As 2022 ends and the economy remains uncertain, we know it is more important than ever to think creatively. We are seeing more new ways of looking at old ideas. The office is not dead; it will be undergoing transformation, whether it be through the addition of top-notch amenities or the redistribution of workspace. In this issue, several articles explore the challenges the office sector is facing, including how these buildings can “age gracefully” and be repositioned to serve current needs.
As e-commerce continues to evolve, last-mile facilities could have significant impacts on transportation networks in cities. Meanwhile, in Lower Manhattan, the old Fulton Fish Market building has been creatively reimagined as a glistening dining and market space.
Happy Holidays and Wishing You the Best in the New Year,
Jennifer LeFurgy, Ph.D.
Notable facts and figures on the state of the commercial real estate industry, culled from media reports and other sources.
Percentage of commercial real estate chief financial officers (CFOs) who said they expect revenue to decline in 2023 because of an economic downturn and actions related to climate regulations, according to the Deloitte Center for Financial Services’ 2023 Commercial Real Estate Outlook, a global survey of 450 CFOs of major CRE companies.
Percentage of commercial real estate industry survey respondents who said that environmental, social and governance (ESG) efforts are affecting investor pools and real estate projects. The report was compiled by consulting firm Wipfli LLP in its “Real Estate Industry Outlook 2022 Research Report.”
The number of days that Apple employees must report to their offices. The policy began in September. According to CNBC, “Apple employees will be asked to go into their offices on Tuesday and Thursday. Individual teams will pick an additional third day for in-person work.”
Percentage of companies saying they will require employees to return to the office at least part of the week in 2023, according to a September survey from Resume Builder. Around 20% of survey respondents said they would fire workers who do not want to come back.
Percentage of office assets held by private real estate funds, down from 34% three years ago, according to an index from the National Council of Real Estate Investment Fiduciaries.
Percentage drop in leased office space in Manhattan from September 2022 to October 2022, according to Colliers research. It’s the lowest monthly total since May 2021, but is not necessarily a cause for concern, according to Colliers’ Franklin Wallach. “Leasing activity can absolutely change by a large degree in any given month,and one or two large deals always have the potential to move the needle,” he told Commercial Observer in November. “It’s difficult to draw any sort of long-term conclusions, [but] you can certainly point to the lack of those large deals for the numbers seen this month.”
The average sale price per square foot for lab space nationwide in the first half of 2022. It’s a record high, according to research from Newmark.
The number of TEUs (20-foot equivalent units) moved by the Port of New York and New Jersey in September 2022, the second straight month that the East Coast port ranked No. 1 in the nation in volume of material moved, beating the Port of Long Beach (741,824 TEUs) and the Port of Los Angeles (709,873 TEUs).
The amount that Port Houston began charging on December 1 for each day that a shipping container isn’t moved out of the terminal after eight days. The effort is an attempt to reduce dwell times at the port, which have increased in the face of major increases in shipping volumes.
Billion The amount of money invested globally in proptech by venture capitalists in 2021, according to research from Statista. In 2020, the figure was just $6.6 billion
Future NAIOP Events
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Jennifer LeFurgy, Ph.D. is Vice President of Knowledge and Research, NAIOP Research Foundation Executive Director and Editor-in-Chief of Development magazine.