Commercial Investment Real Estate March/April 2016

U.S. Ofﬁ ce Space per Worker 2 70 270 Square q Fee eet per p Job In Office Space p Space per job rises during a recession recess because ecause job layoffs greatly exceed exc space ace redu reductions 2 260 250 240 230 220 2 210 90 92 94 96 98 00 02 04 06 08 10 12 14 S Source: CoStar include everything from job creation and building materi- als to property taxes on eligible projects. “We have multiple incentives that the municipality has put in place to attract development downtown,” Kim says. T at has really caused developers to take a second look to see if they can make projects f nancially viable in that area, she adds. Part of the challenge that remains in Peo- ria is educating building owners about what incentives are avail- able and how they can utilize them to drive change, she says. Another challenge is manag- ing the risks inherent to these rehab projects. Owners and investors are taking a gamble in making a signif cant capital investment to reposition space, oftentimes in a market where there is still some excess space to absorb. Making sure the num- bers work is another critical step. “In Tucson, the risk is that the class B and C of ce market is not expanding. So, the of ce building you renovate has to be attractive enough to lure move- up of ce users. T at involves a substantial slug of new cash for an exterior face-lif and interior renovations,” Larsen says. Certainly, not every property is a good candidate for a rehab. Some are simply too function- ally obsolete. Likewise, repo- sitioning assets is not the best f t for every owner or investor. T ose endeavors of en require creativity, ingenuity, and some vision to take something that might be a little bit ugly, and make it more attractive and competitive in the marketplace, says Shopof . “It is not just put- ting money in, it is putting money intelligently in the right place to deliver a good result in terms of yield and return on investment,” he says. Beth Mattson-Teig is a business writer based in Minneapolis. Tell Your Clients Who You Really Are. Want to make sure your clients and potential clients know you’re a CCIM? T en af x your business card to the latest copy of Commercial Investment Real Estate magazine and leave it with them af er your next meeting. Or mail a copy with a personalized note. Bulk copies of CIRE are available to CCIM designees at greatly reduced prices for use in their personal marketing campaigns. 5 copies 10 copies 30 copies Current Issue $15 $25 $60 1-Year Bulk Subscription (6 Issues) $90 $150 $360 Limited quantities available, so call today to place your order. Shipping fees will be added to non-U.S. orders. Call 800-621-7027, ext. 4482. 30 March | April | 2016 Commercial Investment Real Estate

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