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 CRE Industry Goes Green, Spotlights Sustainability
Throughout April, in acknowledgement of Earth Day, commercial real estate experts worked to increase sustainability within the industry specifically through green leases (like KeyCorps’ new lease) and by offering advice to greener routines.
Real Estate Bisnow contributed to the trend in a recent article, Hot Topic: Green Leases, providing insight into specific details and terms that should be included within a sustainable agreement. For example, the article states “site selection is key,” encouraging those in the market to seek a location that is in close proximity to a train, bus station or other type of public transportation. This will make it easier for tenants to build environmentally friendly habits.
Real Estate Bisnow also touched on conditions to include when drafting the lease. This includes space efficiency (like renewable energy sources), as well as benchmarking key data to measure whether the conditions are making an impact.
JLL’s Executive VP of Sustainable Strategy, Michael Jordan, noted that green leases are the “future of commercial real estate,” in a recent article from Arizona Commercial Real Estate. Typical benefits of a green lease include:
- Cost savings from cuts in utility use
- Improved tenant / landlord relations
- Improved corporate image
Read the full article to read all ten advantages.
In case you missed it, we also shared a post featuring Corporate Sustainability on Earth Day. Check out the post to see why you may want to consider a green lease.
CRE Experts Get Social on Multiple Channels
The commercial real estate industry lagged behind when it came to social media marketing; however, it is now catching up, and maybe, exceeding other industries.
A recent article from CoStar Group reports that commercial real estate experts are now using social media strategically to enhance marketing and sales initiatives. CoStar said:
And as more of us are quickly learning the ins and outs of new tech tools, the most adept have also shifted beyond merely information gathering and putting a corporate or personal presence “out there” to implement strategies to become more nimble in their online interactions and generate interest by producing fresh content on an ongoing basis.
CRE experts are active on Facebook, Twitter and LinkedIn. But, they are now also utilizing newer, specialized platforms, like CREvine. CREVine.com is a “collaborative community” open to all trade professionals. Experts are able to join the community and share knowledge via blog posts.
Secondary Markets See More Startups, Increased Potential for Growth
What began in Silicon Valley—dubbed “the template of academic institutions and companies feeding off of each other to create first-rate ecosystem for tech startups and innovation”—is now occurring in secondary markets, according to a recent article in Fresh Water.
Fresh Water reports that smaller, regional cities like Pittsburgh, Cleveland and Detroit are now seeing an increase in startups, impacting the local economy.
Pittsburgh, in particular, is deemed the “language tech hub.” The city has an abundance of engineers thanks to Carnegie Mellon University, which lends to Pittsburgh up and coming tech culture. Fresh Water adds that the affordability of Pittsburgh, as it compares to bigger cities, is hard to pass up.
Cleveland is also called out as “Where the Technology Is.” Fresh Water attributes some of the success to the local Philips Center, which has remained influential within the area.
For more on how the technology industry is expanding beyond the expected hubs and impacting commercial real estate across the U.S., see JLL’s High Tech Office Highlights for Spring 2013.
News Wrap Up In Our Region
- On June 1, Cincinnati Commercial Realtors Cushman & Wakefield will move into its new downtown space at One East Fourth Street. The 6,000-square-foot building was originally home to the Provident Bank Tower.
- A California-based real estate firm purchased two office-warehouse buildings located in West Chester. Together, the warehouses sold for approximately $7 million.
- KeyCorp renewed its lease at Key Tower, signing on for another 15 years. In this agreement—the largest corporate headquarters green lease in the country—KeyCorp will consolidate its space, occupying 487,000 square feet (about 700,000 square feet less than its original space).
- The Ernst & Young Tower acquired Wells Fargo and Gilbane Building Co. as tenants, occupying approximately 30,000 square feet of space in the tower.
- Columbus Next Generation Development Corporation is looking to secure office space in the near future. The corporation is seriously considering space at 950 E. Long Street at 17th Street. The space is 934 square feet.
- Westerman Inc. will expand current operations, spending about $3.5 million. As a result, the supplier aims to create 24 new job openings.
- Alpha Tech Park, located in Wixom, sold to Alidade Capital LLC. The 40-acre park sold for $7.7 million.
- 42,000 square feet of space at Fuyao Automotive North America Inc’s distribution facility will now be available for leasing. The facility is located in Orion at 315 W. Silverbell Road.
- DiCicco Development, Inc. began construction on a five-story office building located in North Fayette. No tenants have officially committed to the building.
- Industrial Scientific Corporation has secured its fourth Pittsburgh office. The new 19,500 square foot space is located in the Imperial Business Park.
Please feel free to add any relevant industry news we might have missed in the comment section below.
Newspaper image via NS Newsflash