Recap: CBA’s Women in Commercial Brokerage Roundtable Event

CBAEvent1The Women in Commercial Brokerage series is part of the Commercial Brokers Association’s (CBA) larger diversity initiative “to create a more diverse pool of candidates for careers in commercial real estate brokerage.” Their June 20th event, Women in Commercial Brokerage Roundtable, was hosted at CBRE/New England’s 33 Arch Street 10th floor cafe and focused on work/life balance. The event was moderated by our Alison Powers and the panelists included Kerry Hawkins, Senior Director at HFF, Molly Heath, Executive Vice President at JLL, and Kate Lien, Senior Director at Cushman & Wakefield. In addition to being successful brokers, each of the panelists are mothers and had a variety of tips for the budding audience.


This event came on the heels of a CBA panel lead by Dune Thorne, Partner at Brown Advisory, where she stated “70% of valedictorians are girls, yet only 4% of S&P 500 CEOs are women.” With that powerful quote in mind, Powers kicked off the discussion with a mission, “30 years from now our goal is to have these same women, and even more, in this room.” Hawkins, Heath and Lien each brought different perspectives and advice for how to get more women in the room, support your career, your family and yourself. Topics discussed included taking maternity leave, managing the day-to-day home/work schedule, handling after work events, and maintaining a good support system at work and home.

The evening concluded with more open dialogue between panelists and attendees. Powers wrapped up the conversation with, “Keep coming to these events. Spread the word about the committee. These conversations were powerful tonight.”

Stay tuned for another Women in Commercial Brokerage CBA event in September.

CBRE/New England Research Highlighted at State House Day

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On Thursday, April 12, our Évianne Netherwood-Schwesig’s research on the 495/Metro West market was displayed at 495/MetroWest Partnership’s annual State House Day. The 495/Metro West market extends along the Interstate 495 corridor from Westford in the north to Foxborough in the south, and spreads east-west along Route 9 from Natick to Shrewsbury. While once primarily an industrial economy, the area today supports a broad spectrum of white-collar occupiers, including a growing cohort of tech and life science companies.
Map of 495 metroWest
A high-level overview of Évianne’s findings is below:

  • Although 2018 began in the red, absorption was positive in three of the four preceding quarters. Continued healthy tenant demand indicates that the market is on solid footing.

Absorbtion

  • Vacancy has declined steadily over the last three quarters, as increasing numbers of tenants look for affordable alternatives outside the Boston urban core.

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  • 495/Metro West rents have seen modest growth in recent years, as is to be expected as the market gains attention. However, rents remain at a dramatically better value than in the Boston urban core, where rapid growth has driven the rental gap even wider.

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  • Specific 495/Metro West company statistics can be found below:

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To read more about Évianne’s findings, click here.

2018 CBRE Women’s Networking Forum

IMG_0069.jpgCBRE hosted its 2018 CBRE Women’s Networking Forum, the largest company gathering of women, March 14-16 in Chicago. Five of our six female Partners attended the event, Eileen Carroll, Martha Dellenback, Anita DiPrizio Pasquale, Suzanne Duca and Erin Walls, in addition to 400 other women from CBRE Inc. The three-day event included speakers such as Bob Sulentic, President and Chief Executive Officer and Executive Sponsor of the CBRE Women’s Network, CBRE; Wendy Silverstein, Chief Executive Officer, New York REIT; Dr. Victoria H. Medvec, Medvec & Associates and Kellogg Graduate School of Business, Center for Executive Women; Erica Dhawan, Leadership Strategist and Connectional Intelligence Expert; Carla Harris, Vice Chairman, Global Wealth Management, Morgan Stanley; Karina Muller, Founder and Chief Executive Officer, Maripossa Wellness; as well as many other featured speakers.

I asked the group to share a key takeaway from the event:

Duca_SuzanneSuzanne Duca came back from the trip raving about Dr. Victoria H. Medvec’s constant flow of quotes from the Friday morning 9 a.m. meeting. A couple of Dr. Medvec’s memorable quotes are below:

 

 

 

People who set more ambitious goals get MORE.

Nobody owns your brand but YOU, own it!

anitaAnita DiPrizio Pasquale’s favorite quote from the forum was, “Fake it till you make it.” She noticed that the quote was in the opening address by Lisa Konieczka and was also mentioned by a handful of other speakers.

 

 

 

Walls_ErinErin Walls came back from the forum excited to have heard from Bob Sulentic. Erin commented, “At what other Fortune 200+ company do you have the opportunity to speak and be heard by the CEO? It’s always great to hear directly from Bob Sulentic on the aspirations for CBRE to be world class, which means having the ability to consistently deliver client outcomes that others cannot. It’s always engaging to hear directly from Bob on some of the advancements that are being made to ensure that the strength and depth of CBRE continues to grow—for both our employees and our clients. Hearing Bob’s resounding confirmation that the Women’s Network at CBRE is the most compelling group and event (Women’s Networking Forum) not only at the company but also in the industry, continued to drive my devotion to the Women’s Network.”

Erin was also captivated by Dr. Victoria Medvec’s three-hour session, which she felt was not long enough. In addition to what was mentioned above, a couple other quotes that really stood out were:

It is not your job to decide if you are qualified.

Be your own best story teller, set the right goals and ask for the opportunity.

The CBRE Women’s Network was formed in 2000 and has more than 3,000 members from all levels of the organization, the company’s three regions and every business line. The group’s mission is to “Promote the Success of Women,” which is guided by three key principles: Growth, Connection and Mentorship.

CBRE/New England Wins Big at the CBA Achievement Awards!

By Taidgh McClory, Managing Director/Partner, Advisory & Transaction Services

On March 22 at the InterContinental in Boston, the Commercial Brokers Association (CBA) gathered to honor select brokerage teams throughout Greater Boston at their annual awards dinner. For the brokerage industry, this is equivalent to the Academy Awards. CBRE/New England stood out as a dominant force at the awards, taking home six out of a potential 13 awards.

On behalf of the entire company, congratulations to all this year’s winners, nominees, our clients and the finalists! We continue to be proud of our employees, our collaboration and our market leadership as a world-class company.

Below are the CBRE/NE finalists for 2017’s CBA Achievement Awards:

MemorialDrive_1Office Deal of the Year – Greater Cambridge
InterSystems
Size: 238,000 SF
Address: One Memorial Drive, Cambridge, MA
Landlord: Oxford Properties
CBRE/NE Representatives: (Landlord team – Steve Purpura, Eric Smith) (Tenant team – Adam Brinch, David Fitzgerald, Robert Fitzgerald, Tim Howe)

Retail Deal of the Year Trillium
Trillium Brewing Co.
Size: 16,000 SF
Address: Thompson Place, 47 Farnsworth Street, Boston, MA
Landlord: Invesco/CrossPoint
CBRE/NE Representative: Brian Cohen

BrattleCourt_aerial_700px_v2Most Creative Deal of the Year
Brattle Court at Harvard Square
Size: 61,858 SF
Address: 1-8 Brattle Street, 17-41 Brattle Street, Cambridge, MA
Landlord: Asana Partners
CBRE/NE Representatives: Dave Pergola Jr., Brian Doherty, Matt Curtin

Life Science Deal of the Year75.125 Extrior Updated 06.2014
Shire
Size: 222,926 SF
Address: 125 Binney Street, Cambridge, MA
Landlord: Sublease – Shire
CBRE/NE Representatives: Steve Purpura, Eric Smith, Brian Cohen

President’s Council Special Recognition
Dynatrace (Five-Party Waltham Mega Deal)

  • National Grid subleased 68,000 SF from Dynatrace at FM Global’s (landlord) 404 Wyman Street in Waltham, MA
  • Dynatrace, represented by CBRE/NE, relocated to 40,000 SF at Boston Properties’ (landlord) Reservoir Place at 1601 Trapelo Road in Waltham, MA
  • Dynatrace’s move to Reservoir Place required JLL to help another client, Constant Contact, restructure its existing lease
  • CBRE/NE Representatives: Ron Friedman, Perry Beal

Industrial Deal of the YearIndustrial Deal of the Year
66 Saratoga Boulevard, Devens, MA
Size: 275,392 SF
Landlord: CIP Saratoga Boulevard LLC
CBRE/NE Representatives: Bob Gibson, Steve Clancy, Rachel Marks, Doug Rodenstein

To learn more about the night, please read more here.

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Recap: 2018 CBRE/New England Rhode Island Market Overview

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At our 2018 Rhode Island Market Overview our Rhode Island team presented on the state of the industrial, office and investment markets.

Alden Anderson, Senior Vice President/Partner, introduced Governor Gina M. Raimondo, who provided a compelling presentation on the status of the Rhode Island economy.

Gov

“22 companies have chosen Rhode Island over anywhere else…invest in Rhode Island. Let’s keep going.” – Governor Gina M. Raimondo

The panel portion of the morning was lead by Jeff Havsy, Chief Economist of CBRE Americas and Managing Director of CBRE Econometric Advisors. Jeff spoke of the recent changes in Rhode Island, the tax policy that passed in December, GDP growth, interest rates, retail sales and global tailwinds. Jeff ended his discussion with five concerns for 2018: inflation, Presidential management style, Brexit, consumer confidence and emerging market debt.

Office 
Andrew Galvin, First Vice President, spoke of the Rhode Island Office market trends. He stated that downtown office buildings that perform well have walkability to public transit, and suburban office buildings that perform well have high parking ratios. Jeff chimed in and stated that landlords need to keep in mind that the way we transport individuals will change (self-driving cars, ride share). Therefore, landlords need to think of short-term temporary solutions for parking. Andrew additionally spoke of the necessity for Rhode Island landlords to attract and retain talent from the local universities and colleges.

“Downtown vacancy is at 11.9% and is down for the third straight year… On the suburban side, in aggregate, the suburban vacancy rate is 12.4%, which is down from a high in 2009 of 25.5%” – AG

Suburban Graphic OfficeDowntown Graphic Office

“In the last 60 months in the Financial District, rents have increased 13.4%, or nearly 2.7% per year on average” – AG

Capital Markets 

Alden Anderson covered the Rhode Island Capital Market trends, stating that “Industrial is a very desirable asset class today for investment if the buildings fit key design parameters of easily accessible and clear height in excess of 20-24’.”

Investors are noticing Rhode Island. Alden has observed investors focusing on areas with millennials, amenities and the live-work-play environment. The market is starting to get validated by transactions taking place and big brand name companies coming to Rhode Island. 

Alden_capitalmarkets

Industrial 
Tom Barry, Vice President, covered the Rhode Island Industrial market, stating that, “a major theme of the past year was the continued growth of the manufacturing sector, which continues to account for a higher percentage of transactions than warehouse space.” Nationally from 2012-2017, ceiling height and square footage increased for the average warehouse space, which Rhode Island has a limited supply of. While speculative construction has not happened, there are plans in the works. Tom mentioned that he expects big box retail stores to come on the market, which could be a creative way for developers to create industrial space. Jeff chimed in and stated that retail centers converting to an industrial use (distribution or last mile) has been a national trend.

Tom_Industrial

“The Rhode Island Industrial market in 2017 continued to exhibit solid prospect activity and deal execution bringing the vacancy rate to another record low of 1.72%.” – TB

To Mayorwrap up the presentation, we were fortunate to welcome Providence Mayor Jorge Elorza, who left us with this solid takeaway, “It’s impossible to have a strong and vibrant Rhode Island without a strong and vibrant capital city… and vice versa.”

Visit the CBRE/New England Vimeo page for an audio clip from the event.

Did you miss our Boston or Hartford Market Overview recap? Click here to catch up.

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Recap: 2018 CBRE/New England Hartford Market Overview

2018Hartford

At our Hartford Market Overview, our Connecticut team presented on the state of the industrial, office and investment markets. We were pleased to have Joshua Solomon, Owner of the Hartford Yard Goats, join us on stage as our keynote speaker.

Office Market 
Michael Puzzo, Senior Vice President/Partner, and Jennifer Gosselin, Vice President, covered the Connecticut Office market.

Puzzo and jenn

“The Greater Hartford Office market lost 560,000 SF of occupancy during 2017 and it came in many forms. Classic large-scale consolidations; new workplace initiatives that have increased density and efficiency; and new sublease offerings from users that have relocated ahead of scheduled expirations.” – MP

“With the market more competitive than ever for limited demand, landlords will be more focused on engaging tenants and enhancing the overall experience at their buildings. This past year we’ve seen lobby refreshes, new cafes, new fitness centers and outdoor gathering spaces.” – JG

Office
Our office market forecast for 2018 includes:

  • Healthcare will be the #1 growth industry during the next decade
  • Start-up incubators could be a potential source of demand
  • The Hartford Line opening in May should provide future economic growth
  • Hartford Office market will have a lot of work to do to absorb the losses experienced in 2017

Industrial Market 
Chris Metcalfe, First Vice President, led with an in-depth overview of the Greater Hartford Industrial market.

Metcalfe

“More than any other product type, industrial is influenced by the vibrancy we see on a national level as commerce changes its real estate footprint in response to the marriage of industrial and retail. The rise of industrial nationally has kept our local industrial market immune to the challenges facing Connecticut.” – CM

“Growth-related challenges facing the supply chain present opportunities for Connecticut. There is currently a two-day delivery expectation from the consumer, which forces competition down to one-day or same-day delivery. This change will require new warehouses to be even closer to population centers.” – CM

supply chain

“There is another huge challenge in the industrial market: The Trucking Labor Crisis. By 2024 the deficit of insufficient truck drivers is forecast to be 175,000 positions.” – CM

Our industrial forecast for 2018 includes:

  • More large-format in our vicinity – demand from one MSF users
  • Last mile keeps rolling
  • Driverless trucks (?)

Capital Markets
Anna Kocsondy, Vice President, and Anna Pfau, Senior Production Analyst, covered the Connecticut Investment Sales market.

Anna and Anna
Our investment market forecast for 2018 includes:

  • Continued demand for well-located office buildings with walkable amenities
  • Multifamily is still highly sought after by investors and lenders with strong and stable fundamentals both on the local and national level
  • Industrial is the #1 favored property type
  • E-commerce giants to acquire more brick & mortar stores
  • Medical office expansions into traditional retail spaces should bolster retail centers’ credit and future pricing expectations
  • There is moderate to strong liquidity in the debt markets for both traditional (industrial, apartments, office, retail) assets and new types of assets (such as student housing, medical office, senior housing, self-storage)
  • Anticipate an average volume of office assets trading in 2018 (10-12 sales)

BrickandMortar
Overall, market fundamentals in Greater Hartford are strong and the outlook is positive for 2018, particularly in the Industrial sector.

Andy with YardGoats
Stay tuned for our next post, where we will reveal what our Rhode Island experts covered at this year’s CBRE/NE Rhode Island Market Overview. Did you miss our Boston Market Overview recap? Click here to catch up.

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Recap: 2018 CBRE/New England Boston Market Overview

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It was a great honor to have both Mayor Marty Walsh and Governor Charlie Baker speak at our 2018 Boston Market Overview.

This year, CBRE/New England representatives from our Downtown, Cambridge, Capital Markets, Suburban, Retail and Industrial teams all gave poignant market insights and takeaways for 2017 while looking forward to the year ahead. The group was moderated by Spencer Levy—Americas Head of Research for CBRE and a senior member of the company’s global research team—who opened the discussion on domestic and international trade, healthcare, taxes, industrial and retail agility, as well as the importance for businesses to follow talent.

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Urban (Downtown & Cambridge) – Jon Freni, Senior Vice President/Partner; Carolyn Wheatley, Associate
Freni and Wheatley kicked off their 2018 IMG_2384-2market insights with the ever-present growing industry: co-working. Freni stated, “Tenant or landlord, this will be the big debate in 2018 and will continue to change the way we do business. Whether you like it or not, co-working is here in a big way. Embrace it and look for ways to compete with it.” Freni continued with two additional market insights that are increasing in popularity: ‘spec success’ and risk-reward deal structures.

Wheatley spoke of three market insights in Cambridge: the increasingly life-science-driven tenant base for both office and lab space, spec developments that meet the supply needs of the low vacancy market, and market risk-reward deal structures that are currently landlord-favored.

Capital MarketsDave Pergola, Executive Vice President/Partner
Given the complexity of investing in New England commercial real estate, Pergola broke the investment market into three categories.

BostonCapitalMarkets_Chart

“In closing, CBRE/NE believes that if you have some conviction and the right type of capital to invest, the best opportunities in 2018 will be large, high-quality suburban office buildings.”

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Suburban OfficeAlison Powers, First Vice President
Powers started off her talk by debunking a common 2017 theme. “[…] despite the headlines signaling otherwise, the market was actually quite active in 2017 fueled by an incredible amount of leasing velocity driven by organic growth (I promise you not every suburban tenant moved to the Seaport) as well as continued momentum from the life sciences sector.”

BadNews

A select number of suburban landlords thrived because their space was large, scalable, high-quality and/or new real estate, with amenities and an accessible location.

RetailMatt Curtin, Senior Vice President/Partner
Next up was Matt Curtin who spoke about how changing consumer behaviors are forcing both retailers and landlords to step it up. He mentioned L.L.Bean and lululemon as two examples of traditional retailers who have integrated experience into their lifestyle brands. L.L.Bean will offer kayak and paddle board at its new Seaport Square location and lululemon offers fitness classes inside and outside of their stores. Matt also highlighted how entertainment concepts, craft beer, fast-casual restaurants, mobile app ordering and “clicks to bricks” retail trended in 2017 and is expected to blossom in 2018.

AndyShoe

IndustrialRachel Marks, Vice President
Rachel Marks closed out the market talks by focusing on the importance of industrial warehouses in Greater Boston as consumer expectations of convenience continue to grow, and people are comfortable buying more online. The changing habits of consumers force omni-channel distributors to deliver product quickly and inexpensively, which means they now need to occupy space close to large population centers like Boston. Other demand drivers in the industrial market include breweries, marijuana cultivators, biopharma manufacturing, technology and medical devices. With all this demand, there is currently a major shortage of quality industrial supply in New England.

Marks Photo1

Visit the CBRE/New England Vimeo page for videos from the event. Stay tuned for our next post, where we will reveal what our Hartford experts covered at this year’s CBRE/NE Hartford Market Overview.

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