Written By: Lex Perry, Director of Marketing and Communications for Colliers International in Canada.

It’s an exciting time for commercial real estate marketing trends as industry players up the ante, from real estate firms to landlords, and marketers to technology providers. No matter the tactics, techniques and tools coming our way in 2015, you can be sure they will turn the industry on its head. In a really good way.

11. Property management groups step up their marketing game

Property management groups are no longer the neglected baby brother of asset management and real estate services firms. Look to see these groups step up their building communications and asset positioning to align with their leasing strategies and retain tenants. Gone are the days of the cheap photocopied “out of order” sign taped to the washroom door. Expect higher quality and more sophisticated building management communications in 2015 and beyond.

10. Hi, tech

There is an abundance of technology tools hitting the market to help promote commercial real estate, from sophisticated enterprise solutions to basement startups. There are integrated listing and data platforms, online space planning resources, 3-D rendering tools and even websites that help developers raise investment capital through crowdfunding. Some of these will fly, and some will fall. But expect to see some new ones in 2015; the successful ones will have a lasting impact on the industry.

9. Photography Wars II: Attack of the Drones!

Remember the days when drive-by property photography complete with a dirty window was acceptable and even the norm in commercial real estate? Fortunately, commercial real estate photography has improved in leaps and bounds over the last few years as real estate marketers have attempted to stand out in cluttered listing websites. Now we’ve started to see drones used more for aerial photography, as well as in creating images of how views might look from buildings that haven’t even been built. Look for this to become more of a standard in 2015 along with more virtual tours and renderings.

8. Abundance of data

Big data will play a big role as occupiers and owners alike look to rationalize real estate decisions.
With all the major real estate firms investing heavily in this space, you’ll see more comprehensive insights and information as technology allows these firms to combine real estate data (listings, availability, comparative transactions, etc.) with other available data points such as demographics and sociographics. This will be one of the key factors in driving more marketing and research content (See 4) as providers and assets look to differentiate.

7. Jump in vertical marketing

As landlords compete to fill their buildings and real estate firms compete for mandates, you will see a much stronger emphasis on marketing in key industry verticals as they attempt to differentiate. Expect the tech and media sectors to be heavily targeted in the office sector, and the industrial side to increase their focus on e-commerce, logistics and distribution.

6. Property marketing spending going up

Especially in markets where vacancies are rising, we’re going to see landlords looking for better outcomes from marketing activities. Good sales and leasing agents alone aren’t going to get the job done. There’s a lot at stake for landlords — especially in secondary sectors. Expect to see landlords investing more heavily in their marketing activities, looking to reposition second-generation buildings to help maintain and improve their occupancy rates. With prospective tenants and buyers having multiple options, owners will need good marketing to help them differentiate in a cluttered market. Savvy landlords will realize they need to budget for their own property marketing as agency-sponsored marketing budgets might not pack the punch they need for success.

5. Putting their money where their mouse is

Commercial real estate advertising is still stuck in the doldrums of news print. As real estate marketing professionals adapt to online advertising tools, you’re going to see their budgets shift to paid digital advertising real fast. The No. 1 reason for a lack of adoption in this space is the skill set of the average marketing professional in this sector. In 2015 we’re going to see plenty more online ads for real estate and real estate services through general media and social media channels as the marketing skill set improves.

4. Death by content

It’s already started. Look to see a continued abundance of real estate reports, sector reports, white papers, seminars, webinars and case studies. All the service providers are clamoring for a share of the social media and search space, and this is the result. While the content out there is still cluttered and daunting, the good news is that you’re likely to see some better quality insights and information than ever before as better data becomes available and as service providers hone in on content for key niche target markets (See 7 and 8).

3. Social climbing

With more content and insights than ever before, marketing teams will continue to look to social media to help distribute that content in a meaningful way. The industry’s demographic is welcoming more Generation X and Millennials into key real estate decision-making roles, and they depend heavily on social media, particularly LinkedIn, to source colleagues, partners, jobs and insights to help solve their real estate challenges. This isn’t a fad, and it isn’t going away.

2. Build-to-suit marketing campaigns

As owners and agents seek to do a better job positioning their assets for success (or to avert failure), you’re going to see more customized marketing campaigns. Look to see more branded asset offerings for sale and/or lease as owners invest in their assets’ identities to avoid commoditization. Expect to see less templated marketing collateral along with more creative signs, brochures and digital assets as landlords try to clearly differentiate their buildings.

1. S&M: The winning combination

Look for greater integration of Sales and Marketing teams. Real estate advisors for landlords who are great at marketing will rise to the top. As the market becomes more competitive on the demand side, real estate advisors who want to help landlords fill their vacancies are going to need more than a good rolodex. Those who understand the value of positioning an asset and can work with their marketing teams to execute impactful, creative and aligned marketing and sales programs will enjoy rental premiums and faster uptake of space. Consequently, they’ll become a pretty hot commodity in 2015 and beyond.

Lex Perry is Director of Marketing and Communications for Colliers International in Canada, where he focuses on corporate brand strategy, market research and intelligence, content marketing, public relations and digital marketing.  To view the full article: https://insights.colliers.com/top-11-commercial-real-estate-marketing-trends-for-2015/

At 2014’s midway point, the Cushman & Wakefield | Picor retail market report for Tucson reports positive performance, with the winds continuing to blow in the direction of retail sails / sales.

In summary, a lower unemployment rate for the Tucson area than at year ago and decreased government spending both impacted Tucson’s retail market momentum and activity. Home prices were flattened in Q2, while the inventory of Tucson residential listings increased.

Retail sales statewide were up 7.6% over the prior May, with strength in durable goods, increasing to 8.0%. In addition to durable consumer goods, building material sales jumped significantly year-over-year, and overall retail sales outpaced employment growth.

Market fundamentals continued to improve as supply tightened. Second quarter positive net absorption of 129,159-square-feet represented the ninth consecutive quarter on a positive trajectory. At 6.5%, vacancy reached its lowest mark since Q4 2008, a predictor of slowing absorption. Continued market firming put upward pressure on asking rents, which increased 2.3% over the previous quarter to $14.52 PSF.

Activity and absorption for the quarter was markedly more distributed and diverse. That being said, of the market’s largest true retail leases, second quarter activity trended toward automotive uses and discount retailers.

Downtown saw a key puzzle piece solidified with its first specialty food market signed: The 5,000-square-foot Johnny Gibson Downtown Market in the heart of the entertainment district; and Mattress Firm’s acquisition of Bedmart will likely result in future store consolidation and availabilities.

The first quarter saw the opening of a 99,594-square-foot Walmart at Houghton Town Center. New construction includes the redevelopment of Broadway and Wilmot by a local developer where demolition has begun for phased rebuilding. A new-to-market Cheddar’s is being built at El Con Mall in midtown and is expected to put pressure on other restaurants in the sit down family category.

El Con Mall sold in the second quarter representing a significant investment transaction for Tucson at $81.7 million. With pent up demand, it is a great time to be a seller. Cap rates and interest rates are low, and appetite is high for retail investment property, both single tenant and multi-tenant. Multiple offers are the norm, and values are increasing. User purchase activity remains relatively quiet.

Downtown Tucson will continue to shine brightly for development and absorption, with the late July opening of the Modern Streetcar and the return of student residents. We expect new construction to increase as Tucson approaches a stabilized vacancy rate; particularly if consumer confidence continues to improve. Look for continued stabilization and gradually increasing rental rates. Supply of investment grade property may remain limited, but demand will be high from investors when sellers are ready to divest or trade.

To read the full Cushman & Wakefield Retail Market Report click here: https://picor.com/wp-content/uploads/2014/08/Tucson_RET_2Q14.pdf

The commercial real estate development industry grew at the strongest pace since 2011, according to an annual report on the state of the industry released this week by the NAIOP Research Foundation.  The report, entitled “The Economic Impacts of Commercial Real Estate” determined that the economic impact realized by the development process rose a significant 24.06% over the previous year, the largest gain since the market began to recover in 2011. Direct expenditures for 2013 totaled $124 billion, up from $100 billion the year before, and resulted in the following economic contributions to the U.S. economy:

• Total contribution to U.S. GDP reached $376.35 billion, up from $303.36 billion in 2012;
• Personal earnings (or wages and salaries paid) totaled $120.02 billion, up from $96.75 billion in 2012; and
• Jobs supported (a measure of both new and existing jobs) reached 2.81 million in 2013, up from 2.27 million the year before.

The report says that the outlook for the remainder of 2014 and into 2015 is that the figures will continue to rise, with year-over-year growth expected in the range of 8-15 percent.

Commercial real estate development has an immense ripple effect in the economy, providing wages and jobs that quickly roll over into increased consumer spending.

“Commercial development’s economic impact is tremendous; simply put, a healthy development industry is critical to a prosperous U.S. economy,” said Thomas J. Bisacquino, NAIOP president and CEO. “As the uneven pace of the nation’s economic recovery continues, the industry seeks public policy certainty that bolsters investors’ and developers’ confidence. Despite this lack of assurance, we see positive indicators of a rebounding industry, but believe the industry could be more robust.”

Industrial, Warehousing, Office and Retail Show Strong Gains:

• Industrial development posted a year-over-year gain of 48.5 percent due mainly to groundbreaking of energy-processing facilities.
• Warehouse construction registered a third strong year of increased expenditures in 2013, gaining 38.1 percent in 2013. This is on top of 2012 growth of 28.4 percent and 2011 growth of 17.8 percent, showing a sustained increase in demand for warehousing space.
• Office construction expenditures rose for a second year in 2013, up 23.3 percent from 2012.
• Retail construction expenditures rose modestly for a third year in 2013, up 4.8 percent from 2012.

Operations and Maintenance Surge Even As Building Owners Cut Costs With Energy Efficiencies and New Technologies:

Through increased energy efficiency and advanced technology, building owners cut the average per-square-foot cost of operating building space in the U.S. by 14  cents, from $3.20/square foot to $3.06/square foot. Still, maintaining and operating the existing 43.9 billion square feet of commercial real estate space resulted in $134.3 billion of direct expenditures, and resulted in the following economic contributions to the U.S economy:

• Total contribution to GDP in 2013 $370.9 billion;
• Personal earnings (wages and salaries) totaled $116.8 billion; and
• Jobs supported, 2.9 million.

Top 10 States by Construction Value for Office, Industrial, Warehouse and Retail:

1.     Texas
2.     Louisiana
3.     New York
4.     California
5.     Iowa
6.     Florida
7.     Maryland
8.     Georgia
9.     West Virginia
10.  Oregon

Four new states joined the list: Louisiana at No. 2, Maryland at No. 7; West Virginia at No. 9, and Georgia at No. 10. These states made the top ten list due predominantly to development of highly specialized and expensive energy-related processing facilities.

Illinois, Ohio, Massachusetts and North Carolina dropped off the top 10 list, slipping to Nos. 11, 14, 15 and 18 respectively. The report includes detailed data on commercial real estate development activity in all 50 states, and also ranks the top 10 states specifically according to office, industrial, warehouse and retail categories.

Where Arizona ranks nationally in terms of value of construction:

>> Office…………………………… 10
>> Industrial……………………… 41
>> Warehouse ……………………. 8
>> Retail/entertainment ……..22

>> Overall..…………………………22

The report is authored by Dr. Stephen S. Fuller, director of the Center for Regional Analysis at George Mason University, and funded by the NAIOP Research Foundation.