E-Commerce boom triggers transformation in retail. Jones Lang LaSalle released a whitepaper about e-commerce and the driving global demand for new facilities. The whitepaper illustrates the complexity of translating bricks-and-mortar strategy to an online, e-commerce real estate platform and focuses on the impact of e-commerce on the industrial real estate sector with a special focus on the emergence of logistics / distribution capable properties. Three distinct types of distribution facilities have emerged including: Mega e-fulfilment centers, parcel hubs / sortation centers and parcel delivery centers.
Change considerations within e-commerce capable real estate options include:
- Industrial real estate availability
- Worldwide market conditions
- Internet penetration
- Smart phone usage
- Logistics / transportation infrastructure
The white paper is due to be published in a series of three, stay tuned for future releases. Download the whitepaper here.
Terrus Real Estate Group saves 1,150 man hours and increases productive by 30% by streamlining their file management and business processes. Terrus reports significant results by changing their document management process. The real estate firm implemented a cloud based ECM system – electronic content management – to capture, manage, store, preserve and deliver content for improved real estate management.
Learn more about the initiative here.
Cushman & Wakefield and CoreNet Global: Major workplace transformations in 2014. C&W released a comprehensive global survey of 500 CRE professionals across North America, Europe/MidEast/Africa and Asia/Pacific regions. The survey provides keen insights into the drivers of workplace changes, the pace in which transformations are occurring and barriers. Quick summary of survey results includes:
- Drivers – Reduction of real estate costs (17.6%), attract / retain employees (15.6%), increase collaboration (14%)
- Workplace Changes – Open plan (11%), flexible layouts (10%), increased meeting rooms (10%)
- Barriers to Change – Resistance from managers (16%), lack of funding (15%)
- Measures for Success – Employee satisfaction (17%), cost savings (15%), price per square foot (13%)
Download the survey here.
The Economist: America’s push to make banks “safer” creates new uncertainties. The Economist magazine published an editorial which puts the Dodd-Frank law into negative light, with bank presidents already calling the legislation “horribly complex.” The law, officially titled the “Dodd-Frank Wall Street Reform and Consumer Protection Act,” passed into law in January 2010. The bill effects the entire lending industry including oversight and supervision of financial institutions, authorizes a new agency for enforcing compliance and introduces more stringent regulatory capital requirements to name a few changes.
Supposedly the immediate impact of the law will be small. Large banks have already eliminated the most obvious forms of proprietary trading in anticipation of the law (reporting will start in June 2014). For small banks, the American Banking Association is worried the law will “unintentionally change how small banks invest in financial instruments, which currently makes up a big part of their capital.”
“The SEC also did not conduct a cost-benefit analysis of the rule, as it normally does for new regulations. Officials say the laws from which the rule derives its authority do not require such a study, but there was nothing to stop the agencies involved from requesting one. Their failure to do so deepens suspicions that the rule will cause more trouble than it averts.”
Read the article here.
And in conclusion:
Hospitality is back! Hilton went public on Thursday (12/12) in the largest hospitality IPO, ever. Hilton set the price for its initial public offering on Wednesday at $20 per share, and closed at $21.50 at market close on Thursday. The hotelier raised $2.35 billion in its first day back trading. The IPO is another indication of interest by investors that the hospitality industry is looking good.
Blackstone Group took the company private in 2007, who did not sell any shares in the IPO and will continue to be the majority stake holder in the company. Financial experts expect the proceeds of the IPO to increase to $2.7 billion, making Hilton’s Wall Street return the second biggest IPO in 2013.
Read more here.
See you next week.