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How E-Commerce is Impacting CRE

How E-Commerce is Impacting CRE on morrissegroup.com

Retailers are spinning a logistics web around the country

A lot has changed since 2011. That’s when a blog post on this site stated: “Many consumers still want to see or touch goods before they purchase, so they still go into a physical store to get this experience.”

That statement still holds somewhat true, but e-commerce has continued to grow by leaps and bounds in the past six years – and fewer consumers have to go into a physical store to touch the goods before they purchase them. Instead, many more people are shopping while sitting with their laptops in coffee houses and microbreweries, at home on the couch, or via their phones while waiting at the bank.

Big numbers for e-commerce

When it comes to e-commerce, the numbers are tremendous. In 2016, global e-commerce reached $1.9 trillion. In the United States, the National Retail Federation predicts online retail will grow 8% – 12%. In dollars and sense, this means e-commerce sales are expected to be between $427 billion and $443 billion.

As a result of these numbers, retailers are renting industrial space at breakneck speed in order to fulfill online orders. According to a report in Business Insider, the second quarter of 2016 saw the most square feet – nearly 70 million – of industrial space leased in the past 30 years. At the same time, warehouse availability has decreased.

In other words, retailers are leasing warehouses faster than new ones can be built.

What’s the driving the e-commerce force?

In its infancy, e-commerce retailers were interested in specialized buildings. The emphasis is now on logistics and proximity to consumers. Although Amazon, Walmart, and Apple are the big three e-commerce retailers, more and more retail corporations are jumping into the e-marketplace.

To remain competitive, those in the game – including the big three – have had to up the ante with free shipping and rapid delivery. While some of the e-retailers envision drones crisscrossing the sky, at the moment, most consumers will receive their packages via traditional UPS, Fed Ex, or USPS delivery.

The solution to remaining relevant in this competitive e-world is leasing or building distribution centers near major population hubs. Because it’s a growing industry, there are specific demands that e-retailers require in their warehouse space:

  • Higher ceilings to accommodate shelving and top stock;
  • More dock doors for the loading and unloading of goods; and
  • Enough space to accommodate distribution, fulfillment, returns, and liquidations.

The changing tale of retail

Once upon a time, mail order catalog shopping was considered revolutionary. It’s how some retailers, like Sears, made their name. The e-commerce retail wave is the latest in the ever-changing, always-competitive marketplace.

As a result, the in-person retail experience is morphing into something else. Many stores have streamlined their stock, choosing to offer much more online. The physical world is becoming an extension of the online world, rather than the other way around.

Sadly, it also means that some retailers – many of them anchor stores in shopping malls – have had to close locations or shut down completely. Towns and cities across the country now have ghost malls and vacant parking garages – but these too can be repurposed into e-commerce facilities. They already fulfill what logistics managers require: large spaces, high ceilings, and close proximity to population areas.

The vision for South Florida

South Florida is in a unique position in terms of e-commerce distribution. Sitting at the tip of the Florida peninsula, the area is a perfect location for delivering goods purchased online to local communities and international ones. Smart investors are capitalizing on this reality, and we can help them do it.

Since 1976, Morris Southeast Group has seen CRE’s peaks and valleys. We are especially excited about the opportunities e-commerce can bring to the local commercial market. Our team of South Florida professionals can help you find the right building for the right job, in the right location.

For a free consultation, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at kenmorris@morrissegroup.com.

Artists Creating – And Owning – Their Own Spaces in Miami

Artists Creating – And Owning – Their Own Spaces in Miami on morrissegroup.com

How creativity is changing commercial real estate

Art does a lot for people. It appeals to our creative nature; it’s personal; its expression touches something in all of us. In the words of Pablo Picasso, “The purpose of art is washing the dust of daily life off our souls.”

The same sentiment can be said about art in communities. By embracing creativity, neighborhoods are learning that art can wash off their dust. We’ve seen that with Miami’s Wynwood district and Fort Lauderdale’s FAT Village, and now with Little Haiti. This time, though, things are a little different.

An artist’s life in Miami

Miami is a city born and bred on art. From its Art Deco architecture and the mix of cultures to the draw of creative souls from around the world and the abundance of light and color, the city is a palette of creative juices. The fact that it had an abundance of available, cheap, and often large empty spaces also didn’t hurt.

There is a caveat, though – and that’s the word “had.” When a neighborhood such as Wynwood thrived as a result of art, rents increased and developers and owners turned their properties into more lucrative projects.

Artists and gallery owners were forced to downsize and/or face rent increases. While some found a haven in donated or discounted spaces, these deals were often short-term. As a result, many artists and gallerists, no longer satisfied with art-powered gentrification, had to get creative with real estate.

Art’s new wave

For artists known for being free-spirited, it all came down to control. If they wanted to maintain an artistic foothold and have a say in how a neighborhood was developed, and to not be priced out, they would have to become developers in their own right.

In addition to needing their own studio space, many artists also needed space to display their work, as well as the work of other local artists and pop-up installations. In some cases, artists needed a place to live.

There were also the matters of accessibility and affordability – and one neighborhood quickly rose to the top of the list: Little Haiti.

If you build it …

Nestled between Wynwood and the Design District, Little Haiti is now a center for cultural tourism – thanks in large part to the indie arts movement. The main thoroughfare, NE 2nd Avenue, is lined with galleries and commercial art storefronts.

Now that the galleries are open and tourists are arriving, so too are the other businesses. Wynwood coffeehouses and bars are now opening locations in Miami’s newest arts district. The difference is that in Little Haiti, the artists are calling the shots.

Morris Southeast Group is thrilled to be a part of the diversity that is South Florida, from its people to its neighborhoods. In the decades that our doors have been opened, we’ve seen communities thrive, stumble, and then be reborn into something new and exciting.

Our team of professionals is able to connect investors and developers to the right property for today and tomorrow. For a free consultation, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at kenmorris@morrissegroup.com.

 

CRE In Miami is Getting Greener

CRE In Miami is Getting Greener on morrissegroup.com

South Florida cities are fighting climate change

When it comes to climate change, perhaps no other region in the nation has as much to lose as South Florida – Miami and Miami Beach in particular. With each year, King Tide flooding becomes increasingly extreme and creeps into more and more neighborhoods, and herculean efforts are underway to adapt city design and pump water back into the ocean.

It should come as little surprise that cities are also fighting back with initiatives that promote green building – and the investment is yielding results. A recent CBRE study, in conjunction with Maastricht University, has Miami in the top 20 for green commercial real estate.

What does it take to be a green city?

Despite an abundance of sunshine and palm trees, Miami wasn’t so quick to embrace green building standards. Cities like New York and San Francisco were among the first. But today, more and more cities, including those in South Florida, are offering green initiatives.

Miami is now ranked at 15. A combination of smart public policy and support from investors and owners helped jumpstart the city’s green efforts – and the work is paying off. Looking at LEED-certified and Energy Star-certified buildings, researchers report:

  • 12.29% of Miami’s commercial real estate is certified as green. (The current leader, Chicago, has 18.06%.)
  • That translates into 33.91% of total square footage in green buildings.

Going green is constant work

Climate change is a hot topic. There remain doubters out there, so it takes a particular amount of dedication on the part of public officials to continue moving forward with an eye on the future. That future, according to some predictions, may not be so bright – everything from devastating superstorms to submersion, with 2.5 million Miamians becoming refugees.

It is, so to speak, an uphill battle for city leaders – but they have taken proactive steps through the Office of Miami Sustainable Initiatives:

  • LEED Silver certification is required for new construction over 50,000 square feet, with density bonuses for projects exceeding green building certification levels;
  • There is expedited permitting for green building projects;
  • Some existing properties may qualify for financing for improvements to energy efficiency, renewable energy installations, and hurricane hardening; and
  • Other incentives and rebates are available through local and state initiatives, as well as through Florida Power and Light.

The bottom line is also the bottom line

When real estate goes green, the environment is not the only thing saved. There are financial savings, as well. Through the use of environmentally superior building materials and the installation of energy-efficient and water-conserving systems, businesses have seen savings in a variety of areas, according to Miami-Dade Green:

  • 15% – 30% savings on cleaning costs;
  • 35% on energy; and
  • 20% – 60% on water.

Additionally, Miami-Dade County, Miami, and Miami Beach have joined forces with The Rockefeller Foundation’s 100 Resilient Cities. As a member of this network, the area is eligible for funding and support, as well as sharing in the knowledge base of member cities from around the world.

Connecting you to green properties

Morris Southeast Group loves South Florida. It’s why we live, work, and play here – and why we’d like to see it around for many, many years to come. Our team of professionals can help you find the property of your dreams and connect you with green initiatives that will help you, the community, and our future.

For a free consultation, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at kenmorris@morrissegroup.com.

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