The current residential real estate market presents both challenges and opportunities, especially due to the Baby Boomers.
Reading the recent “Coworking Checks Into Hotels” article in Commercial Property Executive left me with a few questions. The article discussed hospitality brands contemplating how co-working in hotels “might strengthen community ties and bring in additional revenue,” arguing it’s a logical next step as many lobbies currently serve as de facto office space. Some brands, like Moxy Hotels, Hoxton, Ace and Virgin, already offer co-working at their properties. My question is how can you control access or charge for the co-working space. I assume creating a unique situation for hotel guests or loyalty program members is one option, but I remain skeptical about how the concept would perform as a revenue generator. And based on my recent blogs about WeWork and other co-working and incubator models, like Roam and Atlanta Tech Village, the universe of co-working (with or without the hospitality component) is becoming awfully crowded. How many of these
I recently asked the question, Does WeWork Work? And answered the question with a “We’ll see…” But there’s other co-working/incubator models out there worthy of discussion. Co-Working and Incubator Models On a recent panel at GSU’s Views From the Top was a Roam Innovative Workspace representative. Like WeWork, Roam is an alternative office model, but currently boasts only five locations. There are also Incubator tech business models out there. One such model is the Atlanta Tech Village. One model is not necessarily better than the other, but what is certain is they all disrupt the office market. Quick Thoughts on WeWork I dove deep into WeWork previously and questioned how the concept can compete with traditional landlords, REGUS and CBRE’s Hana concept, which can easily adapt to the changing market. Essentially, WeWork acts as a landlord, but offers more flexible leasing options. It is very much a real estate-based model, with
The Empire Strikes Back The Wall Street Journal’s recent article “CBRE Launches New Co-Working Business, Taking on WeWork” offers proof to points made in my recent blog, “The Sharing Economy: Does WeWork Work?” Here’s what I said: “[WeWork] does not have a monopoly on the concept. Ordinary landlords can easily replicate the model.” And that’s just what CBRE plans to do with its new offering, Hana. Hana’s main offering, Hana Team, offers professional teams (8 – 300+ people) customizable space with desirable amenities. Each Hana facility will also contain Hana Meet, on-demand meeting rooms, and Hana Share, shared desks and coworking space. In Stan’s Opinion There’s no doubt WeWork has changed the office leasing paradigm. But I do doubt the company will survive in the long run. Their concept can be easily replicated, and existing landlords control what happens in their buildings. In addition, companies like Regus have adapted their flex
“Merry New Year!” Why not recall Eddie Murphy in the classic Trading Places and start the new year off with a smile? I usually start my new year attending GSU’s industry conference Views From the Top. The 2019 version did not disappoint. This year, I was intrigued by the Industry Panel: “New Faces, New Spaces, and the Shared Economy.” Ideas being birthed from the sharing economy concept should be of great interest to us folks in the commercial real estate industry. Current innovations will certainly impact the CRE business—and in many cases, change the way an entire segment of the industry does business. Just think about WeWork—one concept that is disrupting the office market—and whose rep sat on the conference’s panel. I Work, You Work = WeWork? Many different opinions about WeWork exist, but regardless of what you think, they are a force in the office market that cannot be
Word on the street suggests an Atlanta restaurant bubble exists even as the metro area experiences solid population growth, people cook less and many spend disposable income to dine out. Within these macro trends is continued retail development anchored by new restaurant concepts which impacts the sales of existing stores even while overall sales grow. Also affecting the industry are delivery services such as UBER Eats, online sales of prepared meals, and growing competition by supermarkets offering prepared meals. What’s the Worry? A recent Bisnow article suggests the Atlanta restaurant bubble is indeed happening. According to a NetFinancial report, “[R]estauranteurs are still seeing sales volume growth overall, with a 4% increase in the first quarter compared to 2017, [but]…more than half of the restaurants surveyed (103 non-franchised restaurants) experienced negative sales in the first quarter.” In a recent BisNow panel, RO Hospitality founder Ryan Pernice said even good restaurants with
It’s a simple truth: The retail market and business changes more than any other property type. In “How Retail is Shifting: A Focus on Malls,” I delved into the changes happening to retail malls. Continuing that idea, let’s take a look at other trends impacting retail real estate and consider how developers and investors are pivoting to take advantage of these trends. Current Trends Impacting Retail Real Estate Bank + Drug Store consolidation and shift to online services High-Density Residential Development in urban + close-in suburban areas Cultural demand for broader Entertainment Experience + Personal Service Continued popularity of Dining Out + Prepared Foods Growth of unregulated services, such as Uber Growth of Amazon, including its new private-label brand initiative With these trends in mind, the retail industry’s developers, property owners and retailers must adjust their thinking. Here’s a few ways that’s happening: Ways Retail Industry Leaders Pivot Addition of