.”

Chicago has plenty of examples of experiential shopping: Near North Side’s Starbucks Reserve Roastery, Old Town’s Lululemon and Lakeview’s 2D Restaurant, are a few.

But this doesn’t mean people will shy away from e-commerce-related habits. Experts saw a sharp increase in online activity that has since leveled but is expected to climb steadily, and although foot traffic is expected to increase, that doesn’t guarantee an in-store purchase, according to Brandon Isner, Americas Head of Retail Research at CBRE.

“That’s truly an omnichannel purchase,” Isner said, “using the brick-and-mortar frame to establish contract with a representative before returning home to make the purchase online.”

COVID-19 did not change the face of retail, but it did give the market an extra push in the direction it was already headed. Companies are still figuring it out. Brands, for example, are getting smarter with limited-edition releases in stores while still catering to the mass market by offering their collection pieces online.

“It would have slowly trended this way regardless,” Rasansky explained. “People created new behavioral habits with their routine schedules. You were having coffee and surfing Instagram. You were having lunch in your apartment and surfing Instagram. It’s sped up the process by a few years, but we were already headed in this direction.”

Omnichannel, itself, is already evolving to satisfy needier demands. Some brands have tapped into the Metaverse to further enrich the consumer experience. Virtual worlds are built like video games, bridging the gap between digital and physical reality.

“It’s not just a game anymore,” Isner said. “You can shop in a store in the Metaverse. Not just a store within the game, but an official store run by a brand. There’s already advertising for retailers in that space. You can not only buy things for your avatar, but you can buy things for yourself.”

Isner compares the experience to Spielberg’s Ready Player One.

According to Glossy, Greyscale Investments estimated the Metaverse to be a trillion-dollar revenue opportunity, and a Gartner Report predicted that 25% of people will spend at least one hour a day in the Metaverse to work, shop, attend school, socialize or consume entertainment by 2026.

This might seem farfetched, but an article by Retail Prophet said COVID-19 “has only accelerated our collective imagination around the creation of an alternate reality where one can interact in real-time, at any time, with others and have shared experiences.” We see it today, on a small scale, with brands like Sephora, Nike’s RTFKT, Gucci Garden, Mesh for Microsoft Teams —Wendy’s has a Twitch presence.

This, of course, will only satisfy consumers for so long. But where is the ceiling? These are important points to consider.

It’s still just a minuscule piece of the retail space, and some remain skeptical, but there’s a lot of activity, and it continues to gain traction — $54 billion is spent on virtual goods in the Metaverse every year.

8-Property Self-storage Portfolio sells

JLL Capital Markets has closed the sale of an eight-property, Class-A self-storage portfolio totaling 4,317 units across markets in Chicago, Illinois; Raleigh and Fayetteville, North Carolina; and Dallas, Texas.

JLL marketed the property on behalf of the seller, Harrison Street. Life Storage acquired the portfolio.

Nearly 93% leased at the end of 2021, the portfolio features facilities with Class-A design and amenities, including 24-hour security, visibility, a mix of climate- and ground-level non-climate-controlled units, elevator access and ample parking. The properties include:

6331 N Broadway St., Chicago, IL
2845 McDermott Rd., Plano, TX
11901 FM 423, Little Elm, TX
3341 West Campbell Rd., Garland, TX
2711 Justin Rd., Flower Mound, TX
1651 TW Alexander Dr., Durham, NC
9300 Fayetteville Rd., Raleigh, NC
809 Chapel Hill Rd., Spring Lake, NC

The portfolio properties are strategically located within each market in densely populated areas with both high barriers to entry and high numbers of renter-occupied housing units.

The JLL Capital Markets team representing the seller was led by Managing Directors Steve Mellon and Brian Somoza, Directors Adam Roossien and Matthew Wheeler and Analyst Robert Westerfield, along with Directors Steven Rutman and Dan Reynolds and Senior Managing Director Ryan Clutter.

Colliers Q1 2022 | Houston Multifamily Market Report

Key Takeaways
  • Occupancy remained at 91.5%
  • Absorption dropped by more than half over the quarter
  • Average rents rose over the year and over the quarter
  • The quarterly median sales price and cap rates dropped

Houston Highlights

Demand for multifamily housing slowed between quarters recording only 1,708 units of net absorption compared to 4,098 the previous quarter. The average monthly rent for multifamily units increased 2.0% over the quarter from $1,188 per month in Q4 2021 to $1,212 per month in Q1 2022. There are over 13,000 units under construction and another 32,800 units are proposed. Occupancy remained steady over the quarter at 91.5% and increased over the year from 88.8% in Q1 2021 to 91.5% in Q1 2022. Click to read more at www.colliers.com.

Catalyze and Stream Realty Partners Announce Joint Development of Clean Energy Projects Across the U.S.

Catalyze, a leading clean energy transition company that develops, builds, owns and operates solar, battery storage and electric vehicle (EV) charging systems for commercial and industrial customers, and Stream Realty Partners, a full-service commercial real estate firm, announced today a Master Framework Agreement (MFA) to jointly develop on-site renewable energy solutions on all of Stream’s industrial owned properties nationwide. The MFA supports the firm’s goals to alleviate strain on power infrastructure by providing the grid system with sustainable power generation.

This press release features multimedia. View the full release here: //www.businesswire.com/news/home/20220422005124/en/

Catalyze and Stream will deploy solar, battery storage, and EV charging solutions across Stream’s development pipeline of over 40 million square feet. (Photo: Business Wire)

Catalyze and Stream will deploy solar, battery storage, and EV charging solutions across Stream’s development pipeline of over 40 million square feet, equivalent to over 450 megawatts of on-site solar and battery storage projects. Catalyze and Stream are initially considering 42 properties across the United States, in markets including California, North Carolina, South Carolina, Tennessee, and Texas, and aim to deploy fleet EV chargers at many of the properties over the next few years.

“As the real estate industry moves ESG to the top of its priority list, owners are seeking simple, cost-efficient ways to integrate clean energy solutions and reduce emissions across entire portfolios,” said Steve Luker, Catalyze CEO. “We’re proud to collaborate with Stream Realty Partners to demonstrate that leveraging technology, innovative contracting, and vertically integrated capabilities can make it easy and profitable to meet ESG and operational goals.” Click to read more at www.kulr8.com.