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The Ideal Mix In A Mixed-Use Building

The Ideal Mix In A Mixed-Use Building on morrissegroup.com

Add residential, retail, and other commercial tenants and stir

Ever since mom and pop lived above their haberdashery and assorted sundries shop, mixed-use buildings have been a staple of countless cities and towns. And these properties have evolved to become essential components in the design and building of livable, workable, and walkable neighborhoods and downtowns.

In today’s world, where buildings and footprints are larger and taller, the people upstairs are more likely to be customers than owners of the businesses at street level. Creating the perfect mix in a mixed-use setting is necessary to satisfy both residential and retail tenants. Although there isn’t one perfect recipe, there are several key ingredients.

Working with the retail tenant

When it comes to residential and office tenants, there is very little interaction between them and their landlord or building management. For the most part, everyone goes about his or her day until something comes up.

That dynamic changes with the retail tenant, many of whom have leases that include a percentage rate clause. Increased sales for the retail tenant translate into an additional rent percentage for the landlord/manager. This monetary incentive often results in greater contact between the tenant and building management, the latter of whom often feels compelled to problem solve and market the retail space.

When the customer is always right

On the one hand, retail tenants have the usual concerns of any tenant: price per square foot, ceiling heights, facilities, maintenance, etc. On the other hand, they have – and must have – a keen awareness of how their location impacts the customer experience. As a result, one of the most frequently asked questions is, “Who is above me?” Any disruption to potential revenue not only has a negative impact on them – it can also leave the landlord with a vacant storefront.

In addition, the customer experience is constantly evolving and often requires the landlord or building management to improvise. Consider a retail establishment that does so well that parking becomes an issue for that tenant, neighboring retail tenants, and the residents above. Both tenants and landlords must adapt to and ideally plan ahead for these scenarios.

Speaking of the people upstairs …

Perhaps the most important ingredient in determining the mix in a mixed-use building is to be mindful of the residents who will be living above any retail space. Businesses that create excessive noise, smells, vermin, and trash generally lead to the most complaints from upstairs neighbors.

A solution is for the landlord/building manager is to match the retail tenant with the residential tenant and/or the neighborhood. Some examples:

  • A satellite dry cleaner – one that collects the laundry and sends it out for cleaning –

would work well in an area where there aren’t any dry cleaners.

  • Millennial tenants may be more interested in living near a coffee house or socially-conscious boutique, while young families may need a small corner market to pick up some milk or fruit.
  • Baby boomers may prefer something more upscale, while senior citizens may opt for a location featuring a small medical office. In Fort Lauderdale, for example, Riverwalk Residences of Las Olas will have medical offices at street level.

Key ingredients that work for Morris

Managing a mixed-use property requires some of the same skills that have helped Morris Southeast Group successfully serve our clients: open and clear communication, understanding the specific nuances and needs that inform a smart CRE strategy, and transparency to head off any anxieties.

For a free consultation or to learn more about our property management services and/or mixed-use opportunities, 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.

Fighting Rising Sea Levels with Real Estate

Fighting Rising Sea Levels with Real Estate on morrissegroup.com

South Florida is leading the way in smart development

It’s one of the most spectacular views in the world: Miami rising from the sea like a modern-day Atlantis. From some vantage points, it looks as if land and water are one – but that multi-million-dollar selling point threatens to bring Miami to the same fate as the lost continent.

Attribute it to climate change or not, something is definitely going on with the weather, the tides, and the rising sea. Research from the University of Miami has found that flood events in Miami Beach have significantly increased as the result of the acceleration of sea-level rise in South Florida.

Could real estate save the day?

Further complicating matters is the end of the 2017 hurricane season, which has been labeled extremely active and the most expensive. In addition, seasonal high tides – also known as King Tides – are becoming more frequent, flooding more and more streets and neighborhoods.

An answer to this potentially dire future may be found in real estate. Municipalities, developers, and investors are actively pursuing solutions to ensure that South Florida will still exist above sea level, 50 to 100 years from now.

South Florida’s response can lead the nation

While many coastal locations are at risk of sea rise, South Florida is especially vulnerable because it has always been just a few feet above sea level. At the same time, buyers and investors are increasingly climate savvy. Not only do they want to know about a building’s ability to withstand hurricane force winds, they also want to know if their property will have a water view in the future or if it will be in the water.

While there are no plans to stop development along the coast, South Florida is still providing solutions to combat the tides. In 2009, Broward, Miami-Dade, Monroe, and Palm Beach counties joined together to form the Southeast Florida Regional Climate Change Compact as a means of coordinating efforts across county lines. Additionally:

There is a push to develop and market storm-resistant and hurricane-resilient buildings. A downtown Miami high-rise has been designed to withstand 300 mph winds – and this information is all part of the marketing package to entice buyers.

The developers of a property on Las Olas Boulevard in Fort Lauderdale not only installed higher sea walls, but also brought in soil to raise the level of the lots.

More and more municipalities are embracing green building standards to combat climate change and support sustainability.

In Miami Beach, building codes now require new construction and city infrastructure to be elevated. In addition, planning and zoning boards throughout the region are examining current codes and proposing changes to raise height limitations for sea walls, placing roads, water, sewer, and electrical systems on higher ground, and installing massive pumps to return the water from whence it came.

A place to live and work and play for decades to come

It’s the view. It’s so beautiful. To lose it – to lose Miami and its surrounding cities and towns –would be devastating. It’s why Morris Southeast Group embraces proposals and efforts that will help keep the region vibrant and above water for generations to come.

For a free consultation on CRE, 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.

How Millennials Influence CRE

How Millennials Influence CRE on morrissegroup.com

The largest generation is spearheading a marketplace shift

Millennials often get a bad rap. Essentially, they’re blamed for a lot – from the over-reliance on cell phones to the over-abundance of coffee shops to an over-abundance of working remotely. Millennials, many Boomers and Gen-Xers believe, have changed everything.

A more accurate assessment is that because of Millennials – and, to some degree, Generation Z – the nation, the world, and the way we live our lives are experiencing growing pains. Millennials are now the largest generation, outpacing Boomers by some 15 million. And in order to stay relevant, many businesses and industries, including commercial real estate, have to change with the times.

Millennials and work

As the generation that came of age during the Great Recession, Millennials single-handedly changed the way in which work is done. Highly educated and in debt because of that education, they were also the most likely to lose their jobs. This, combined with advances in technology, forced many Millennials to put their minds to work in order to survive. Start-ups, crowd-funding, freelancing, the gig economy, and working remotely became ways to make ends meet.

As the economy improved, office spaces had to adapt their floor plans. Empty cubicles were removed and office footprints decreased in exchange for open floor plans, quiet areas for more focused work, remote employees, collaborative spaces, and third spaces. By understanding the values of employees, some companies that were not centrally located also provided shuttles to mass transit hubs and invited food trucks for lunchtimes.

Millennials and play

The rise of e-commerce has led to a worry that the American mall is dying. As brick-and-mortar stores fall to e-retail giants or are forced to jump into the online retail pond, there may be a glimmer of hope for retail property landlords, courtesy of Millennials.

When it comes to disposable income, Millennials – more than any other generation – are more likely to spend that money on experiences rather than stuff. They embrace life outside of work. According to a report from MetLife Investment Management, shopping can thrive when it is part of a mix of stores, restaurants, and entertainment. Among the ideas given a tremendous thumbs up: retail shops that provide unique products and excellent customer service, weekend farmers markets, restaurants that surpass the usual food court fare, and live entertainment.

Millennials and investments

Faced with a difficult economic environment, Millennials used their imagination, creativity, and digital ability to develop new ways of investing. Crowdfunding, which has multiple investors pooling resources via an Internet platform, was born with the Millennial generation. It’s now an idea that has gone mainstream.

Today, many Millennials are considered Millennipreneurs, successful business owners who understand the needs of their employees. As such, they meet many of the wants of their generation in specifically-designed office and retail spaces, so that work is more productive and life is more fulfilling.

Millennials and Morris Southeast Group

In 1976, Allen I. Morris founded the firm that his son, Ken, now oversees. In those 42 years, the Morris Southeast Group has witnessed many changes and trends in the CRE market. By understanding and embracing the needs and desires of each generation, the firm has been able to remain relevant and successful in bringing clients and properties together.

For a free consultation or to learn more about CRE opportunities, 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.

E-Commerce And The Need For Local Distribution Centers

E-Commerce And The Need For Local Distribution Centers on morrissegroup.com

The retail e-volution will be localized

The revolution in retail has been Amazonian. Because of the growth of that online mega-merchant, all aspects of commerce have changed. As a result, other retailers have had to wade into the e-commerce pool in order to remain competitive.

The question facing many e-commerce retailers – especially those trying to get a toehold in a land ruled by two giants, Amazon and Walmart – is how to bring goods to consumers rapidly and efficiently. The answer, it turns out, is to bring the distribution centers (DCs) closer to home.

In the e-commerce beginning

When the first online shopper clicked the purchase icon on a shopping cart icon, that order was most likely fulfilled at a very large DC located in a remote location. There, land, taxes, and labor were cheap, and the centers could be large enough to manage an overwhelming logistical operation.

Today, though, retailers and supply chain and logistics experts are rethinking that equation. Since the e-commerce explosion – and all predictions point to an even greater share ($4 trillion by 2020) of the market in years to come – many retailers have been forced to close stores. When anchor stores fold, malls do poorly.

At the same time, consumers have become accustomed to online shopping, and their expectations have grown. At one time, they were thrilled to receive their online purchase within a week. That expectation now stands at overnight delivery, and increasingly, that delivery time has been shortened to same day.

Selling electronically, thinking locally

Rather looking outward for space to build massive warehouses, more and more e-retailers are bringing their operations closer to the consumers. Locating DCs in urban centers may be more expensive. Rents and taxes, for example, may cost more, but this is often preferable given a speedy last mile delivery and lower transportation costs.

In some urban markets, demand for space has outpaced supply and commercial leasing is at an all-time high. Los Angeles and Seattle report that 95% of total warehouse space has been leased.

Thinking creatively to remain competitive

The demand for DC space in urban centers is giving birth to a creative use of space. Retailers that closed their brick-and-mortar stores because of e-commerce competition are now holding onto those spaces and refitting them as DCs. This allows them to respond more readily and quickly to the remaining stores in their family, and to fulfill online orders at a local level.

Properties that were once considered obsolete are being reclaimed and reborn to meet the retail challenges of the 21st century and the demands of the digital-savvy shopper. Businesses entering the e-commerce field are happy to let the giants have their DC palaces, while they lease anywhere from 300,000 to 500,000 square feet, located close to consumers, to stock small amounts of high velocity products.

Just like businesses have started to share space, e-retailers are looking to do the same in order to share costs of a more localized DC. Co-locating is based on varied peak sale times for two companies. An electronics company, for example, may peak between Thanksgiving and Christmas, while a chocolatier may peak during the weeks leading up to Valentine’s Day. Another retailer with a third peak time could also join.

E-commerce and South Florida

While traditional retail certainly isn’t dead in South Florida, the area is in a unique position when it comes to e-commerce. Thanks to the Everglades, there’s only so much space available on which to build massive DCs. West only goes so far.

At the same time, the region has plenty of empty warehouses and underutilized properties that can be reclaimed at local DCs to provide efficient and timely deliveries to local and international consumers. Finding new purpose for these spaces re-energizes neighborhoods, provides jobs, and strengthens the local economy.

Morris Southeast Group can help you find the commercial real estate property you need for your e-commerce or brick-and-mortar business. 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.

Third Spaces are Transforming Offices – Again

Third Spaces are Transforming Offices – Again on morrissegroup.com

An old idea is gaining new momentum

The philosophy of the third space (or place, in some writings) is not a new one. In 1989, urban sociologist Ray Oldenburg coined the phrase in his New York Times bestseller, The Great Good Place. In that work, he described “first place” as home, “second place” as the workplace, and “third place” as the community anchors – informal meeting places such as parks, malls, gyms, libraries, rec centers, and the like.

Urban planners have increasingly relied on third spaces when developing new communities or revitalizing existing ones. These are the living rooms of the new millennium, a vital component for human interaction in a world that seems increasingly devoid of it.

Work isn’t what it used to be

In the 28 years since Oldenburg first introduced his ideas, a lot has changed in the world, particularly in the office. Cubicles have been torn down in favor of open space designs, which have also transformed into a combination of open and private spaces to meet the needs of group and focused work, as well as collaborative spaces to offset costs.

In addition, more employees are able to work from home, from the field, or from the coffeehouse down the street. While telecommuters report increased isolation, full-time employees also report longer and more intense workweeks.

Third space meets second space

To meet these challenges, more and more designers and property owners are looking at third space ideas to do for companies and workers what they’ve been able to do for communities: revitalize and recharge.

Before embarking on a third space design, there are a few key concepts to keep in mind so that the space is more than just a coffee shop in the office.

  • Location, location, location: The obvious spot is the company cafeteria or an area of under-utilized space. The important thing is to observe where key social interactions already occur and to build upon that, even if those spaces include areas outside of the building.
  • Technology is essential: The downfall of the local coffeehouse is not enough outlets and weak Wi-Fi. Third space areas should be technologically integrated to support collaboration, information sharing, creation, and, of course, seamless Wi-Fi and ample power connections.
  • Ambiance: The look and feel of a comfortable and welcoming environment can be achieved through design. Just as in new office environments that blend group areas with private focused work areas, third space areas should feature the same. Lighting, furniture, colors, textures, and aromas are all necessary ingredients to create a space that’s inviting.
  • Once the work is done, the work isn’t finished: As with many things in business, it’s important to seek feedback so that the space can continue to evolve with the changing needs of the staff. In order for the real estate to be resilient, it must be flexible.

The corporate third space is an investment

In an interview, Ray Oldenburg, the man who started the discussion, had this to say about the role of the third space in the office:

“Corporations used to believe that the longer they could keep each employee at the desk, the more productive they’d be. That’s been shot to pieces. Managers found out that if they let people work where they want and when they want, productivity went up. The marketplace is highly competitive, and it’s important to be first with new innovations. If you get people sitting together, talking together, innovation comes quicker.”

Morris Southeast Group couldn’t have said it any better. A healthy and supported workplace is good for innovation, which is good for business, which is good for real estate and investment opportunities.

For a free consultation or to learn more about CRE opportunities, 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.

Technology vs. Relationships In CRE

Technology vs. Relationships In CRE on morrissegroup.com

Turning arm-wrestling into a handshake

For better or for worse, CRE is evolving thanks to technology. In a very real sense, the industry is a bit late to the technology table. While other industries have already experienced the growing pains of transitioning to and making use of hard data, CRE is just now beginning to understand and incorporate cutting-edge methods.

The move, though, does not come without some growing pains and the revelation of a CRE generation gap. One recent study found that less than 25% of CRE professionals over 45 believe the industry is lagging behind in adopting new technologies. On the other hand, 65% of those under 45 think CRE is falling behind.

The CRE generation gap

What’s becoming increasingly evident in the CRE industry is an issue that has already been negotiated in other sectors: a generation gap on technology that – depending on how it’s integrated – can easily become a rift that cuts into opportunity and profits.

For many older professionals, many of whom were teethed on cultivating personal relationships to get ahead, technology can be both overwhelming and an impediment to face-to-face interactions. Younger CRE workers, as well as the investors they hope to attract, were raised on technology. For some of them, even email may be as antiquated as the Pony Express.

Technology and people aren’t going anywhere

The truth of the matter is that technology isn’t going anywhere. In fact, it will keep developing and changing and – for better or for worse – we will have to incorporate it as a means of staying competitive and relevant. Kick and scream or applaud and cheer, technology will continue to revolutionize how we do business.

At the same time, there is no replacement for people skills. They are an essential component of any personal and professional interaction. The trick, though, is how to maintain the warmth of those relationships while making maximum use of cold, hard data – and that may be the CRE skill that keeps the industry thriving.

How rapidly times have changed

It wasn’t all that long ago that CRE was mesmerized by the use of drones and virtual reality to better present properties. At the same time, new technology is allowing organizations to gather and interpret data in order to gain new insights and develop more efficient means of interpretation and knowledge gathering.

Today, start-ups are developing software that can benefit real estate professionals, tenants, investors, capital seekers, brokers, and landlords. In addition, the Internet of Things (IoT) and smart buildings monitor energy usage, predict troubles ahead, and initiate real-time responses. Then, there are next-generation geographic information systems (GIS), which compile data to find the best locations for investors and companies. CRE professionals can leverage all of this information to make better predictions and recommendations for clients.

Where do people skills fit?

In our everyday lives, we can see how easily and quickly technology can disconnect us from one another. What used to be natural for us, now takes a little bit of effort and forethought so that we do not lose those connections.

It’s the same thing in our professional lives. While some markets may welcome the opportunity to gather real estate data on their own without the assistance of a CRE professional, it is exactly that professional who can answer questions, reach out, provide solutions, gather relevant data, notice trends, and make connections.

Rather than interfering with relationships, technology can enhance those relationships and provide CRE professionals with a distinct advantage. It is imperative for individuals and the industry as a whole to stay up-to-date or risk becoming irrelevant.

At Morris Southeast Group, we understand the importance of good information, relevant technology that delivers, and the relationships that benefit us and our clients. It’s what has kept us evolving and moving forward for decades.

For a free consultation or to learn more about our property management services, 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.

Fort Lauderdale Grows Up

Fort Lauderdale Grows Up on morrissegroup.com

New projects are reaching for the sky

In a strange sense, Fort Lauderdale is the Jan Brady of South Florida cities. To the north is West Palm Beach, bastion of high society, and to the south, it’s all Miami, Miami, Miami. Even mapmakers are hard-pressed to get Fort Lauderdale’s name to fit on the southern tip of the Florida peninsula. Often, it’s just easier to deal with the neighbors.

That’s all about to change, though, as a series of major construction projects promise to forever change Fort Lauderdale’s skyline and investment possibilities. Just last year, Fort Lauderdale’s healthy economy, lower office rents, higher occupancy, and lower regional cost of living captured the attention of investors. Mapmakers, it seems, are going to have to make more room on their maps.

Downtown is going up

When people hear of Fort Lauderdale, they immediately think of the resorts and hotels facing the beach along A1A and memories of Spring Breaks from long ago. The city, though, is more than a pretty coastal face.

Because of its close proximity to Fort Lauderdale-Hollywood International Airport, the FAA has a 500’ height limit on buildings in the area. New construction projects are inching closer to that height – all at the same time.

  • Icon Las Olas: At 455’ tall, this is the tallest building in Fort Lauderdale. Rents will range from $2,500 to $7,000 a month, making it one of the most expensive rental properties in all of South Florida. It’s expected to open this fall.
  • 100 Las Olas: If Icon is the tallest building in Fort Lauderdale, it won’t be for long. 100 Las Olas, a Hyatt hotel and condo combo, will take that position at 499’. Condo prices will start at $800,000. There will also be 8,500 square feet of ground floor retail and restaurants.
  • Riverfront: Demolition has already started on this redevelopment project. When the dust settles, there will be two residential towers, 461’ and 441’ feet tall, and 58,000 square feet of retail/restaurant space.
  • Riverwalk Residences of Las Olas: This 471’ senior-living tower will also include 152 assisted living residences and 57 memory care units, as well as a host of luxury amenities and on-site medical facilities.
  • 4 West Las Olas: This proposed 273’ building – the smallest in the new bunch – will replace the 9-story Sweet Building, Fort Lauderdale’s tallest building for 46 years.

Wait, there’s more

If all of this building in a concentrated area weren’t enough, Fort Lauderdale is also addressing two important infrastructure issues.

  • Creating a vibrant and dynamic downtown scene also means addressing the transportation needs of a growing population. While the towers are going up, the city will also be laying tracks for the Wave, an electric streetcar system. Part of this process will require the five-month closure of the 3rd Avenue Bridge so the wings of the drawbridge can be fitted with Wave tracks. The system will then link the north and south banks of the New River.
  • The pedestrian walkway that runs along the north bank of the New River will be extended beyond the Icon Las Olas and the historic Stranahan House to better connect people to dining and shopping further east.

Fort Lauderdale is moving upward and outward

While all of the attention is currently focused on the downtown projects, there are two other areas of Fort Lauderdale that also deserve mention.

The first is the SOLO (south of Las Olas) neighborhood. There, the 550 Building on South Andrews Avenue will be built on the site of the existing Justice Building. The seven-story structure is Fort Lauderdale’s first new office building since 1989. In addition to six floors of office space, there will also be ground floor retail/restaurant space.

Finally, no city would be complete without an art district. Fort Lauderdale has two: FAT (Flagler & Arts & Technology) Village and MASS (Music & Arts South of Sunrise) District. On the fourth Saturday of each month, the two areas – packed with galleries, arts venues, and speakeasies – host an art walk and are linked by a free trolley.

South Florida is growing

Morris Southeast Group is excited and energized with the news coming out of Fort Lauderdale. The downtown project adds up to 1,900 apartments, 400 condo units, 238 hotel rooms, and countless square feet of commercial and retail space.

For a free consultation or to learn more about our commercial investment or property management services, 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.

6 Ways To Protect Your Investment During A Crisis

6 Ways To Protect Your Investment During A Crisis on morrissegroup.com

Today is the day to develop a sensible strategy

Stronger hurricanes. Tornadoes in areas of the country where they’ve never occurred. Terrorist attacks. Fires, floods, and earthquakes.

While it’s impossible to plan for every single crisis that can occur in this crazy day and age, it’s essential to plan for most of them. Very often, key preparations include many of the same items; so, when disaster strikes, property managers, owners, and investors will be prepared for a range of emergencies.

1. Compile important information

There are two types of information to gather: the physical and the personal.

  • Whether you’re the owner of a new structure or an older one, it’s important to understand the layout and systems within that building. That means knowing where the water shut-offs and gas mains are located, the various entrances and exits, stairwells and fire doors, electric panels, fire extinguishers and hoses, etc. At the same time, it’s important to make a list of names and numbers of people who need to be contacted to address any issues with these systems.
  • Another item at the top of the list is to compile a list of tenants and their contact numbers. If necessary, you may also want to have additional contact names for every tenant. Each tenant should also create similar lists of their employees, which can also be shared with you. These lists – names, numbers, and additional contact names and numbers – should be updated on a regular basis.

2. Develop relationships within the property and the community

As a building owner or manager, you’re now part of a community. As such, it’s imperative that you develop a relationship with some of the key members of that community, specifically the local police and fire departments.

One idea is to invite officials to your site and to take a tour. At that time, explain the security plans you’re creating and welcome any input they may have.

At the same time, tenants and their staff should know who you are before a crisis. Take time to listen to their concerns – say, poor lighting in the parking lot – and implement reasonable solutions. These are the same people who need to know and understand the security preparations you are establishing.

Now is the time to compile a list of trusted vendors, companies that can arrive after the all clear has been sounded to initiate clean up. You and your tenants want to return to business as usual as soon as possible.

3. Working with a security professional

Select a security firm and invite them for a consultation. This will often involve a tour of the facility to examine any weak spots, such as a propped open rear door, a poorly-lit stairwell, or a decoy security camera that fools no one.

It’s also a good idea to do a similar tour at night in order to make note of shadows cast by landscape lighting or shrubbery. These dark nooks invite trouble.

The security consultation – as well as with any discussions with local law enforcement – is also an opportunity to address procedural concerns. Among these items could be a stay-in-place plan to alert tenants that an active shooter is in the building; a lockdown procedure if there is a dangerous situation in the area; and an evacuation plan with tenants given a designated space outside of the building for their staff to meet. Here, attendance can be taken – and if anyone is unaccounted for, the authorities can be alerted.

Many security concerns can be addressed with technology. Some security services include 24-hour remote monitoring, motion-sensitive cameras, and even drones fitted with cameras to cover large areas, such as an industrial site. Do your research and ask questions.

4. The proof is in the details

Keep a detailed account of the particular crisis. This includes notes, names and numbers, a timeline, photographs, videos, voice recordings, tenant statements. These details will be important when lawyers and insurance representatives eventually get involved.

5. Media management

For some events, media will descend, opening up a new front in the management crisis. They may look for a statement from you or your representative – and the details you’ve gathered and preparatory steps you’ve taken will help you remain in control of the information gate.

6. Training

This is a lot to digest. When entering the CRE marketplace, many of these issues are items you thought you’d never have to consider. Your tenants feel the same way.

That’s why a safety and security plan, which will be distributed to your tenants and their staff, is only as good as the training people have. Ideally, training should begin at the top with you or a representative, who will then be able to instruct tenants. These tenants will then have the responsibility of training their own staff.

Morris Southeast Group provides comprehensive, professional property management that extends beyond the traditional functions of property management. We not only want to help you protect your investment, but we also want to ensure that your tenants are safe and secure.

We pride ourselves on a high degree of personal accountability associated with each relationship. For a free consultation or to learn more about our property management services, 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.

Micro-Units Are A Big Deal:

Micro-Units Are A Big Deal on morrissegroup.com

And they’re coming to your city

In 1963, Walt Disney approached two of his staff songwriters, the Sherman Brothers, to come up with a catchy tune for the UNICEF exhibition in the upcoming New York World’s Fair. The result was “It’s A Small World (After All).” Little did Mr. Disney know that his song could easily be the soundtrack for today’s boom in tiny living.

Americans these days are obsessed with simplifying their lives. Television channels, like HGTV and DYI, are filled with shows celebrating tiny homes. In addition, YouTube has channels dedicated to tiny food and tilt shift photography, an effect that makes the big, wide world look like a child’s model train set. Even IKEA celebrates tiny living with displays of efficient living space in just a few hundred square feet.

Small neighborhoods, big prices

In recent years, there has been great interest – especially among aging Baby Boomers – to leave suburbia and return to city life. Developers responded by developing residential spaces above retail and commercial spaces, creating easily walk-able neighborhoods where people could live, work, and play.

Rents, though, outpaced salaries, and a younger workforce soon found themselves priced out of the urban opportunity. In cities like Miami, for example, living in an exciting urban neighborhood often requires multiple roommates and/or doubling up in bedrooms.

A big solution in a small package

It was only a matter of time before the tiny revolution made its way to the big city. Tiny homes, usually placed in rural or some suburban settings, could be adapted to urban life if they could be stacked on top of one another – in other words, the birth of the micro-unit building.

Cities across the country are in various stages of developing towers of micro-unit apartments. While some may see it as an attempt to jump on the tiny fad, for many urban neighborhoods, the micro-movement is seen as a chance to breathe new life into downtown centers. The size of the apartments forces residents to not collect stuff, but to experience city life.

  • New York City’s first micro-unit building is Carmel Place on the East Side. Studio apartments average between 260 to 360 square feet.
  • Seattle is said to have more micro-units than any other city in the country.
  • Miami’s entry into the micro-unit world is Moishe Mana Tower, a planned 49-story tower with 328 units planned for 200 N. Miami Avenue. Construction is slated to begin in 2018. Apartments are so small there’s no room for ovens, but there are plenty of built-ins and fold-aways to maximize space.

Are you a candidate for micro home management?

Living in a micro-unit is not for everyone. Most micro-dwellers are Millennials and younger, who are living alone and who have consciously chosen to trade space for affordable living in densely populated neighborhoods. Often, the micro-apartment is viewed as a stepping-stone for a specific life chapter, with residents staying for one to two years.

While many of the buildings feature amenities, such as communal full kitchens, gyms, and pools, they do not always have parking. The micro-unit towers are often located near public transportation so residents can easily commute or walk to their destination. Moishe Mana Tower, for example, will be close to public parking garages, but will also provide onsite bicycle parking.

At Morris Southeast Group, no real estate wish is too big or too small. Our team of professionals can help you find the right investment fit for your needs. For a free consultation, call us at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at kenmorris@morrissegroup.com.

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.

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