What Role Will Big Data Play for CRE in 2018? Part I Retail The Future of Retail is Now

Posted on: Friday, December 22nd, 2017, under Data, Market Analytics.

Commercial Real Estate Data and InformationThere are countless prognostications about the future of retail that run the spectrum: a quick search for ‘the future of retail’ will tell you that brick and mortar retail is dying at the same time as it highlights successful eCommerce startups building dozens of retail stores across the country.

You already know the truth: retail is changing – just like it always has. If you go back 20 years and look at the headlines, they covered in the death of Main Street and the boom of the mall and big box retailing.

The real question is, ‘How is retail changing and what’s next?’

The answer is in the data.

Market Intelligence

Commercial Real Estate has always been about information: gathering it, analyzing it, and then providing your clients with value. What we’re excited most about is the influx of new information coming into CRE.

More and more, building owners are installing sensor technology to gather real-time pedestrian and vehicle traffic statistics. Combining this with unstructured data from sources like search engines and social media enables us to overlay traffic volume with other data, such as interests, behaviors and income, giving retailers real, actionable data to find their ideal location.

Being able to ascertain the revenue a specific type of retailer can generate from a given location in turn gives LL Reps more information so that they know precisely what NOI is possible.

On top of that, the trendy business model for retailers is to start out as an eCommerce-only store and then expand to have physical locations. This gives them a large amount of data about their customers when they’re shopping around with their Rep. They can see where their site is getting the most traffic from, and the common interests of their fans on Facebook and Twitter, and use that to help with site selection.

The Long-Awaited Internet of Things

IoT has been on pretty much every ‘what’s next’ list for years. The idea of creating smart buildings to adjust temperature, humidity, and lights has had people excited for ages. Now, the addition of tech to give us more location analytics so that retailers can learn more than ever before about people’s in-store purchasing behavior, giving retailers a better ability to determine what building layouts work best, and which ones don’t.

This, layered with traffic data, likely makes for the best-informed tenant in history.

The Meaning for Commercial Real Estate

From CRE’s point of view, the need will be centered around gathering actionable market data as quickly as possible. With it, Tenant Reps will be able to see what building layouts and assignable area they will need to maximize revenue for the store as well as ascertain reliable revenue models to make sure the location is a good long-term fit.

At RealMassive, we are creating real-time data analytics so you will be able to give your clients the best advice with the latest data to back it up. Want to find out how? Sign up for a demo.

6 Reasons Businesses Love Rochester, MN

Posted on: Thursday, January 5th, 2017, under Market Analytics.

RealMassive By RealMassive
Rated as one of the top cities for doing business in the country by Inc. Magazine, Rochester is favored among both home-grown and national brands. In fact, according to Rochester Area Economic Development, Inc., Rochester and the surrounding communities have been recognized for their collaborative and innovative spirit —ranking number three in patent filings per capita and supporting entrepreneurial communities and start up ventures.

So what’s to love? Rochester is home to a strong labor pool, a highly educated workforce, and boasts access to over 45 two- and four-year higher education institutions. Big names like Mayo Clinic, Hormel, IBM, Red Wing Shoes, Federated Insurance, Fastenal and Seneca Foods are just a few of those who choose to do business here.


Why #CRE Should Pay Attention to NERDS

Posted on: Wednesday, November 16th, 2016, under Market Analytics, Uncategorized.

Evan Santosby Evan Santos, Partner Relations at RealMassive
2016 has been the year of NERDS. We’re not talking about “nerds” portrayed in movies with thick glasses and pocket protectors. We’re talking about the five office markets that you should be keeping an eye on for strong talent, affordability, and investment opportunity.

At the end of 2014, JLL presented five office markets in their current cycle as hotspots for growth. The markets include: Nashville, the East Bay, Raleigh, Denver and Salt Lake City and were coined “the NERDS.”


Salt Lake City – A Hot Destination for #CRE Investment

Posted on: Wednesday, November 9th, 2016, under Market Analytics.

Evan Santosby Evan Santos, Partner Relations at RealMassive
Commercial real estate sales nationwide hit $543 billion last year, which is not far below 2007’s all time peak of $573 billion. That mark may well be surpassed in 2016, as industry experts predict growth of nearly 7%. Geographically, deal volume was strongest in the secondary and tertiary markets according to data from Real Capital Analytics. These gains are an important sign of investor confidence in the commercial property market.

Utah has become a stand out in the commercial real estate investment world. The Salt Lake City market is a major contributor to that growth. In fact, Salt Lake City is #2 on America’s Next Boomtowns (Forbes, 2016). According to NG Acres, 2014-2015 was a historic year for investments in Salt Lake City and investments in 2016 have continued this pace.  

Commercial real estate investments in growing markets are a great place to preserve capital and look for yield moving forward. According to the Salt Lake Tribune, investors poured more than $1.8 billion into the acquisition of commercial properties in Utah in 2015, the third straight year that number climbed above its prior high. Much of that investment cash is coming from outside the state as national real-estate trusts, pension funds and other large portfolio managers seek to spread their bets and seek bargains outside larger, more expensive metro markets.


Charlotte CRE Sales Near $1 Billion

Posted on: Thursday, November 3rd, 2016, under Market Analytics.

“Jesse Tron By RealMassive
Commercial real estate sales nationwide hit $543 billion last year, which is not far below 2007’s all-time peak of $573 billion. That mark may well be surpassed in 2016, as industry experts predict growth of nearly 7%.

The Charlotte commercial market is a major contributor to that growth. According to data from Cushman and Wakefield, commercial sales have already surpassed $904 million so far this year.

The count includes sales of office buildings, retail centers, hotels, apartments, industrial buildings and warehouses of $2.5 million or more. With a number of deals in the pipeline, there’s a good chance that sales in the Charlotte area may exceed last year’s total of $2.4 billion.



How Many More Apartments Can They Cram Into Austin?

Posted on: Wednesday, August 31st, 2016, under Market Analytics, Uncategorized.

Mark Daniel by Mark Daniel, Vice President of Partner Relations at RealMassiveA.B. Economics Stanford University
I’ve written in the past about the Austin apartment market in Austin Apartment Long Term Trends – 1930 to 2015 and 17 Apartments, over 5,000 units delivered in Austin in 2015. Supply has poured into Austin at a frenzied pace, especially in and near the CBD with units capturing higher average rents than historic norms for the market. Needing room-mates (plural intended) to make the rent has become the norm for millennials in Austin, not necessarily the case 10 years ago.

That being said, rent growth is slowing now in Austin, and someone mentioned to me just this week that she saw a “body-for-hire standing outside Hanover waving a sign that said they had leasing specials available right now. Never seen that for any of the luxury apartments.”


5 Must-Know Trends in the DFW Retail Market

Posted on: Monday, August 22nd, 2016, under Market Analytics.

“Jesse Tron By RealMassive
In June, The Crescent, uptown’s popular mixed-use complex, unveiled the results of a $33 million renovation project, the first since The Crescent’s opening in 1986. That opening triggered extensive development throughout the area, which has become more pedestrian-centered over the years. The renovation project was in part intended to accommodate this change.

The complex includes a luxury hotel, three office towers, and restaurants and retail shops. The recent additions include several new restaurants as well as revamped landscaping and the addition of several pocket parks. Eateries include the Ascension coffee house and Moxie’s Grill and Bar, among others.


3 Ways the Jacksonville Skyline is Changing

Posted on: Monday, August 15th, 2016, under Market Analytics.

“Jesse Tron By RealMassive
small:cropped Jacksonville

With its spectacular setting along the St. Johns River, downtown Jacksonville is the sparkling center of the community. Iconic towers and the striking Main Street Bridge are part of the city’s character, and so is its constant evolution. The downtown district, as well as the JAX beaches, are home to some of the area’s most familiar landmark buildings.

Some changes are happening along the city skyline, with new construction and renovation projects in prominent downtown locations as well as in beachfront multifamily.

Sale of The Strand

An important event in the local high-rise market was the recent, record-breaking sale of The Strand. This residential tower, built in 2007, was sold for $64.6 million, which comes to $219,000 for each of its 295 units. This well-known building was the only high-rise tower constructed downtown in the last decade, and some observers suggested that it might be more than the market can bear.

Indeed, there has been a move toward more mid-rise construction for multifamily in recent years, but this sale is seen by some as an indication that the demand for residential towers may be resurging.

Luxury towers like The Peninsula, Berkman Plaza, and San Marco Place are other prominent multifamily buildings on the downtown Jacksonville riverfront.


4 Things You Should Know About CRE in The Triangle

Posted on: Friday, August 5th, 2016, under Market Analytics, Uncategorized.

“Jesse Tron By RealMassive
The Triangle’s commercial real estate capital markets logged more than $1 billion in major property acquisition deals in the first quarter 2016, a 56 percent increase compared to the year prior.

Let that sink in.

This is truly a booming market. What’s driving this demand for CRE in the Raleigh-Durham market? Today we’ll discuss some of the factors behind this amazing level of activity, and explore what it may mean for the Triangle’s commercial real estate market moving forward.


1. International Investment

Capital from foreign investors accounted for around 20% of all CRE acquisitions in the U.S. last year. As prices have risen in the gateway cities, international investors are showing increased interest in secondary markets.

For example, last year the sovereign wealth fund of the government of Abu Dhabi paid nearly $103 million for 2 hotels in the area. And the prices being commanded in the Triangle are not bargain rates. The $79.91 million price tag for the Renaissance Raleigh North Hills translates to nearly $350,000 a room, and that’s comparable to what some hotel investors pay in major U.S. urban markets like New York or Chicago.