Video: Commercial Real Estate’s Economic Contributions to the Economy

Commercial real estate development is a valuable economic engine in the United States – it creates jobs, generates income and significantly contributes to the U.S. economy. Watch this video produced by the NAIOP Research Foundation to learn how commercial real estate development positively impacts the economy throughout economic highs and lows.

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.

What Will the Impact of the 2012 Presidential Election be on Commercial Real Estate?

National Real Estate Investor asked asked 16 industry pros for their thoughts on the upcoming presidential election. Reactions ran the gamut. Some say whomever ultimately inhabits the White House for the next four years will have a big effect on the sector. Others pointed to alternate factors as being more critical in determining the outlook for commercial real estate. What do you think the election will do to CRE?

More Room for Ideas in a Smaller Office

A recent article from the NY Times about gaining savings and productivity from smaller offices.

Ever since the economy started to slow down about five years ago, companies have been looking for ways to reduce their office space costs. One option that has become more popular is reconfiguring the office to fit the same number of workers in a smaller space, and either subleasing the leftover square footage or returning it to the landlord.

Certainly, the primary motive is saving money. But some companies and architects say that having employees in closer proximity makes for a more collegial and collaborative environment — and a more productive and profitable one.

“We wanted people to be able to work wherever the work is, in whatever style,” said Mike Grindell, the executive vice president and chief administrative officer of 22squared, an advertising agency in Atlanta that recently completed a renovation.

The agency originally had three floors at 1170 Peachtree Street NE, and was subletting two-thirds of one of the floors in 2009 when it hired the large architecture company Gensler to redesign its quarters and ensure it met LEED gold energy standards. Gensler teamed with Carter USA, an Atlanta-based commercial real estate company, as project manager and Humphries & Company from nearby Smyrna, Ga., as general contractor.

At 22squared, a privately held agency with $64.7 million in 2011 revenue, the team ended up with a 50,000-square-foot space on two floors that went from an emphasis on hierarchy to one about equality. Before the renovation, natural light was reserved for private offices and conference rooms; now sunlight reigns for all.

Walls were dismantled. Employee work stations are now by windows. Private offices are at the center of the firm’s two floors. Small collaborative spaces are prevalent. White boards and glass walls for writing are everywhere. Work groups come together, dissolve, then come back together again.

By Gensler’s own measure, the revised space has delivered favorable results. Collaboration has increased by 22 percent, according to Gensler’s Workplace Performance Index, which rates workplaces and employees before and after renovations. That score brings 22squared’s rating up to par with the top performers in the advertising industry.

“You see and feel work happening all over the space,” Mr. Grindell said. “There’s better density, energy and productivity on two floors now than on two and a third before.”

Kevin Parker, the president and chief executive of Deltek, a software engineering company in Herndon, Va., said consolidation solved a number of problems at once for his company.

“We were spread out on seven floors in four buildings,” Mr. Parker said. “There was friction from meetings and driving — the buildings were within 10 square miles. With the traffic here, that’s a lifetime.”

Deltek moved into a newly configured space in an existing building last November with the goals of consolidating the company, and taking advantage of cost savings, higher productivity, and more idea generation and sharing.

Now, about 700 Deltek headquarters employees, a diverse group resulting from 11 acquisitions since 2005, are all in one redesigned, six-story building. Employees from two of the acquired companies, once archrivals who competed fiercely to provide information and analysis to companies seeking government contracts, now work side by side.

“The us-versus-them went away,” Mr. Parker said. “It’s one team, one floor. Now we’ve got some mojo.”

Because Deltek’s corporate culture is focused around special events like celebrating new sales, the new building has a vertical and horizontal hub. Circular spaces feed into it to create a sense of community.

“They can bring people together for big announcements,” said Catherine Haley, a senior principal at HOK and Deltek’s architect. “It creates visibility and the ability to network with each other.”

Even some of the country’s largest companies are cutting space. Christian Bigsby, the senior vice president for worldwide real estate and facilities at GlaxoSmithKline, said the company was engaging in what it called an opportunistic “footprint reduction program.” It began to make the investment, based on vacancy, relocations, or lease terminations, about six years ago.

Located in 90 countries with primary administrative centers in Britain, the United States and Belgium, GlaxoSmithKline is enacting the program globally.

“We can move to a smaller building with a smarter, improved working environment for reduced S.G.A. costs,” Mr. Bigsby said, using an accounting abbreviation for selling, general and administrative expenses — essentially, the overhead and indirect costs.

Before the program began, 35 percent of GlaxoSmithKline’s work activities were taking place in cubicles or offices. But those spaces took up 85 percent of the company’s office space, what Mr. Bigsby called a significant misallocation of resources. The question became: if the company provides 85 percent of its space for 35 percent of its work, where was the rest happening?

The answer: in meeting rooms, corridors, coffee stations and during travel. “Our solution is to press down the 85 percent dedicated space and increase the variety of alternative work spaces, because people’s activities did not align to the traditional spaces.” Mr. Bigsby said. “The desk space is now about half of our footprint.”

The arrangement of the workplace into neighborhoods and communities, in the form of benching for six people at a stretch, is not without a down side. On what the company calls bonus day earlier this year, Mr. Bigsby scurried to find a private space to review his salary with his superior.

“Everyone was trying to get a one-on-one,” he said. He had to settle for talking to his boss at a video conference out on the floor.

GlaxoSmithKline provides eight seats for every 10 employees, so it is possible that people might work in a different space every day.

“You get what’s available,” said Ms. Haley of HOK, who was also responsible for the Glaxo design. “If you can work on a computer in the middle seat of an airplane on a flight to Europe, then you can work at a different desk every day. It’s a hotelling desk — it’s not assigned to you.”

Bottom line, the clients say, is that the compression pays off.

“Our contract cycle used to take three to four days,” said Mr. Parker of Deltek. “Now we’ve cut it to hours.” Better yet, the firm has saved $1.5 million in rent.

At 22squared, the savings came during midnight of the recession, when the firm signed a new lease on its Atlanta office. “Let’s just say that over 11 years, it’s 15 to 20 percent better than what we had, plus a top-to-bottom total renovation,” Mr. Grindell said.

For a firm like GlaxoSmithKline, employing about 100,000 people globally, there are certain economies of scale. “We’ve reduced costs by $50 million a year just in our administrative spaces,” Mr. Bigsby said.

Boise ranked among the best places to live, do business

The Boise Valley, home of The Sundance Company since 1976, has been recognized in several high-profile publications by ranking the city as one of the best places in the country to do business and live. You can read the rest of the article here, or read the highlights below.

Brookings, a nonprofit public policy organization that specializes in research, named Boise as one of the top 20 fastest recovering cities. The calculation was based on growth, employment and housing prices.

KPMG studies business environments across the world. The company says in the Pacific U.S., Boise is the lowest-cost place to do business.

Part of that vision is not only a business friendly community, but a family friendly one as well.  Forbes Magazine gave Boise the number two spot on its list because of low crime rates and high school quality.

In the past six months, the Boise Valley Economic Partnership has seen nearly three times as many businesses looking to relocate or expand here. The recent rankings will play into some of those companies’ final decisions. And while Boise is the city named on the lists, business and community leaders say the rankings really extend beyond the city and apply to all of the Treasure Valley.

The entire state of Idaho is also getting some national love from the press. CNN Money just named Idaho as the friendliest state for small businesses.

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 Boise and Meridian locations. More information is available at www.sundanceco.com or 208.322.7300.

Is the iPad an essential tool in commercial real estate?

Well that was the question posed on the LoopNet blog recently, and you might be surprised at the answer. Turns out that a lot of folks in the commercial real estate industry are finding out it is quite the tool in conducting everyday business. Follow the link to read the rest of the story, http://blog.loopnet.com/2011/10/ipad-becomes-essential-tool-for-brokers.html

Do you use an iPad to help with your commercial real estate business? Are you considering using one after reading the story?

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 Boise and Meridian locations. More information is available at www.sundanceco.com or 208.322.7300.

Real Estate Signboard Strategy

As a real estate agent, your success in attracting listings is going to be faster if you have a lot of signboards placed on properties in your local market. Quite simply, the more the local people see your name on signboards the more they will identify with you and remember you when the time comes to sell.

No vendor wants to list their property for sale or lease with an agent or salesperson that is unknown. For that reason when you start off working in the industry or when entering a new area you should do a lot of work in the first few months to build your name. It’s called personal branding. The most successful salespeople have it. Most other salespeople have little of it.

When you start to build your brand you should regard it as an ongoing task that will not stop. The bigger your personal brand, the better things will be for you.

It sounds simple as a base concept in territory management and selling real estate. However such a principle needs to be stated again here as it is overlooked by so many. In absolutely all respects your success in real estate sales is almost totally up to you and how you market yourself.

So now let’s go back to the point of putting lots of signboards into your real estate market. Here are the rules to the process:

1. Getting them placed on properties located on main roads is very important as it will give you free advertising.

2. The signs have to be of similar branding and colour to build consistency and image.

3. Always put your name on the sign boards and include a mobile phone number for out of hours contact.

4. Keep the signboards free of graffiti as that will send the wrong message to the other vendors in the area.

5. Within reason use the maximum signboard size that the local council will let you use.

6. Put some property reference number on the sign so the person calling can easily identify the property to you.

7. The sign has to be located in the best position on the property so it is seen by passing people and traffic.

8. Make sure the sign is secure so you do not have a damages claim from a falling sign.

9. If possible use a photo sign that features your photograph as well as some photo from the property. This will also help with your personal branding.

10. When something is sold or leased, make sure you get a label placed on the existing sign so the market knows of your success.

When correctly approached your signboard strategy can go a long way to helping you build market share for your real estate office and you personally, and that signboard will attract more listings and inquiries your way.

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 Boise and Meridian locations. More information is available at www.sundanceco.com or 208.322.7300.

Boise Valley Commercial Real Estate Space For Lease

In the Boise Valley, confident tenants and buyers look to The Sundance Company for development; office, warehouse, and retail leasing; property management; build-to-suit/construction; and land and building sales. With more than 1.5 million square feet of prime office and industrial space in the greater Boise Valley, The Sundance Company has the size and diversity to avoid the need for a “one-size-fits-all” approach—thereby assuring customized solutions that are genuinely tailored to each client’s needs.

Every project by The Sundance Company is conceived and executed with integrity, innovation, accountability, and dedication by a team of seasoned experts who always remains mindful not only of tangible aspects of a property transaction but also the intangible. For more information about The Sundance Company’s available office space in The Boise Valley including Meridian please contact us today at 208-322-7300 or visit one of the below links to our website, www.sundanceco.com.

Office Space for Lease in Boise

Industrial Space for Lease in Boise

Retail Space for Lease in Boise

Office Space for Lease in the Boise Valley

Industrial Space for Lease in the Boise Valley

Retail Space for Lease in the Boise Valley

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 Boise and Meridian locations. More information is available at www.sundanceco.com or 208.322.7300.

Will The U.S. Commercial Real Estate Market Outshine The Stock Market?

According to a new CB Richard Ellis report, the U.S. commercial real estate will perform better than the country’s volatile sharemarket during the current economic downturn because investors value its intrinsic quality.

Please click below to read the rest of the story.

http://www.smh.com.au/business/property/us-real-estate-to-outshine-risky-stockmarket-20110814-1isxt.html

Do you agree with the report?

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 Boise and Meridian locations. More information is available at www.sundanceco.com or 208.322.7300.

Optimism Abounds For Commercial Real Estate Market

A recent article from REIT.com discusses how analysts and investors are finding plenty of reasons to be positive about the general outlook for the commercial real estate market in the second half of 2011. As they look ahead to the next six months, industry observers are projecting healthy demand for commercial real estate space in light of a brightening jobs picture.

Please click below to read the rest of the story.

http://www.reit.com/Articles/Optimism-Abounds-for-CRE-Market-in-Second-Half.aspx

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 Boise and Meridian locations. More information is available at www.sundanceco.com or 208.322.7300.

Creating a Culture of Innovation

Here are some ways to help your organization help foster an environment of innovation in your office. Commit to a few of these today and you might be surprised at the results.

  • Remember that innovation requires no fixed rules or templates — only guiding principles.  Creating a more innovative culture is an organic and creative act.
  • Wherever you can, whenever you can, always drive fear out of the workplace.
  • Have more fun. If you’re not having fun (or at least enjoying the process) something is off.
  • Always question authority, especially the authority of your own longstanding beliefs.
  • Make new mistakes.
  • As far as the future is concerned, don’t speculate on what might happen, but imagine what you can make happen.
  • Increase the visual stimuli of your organization’s physical space. Replace gray and white walls with color. Add inspiring photos and art, especially visuals that inspire people to think differently. Reconfigure space whenever possible.
  • Help people broaden their perspective by creating diverse teams and rotating employees into new projects — especially ones they are fascinated by.
  • Ask questions about everything. After asking questions, ask different questions. After asking different questions, ask them in a different way.
  • Ensure a high level of personal freedom and trust. Provide more time for people to pursue new ideas and innovations.
  • Notice innovation efforts. Nurture them wherever they crop up. Reward them.
  • Encourage people to get out of their offices and silos. Encourage people to meet informally, one-on-one, and in small groups.
  • Think long term. Since the average successful “spin-off” takes about 7.5 years, the commitment to innovation initiatives need to be well beyond “next quarter.”
  • Don’t focus on growth. Growth is a product of successful innovation. Focus on the process of becoming adept at taking ideas from the generation stage to the marketplace.
  • Make customers your innovation partners, while realizing that customers are often limited to incremental innovations, not breakthrough ones.
  • Before reaching closure on any course of action, seek alternatives. Make it a discipline to seek the idea after the “best” idea emerges.
  • Know that attacking costs as a root problem solves nothing. Unreasonable costs are almost always a sign of more profound problems (e.g. inefficient structures, processes or training).
  • A great source of new ideas are people that are new to the company. Get new hires together and tap their brainpower and imagination.
  • Get customer feedback before committing resources to a product’s development.
  • Seek diversity of viewpoints. Get people together across functions. A diversity of views sparks more than conflict — it sparks innovation.
  • Don’t make innovation the responsibility of a few. Make innovation the responsibility of each and every employee with performance goals for each and every functional area.
  • Give your people specific, compelling, and measurable innovation goals.

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 Boise and Meridian locations. More information is available at www.sundanceco.com or 208.322.7300.