The past year has been full of challenges from a traditional office perspective. These challenges have come in a series of phases ­­— initially sending employees home for an indefinite amount of time, implementing physical and tech upgrades to safely welcome workers and guests into offices, creating a potential hybrid working model to accommodate distancing in the workspace and now waiting on sufficient vaccine distribution that will encourage more employees to return to the office. As we look at the progress we’ve made toward re-entering physical workspaces, there is still a great deal of uncertainty as to when occupancy will return to pre-COVID levels. On a recent Realcomm webinar, a group of panelists was asked when they thought their offices would return to some sort of normalcy. Their answers varied: “When we hit 50% occupancy could vary, especially in California with its restrictions,” said Stuart Appley, managing director at CBRE. Appley suggested that around September he believes they could reach 30% capacity in office. Susan Gerock, CIO and vice president of IT at Washington REIT, says she’s hopeful to be at 50% occupancy “at some point in the fall, but many companies won’t even try to start bringing people back until September.” Joe Rich, senior vice president at Related Companies, and Ilan Zachar, CTO at Carr Properties, both pushed their timelines out a bit further, with Zachar saying his customers believe the end of 2021 will bring some normalcy, while Rich admitted that a return to 100% occupancy is unlikely to happen at all in his opinion. This is a significant cause for debate among industry leaders, because while there is a chance that 100% occupancy is a thing of the past, there is a wide range of guesses as to what working models...

Industrial real estate continues to see strong rent growth and high demand, driven by pandemic-prompted online shopping trends. Industrial rents averaged $6.44 per square foot in January, a 5.1% increase over the last 12 months, according to a new CommercialEdge Industrial National Report. Even as vaccinations ramp up and more people return to more normal-looking lives, demand for industrial is expected to stay strong. New leases signed in 2020 often included premium pricing, with the average rental rate for new leases signed in the last 12 months at $7.50 per square foot. The average vacancy rate was 6.0%. Continued demand for industrial space will sustain rent growth and drive vacancy rates lower. “We expect that demand will continue to increase even if e-commerce does not match its blistering 2020 growth rate. E-commerce has a continued role to play, and last year likely signaled a structural shift in consumer preferences more than temporary changes in behavior. Retail as we knew it has changed, and in its place warehousing and distribution have increased in importance,” say analysts. An improving global economy, ramped up trade volume and inventory replenishment for retailers will be additional drivers. Sector investment activity is healthy and growing as well. The fourth quarter of 2020 now has the highest sales volume of any quarter since Yardi Matrix began collecting industrial data, with $11.9 billion of sales completed. Properties fetched an average price per square foot of $100, an 18.2% increase year-over-year. Find more trend and data insights in the latest national industrial report from CommercialEdge. CommercialEdge provides extensive property data that includes transaction, ownership and debt information, offering nationwide coverage across all commercial real estate asset types. Use the platform to uncover vital market data and get insights with the latest lease and...

The Housing Authority of the County of Kern, headquartered in Bakersfield, Calif., will implement Yardi’s Rent Relief cloud-based software to support its Emergency Rental Assistance program. As an administrator of federal stimulus funds directed towards helping households and landlords recover from the economic impacts of COVID-19, Kern expects to disburse millions in funds over the coming months. The emergency rental assistance program is designed to prevent loss of housing by supplementing rent payment for households impacted by the pandemic and by helping landlords keep current with mortgage payments. Kern County weighed the merits of several software providers before selecting Yardi. “Centralizing emergency rental assistance onto an end-to-end, single platform that tracks everything from initial application to executing payments will make us more efficient and enable us to operate with complete transparency. Yardi has a documented history of processing millions of monthly financial transactions as well as creating cloud-based interfaces for end users and housing staff. I expect Rent Relief will leverage that experience for the benefit of our community and staff,” said Stephen Pelz, executive director of the Kern County Housing Authority. Rent Relief powered by Yardi is a new solution that leverages decades of technology development and client support. Rent Relief offers portals for households to submit applications for assistance including easy upload of supporting documentation. Kern County housing staff will be able to log on to view and process applications, disburse funds to renters and landlords and easily produce the data for state and federal oversight offices. “Yardi is committed to help agencies keep renters housed as we endure the pandemic. We have nearly four decades of experience developing this type of full-service technology,” said Chris Voss, vice president of affordable housing at Yardi. Learn more by visiting RentRelief.com or attend an upcoming webinar. State and local...

Who knew that the 2019 “Yardi Gras” celebration at YASC DC would be a prescient window to the future? This year, instead of typical Fat Tuesday revelry, the citizen of New Orleans are celebrating in a very different way: at home, due to the ongoing pandemic. It’s a theme we’re all familiar with at this point, after nearly a year of working, living life and celebrating milestones – all from home. Our yards may be very familiar at this point, but they are also a creative space for expression and fun. Nowhere is that more true than in New Orleans today. Historic Tradition, Reimagined “Since 1857, Mardi Gras celebrations in New Orleans have been called off only 14 times, because of war, mob violence, or labor disputes,” reports Bloomberg News. “This year will be the 15th. Much as the city came together after the devastation of Hurricane Katina, turning Carnival into a celebration of hope amid the mourning, Crescent City citizens are still letting the good times roll and supporting each other while they’re at it.” Originally, Yardi Gras, as city officials are calling it, began as a fundraiser. The Krewe of Red Beans was looking for a way to help the artists who create the city’s typically over-the-top parade floats. With no parades, no income was coming in. After the fundraiser as publicized, the idea gained grassroots traction – often on actual grass. As a result, this year there are more than 3,000 “house floats” at individual homes around New Orleans and beyond. A Spirit of Celebration “It’s a spirit of celebration just like that we had in Washington D.C. at YASC two years ago,” said Tim Hoover, creative director for Yardi. “We brought in Sierra Green and the Soul Machine to entertain...

Along with changing the way we do almost everything, 2020 caused multifamily operators to re-think their marketing and leasing strategies — including applicant screening. While most businesses have pivoted to online services and are seeing benefits including reduced operational costs, online resident screening requires some attention to ensure quality renters are selected and risk is minimized. The latest webcast of The Executive Brief series, Emerging Trends & Strategies in Resident Screening, tackles this very issue. In this session Patrick Hennessey, Yardi’s vice president overseeing ScreeningWorks Pro, talks to Sarah Ogelsby-Battle, president of residential at Beztak and Jennifer Hayward, vice president of transition management at Pennrose, about how they’ve adjusted their resident screening strategies during the pandemic and for the future. From national trends in apartment application data to fraud prevention, these industry pros share insights to help guide multifamily screening practices in 2021 and beyond. National Rental Application Trends While screening volumes were at a historic low from mid-March to mid-May in 2020, after reaching normal volumes by the end of May, the industry saw a spike with higher-than-ever volumes in July, August and September. According to Hennessey, “Not only did most of the people who weren’t in the rental market in March and April re-enter, but we also saw additional people entering the market.” Hennessey pointed out a few other interesting trends in rental applications including how and when they’re being submitted. “One of the interesting things we observed as things went virtual and people were doing self-guided tours and applying online, is we’ve been seeing fewer and fewer screenings on weekends and into Mondays, and a spike in screening and leasing activity on Tuesdays, Wednesdays and Thursdays.” He added that some clients have restructured their on-site team schedules as a result. With...

Office markets across the country faced a harsh year in 2020, and the outlook is still unclear, at least for the near-term. Vacancy rates ticked up 40 basis points to 14.2% and full-service-equivalent listing rates fell 1% nationally to $37.76 in the last 12 months, according to the January CommercialEdge National Office Report. Meanwhile, employment in office-using sectors has also largely been tracking the office space sector overall. Following a slight rebound in the summer and into early fall, employment is now falling again as the third wave of the virus drags on. Nationally, office-using employment fell 3.4% y-o-y in December. In fact, only 16 of the 120 markets covered in the report saw an increase in office-using employment, but most of them were under 2%. However, Austin’s office-using employment actually rose 6.4% in the last year, signaling a rosier outlook for Austin office space. Despite the overall downturn, new office construction still continued. Even though some projects were halted temporarily, 67.6 million square feet of office space was delivered nationwide in 2020. Currently, Charlotte and Austin stand out as both have the most square footage under construction — 11.5% and 10.8%, respectively, of their overall stock. “They both have high levels of domestic in-migration, and they have benefited from financial firm relocations. While New York City is still the financial capital of the world, financial jobs have been leaving for markets like Charlotte and Austin for years,” analysts noted in the report. “Much of the growth is driven by the financial activities sector, even though tech relocations capture most of the attention.” One aspect of the office’s uncertain future is related to how we’ll get back to normal. The vaccine rollout isn’t going as fast as many hoped, so a return to normalcy...

COVID-19 generated widespread disruption in senior housing, as it did to almost every other real estate sector. Senior housing community occupancies dropped after move-in moratoriums were declared and new safety protocols drove up operating costs. Some observers, however, are finding reasons for optimism. For one thing, “unlike many other real estate sectors, senior housing operators are collecting rents,” says senior living and health care consultant Jim Moore, writing in news and analysis source McKnight’s Senior Living. And a research report issued by JLL in the spring, citing stabilizing occupancy and rent collections, noted, “Eight weeks into the COVID-19 pandemic, the seniors housing sector is showing signs of rejuvenation, once again proving its resiliency despite some early concerns.” Weighing in on the perspective of residents and their families, Boston-based Hebrew Senior Life, a nonprofit provider of senior health care and living communities, offers several reasons why this is a good time to move into a senior living community: Necessities of life. Many communities offer safe delivery systems for food, medicine and other essentials, along with in-house maintenance, IT, housekeeping and security. Health care/wellness services. Some senior living communities provide onsite clinics for primary care, medication management, prescription refills and even physical therapy. There might also be dedicated fitness centers and outdoor spaces. Infection controls. This includes sanitation of lobbies, hallways and other common areas, along with staff training and screening. Stringent socializing. “The strongest senior living communities offer safer socialization than anywhere else,” Hebrew Senior Life says, including small group dining and virtual presentations of educational programs, hobby gatherings, spiritual activities and more. Simpler finances. Residents no longer have to deal with the financial aspects of home management or worry about fluctuating home values. The short-term challenges to senior living are undeniable, “but, properly designed,...

It’s a rosy outlook for the newest real estate sector to be featured in a CommercialEdge monthly report. In 2020, the industrial sector was considered the top performer of all major real estate sectors. Industrial rents averaged $6.38 per square foot in December 2020, a 4.8% increase over the last 12 months, according to the first-ever CommercialEdge Industrial Monthly. All of the top 20 markets covered in the report saw at least some measure of growth in average rent over the last year. The ongoing industrial report will cover data on rents, occupancy, supply and transactions, as well as key economic indicators. “Rent growth across the board bucks the trend of other commercial real estate asset classes. Both multifamily and office have a substantial share of markets with falling rents and increasing vacancies, something not seen among the top 20 industrial markets,” note the analysts. Demand for e-commerce infrastructure and a huge boost in online sales during the pandemic have been a boon for industrial assets. Today, e-commerce accounts for nearly one-fifth of core retail sales. In 2020, a record 228.4 million square feet of industrial space was delivered, the most new space completed this century. That milestone is a further indicator of the health of industrial real estate. These projects were well underway before COVID-19 induced a demand surge for industrial space, signifying that the industry was already on the upswing before 2020 put things into overdrive. Find the full CommercialEdge Industrial Monthly for...

Dial Senior Living, manager of more than 2,100 independent living, assisted living and memory care units in seven U.S. states, embraces a philosophy of continuously improving its offerings. Along with providing caring, comfortable communities, “we’re also committed to investing more than our competitors in staffing, entertainment, technology, ambiance, quality goods and services, and overall lifestyle,” says Ted Lowndes, president of the Omaha, Neb.-based company. As part of their ongoing technology and quality initiatives, Dial leaders recently evaluated the programs they used to manage marketing, care and other operations. They found that the separate and uncoordinated systems in place duplicated information gathering and limited reporting capabilities. Perhaps worst of all, according to Michael Bowles, project coordinator for Dial, “our executives couldn’t generate reports. They had to put in a ticket, which made them and our investors wait. We wanted a more efficient reporting workflow and more responsive investor service.” These findings prompted Dial to seek out Yardi Senior IQ, a business intelligence solution that compiles operational and financial data from the Yardi Voyager Senior Housing technology platform. Reports generated by Yardi Senior IQ delivers in-depth insight into Dial’s occupancy, finances and other performance metrics. The solution also automatically compiles custom reports requested by the company’s investors. “Yardi Senior IQ is fantastic because it establishes orderly workflows and creates new reports from existing ones, complete with custom dashboards. Investors can get very specific information on demand without having to wait for us to send it,” Bowles says. “Our marketing, care and finance teams work as one team now because nobody is duplicating somebody else’s data compilation. That has drastically cut down manual tasks and helped us maintain operations with fewer people onsite, an important consideration in the COVID-19 era.” By replacing spreadsheets with a single connected...

Do you remember when online shopping first began to disrupt brick and mortar stores? Shops struggled before the pandemic and now they face additional hurdles. Fortunately, small business owners are creative and resilient. We interviewed several small business owners and marketers to learn how they’re staying in business and keeping customers engaged during the pandemic. Re-creating the in-store experience Consultations, semi-private + private shopping Exclusive, in-store shopping experiences were once reserved for the rich and famous. Big-name customers could arrange to shop outside of operating hours or arrange have the shop vacant during their visit. While this is still the case, there are new players on the field. Tiny shops lifted a page from the celebrity handbook. These small stores limit the number of people permitted in the building to create a more private shopping experience. The added benefit is that customers gain more one-on-one attention and support from clerks. “This is a terrific way to permit in-person shopping while building customer loyalty and encouraging good online reviews,” says Edith Peele, owner of Simple Threads clothing boutique near Covington, GA. “We’re limiting the number of shoppers for safety, but it feels more like an exclusive, fancy shopping experience.” Interactive shopping A second opinion can be an incredibly valuable thing. You’ve likely been there: you have two (or more) products that you like. You need to narrow down your options but can’t seem to make a decision on your own. You reach for a second opinion. That second opinion can now be a store clerk on FaceTime or in a chat window. It’s a relatively simple way to encourage safe interaction and a value-add service not found in larger online-only retailers. Make gift preparation a breeze By preparing online purchases as gifts, retailers take three...

Did you know that pets offer several health benefits for seniors? Furry, feathered and scale- friends have long received respect as dear companions. Pet ownership also offers direct physical and mental health benefits that are essential during quarantine. Companionship comforts Quarantine exacerbates feelings of loneliness and isolation that seniors may already experience. Pets, with their unique personalities, preferences and interests, offer seniors a companion when friends and family are unable to visit. Pets ease feelings of loneliness and distress. Dr. Helen Louise Brooks and her team at the University of Liverpool in the United Kingdom screened more than 8,000 articles and reviewed 17 papers on the subject. She reports,“Pets provided acceptance without judgment, giving unconditional support, which [participants] were often not receiving from other family or social relationships,” says Dr. Brooks. Improve mental health Pets should be included in patient care plans, particularly when diagnosed or self-reported mental illness is a factor. Dr. Kelly Rushton co-authored a study published in the journal BMC Psychiatry. She discovered that pet ownership resulted in several positive outcomes for patients’ mental health. Participants living with depression, anxiety, schizophrenia, bipolar disorder and post-traumatic stress disorder reported improvement in symptoms. Study participants report that pets provide a sense of unconditional love while helping them manage their emotions. Patients who were subject to violent outburst experienced better self-regulation and fewer acts of aggression. Patients who used to fixate on the symptoms of their mental health found a positive distraction in their pet. “We feel that pet ownership has a valuable contribution to mental health, so should be incorporated into individual care plans of patients,” says Rushton. Improved mood + outlook Caring for and interacting with a pet produces serotonin, the chemical hormone that promotes positivity and happiness. Serotonin is essential for mood stabilization and...

“Heading into 2020,” Senior Housing News reported last January, “many senior living providers are focused on making investments to upgrade the resident experience, to stand out in a competitive landscape and appeal to future consumers.” Those investments are happening, albeit in different circumstances than could have been anticipated. Even before the pandemic, Barron’s noted, “The senior-living industry was already in a state of flux—adjusting to longer life spans, more-active retirements, a labor shortage, and changing desires for care.” A task force convened by the International Council on Active Aging identified six principal areas that will define the “next normal,” including community designs that optimize social distancing and technology that increases connections and efficiency. The imperative to maintain resident and family engagement in the senior living environment makes digital programming and other technology a top priority for senior living operators, says Detroit-based integrated design firm SmithGroup: “We must design to enable quality of care and flexibility in facilities … while balancing design solutions that protect and promote the social and mental wellness of residents and staff.” To enhance social connections, for example, some communities have implemented videoconference technology that lets residents engage in fitness classes, medical appointments, spiritual services, community activities and more from computers or mobile devices. Other likely developments on the horizon include the establishment of multiple ecosystems within a community, upgrades to HVAC and other building systems, enhanced infection prevention measures, continuing staff and resident testing, visitor screening and additional protective equipment. Yardi software solutions help senior living community operators work more efficiently by automating processes associated with marketing, leasing, record-keeping, resident care and more. Learn...

Industry leaders from Grubb Properties and MG Properties Group recently shared insights on big data, benchmarking and forecasting with Yardi’s Paul Yount. “You won’t be successful in any market if you don’t have the right tools. You need the data. You have to be ready and prepared,” said Joe Anfuso, chief financial officer at MG Properties Group. Nothing could have been truer for real estate companies in 2020. With unanticipated challenges brought by the COVID-19 pandemic, real estate operators had to act fast to protect their bottom lines and keep staff and residents safe. For most companies, that meant adopting technology to transform their businesses. Read on to learn how Grubb Properties and MG Properties Group have been using Asset IQ, part of the Yardi Elevate suite of multifamily solutions, to guide decisions and improve performance with better data. Pivoting to online services With the growing demand for contactless leasing and transactions, many operators have made the pivot to doing business online. And it’s likely that contactless leasing — including self-guided tours — will be around long after the pandemic. Additionally, asset intelligence driven by big data has been guiding real estate operators through challenging times and will continue to lead the way. “2020 budget numbers were very different from what we projected in 2019. We didn’t see the normal seasonal changes, and budgets were pretty much out the window which has made competitor and peer data very important to accurately measure performance. We need to know how we’re measuring up to our competitors, what concessions and lease terms we’re offering and if we’re keeping the back door closed to avoid being in a vulnerable position,” said Shawn Cardner, executive vice president of Grubb Properties. According to Joe Anfuso, you need to start with...