The Sundance Company – Page 4 – The Sundance Company

June 26, 2014May 26, 2014 sundancecompany infographic, The Sundance Company

The 4th of July By The Numbers

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.

June 17, 2014May 10, 2014 sundancecompany commercial real estate, Commercial real estate news, Economy news, The Sundance Company

Commercial Property Transaction Volume on Course to Reach a 10-Year High by 2016

A new U.S. real estate forecast based on a survey of 39 of the industry’s leading economists and analysts predicts that commercial property transaction volume will reach $430 billion by 2016, exceeding the volume of 2006. The latest multi-year outlook (covering 2014 through 2016) from the Urban Land Institute (ULI) and EY projects steady growth for the U.S. economy; sustained strength from real estate capital markets; and continued improvement in both commercial real estate fundamentals and the housing sector.

The findings were released today in the semi-annual ULI/E&Y Real Estate Consensus Forecast, prepared by the ULI Center for Capital Markets and Real Estate. The survey, conducted between February 19 and March 14, 2014, is the fifth in a series of polls conducted to gauge sentiment among economists and analysts about the direction of the real estate industry.

The latest forecast is more optimistic than the previous one from October 2013. Although survey respondents moderated their expectations for the housing sector – the latest forecast projects housing starts will remain below the twenty-year annual average through 2016 — the overall industry outlook remains positive. The issuance of commercial mortgage-backed securities (CMBS), a key source of financing for commercial real estate, is expected to continue its rebound with consistent growth through 2016. Hotel occupancy rates are expected to continue improving, while vacancy rates are expected to decrease modestly for office, retail, and industrial properties. In addition, the forecast expects a turn-around in 2014 with retail rental rates, turning positive for the first time since 2007.

“Respondents to the Consensus Forecast survey project consistent growth in the real estate industry, bringing some key factors back to pre-recession levels and others moderating to long-term averages,” said Anita Kramer, vice president, ULI Center for Capital Markets and Real Estate. “Fundamentals beyond multi-family continue to improve with the retail sector now joining in. This overall outlook for real estate is supported by expected on-going improvements in the economy.”

Howard Roth, global real estate leader for EY, commented, “Although we’ve made significant improvement over the past year, the recovery has been uneven globally and many risks still exist, including high global unemployment, high government debt, deflationary pressure in advanced economies, weak domestic demand, capital flow volatility in emerging markets and the potential impact from Fed tapering in the US. Still, all signs point to a continued gradual improvement in both the economy and real estate market fundamentals.”

The Consensus Forecast expects the overall economy to continue expanding a rate equivalent to the 20-year average. Gross domestic product (GDP) is expected to grow by 2.8 percent in 2014 and then 3.0 percent in both 2015 and 2016. Survey respondents predict that employment will grow by over 7.5 million jobs in the next three years. The unemployment rate is expected to fall to 6.3 percent by the end of the year, 6.0 by the end of 2015, and 5.8 percent by the end of 2016.

Inflation is expected to grow by 1.9 percent in 2014, and then increase by 2.2 percent in 2015, followed by 2.5 percent in 2016. At the same time, ten-year treasury rates are projected to continue moving up, reaching 3.4 percent by the end of 2014, 4.0 percent by the end of 2015, and 4.4 percent by the end of 2016. Even though treasury rates will increase borrowing costs for real estate investors, survey respondents do not expect these changes to substantially impact real estate capitalization rates for institutional quality investments (NCREIF capitalization rates), which are expected to remain at 5.7 percent in 2014 and then rise to 5.9 percent in 2015 and 6.2 percent in 2016.

Prices and total returns for commercial real estate investments are projected to increase at moderate rates. Institutional real estate assets are expected to provide total returns of 9.4 percent in 2014, moderating slightly up to 8.5 percent by 2016. NCREIF total returns in 2014 are expected to be fairly consistent across property types with retail and industrial at 10 percent, followed by office and apartments at 9 percent. Total office returns are expected to remain at 9 percent by 2016, while retail, industrial, and apartments are all expected to moderate downward.

The Consensus Forecast survey findings, by commercial property type, are listed below:

Apartments – The Consensus Forecast expects end of year vacancy rates to rise slightly to 5 percent in 2014, 5.2 percent in 2015, and 5.3 percent in 2016. Apartment rental growth rate, which slowed in 2013 after two years of significant growth, is expected to slightly increase in 2014 to 2.7 percent and then moderate to 2.3 percent in 2015 and 2.2 in 2016.
Industrial/warehouse – Decreases in the industrial/warehouse sector are expected to continue but at a slower pace. Vacancy rates are projected to go from 11.3 percent in 2013 to 10.7 percent in 2014, 10.3 percent in 2015, and 10.1 percent by the end of 2016. According to CBRE, the sector’s rental growth rate was strong in 2013 at 3.6 percent. The Consensus Forecast projects continued growth of 3.8 percent in 2014 and 3.7 percent in 2015 before moderating to 3.0 percent in 2016.
Office – Office vacancy rates declined for the third straight year to 14.9 percent in 2013 and are expected to continue at the same pace, decreasing to 14.3 percent in 2014, 13.7 percent in 2015, and 13.1 percent by the end of 2016. Survey respondents foresee a healthy and continued growth in office rental rates through 2016. According to the Consensus Forecast, office rental rates will increase by 3 percent in 2014, 3.9 percent in 2015, and 3.6 percent in 2016.
Retail – Retail availability rates decreased in 2013; however, the Consensus Forecast anticipates modest improvements over the next three years, with availability rates expected to decline to 11.5 percent by 2014, 11.1 percent by 2015, and 10.8 percent by 2016. CBRE reported a decline in retail rental rates for the past six year; however, survey respondents foresee a turn-around in 2014 with rental rates increasing by 1.9 percent, 2.5 percent in 2015, and 3 percent 2016.
Hotel – Hotel occupancy rates are expected to continue their steady improvement, with the 2016 projection surpassing the pre-recession peak in 2006. The Consensus Forecast projects that hotel occupancy rates will continue to strengthen, rising to 63.1 percent in 2014, 63.6 percent in 2015, and 63.8 percent by 2016. The strong growth in hotel revenue per available room (RevPAR) of the last four years is expected to continue, remaining above the long-term average annual growth rate but decelerating, with growth of 5 percent in 2014, 4.7 percent in 2015, and 4 percent in 2016.

June 10, 2014May 10, 2014 sundancecompany Boise Commercial Real Estate, Boise Commercial Real Estate Development, commercial real estate, Commercial real estate news, The Sundance Company

Where is Commercial Real Estate (CRE) Going in The Next 3 Years?

CRE is changing. It’s taken longer than many thought but the winds of change keep blowing and they are finally reaching us. This isn’t going to be an examination of technology specifically but an examination of trends, desires, impacts and what it means to all of us who make a living in CRE. From where I sit there are four main topics:

One service is not enough – the entire CRE world is interconnected.
Organizations internally changing at a rapid pace.
Outsourcing trends continue to accelerate but not in expected ways.
One-off transactions and projects grow in prominence but also in expectations.

These four embody most of the change that is taking place. While the biggest players in CRE continue to grow there is also continued growth of regional, boutique and independent organizations. This is because the focus of all customers has shifted to excellence in delivery as their key driver in selecting a provider. You must either be able to deliver the best, most complete solution (be very big) or deliver the best, most comprehensive solution to a single problem (know more about your market, the asset and data than anyone else). So you must be big or hyper-local.

Good luck if you get stuck in the middle. There’s no room there at the moment. You are too big to be hyper-local and too small to do everything.

This is also putting price pressures on all service providers from both ends. Big organizations can include services (Facility Management, Project Management, Technology, Consulting, Account Management, Brokerage, etc.) at discounts because there is more than one revenue stream. And the smaller, local organizations can discount their projects because they have fewer overheads than the bigger players.

Then take a look at the non-traditional players that are looking to disrupt the industry. Tech firms have started to discover the inefficiencies we have and are creating companies to deal with them. 42Floors, HonestBuildings and a growing list of others are entering and seeing success. They may be occasionally enabling the status quo but if you assume that will remain the case be ready for a rude awakening.

Welcome to the changing world of CRE.

The story was originally published on Box Thoughts.

June 3, 2014May 10, 2014 sundancecompany infographic, The Sundance Company

Three Common Time Wasters At Work

May 26, 2014May 26, 2014 sundancecompany infographic, The Sundance Company

Memorial Day 2014

May 23, 2014March 31, 2014 sundancecompany Boise Commercial Real Estate, Boise Commercial Real Estate Development, Boise Industrial Space, boise valley commercial real estate, Meridian Commercial Real Estate, meridian idaho, Meridian Industrial Space, The Sundance Company

Taylor West: Boise Valley Commercial Real Estate for Lease

The Sundance Company, a trusted and knowledgeable commercial real estate leader in the Boise Valley since 1976, is pleased to announce that the Taylor West Industrial Park building has space available for lease.

Located in Meridian, Idaho, the two-building industrial complex features 68,829 square feet of commercial real estate space, and is ideally situated near two main thoroughfares in Meridian. Currently, there are three spaces available with 37,983 square feet available. Other features of Taylor West Industrial Park include: separate tenant entrances, easy access to Interstate 84, spaces offer office, showroom, R&D or industrial suites, ample truck turning radius for all sites, dock and drive-in doors, and fenced outside storage yards on-site. At The Sundance Company, we treat every building as if we will own it for life, care for each building like we care for our own homes, and promise unparalleled response and follow through, which results in high tenant satisfaction and long-term comfort, cost-savings and occupancy.

Site Area: Approximately 4.25 acres, 450 feet fronting W. Taylor Avenue
Zoning: C-G
Year Built: Built in two phases, 1990 & 1995
Number of Floors: Single, Unit 100 provides additional second floor office space
Parking: 91 parking stalls “in common” with all tenants
Construction: Concrete tilt-up Roof: Flat roof with metal truss
HVAC: Office: Rooftop package HVAC with gas forced air heating and forced air electric air conditioning
Warehouse: Ceiling mounted gas space heaters
Ceiling: Warehouse clear height East 19’, West 16’ (bottom of truss) Floor: 6” reinforced concrete slab Warehouse
Doors: Drive-in doors and dock doors on-site. Excellent ingress/egress and turning radius for trucks and trailers Power: 120/20/ 3ph/ 4wire/ 200amps
Life Safety: Wet System (hydraulic system)
Special: Fenced yards available on-site

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs in Boise, Meridian, Nampa, and the greater Treasure 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 throughout the Boise Valley. More information available at www.sundanceco.com or 208.322.7300.

May 15, 2014March 31, 2014 sundancecompany business information, commercial real estate, Commercial real estate news, office productivity, office space tips, The Sundance Company

The Right Office Building For Any Business

When it comes to office buildings, you generally get what you pay for, but first you need to know what you want. Colliers International Workplace Strategist David McEwen shares his guide to selecting the office building right for your business.

Defining your requirements starts with a solid understanding of your business strategy and a well formed workplace strategy, identifying who is going to occupy the building and how they will use it. Prioritizing your requirements (other than cost and lease terms) can be broken down into these broad categories:

1. Risk Mitigation

What is the risk profile of the business activities to be undertaken?

What is the impact of unexpected loss of power, phones or data circuits?

What is the security profile of the operation? Is it at elevated risk of industrial espionage, theft, hacking / social engineering attempts, or public protest?

Is the building in close proximity to any location specific hazards?

2. Spatial Needs

Will the floor plates, core placement, column grid, ceiling heights and features like internal atria work for your business?

Are there any groups requiring high levels of floor space density such as call centers or clerical processing teams? Or are there areas where typical occupancy may be higher than expected, such as non-territorial environments?

Conversely what’s the expectation for the density of built zones such as personal offices and meeting rooms?

How large are your various teams? How much do their sizes vary and what are their needs for interaction and collaboration?

How long is the facility required and what are the expectations for changes in team sizes, work practices and technology over that period?

3. Building Performance

Will capacity, sustainability (eg. energy and water efficiency) and other characteristics of the various building services including electrical supply, air conditioning plant, telecommunications risers and elevators meet your business needs?

What are the operating hours? Is shift work undertaken? Will the building’s plant be able to service your needs efficiently outside normal business hours?

Is there to be a computer room or data center? Does it host applications or web services used by customers or users in other sites? Does it need to be on site?

Are there any specialist requirements such as labs or clean rooms?

Do you require particular delivery access or garaging? Do you have areas requiring high floor loading?

4. Amenity

Is the building located close to a public transport hub? If not, is adequate car parking available?

Are there end of trip facilities like secure bicycle parking, shower and locker services to support employees’ lifestyle choices?

Does it provide access to cafés, banking facilities, other retail, gyms and child care facilities nearby?

5. Cosmetic appeal

Will appearance and fit out standards for the building exterior, lobbies, lifts, bathrooms, and the floor and ceiling finishes within the proposed tenancy area align with your brand?

What types of employees are you trying to attract? What will they look for in a building?

What is the profile of visitors or clients attending the site? What are their expectations? Are signage rights important?

Armed with this information you can start to prepare your property brief and prioritize your requirements. In practice it’s a complex juggling act with many traps for the unwary. At the outset, it is useful to assemble a team of internal and external specialists headed by an experienced Project Director, typically covering the following disciplines:

While this sounds like a long list, a good Project Director will help ensure timely and efficient inputs from the necessary experts to develop the right strategy and property brief, and provide effective due diligence on short listed sites.

The story was originally published on Colliers International.

May 8, 2014March 31, 2014 sundancecompany The Sundance Company

The Top of America: The View From 1 World Trade Center

For years after the 9/11 attacks, nearly all the activity at Ground Zero was downward—digging through the piles of debris, excavating a vast pit to restore the ruined transit lines, preparing the foundations for the new buildings that would emerge there. Even the memorial that opened in 2011 was an exercise in the poetics of descent—two vast cubic voids, each with water cascading down all four sides, carrying grief to some underground resting place.

The memorial has turned out to be a lovely thing, but what the site still needed was something that climbed, something that spoke to the idea that emotional burdens might not only be lowered into the ground but also released into the air. Now we have it: One World Trade Center, the glass-and-steel exclamation point, all 1,776 feet of it, is nearing completion close to where the Twin Towers once stood. No doubt the new building’s official dedication will open the way to a necessary debate over its merits as architecture and urbanism, its turbulent design history and the compromises made over the long years it took to get the thing built. But in one important respect, One World Trade Center has already succeeded. It has reclaimed the sky. And this is the view from there, http://time.com/world-trade-center/

May 1, 2014March 20, 2014 sundancecompany business information, The Sundance Company

What Each Country Leads The World In

April 22, 2014March 20, 2014 sundancecompany business information, The Sundance Company

3 Mistakes to Avoid When Networking

We all know networking has the potential to dramatically enhance our careers; making new connections can introduce us to valuable new information, job opportunities, and more. But despite that fact, many of us are doing it wrong — and I don’t just mean the banal error of trading business cards at a corporate function and not following up properly. Many executives, even when they desperately want to cultivate a new contact, aren’t sure how to get noticed and make the right impression.

I’ve certainly been there. Years ago, I was a speaker at a tech conference — as was a bestselling author. By chance, we met in the speakers lounge and, massively unprepared, I fell back on platitudes. It’s great to meet you! I love your work! I handed him my card. If you’re ever in Boston, it’d be a pleasure to meet up! He hasn’t called, and frankly, I’m not surprised.

We’re all busy, but it’s hard to imagine the volume of requests that well-known leaders receive. Reputation.com founder and fellow HBR blogger Michael Fertik told me he receives anywhere from 500-1000 emails per day, and describes it as “a huge tax on my life.” Wharton professor Adam Grant, who was profiled by the New York Times for his mensch-like habit of doing almost anyone a “five minute favor” was rewarded for his generosity by being inundated with 3500 emails from strangers hitting him up. “I underestimated how many people read the New York Times,” he jokes.

Grant does get back to the people who write him — he even had to hire an assistant to help — but most people at the top don’t have the time management skills (or the desire) to pull that off. If you want to network successfully with high-level professionals, you have to inspire them to want to connect with you. Through hard-won experience, I’ve learned some of the key mistakes aspiring networkers make in their quest to build relationships, and how to avoid them.

Misunderstanding the pecking order. The “rules” for networking with peers are pretty straightforward: follow up promptly, connect with them on LinkedIn, offer to buy them coffee or lunch. I’ve had great success with this when reaching out to people I had an equal connection to: we’re both bloggers for the same publication, or serve on a charity committee together, for example. People want to congregate with their peers to trade ideas and experiences; your similarity alone is enough reason for them to want to meet you.

But the harsh truth is those rules don’t work for people who are above you in status. The bestselling author at the tech conference had no idea who I was, and no reason to. My book hadn’t yet been released, and his had sold hundreds of thousands of copies; he was keynoting the entire conference, and I was running a much smaller concurrent session. We make mistakes when we fail to grasp the power dynamics of a situation. It would be nice if Richard Branson or Bill Gates wanted to hang out with me “just because,” but that’s unlikely. If I’m going to connect with someone far better known than I am, I need to give them a very good reason.

Asking to receive before you give. You may have plenty of time to have coffee with strangers or offer them advice. Someone who receives 1000 emails a day does not. Asking for their time, in and of itself, is an imposition unless you can offer them some benefit upfront. Canadian social media consultant Debbie Horovitch managed to build relationships with business celebrities like Guy Kawasaki and Mike Michalowicz by inviting them to be interviewed for her series of Google+ Hangouts focused on how to become a business author. Instead of asking them for “an hour of their time” to get advice on writing a book, she exposed them to a broader audience and created content that’s permanently available online.

Failing to specifically state your value proposition. Top professionals don’t have time to weed through all the requests they get to figure out which are dross and which are gold. You have to be very explicit, very quickly, about how you can help. My incredibly weak “Let’s meet up in Boston!” isn’t going to cut it. Instead, you need to show you’re familiar with the person’s work and have thought carefully about how you can help them, not the other way around. Tim Ferriss of The 4-Hour Workweek fame blogs about how his former intern Charlie Hoehn won him over with a detailed pitch, including Charlie’s self-created job description touting his ability to help create a promotional video for Ferriss and an online “micro-network” for fans of his books.

Networking is possibly the most valuable professional activity we can undertake. But too often, we’re inadvertently sabotaging our own best efforts by misreading power dynamics, failing to give first, and not making our value proposition clear. Fixing those crucial flaws can help us connect with the people we want and need to meet to develop our careers.

The story was originally published on the HBR Blog Network.