Category Archives: Occupancy Planning

Investor Refresher: The Basics of Increasing Commercial Tenant Satisfaction and Retention

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By: Jeff Adams, Vice President, JLL

Building ownership and management is a business. Thus, losing tenants, like clients, can directly impact your ultimate sucess.

It can take two years to regain lost income if a single tenant leaves according to our study, The Cost of Losing a Tenant. You must also account for construction costs and the absence of rent during leasing downtime.

As a landlord, it’s important to maintain a healthy portfolio of consistent, long-term tenants. To increase tenant retention and earn a consistent profit, you should put a strategic action plan in place to maintain current tenants. Through strategic management, the ultimate goal is to achieve building-wide tenant satisfaction.

Why? According to a survey done by Kingsley Associates, the likelihood of lease renewal is tripled when tenants are sufficiently satisfied with management.Read More

3 Impactful Trends Affecting Pittsburgh’s Energy Hub

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By: Andrew Batson, Director of Research, JLL and Tobiah Bilski, Research Analyst, JLLPittsburgh

While the global energy market faces uncertainty, there are a number of rising trends hitting North America’s major energy markets. JLL’s newly released 2016 North American Energy Outlook takes a deep dive into the trends impacting the industry, and how they’re ultimately changing commercial real estate.

Each of the top seven markets featured in the report—including key U.S. cities like Denver, Dallas, Fort Worth, Houston and Pittsburgh, and Canadian territories like Calgary and Edmonton—face unique opportunities and challenges as a result of a volatile market. We’ve narrowed down the top three most impactful trends affecting a market closer to home: Pittsburgh.Read More

4 Ways to Grow Your Business with Portfolio Optimization

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By: AJ Magner, Managing Director with JLL

Collaboration I’m sure you’ve heard. The commercial real estate industry is thriving. In fact, according to JLL, investment sales in the U.S. are on pace to reach an all-time high this year.

To keep your real estate healthy and profitable, portfolio optimization should still be top-of-mind … even in the strongest economic climates.

When you think portfolio optimization, do you think cost cutting or space reduction? Despite initial assumptions, there’s more to portfolio optimization than scaling back in times of trouble.

Rethink Real Estate: The Big Picture

Defined by JLL, portfolio optimization is “a comprehensive process that models real estate supply against real estate demand to drive efficiencies across a portfolio.”

It’s not just about cutting back. In many cases, portfolio optimization has been utilized to justify the need for more real estate.

Taking a step back: As one biggest line items on your business’ budget, it’s vital to approach real estate spend strategically—during the best (and worst) of times. Beyond basic rental and operating costs, your real estate portfolio plays a starring role in employee attraction, retention and overall productivity.

Looking at the holistic, long-term impact of your space, is it adequately meeting the needs of your business?

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Columbus CRE Summit Features JLL Market Expert

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By: Dan Wendorf, Senior Vice President, JLL

Last month, Midwest Real Estate News hosted more than 200 professional at the Columbus Commercial Real Estate Summit: A Gathering of Industry Experts. I was honored to speak alongside my fellow industry leaders on a panel featuring the importance of ROI in commercial real estate, spotlighting office, industrial, retail, as well as healthcare.

Speakers from leading firms collaborated on a panel called, “Apartment Market Is Hot: How Long Will It Last?” We also heard from a few industry titans on overall market conditions. Regardless of brand affiliation, it was clear that CRE industry leaders care about giving back to the community and helping businesses flourish in a growing market.

Did you miss the event? After chatting with and hearing from industry experts, I noticed a few key topics emerging in discussion. Stay in-the-loop with my three event takeaways below.

Image courtesy of Midwest Real Estate News Magazine

Image courtesy of Midwest Real Estate News Magazine

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Big Data Meets Commercial Real Estate (INFOGRAPHIC)

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By: JC Pelusi, Market Leader, Managing Director, JLL 

According to JLL research, only 28 percent of commercial real estate companies heavily rely on data usage. But, change is coming. In just two years, more than half of corporate real estate decisions will be made using data and analytics.

Data and Future CREThanks to new technologies, building data can give executives invaluable insight into how the office is actually utilized by employees. For example, building sensors can detect when rooms are busiest or when meeting rooms are empty for extended periods. Simple insights like these can help guide more informed decision-making.

Big Data, Bigger Benefits

Whether related to energy consumption or office utilization, data can play a leading role in cutting costs. So what’s keeping executives from drilling into data?

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JLL Experts: Rust Belt Critical to Future U.S. Economy

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By: John Sikaitis, Managing Director and Christian Beaudoin, Senior Vice President – JLL

John Sikaitis at a recent speaking engagement.

John Sikaitis at a recent speaking engagement.

While there’s fluctuation across the globe, the overall outlook for the U.S. economy remains strong. Thanks to an economic environment characterized by the continued elevation of corporate profits, the strongest job market since the late 90s and economic growth that is roughly 15 to 20 percent above levels in 2013, the U.S. dollar is at its highest level in years.

That momentum, coupled with a substantial drop in oil prices, is energizing consumers, fueling the highest consumer confidence level in eight years, which will drive enhanced growth to economic prospects over the next 24 months.

The same optimism exists for the commercial real estate industry in the U.S.

Net absorption topped 50 million square feet in 2014, a 38 percent increase from 2013; vacancy fell below 16 percent for the first time since 2008 and the American corporate is demonstrating increased signs of growing their real estate footprint. In the third and fourth quarter of 2014, 46 percent of tenants greater than 20,000 square feet completed leases with a growing real estate footprint—double the rate of any other point in this cycle. Across the vast majority of markets, the recovery has gained substantial momentum, fueling enhanced confidence from landlords and rent growth across 85 percent of the markets JLL tracks in the United States.

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How Low Gas Prices will Impact the Office Market (SLIDESHARE)

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By: Dan Adamski, Managing Director, JLL

For the first time in years, filling up isn’t getting us down.

Diesel prices sitting below $3 are welcomed by consumers, especially as the holidays arrive. In June of this year, gas prices reached $3.68. Now, they’re as low as $2.73, according to AAA. The drop in gas costs hit quickly, and its impact on multiple industries varies.

The Situation: Oil Prices Fall Worldwide

For the first time in five years, the price of one barrel has dipped below $70, which is down from more than $100 per barrel in the last five months. Causes for the drop in costs include:

  • Excess supply and little slow down in production
  • Drop in overall demand, due to slower economic growth in China and lower levels of oil consumption in Europe
  • Strict fuel standards (good news for the environment) and a sharper focus on energy efficient practices

The biggest cause, however, is supply. There are three million more barrels a day in the global market now than there was in 2011. Combined with a new focus on sustainability and weaker demand, it’s no wonder that prices have decreased.

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Open vs. Closed Office Space: OH, PA & MI Businesses Deliberate [Survey Results]

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By: JC Pelusi, Market Leader, Managing Director, JLL 

The New Yorker called it the “open-office trap.” Inc said, “…open plans are better after all.” The debate over open versus closed workspaces is far from over.

Naturally, we wanted to know firsthand: What do business professionals in our neck of the woods prefer? Do they feel more productive in a cubicle, or a shared area?

Between September 23 and October 10, JLL’s regional office conducted a survey—targeting local business professionals in Ohio, Michigan and Pennsylvania—to find out what’s really trending in office space. Out of 100 survey recipients, 84 percent said their office environment is either very important (42 percent) or important (42 percent) to individual success. So, it’s critical that employers pay attention and provide a desirable, attractive place to work.

What’s Trending in Office Space?

Of those surveyed, just over half (51 percent) currently work in an environment with a good mix of open and closed space. Another 36 percent work in more traditional offices, and only 10 percent reported working in an open office, with no private zones.

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Survey Findings: Leading Trends

1. A majority of survey respondents (35 percent) said open, collaborative office space hinders individual productivity. Another 16 percent said these types of workplaces fuel their creativity and productivity.

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2. When considering a new company or employer, real estate is definitely a factor (but not critical) in 70 percent of respondents’ decision-making process.

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3. Eighty percent said their dream office would include a good balance of open and closed space.

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Your Next Move: A Guide To Your Corporate Office Relocation [FREE DOWNLOAD]

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 By: JC Pelusi, Market Leader, Managing Director, JLL 

Your office space has the potential to drive employee productivity, retention, recruitment, and overall company performance.

Bottom line: Your space impacts your bottom line. 

But don’t take our word (or commercial real estate bias) for it. JLL recently helped Oswald Cos. secure new space in Cleveland. Oswald President and COO, David Jacobs, told us:

“Our new environment instills collaboration and has that open feeling; enabling all of us to do our jobs better. The new space has been an absolute godsend to our business.”

Finding and designing the perfect space in the right location at the right price is not easy. So, it’s more critical than ever that you take a strategic approach when executing a corporate move.

JLL follows a proven step-by-step process to help leading organizations find space that not only suits unique bottom-line objectives and requirements, but also sets the stage for future growth.

Are you approaching your next move, or is it time to put the building blocks in place to start a conversation about your current space? Below, I’ve included a snapshot of the 9-step journey to a corporate relocation.

9 Steps To Guide Your Company’s Next Move 

1. Build a team of trusted expert before you begin.
2. Set objectives and requirements.
3. Map out a custom timeline.
4. Determine a preliminary project budget.
5. Identify prospective spaces.
6. Tour the market.
7. Evaluate properties on your shortlist.
8. Finalize letter of intent and negotiate your lease.
9. Plan and implement your next move.

Download the Your Next Move eGuide for a snapshot of each step in JLL’s strategic approach. Keep in mind that this is a general guide, which is adjusted to accommodate your unique business needs.

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How To Create a Data-Centric CRE Strategy

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By: JC Pelusi, Market Leader, Managing Director, JLL 

I’m sure you’ve heard the buzzword “big data” in your office, or read about it in your favorite blogs and publications. The popularity of the term “big data” continues its steep climb upward on Google Trends, even today (screenshot below).

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Data has captivated the business world. The ability to track and capture data, regardless of industry, has transformed the way executives are reporting and capturing value.

JLL recently released the first white paper in a four-part series on developing Data-Centric CRE. According to JLL researchers:

“Companies that embrace internal and external data, manage its flow carefully but efficiently, and structure it to create actionable information and insight have a strong competitive advantage.”

This goes for CRE teams, too. The ability to make a smart move, determine a construction budget or advocate for more sustainability practices can all be driven by data-centric business cases. CRE teams have put new emphasis on the importance of data, but most still have a long way to go.

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