Commercial Investment Real Estate September/October 2018 | Page 10

TRENDS
MARKET
Real Estate Costs Top Law Firm Expenses
The top fixed expense in law firms after salaries is real estate, according to Cushman & Wakefield’s 2018 National Legal Sector
Benchmark Survey. Of those law firms responding to the survey, 17 percent said they already had shifted to single-size offices. In the
next 10 years, 70 percent targeted ratios of 500 sf per attorney, and 88 percent said they planned to implement single-size offices.
Briefly Noted
Multifamily — Rising
construction costs, paired
with the rise of ride-hailing
and car-sharing services,
have shifted many cities’
thinking about minimum
parking requirements
in new developments.
Architects David Baker
and Brad Leibin, writing
in Urban Land, note that
cities such as Buffalo,
N.Y., and Hartford, Conn.,
have reduced or eliminated
parking minimums, and
San Francisco has even
begun establishing parking
caps for areas that have
abundant public transit. investors. Real Capital
Markets notes that 48
percent of investors
surveyed said such
properties were their most
preferred investment.
While brick-and-
mortar grocers do face
competition from online
merchants, Colliers’ Anjee
Solanki points out that
consumers remain loyal
to their local grocery
stores — and they can
be combined especially
well with residential
properties and experiential
conveniences in mixed-use
developments.
Retail — The popularity
of grocery-anchored
shopping centers is
increasing among Office — The forecast for
West Coast office markets
should remain positive
through 2018, Kidder
8
September | October 2018
Mathews says. Factors
include high demand
and participation by tech
giants in San Francisco;
attractive accessibility and
amenities in Sacramento;
employment growth and
economic confidence
in Seattle; and low
unemployment in Phoenix.
Industrial — The
industrial property market
will continue its strong
performance through the
end of the year, according
to CoStar. The increase
in demand for same-day
or next-day delivery is
driving demand for more
expensive properties
that are closer to urban
centers. Labor costs at
such properties also are
increasing because of
competition for workers,
and some developers are
even including amenities
such as daycare centers
and fitness trails.
Hospitality — The
quest to offer unique
hotel experiences has
led to disruptive ideas
for the market, says
JLL Americas Head
of Hotel Research
Geraldine Guichardo.
New offerings include
adding a coworking option
in a business center;
adding rotating museum-
style art displays;
and even including an
urban amusement park,
complete with a carousel
and mini-golf course.
COMMERCIAL INVESTMENT REAL ESTATE