How will the Gen Y workforce change the office climate?
Much has been written about Generation Y, or Millenials. They're also the generation that will comprise 40% of the workforce by 2020. The Wall Street Journal wrote about this subject a few weeks ago, and found that many employers are experiencing higher turnover of Millennials because this group feels that there is too much bureaucracy, not enough communication or utilization of their talents and not enough fun. Gen Y would also like the option to leave the office at 2:00 PM and continue the work day at the local Starbucks. The rub for Boomers is that more companies are jumping through hoops to accommodate Gen Y demands. However, there is more to this than just a new generational attitude; it is also the confluence of the Gen Y bubble, its fresh attitudes and new approaches using explosive new technologies and cloudbased platforms that enable incredible flexibility. Any employer or co-worker who doesn't get this new organizational paradigm is in for a rude awakening.
Check out LoPinto's weekly "Executive Watch" column at www.globest.com/executive watch
How will multifamily shape up for the balance of the year?
The sluggish pace of economic growth has had little impact on the steady demand for apartments, and conditions remain aligned for sustainable, strong performance. Rental demand continues to increase as echo boomers form new households, immigration rises and a shift away from homeownership persists. These trends supported a 50-bp decline in vacancy in the first half to 4.7%, while effective rents also posted strong gains. On a year-over-year basis, vacancy declined 120 bps and effective rents surged 4%. Rents across most markets now meet or exceed their pre-recession peaks, and increases will progress as tight vacancy allows operators to push their rents. In 2012, rents remain on track to rise 4.9%, and vacancy will fall 80 bps to 4.4%, as net absorption will significantly exceed the anticipated completion of 85,000 units. As the apartment sector's recovery progresses after 2012, the rate of rent increases for toptier properties will ease.
Check out Nadji's "Street Smart" blog at www.globest.com/blogs/streetsmart
How's the relationship between retail tenants and landlords changed in the past few years?
The supply-demand dynamic is every changing, and it's cyclical. We see it moving back to the landlord side. There are fewer new developments, tenants are now expanding again and most if not all of the surplus real estate that was on the market has been diminished. We have virtually no vacancy in Southeast Los Angeles. Retailers also are beginning to understand and cooperate with developers with respect to the underwriting dynamic. We're not allowed to build centers and retailers aren't allowed to open stores just to meet projections any more. The retailer and landlord need to collaborate, which requires quite a bit of patience for entitlements, pre-leasing commitments and environmental clearances. And, finally, a mix of uses is good. It requires tenants to move away from old rules and parking and excluding certain uses. They acknowledge that an 18-20 hour environment is a good thing. Most of the retailers now get that.
Manarino is a Thought Leader during the ICSC Western Division show, where he is marketing Tierra Luna Marketplace.
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