Category Archives: High Tech Industry

Unlock Your Real Estate Potential with RED

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By: Andrew Batson, Senior Research Analyst, JLL

Your building is collecting data at this very second. Each day, we create 2.5 quintillion bytes of data, according to IBM. That’s 2,500,000,000,000,000,000. With this many bytes, you could fill 10 million blu-ray discs, says Vouchercloud.

So—an obvious reaction—businesses are finding new and exciting ways to leverage this information. In fact, 56% of companies will use data and analytics to shape most corporate real estate decisions. Are you leveraging data’s potential to improve your business?

When collected and analyzed properly, insights can influence your most important decisions, drive productivity, accelerate sustainability and generate profits. JLL’s new technology platform, RED, streamlines integrated data across real estate, workforce, financial, economic, and other sources into one dashboard.

Check out the video for a closer look.

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Commercial Real Estate News Brief: April 2015

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In the latest edition of our monthly news brief, JLL’s regional team curates the top industry articles to keep you in-the-know. In this month’s edition, Detroit combines auto and tech industries for resurgence, and JLL leads by example in best practices for corporate office space and capital planning.

Keep up with Spaces’ monthly recaps—subscribe to JLL Spaces today.

Detroit: No Longer Just the Motor City

JLL CRE News Brief

Detroit has always been known as the Motor City. But, as more and more young tech professionals flock to Detroit, the city’s identity evolves. Crain’s Detroit Business suggests that, in addition to automotive resurgence, the city is also becoming a national hub for technological innovation.
JLL research would agree, ranking Detroit among the top 34 high-tech markets in its latest High-Technology Office Outlook.

Luckily for Detroit, automotive technology is more sophisticated than ever before. In fact, companies like Google and Apple are developing autonomous cars. According to the article, “the auto industry has morphed into something very new, very different and very high tech.”

As Detroit’s tech industry grows, alongside an evolving auto industry, “Detroit is ready to drive itself to new levels of excellence and entrepreneurship on the brand-new road ahead,” according to Crain’s.

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Why Investors Look to Ohio for Industrial Real Estate (REPORTS)

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By: Robert Kramp, Senior Vice President and Director of Research, JLL, Midwest and Great Lakes Region

Ohio is a hot spot for industrial investors across the nation. In May 2014, a Minneapolis-based real estate investment group bought a $43 million, 767,000-square-foot portfolio in Northeast Ohio. Another example: A Chicago-based company purchased a 465,000-square-foot Columbus warehouse for $8.5 million in September.

The list of similar, out-of-state investors goes on. It’s more than a trend; Ohio has become an industrial hub. JLL research released three reports, spotlighting related activity in three of the nation’s most active cities—Cincinnati, Cleveland and Columbus.

Why Ohio?

  • The Heart of It All: Ohio is America’s heartland. When it comes to location, it has set up shop right on the nation’s metaphorical Main Street. With major airports, highways and rail lines intersecting throughout the state, Ohio is nationally and internationally accessible. Ohio’s transportation infrastructure is ideal for convenient and cost effective delivery.
  • Affordability: The Midwest, overall, dominates when it comes to cost-friendly living. A whopping five cities in Ohio made Forbes’ America’s Most Affordable Cities list, including Cincinnati and Columbus, as well as Dayton, Akron and Toledo. Housing affordability, cost-of-living index, and the methodology the Bureau of Labor Statistics uses for rankings of the Consumer Price Index were used to determine which cities made the cut.
  • Nurtures Business Success: From Cardinal Health and Google, to Kroger and The Limited Brands, many of America’s top Fortune 500 companies are already doing business in Ohio’s major cities.

In terms of industrial focus, three Ohio cities stand out among the rest, offering cost effective and opportunistic landscapes.

Cincinnati: Industrial and Logistics Hot Spot 

When it comes to local Fortune 500 companies (per million residents), Cincinnati beats out New York, Boston, Chicago and Los Angeles. Thanks to the low cost of business and favorable tax structure, Cincinnati’s environment is highly competitive, and therefore, has attracted both local and foreign investors. Currently, more than 50,000 Cincinnatians are employed by foreign-owned businesses.

Cincinnati_Cover

Over the past year, Cincinnati experienced increased commercial real estate activity from the e-commerce and manufacturing sectors. eBay is a key example, which recently pre-leased a 631,000-square-foot warehouse. Additional big-name manufacturing companies doing business in Cincinnati include GE and Proctor and Gamble.

  • More than 3 million square feet of space under construction.
  • 70% of space under construction is speculative.
  • More than 4 million square feet absorbed in 2014.

Check out JLL’s full report for more insight and statistics on Cincinnati’s emerging industrial scene.

Columbus-industiral

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Commercial Real Estate News Brief: November 2014

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

Calling All Brick & Mortar Retailers: Tips to Stay Competitive (VIDEO)

E-commerce has forever changed the face of retail. So much so, in fact, that many brick and mortar retailers are asking, ‘What is the modern role of physical retail space?’ 

With more and more choices available to consumers online, retailers will need to bet on a brand experience (online and in-person) that differentiates against the competition. JLL research suggests retailers also maximize in-store value through innovative architecture, strong brand identity, positive economic responsibility and flexibility when it comes to technology and change.

How can your brick and mortar store outpace the competition? Check out JLL’s video for more information on the redefined landscape of retail.

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Commercial Real Estate News Brief: October 2014

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

The Link Between Wellbeing and Green Office Design (REPORT) 

JLL CRE News BriefGreen, energy-efficient office space is more than a trend. In fact, research has shown that certain office design features can have great impact on employee health, happiness and productivity. A few of these features include thermal comfort, noise and acoustics, lighting, look and feel, and location.

Are you updating your space, or going green? Below are common office features that limit productivity and workplace satisfaction, reported by Fast Company.

  • Extreme office temperatures (either too hot or too cold);
  • Using more electric lighting than natural lighting;
  • Lack of exposure to plants and nature; and
  • Closed, non-collaborative workspaces.

For more information about the benefits of environmentally friendly office spaces, download JLL’s full report, compiled in partnership with the World Green Building Council: Health, wellbeing and productivity in offices: The next chapter for green building. Read More

Detroit and Pittsburgh Selected Among JLL’s Top High-Tech Hubs [REPORT]

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By: Robert Kramp, Vice President and Director of Research, JLL 

In the latest High-Technology Office Outlook, JLL researchers ranked the top 34 high-tech markets in the U.S. Researchers selected cities based on traditional metrics, such as wage growth, intellectual capital, and venture funding—as well as nontraditional metrics, like amenities.

It’s no surprise to see cities like Boston, New York, and Silicon Valley on the list. But, this year, JLL was able to uncover several new emerging tech frontiers—including Detroit.

What’s Happening in High-Tech?

The high-tech industry has played a starring role in the office recovery. Nearly 22 percent of the 65.4 million square feet currently under construction in the United States is in tech-focused markets. And, the industry continues to drive job creation. At the end of July, there were an astounding 3.3 million high-tech positions.

At the center of market recovery, the high-tech industry has—in the process—revolutionized the design of the modern office space. From JLL’s report: 

“Never before has an industry single-handedly shaped the way we work together and how we configure space more than the high-tech industry. This has had broad implications on location choice, investment strategies, and market performance.”

Location, in particular, is key for high-tech success. As companies compete for talent, they look beyond traditional real estate in the hopes of creating a certain lifestyle for employees. Surprisingly, popular high-tech markets aren’t always urban. JLL research found that most high-tech hubs offer a mix of urban and suburban qualities. The suburbs are not dead. In fact, the high-tech industry is bringing more opportunity to markets outside of downtown areas. (See page 14 of the report for details.)

With ongoing innovation, JLL expects the upturn in high-tech to continue throughout 2014.

Detroit & Pittsburgh Make the Cut 

In our region, both Detroit and Pittsburgh made JLL’s list of high-tech hubs. Detroit was given a market score of 28.5, while Pittsburgh was graded at 35.7. According to the report, “This score is not a ranking per se, but it does quantify market position relative to the others based on employment growth, high-tech office employment concentration, market dynamism, innovation, and investment trends.”

High-tech-features-and-amenities

When you think high-tech, you might not think Detroit. But, you’d be wrong.

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Commercial Real Estate News Brief: June 2014

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

Workplace Trends: Does Your Space Measure Up? 

JLL CRE News BriefIn a recent article from JLL’s newsroom, Richard Kadzis (@IndustryTracker) posed the question: “Does your workplace give you a competitive edge?”

Employee retention, recruitment, and ultimately, production is linked to workplace structure and culture. Your office can drive (or destroy) your culture. So, back to Richard’s question. Does your space give you an advantage? If not, below are five trends to keep in mind as you rework your own real estate strategy.

1. Gaming at work? Millennials enjoy video games. So, businesses are looking for ways to use high-powered, 3D tech to gamify (and speed up) decision-making.

2. Let workers decide. Given the freedom to decide where they will work (i.e. private vs. collaborative space), employees are happier.

3. The end of command-and-control. The “bottom-up” approach cultivates a sense of community. It’s critical that all employees are given a voice.

4. Soaring demand for health and wellness. Sitting all day does not make for a healthy lifestyle. Companies are looking for ways to proactively encourage movement, like staggered elevators.

5. Return to the city. Young pros are looking to downtown areas for vibrant spaces to live and work.

Read Richard’s full post for details.

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Tech Industry Drives Growth in the Midwest: Top 4 Trends [INFOGRAPHICS]

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By: Dave MacDonald, Executive Vice President, JLL 

When you think of high-tech, which regions come to mind? Silicon Valley? Perhaps Seattle or even San Francisco? Statistically speaking, you’d be absoultely correct. But what if I told you that cities within our Midwest region, like Detroit and Pittsburgh, are among the tech industry’s next generation of hot cities?

Detroit, as recently reported by GlobeSt.com, “is turning into [a] high-tech hub.” Notorious tech leaders, including Google, Amazon, and Twitter all have a presence in the area. And, thanks to the evolution and demand of navigational amenities, and other computer-driven features in modern cars, the local tech sector is taking off.

Another up-and-coming city for tech: Pittsburgh. In fact, Pittsburgh was recently recognized on JLL’s list of the nation’s next tech hubs. Why? Well, for starters, real estate is much more affordable than other big cities, such as Silicon Valley, Washington D.C. and Los Angeles. Couple that with the city’s established presence with venture capital funding, and its proximity to universities, and you have a potential high-tech hot spot.

JLL researchers recently took a closer look at big trends driving innnovation and growth in local tech. Below, I’ve outlined the top four industry influencers in tech real estate for an up-close look at what’s making waves in national news, and what’s trickling down to our local cites.

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3 Demands Driving Distribution Center Design

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By: AJ Magner, Managing Director at JLL & Joe Messina, Senior Vice President at JLL

Parts of Ohio, Michigan and Pennsylvania are home to major distribution centers, including Procter & Gamble, Eddie Bauer, lululemon athletica and, tentatively, Amazon.com. Thanks to accessible highways, an inventory of economical land opportunities and the historically low-cost labor markets, the region houses prime real estate for warehouse facilities.

Distribution centers are the backbone of retail industry operations. They are at the core of all product management, inventory, storage and shipment.

According to JLL’s researchers, recent advancements and trends have influenced layout designs of warehouse facilities to change. Stay ahead of the game, and ensure your warehouse operations are up-to-speed by investigating the top demands driving design concepts for distribution centers.

Top Demands Driving Distribution Center Design

Demand 1: Sustainability Keeps Costs Down 

To account for inherent transportation costs, and also balance out the escalating prices of fuel costs and wages, energy efficiency has moved to the forefront of design. Skylights, LED lighting, daylight harvesting and solar panel installations help to conserve energy and cut costs, requiring less electricity to illuminate the facility. 

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Commercial Real Estate News Brief: August 2013

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania. 

Retail Development Meets Multifamily in the Mixed-Use Market

The multifamily market “is now resurfacing throughout the nation,” according to a recent article from GlobeSt.com. As the market continues to flourish, a new trend toward mixed-use development emerges.

Retail and multifamily mixed-use projects have… Read More