Pain Prolonged in Suburban Office Market
Flat Vacancy Rates and Trailing Prices Create a Widening Divide With Recovering Central Business Districts
http://online.wsj.com/article/SB10001424052702304584404576442121473072328.html
Suburban office property values have suffered while the values of office buildings in major cities have recovered strongly. Office values in central business districts have risen 40% from the lowest point in 2009 while suburban office property values have stayed relatively flat after falling more than 42% during the downturn. Investors are once again flipping prime properties in major cities while owners are defaulting on mortgages on their suburban office properties. Americans continue to live and work in the suburbs, and as companies start adding jobs, there will be fewer vacancies. As prices increase in the cities, it is predicted that the suburbs will become more attractive, especially when yields on trophy buildings cap out at 5% and the suburbs offer yields of 7% to 8%.From the perspective of a student who is now watching all things related to real estate, it will be interesting to see if this prediction holds true.
Cushman: Global Office Markets Mixed Heading into 2012, 2013
http://www.cpexecutive.com/regions/international/cushman-global-office-markets-mixed-heading-into-2012-2103/
This article is a comparison of office markets in the United States , Europe and Asia for 2011 and projections for 2012 and into 2013. Growth industries such as technology, health care and energy will fuel markets in America Asia will see growth in second-tier markets as well as markets where regional trade accounts for the majority of exports. Large European commercial centers like Frankfurt, Munich , Paris , Istanbul , Stockholm and London
I chose this article because I had never given any thought to global office markets before.
Office Market Cycle
http://www.property-investing.org/office-market-cycle.html
An explanation of the office market cycle as a characteristic of office market behavior is provided as well as what causes the office market cycle and how to predict the office market cycle. Market wide behavior does not affect all properties equally and the office market cycle may differ in terms of magnitude and timing across different classes of office space. The office market cycle is due to sluggish adjustments in supply and demand due to long-term leases and the long development process, the sluggish adjustment in rents due to long-term leases and the high volatility of demand due to unpredictable economic upheavals that affect employment in service and financial sectors.
This article was interesting and followed up on some of the topics already taught in the MSRE program.
Sustainability
Basic Information
Basic information provided by the EPA, defining sustainability as “Everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment. Sustainability creates and maintains the conditions under which humans and nature can exist in productive harmony and that permit fulfilling the social, economic and other requirements of present and future generations.” The role of EPA is discussed and the government regulations and practices guiding the EPA are included.
Good basic information. We talk about sustainability and being green, but too often they are used as buzz words with no definite meaning behind them.
Sustainable Measures
Sustainable Measures is a private consulting firm dedicated to “promoting sustainable organizations and communities through the development, understanding and use of effective indicators and systems for measuring progress.” Based on their mission statement, “We are what we measure. It's time to measure what we want to be,” Sustainable Measures educates, activates and helps groups create systems and tools for measuring progress towards sustainability.
I liked the slogan, We are what we measure. We are taught to have measurable, attainable goals so if we are serious about a goal, it must be measured.
Building Sustainable Communities
Making our urban more sustainable requires including historic preservation and the conservation of existing built structures. Since over 40% of the carbon dioxide emissions in the United States
I am a strong proponent of preservation and using what we have. I also enjoy building to meet a need, a real need, not just a perceived need that could be met by existing building stock.
7 trends that will shape the future of green building
http://www.djc.com/news/en/12015060
The author provides a list of seven trends that will impact both the public and private sectors and provide a guide as to what position to take in light of emerging sustainable development issues. The seven trends in the article are: Certification – simple, clear, recognizable and credible labeling or certification programs to reduce market confusion and inform consumer choice; Price signals – when we make a serious shift toward a carbon economy, the increased focus on sustainable building will be reinforced by significant price signals; Focus on existing buildings – Limited new construction will allow more focus on needed upgrades to make existing building stock more sustainable; Workforce training - An increase in workforce development of skilled construction and maintenance workers to build and manage contemporary facilities; Fixing infrastructure - Including the long ignored public works projects such as parks and infrastructure in the green building dialogue; Saving water – Climate changes, a drying up of the Southwest and poor water quality in the Northeast are all problems that are rapidly demanding solutions; and Urban agriculture – Communities recognize the security risk of massive food importation and develop local food supply avenues.
As a potential developer and investor, it is important to read the signs that could lead me to success or failure. These are important trends to be aware of and possibly use to my advantage.
Green Leases 101
A blog interview with Steve Teitelbaum, who practices real estate with Jones Day in the Washington DC
I had never heard of a green lease before, but it only makes sense. As a real estate professional, this is something I need to add to my information bank.
Green MBA in Green Development
http://onlinedegrees.marylhurst.edu/sustainability/mba-green-development/
In preparation for future global business, Marylhurst University, near Portland, Oregon, is offering an MBA in Sustainable Business with four distinct concentrations: Renewable Energy, Government Policy & Administration, Natural & Organic Resources and Green Development. The goal is to provide a solid foundation in business with an inclusive look into sustainable practices, including strategic leadership principles as they relate to green practices, emerging technologies, global culture, resource economics and environmental management.Marylhurst University is not the only school offering a sustainable degree. The depth and specialization of these programs speaks to the growing need sustainable awareness in business. These programs are growing because employers have created a demand.
