Thursday, July 11, 2019

Rental Rates Are Creeping Up Slowly

Research firm Reis Inc. reported that both the national average asking rent (at $21.39 per sq. ft.) and effective rent (at $18.73 per sq. ft.), which excludes landlord concessions, increased 1.7 percent in the second quarter 2019 compared with one year earlier. Reis reported that rents at regional malls were up 0.2 percent.
The sector is seeing a “continued picture of slow, creeping rent growth in terms of both asking and effective rents that are pretty much growing in step around the mid-1 percent range year-over-year,” says Matthew Schreck, senior quantitative strategist at Ten-X Commercial, an online real estate marketplace. That’s slow compared to the last expansion in the early 2000s, when rents were growing in the mid-2 percent to as high as the upper-3 percent range, Schreck notes. But they’re still moving in the right direction.
 “Rents are growing across property types and across markets, and I think it has more to do with the fact that we’re in a longstanding, fairly robust economic expansion,” he says. “The unemployment rate is really low. Incomes are growing. People are spending their money and, in a sense, a rising tide lifts all boats.”
But the degree to which they’re lifted varies, Schreck adds. Some sectors and some markets have seen much stronger real estate recoveries in this cycle than others, and retail has been among the slowest to come back. He notes that the rate at which the rents are growing is a bit disappointing. “And it sort of begs the question of what would these [weaker] markets look like in the event of any kind of an economic downturn.”
Reis research reveals that rent growth in the second quarter was healthy in a number of metros, with eight boasting rent growth of 1 percent or more. Metros with the highest effective rent growth included Seattle; Nashville, Tenn.; Sacramento, Calif.; Oakland-East Bay, Calif.; and Louisville, Ky.
However, 19 metros posted an effective rent decline in the quarter, including Little Rock, Ark.; Kansas City; Omaha, Neb.; Lexington, Ken.; and St. Louis.

Tuesday, June 25, 2019

Mangerial Derailment


Researchers have studied managerial derailment — or the dark side of leadership - for many years. The key derailment characteristics of bad managers are well documented and fall into four broad behavioral categories: (1) “moving away behaviors,” which create distance from others through hyper-emotionality, diminished communication, and skepticism that erodes trust; (2) “moving against behaviors,” which overpower and manipulate people while aggrandizing the self; (3) “moving toward behaviors,” which include being ingratiating, overly conforming, and reluctant to take chances or stand up for one’s team; and (4) "no movement behaviors," not overtly misbehaving, nor being a ranting, narcissistic sociopath. Rather it is being a leader in title only having the role of leadership, but providing none. Absentee leadership rarely comes up in today’s leadership or business literature, but research shows that it is the most common form of incompetent leadership. . The popular media is full of examples of bad leaders in government, academia, and business with these characteristics.*

*Not my own work. I don't remember the author, but would gladly give he/she credit for good thoughts. 

Friday, June 21, 2019

Passenger Drones the Next Big Thing?


According to an article on Biznow.com, NASA is getting ready to test passemnger drones in Reno, Nevada, and Corpus Christi, Texas.  

In Florida, two buildings in Miami will have capability for landing the drones, the Paramount Miami Worldcenter condominium where a rooftop pool has the ability to be converted into a landing pad and a reconstruction project on Grand Avenue in Coconut Grove that features landing pads on the rooftop of a five-story building.

Can George Jetson be far behind?