Commercial Investment Real Estate May/June 2019 | Page 8

MARKET
TRENDS
Safety at Work
In a recent survey of occupants of more than 600 multi-tenanted commercial buildings in the U.S., 81 percent said they feel secure
in their workplace, while 32 percent said their security concerns have increased because of recent events. Most buildings had
safety and security procedures in place for physical threats, but far fewer had procedures for cybersecurity issues.
Fire
90%
Natural Disaster
Active Shooter
70%
Cybersecurity
58%
30%
A quarter of respondents said that they planned a significant increase in cyber-security spending in the next two years, and
37 percent said they planned to increase physical security spending.
Source: Building Engines, “The Tenant Experience Gap: Building Managers and Tenants Look at the Future Through Different Eyes”
Hotel Deals
Up in 2018
Beacon and sensor technologies are currently utilized
in commercial properties for inventory, security, and
space utilization, among other uses. But according
to a recent NAIOP Research Foundation report,
these technologies “are no longer used only for
single purposes (e.g., motion sensors turning lights
on in a conference room) but are increasingly linked
through internet-based networks.” These networks
can offer more comprehensive information about
a property — and can increase profit — but the
data they collect can raise privacy and security
issues. The report, “Beacons and Sensors in Com-
mercial Real Estate,” notes several technologies
used in CRE settings, including radio-frequency
identification, geofencing, beacon technology, and
WELL and RESET sensors. Uses included work site
monitoring and security, measuring retail consumer
behavior, and interior environmental monitoring.
Source: Yardi Matrix
6
May | June 2019
Number of deals
Sales volume
Number of rooms
Average sale price per room
2018 2017 Percentage
Change
208 183 14%
$18.3 billion $13.6 billion
35%
51,100 51,000 0.19%
$357,000 $267,000 34%
COMMERCIAL INVESTMENT REAL ESTATE
Beacons for Growth
Performance metrics for major
U.S. hotel deals ended 2018 on
a high note note. LW Hospitality
Advisors 2018 Major U.S. Hotel
Sales Survey tracked 208 single-
asset deals over $10 million,
none of which were part of a
portfolio. Among the findings: