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Drone Technology Might Guide The Next CRE Investment Boom

December 29, 2015 Leave a comment

Drone technology has become a multi-billion-dollar business, as consumer uses multiply and the U.S. military begins phasing out manned vehicle operations in favor of unmanned flights, leading real estate investors and developers to pay attention.

The Association for Unmanned Vehicle Systems International (AUVSI) predicts that drone production will grow to $82.1 billion and more than 100,000 jobs across the country by 2025, assuming that the Federal Aviation Administration (FAA) cooperates. The FAA is still working on complete rules for drones, with full publication not expected until at least next year. Even with full rules not yet in place, the FAA has granted more than 1,000 exceptions that allow current drone use for agricultural, businesses and law enforcement purposes.

Some states are expected to see more investment in drone technology than others, with the differences related to economic support, current regulations and available infrastructure. Drone technology is already in wide use in countries such as Japan, and the U.S. is catching up as the regulations are written. Currently, U.S. drone manufacturing is still at the nascent stage, with research and development handled here and production handled overseas, but the industry is expected to benefit all states as demand expands. California already has $180 million in drone company investment, according to AUVSI. The next top four states for drone development are, in order, Washington, Texas, Florida and Arizona.

“Unmanned aircraft systems into the national airspace system will have tremendous economic and job creation impacts on the aerospace industry and aid in driving economic development in many states across the country,” according to a study published by AUVSI. “Similar to other industries, job growth will stretch into many additional sectors, and the economic growth in the aerospace industry will support the growth in many other businesses across multiple U.S. industries, including the hospitality and entertainment industries.”

In Grand Forks, N.D., a company has opened the first business park solely dedicated to drone manufacturing, testing and operations. Grand Sky Development Co., a subsidiary of Infinity Development Partners LLC, has already signed two leases at Grand Sky, located at Grand Forks Air Force Base. The developers are working to develop 217 acres at the base for commercial use, through an agreement with Grand Forks County, totaling 1.2 million sq. ft. and an expected $300 million in investment.

San Diego-based Northrup Grumman System’s Corp., which was recently awarded a $3.2 billion contract to deliver the large Global Hawk unmanned aircraft for the U.S. Air Force, has agreed to lease at Grand Sky, along with General Atomics Aeronautical Systems Inc. Both companies are expected to build and operate out of up to 100,000 sq. ft. of space, says Jeff Donohue with Grand Sky.

“We’re the first drone tech center in the country, with direct access to an FAA test flight site and restricted airspace,” Donohue says. “We’ve had dozens of inquiries already, including from small companies that might take 5,000 square feet to 10,000 square feet, so we’re considering offers from developers to build a 50,000-square-foot speculative building. Ultimately, we’re looking at 400,000 square feet of runway access property and 800,000 square feet of support space, including data centers, which we think will be a critical component to provide data storage for the aircraft. Just one flight can generate a terabyte or more of data.”

He says in a few years, people should expect that unmanned aircraft will share the skies with commercial jetliners, once the FAA has rules locked in place. Uses will include property management, film production, utility company inspections, oil and gas exploration, disaster management, telecommunication, aerial mapping, weather monitoring and, possibly, delivery by companies such as Amazon. The Department of Defense will also be a big customer, Donohue says, as current aircraft such as the U-2 spy plane are scrapped in favor of unmanned flight.

“The military currently can’t train their pilots fast enough to meet the projected demand,” he says. “Just now, the consumer demand is booming. There’s a tremendous amount of applications by firms to gain FAA exemptions, and that number is expanded every day. Just within three years at Grand Sky, I think we’ll have 400,000 square feet leased out.”

The story originally appeared on the NREI website.

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs throughout the Boise Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime locations in the Boise metropolitan area. More information is available at www.sundanceco.com or 208.322.7300.

 

 

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Festive & Fun Holiday Facts 2015

December 15, 2015 Leave a comment

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs throughout the Boise Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime locations in the Boise metropolitan area. More information is available at www.sundanceco.com or 208.322.7300.

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Your Office is Boring: Amenities Matter

December 8, 2015 Leave a comment

It doesn’t matter what you’ve done with the space. Whether your office is walled with reclaimed mahogany and marble from exotic corners of the world or checks the box for every developing trend, by Friday afternoon everyone is looking for a way out. Features and designs that look great in snapshots and capture envious stares from visitors become part of the same drab landscape like everything else to employees who count their days among the thousands.

Trying to reimagine the office every time the shine wears off is expensive and diverts resources from helping your business move forward. Instead, think of office suites as part of an ecosystem of resources and amenities designed to supplement the day-to-day of modern tenants. Step back from conventional nine-to-five paradigms and look at the world as more mobile than it was before you had to answer a landline.

Not how but where

Building owners and tenants are learning that technology isn’t just changing how business is done. It’s changing where business is done. Smartphones and go-anywhere Internet connections are enabling people to work from wherever they need – I’m writing this from the kitchen table – and reducing the amount of space that people need. Office managers don’t need to allocate 250 square feet to every employee. A slightly transient workforce doesn’t need to curate a home away from home — because anywhere can be a place to get things done. The benefits? Lower cost leases (or higher quality space), more flexible working hours and higher productivity.

Not your mother’s office space

Buildings, too, are challenging the status quo. Workplaces don’t look like “Office Space” anymore, and neither do the suites they’re placed in. Tenants aren’t expected to cross grass fields and highways to get a bite to eat. Partnerships with on-site food vendors to run lounge areas and restaurants make snacks and even complete meals a snap. With real gyms, areas that border on being rec rooms and observation decks all becoming the norm, people are learning that it pays to get up and move around. Seeing the same thing all day, every day gets repetitive and dull – all of which isn’t productive and doesn’t foster creativity.

Don’t forget basics

All of this isn’t to say that traditional real estate canon should be ignored. Attractive, open spaces framed by glass that welcomes in visitors are the new standard, and location now matters more than ever. Offices evolve and work styles grow — which means we shouldn’t look at cubicles and off-whites in the same way as people did 30 years ago. There’s more than one right way to approach the issue, but you should consider all options and variables ranging from outright productivity and data sensitivity to Wi-Fi in tenant lounges.

Boring isn’t a four letter word; it’s just a fact of life. Photographers like to say “zoom with your feet” to change your view. Sometimes, commercial real estate professionals and office leaders could use the same advice.

The story originally appeared on the Knowledge Leader website. 

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs throughout the Boise Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime locations in the Boise metropolitan area. More information is available at www.sundanceco.com or 208.322.7300.

 

 

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The Psychology of Colors in Marketing

December 1, 2015 Leave a comment

 

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs throughout the Boise Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime locations in the Boise metropolitan area. More information is available at www.sundanceco.com or 208.322.7300.

Categories: Uncategorized