Displaying items by tag: CRE consulting

We’re almost two years into the COVID-19 pandemic, and industries are still feeling the reeling effects. The commercial real estate (CRE) industry is no exception. The course has changed for many industries with a transformed landscape leading to 2021 commercial real estate trends that will carry on well into 2022.

As experts in the commercial real estate industry, Lavoro Consulting has kept a watchful eye on trends that affect our clients’ CRE plans, from engineering firms to property managers. As such, we've compiled a list of the most important trends we anticipate effecting commercial real estate beyond the next year.

6 Top 2022 Commercial Real Estate Trends & Predictions

1. Office Space and Remote Workers

The in-office workforce is shrinking and adapting to a new norm. The pandemic isn't over and companies are still making post-pandemic decisions about their employees' workspaces. With remote and flexible work still an upward trend, many businesses with office space find themselves contemplating a lease renewal for a space that is now too large for their transformed workforce.

That’s why many office tenants are planning on negotiating with their landlords for smaller units upon their lease renewals. With approximately 30% of Americans working remotely, many more companies are going to have to rethink the nature of their employee workspaces and downsize their physical business locations.

2. Vacancy

As mentioned above, office attendance has been declining for the past decade, paving the way for remote work. However, the COVID-19 pandemic has blown this trend out of the water. In fact, the National Association of Realtors (NAR) found the total loss in office occupancy to be 133 million square feet since 2020 Q2. Office attendance is now at a steep decline with employers and employees alike supporting working remotely in a location of the employees' choice.

This offers flexibility to workers and cost savings for employers on things like rent, furniture, and office supplies. With a large portion of the workforce transitioning to remote or hybrid work and employers downsizing their rental space requirements, we're seeing significant office vacancies from now into the foreseeable future.

3. Industrial Space & Warehousing

Industrial spaces and manufacturing warehouses are the property types that saw the biggest growth in 2021. This was due to the fact that these types of spaces were able to adapt quickly to the changing needs of businesses during this recent crisis. While some of these spaces may not see as much growth in the future, they will continue to serve as a valuable asset for CRE owners who can capitalize on them.

4. Mixed-Use Properties

A trend that is growing, and will continue to grow down the line, is the value of mixed-use properties. With convenience high on the list of many communities and urban developments, properties with two or more uses are seeing massive growth in the commercial real estate sector. All-in-one vertical properties mixing residences, co-working spaces, and lifestyle enhancement are in demand by millennials and baby boomers alike. A mixed-use development tends to be more sustainable as well, which is a top emerging focus for commercial real estate investors.

5. More Investment Competition

Investors and private buyers alike are taking advantage of lower interest rates. With a scarcity of residential properties, especially in urban developments, high net-worth investors are buying up commercial properties. With such a high demand and dwindling supply, the competition for CRE opportunities is high. The window is closing to take advantage of current interest rates and remaining investment properties.

6. Restaurant and Retail Spaces Will Suffer

Restaurants and retail in urban and rural areas have already taken a massive hit over the past two years, due to the pandemic. Areas that typically saw a lot of office workers and commercial buildings, like downtown areas and office complexes, are going to continue to see a lot of retail and restaurant closures and downsizing. With fewer employees being housed in large office spaces and more people working remotely, there are fewer people visiting shops and restaurants in urban metro areas. This will continue to contribute to more building vacancies in metropolitan areas compared to the suburbs where you’re starting to see restaurants starting to recover.

What Do These 2022 Commercial Real Estate Trends Mean For You?

Although the landscape has shifted across the commercial real estate sector, there is and will continue to be a growing demand for commercial investments. However, your investment choices and the way you manage your portfolios will look a lot different than before the global pandemic. In light of these events, investors should take note of these trends and ensure they account for them when making investment decisions.

At Lavoro Consulting, we can not only help you understand the current market conditions, but we can use them to your benefit. If you're thinking about investing in real estate, we'd be happy to help! Contact us for a free initial consultation.

And if you’re looking to restructure your current office space and lease to suit your evolving business needs, then you may want to talk to our experienced tenant rep and office fit-out specialists.

Published in Consulting

As the CEO of a small business, it can be difficult to acquire the right workspace for your company. When you don’t have a commercial real estate expert in-house, leasing the right facility can be a challenge. But when you have an expert in corporate real estate consulting on your side, you can make things a little easier for your business.

So how can you find the right CRE consultant for your needs? Do you really need to hire a CRE consultant? Where should you get started? We’re here to clear the air on this topic.

As a top provider of corporate real estate consulting in Denver, we've developed 4 considerations that you need to carefully weigh as you think through your CRE needs. These questions will help you evaluate your CRE needs as your company grows and changes for the better.

4 CRE Considerations From an Expert in Corporate Real Estate Consulting

When most people think about commercial real estate, they first think about large companies like Google and Amazon that own massive amounts of office space. But you don’t have to own a commercial building to utilize it! Commercial real estate is a complex industry that has never been out of reach for smaller entities.

Let's walk through the top 4 things to consider when it comes to corporate real estate.

1) Which type of property should you lease?

There’s a wide range of commercial properties on the market and they all serve unique business purposes. From retail and industrial spaces to multi-family residences and other types of property, your CRE strategy all starts with nailing down the right type of listing.

This decision can have massive implications for the future of your company. For example, if your business is product-based (e.g., a clothing company), then you’ll likely need to lease a larger industrial property to create your products. However, the same can’t always be said for financial-based businesses, like financial advisors or CPAs.

Before you dive headfirst into one property type over another, it may help to ask yourself a few guiding questions first. To nail down your property type, ask yourself questions like:

  • How will your company utilize your next commercial real estate property?
  • Do you anticipate that your business will grow in the next few years? If so, how might that affect your CRE needs?
  • Will clients and customers be visiting your location regularly?

2) How much time can you spend on your CRE search?

Once you’ve nailed down which type of property is best for your company, then you’ll need to find the most appropriate listings for your company. Unfortunately, this can be a complex, confusing, and arduous process, especially if you are unfamiliar with CRE.

You can expect some stiff competition across the commercial real estate market in Denver. CRE leases may last for 5, 10, or even 15 years, but listings for corporate real estate may only be available for a handful of days. This can make it very difficult to acquire the right property for your needs at the right time. And when you need to balance your work with your CRE search, timing can become an even greater issue.

For that reason, it can be very helpful to leverage the support of a corporate real estate consultant. They’ll monitor the market for you each day and will have access to CRE listings that aren’t publicly available. They will leverage their years of experience to analyze local listings to locate the most fitting options for your budgetary constraints and your property needs. Thanks to their expert CRE support, you’ll be able to acquire the right property for your company when you need it most.

3) What property upgrades will you need to install?

No single property listing will ever meet all of your needs. While a given listing may check off many of your “must-haves,” it may still miss some key items. For instance, some office spaces may have adequate square footage but may lack a functional kitchen area. So you may need to account for that property upgrade.

When you enlist the help of corporate real estate consulting services, you won’t need to worry about those property upgrades. Your CRE expert will handle all of the logistics of your upgrades and will ensure that the appropriate features are in place by the time you move in. Not only that, but they’ll handle every part of your office fit-out project including:

  • Budget and schedule management
  • Design and construction management
  • Contract negotiations and vendor management
  • Move management
  • And more

4) Who should you hire for corporate real estate consulting in Denver?

It’s no secret that commercial real estate is time-consuming, stressful, and chaotic. For that reason, it’s best to hire a CRE consultant to manage your CRE search, your lease(s), and your office fit-out.

When looking to hire a CRE consultant, make sure you look for someone who is experienced. They should know the local market well enough to spot trends before others. It’s also important to make sure their experience includes working within your industry. If a CRE broker has not worked with other companies similar to yours, then they may struggle to find the right listings for you.

If you're ready to find your next commercial real estate lease in Denver, you're likely best served by hiring a corporate real estate consultant. And you’ve already come to the right place at Lavoro Consulting.

No matter your goals or budget, we can achieve your CRE needs at Lavoro Consulting. Our corporate real estate consultants have:

  • Successfully managed portfolios and projects in excess of 600,000 SF with budgets of more than $25M.
  • Helped clients and companies negotiate lease savings over $10M in just a single transaction.

Take the next step with Corporate Real Estate Consulting in Denver

As you can see, there's a lot to consider and hammer out when looking for commercial real estate listings. As the CEO of a small or medium-sized business, don’t make your next CRE move without expert partners like us at your side.

Are you ready to start taking serious next steps in your company's commercial real estate future? Contact us at Lavoro Consulting today to make the right moves towards corporate real estate success!

Published in Consulting

In today’s increasingly competitive business environment, companies are constantly trying to balance the development of internal resources against outsourcing services. Whether or not a company can employ a facilities management team depends on a variety of factors, including their budget, operational needs, and the size and trajectory of the company, among other things. Now more than ever, CEOs and senior execs are realizing that a well-maintained building enables their employees to operate more efficiently. But that begs the question: can you manage a building on your own or should you start vetting facility management companies?

Published in Consulting

A company’s real estate portfolio is often one of its biggest expenses. Leasing out office space isn’t cheap, no matter where you operate. To save money and cut down on costs, many companies try to have internal staff manage their real estate holdings. While this may be a realistic option if you operate in only a few locations, any more than that and it can quickly become too difficult to manage. Not to mention, CRE management takes time away from your employee’s primary responsibilities and can significantly disrupt their daily work. Outsourcing those responsibilities to a commercial real estate leasing administration manager can offer many benefits for your business.

Published in Consulting

Navigating the world of commercial real estate can be complex. Whether you’re interested in leasing new office space or buying industrial warehouses, having an experienced commercial real estate consultant on your side can save you a significant amount of time and money. If you’ve started your search for a new space, you already know how time-consuming it can be. However, with a limited portfolio and infrequent projects, having a dedicated real estate professional on-staff is probably out of your budget. That’s where commercial real estate consulting comes in.

Published in Consulting