Each week, JLL Atlanta presents a roundup of noteworthy commercial real estate stories from a variety of industry publications. Here are five stories that recently caught our eye.
Tenant Improvements Key to Attracting Tomorrow’s Millennial Workforce by Michael Gerrity of World Property Journal.
“’Millennials are shaping how and where we work–and also how and where we shop, and even the path our packages take from ship to doorstep,’ said Todd Burns, President, JLL Project and Development Services, Americas. ‘By 2020, the U.S. workforce will be comprised of 50 percent Millennials, more than all other generations combined. Individually, they may not realize that they’re influencing national construction trends to favor tenant improvement over new construction, but the numbers show it’s no coincidence.’”
Tech Hot Spots Fetch High Prices by Eliot Brown of The Wall Street Journal.
“Ever since the recession, the market for office space has been shifting, with technology companies and media organizations showing a preference for office space with character. Often referred to loosely as ‘creative space,’ it usually entails vast swaths of open space, low or nonexistent cubicle walls, exposed brick walls and bare ceilings. Couches, foosball tables and even beer kegs are commonplace.”
How Reliable Is Office Employment for Evaluating Market Performance? by Victor Calanog and Barbara Byrne Denham for NREI.
“What is driving this divergence in growth rates? A quick look at the occupancy statistics shows, not surprisingly, that markets with higher employment growth had higher occupancy growth, while those with low employment growth had flat occupancy growth. However, the outlier metros mentioned above had lower net absorption numbers, and similarly, higher overall vacancy rates. This suggests that the occupancy in some of these markets is less dense, meaning that employers were able to fill offices without taking on more space, creating less pressure on rent growth.”
Quantifying The Millennial Impact On Real Estate via Builder Online.
“Millennials will sacrifice size for location and will pay more if the amenities and services enable them to recapture time lost while working or in transit. Urban and suburban mixed-use, micro units and amenity-laden properties will appeal to this generation of social achievers.”
Real Estate Outlook Unfazed by Fed Inaction, Observers Say by Sarah Borchersen-Keto of REIT.
“According to the survey’s chief economist, Richard Curtin, consumers still anticipate a weaker domestic economy due to the global slowdown and are less optimistic about future growth in jobs and wages than they were a few months ago.”