While it may seem a far way off, June 1 is right around the corner – the start of the 2019 Atlantic hurricane season. You don’t have to be a meteorologist or climatologist to know the far-reaching effects that hurricanes have on South Florida. After a storm hits, the future of the local economy sometimes hangs in the balance, and CRE plays a crucial role in helping get businesses and neighborhoods back on their feet.
This makes it all the more important to set your disaster preparation in motion to protect your commercial property from mother nature’s wrath.
Don’t wait until your property is in the midst of repairs or a rebuild to consult your insurance policy. When prepared properly, these policies are living documents, adapting to the ever-shifting risk landscape. Review them annually, if not more frequently, to be sure they accurately reflect your understanding of what will happen once they take effect.
Some questions to consider:
When that “Hurricane Watch” alert flashes across your screen, it is typically too late to begin complete preparations for what’s likely to come. Ideally, the planning process begins every January – just over a month after the close of the previous season – which will give you the time and clarity to properly plan your disaster response.
Every CRE business should have the following on their active agenda, even while hurricane season is the faintest glimmer in the distance:
Once that “Watch” bulletin pops up, these protocols should be put into action. If you wait until the alert elevates to a “Hurricane Warning,” time may not be on your side. As always, contact your local emergency management agency to learn about specific risks in your area.
Some hurricane preparations will come in the form of standard facility maintenance, such as trimming trees, cleaning roofs, and clearing gutters. But there are a number of additional steps to take in order to fully protect your property:
In the event that a storm temporarily forces you and your staff to hunker down at work, you’ll want a fully-stocked supply of essentials to get you through until the sun shines again. Some items to include:
While the exact path and timing of a storm can be uncertain, the preparations needed to withstand it are not. With proper planning and regular maintenance, your team and your property will be ready when the winds begin to blow. Such diligence minimized the impact of Hurricane Irma on South Florida’s CRE market and set new national benchmarks for building codes and construction standards. Morris Southeast Group is proud to serve this market and invite you to consider partnering with us. For a free consultation on commercial real estate investment or property management services, call us at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at firstname.lastname@example.org.
There’s an old joke that if one holds onto old clothes long enough, they will eventually be back in fashion. While it may be some time before ‘70s polyester leisure suits are chic again, the same cannot be said about motels.
What was once a dilapidated and dying element of the hospitality industry has undergone a revival revolution in recent years, and the momentum isn’t slowing down. In fact, it’s quite the opposite. With a limited number of properties available, more and more smaller independent and larger hoteliers are working feverishly to make kitsch cool – and South Florida, because of its long love affair with midcentury architecture, is at the heart of the motel revival movement.
In many ways, the motel industry is the result of a post-WW2 booming middle class from decades ago. With a strong economy and automobiles, American families embarked on road trips, and motels satisfied a need for affordable accommodations located near roadside attractions, such as small amusement parks, western town re-creations, and caverns.
As the nation became more connected through an extensive and well-linked interstate highway system, motels and local roadside attractions were often bypassed. Travellers were more likely to stay in no-frill chain accommodations located near on and off ramps. In order to stay afloat, motel clientele changed, its reputation now tarnished by whispers of extramarital affairs, hourly rentals, criminal hideouts, and overall seediness.
In the decades since the motel’s decline, more branded chain hotels swept in to fill the void and luxury hotels grew more luxuriant and expensive. A younger generation of travelers, weighed down by college debt and a weaker economy but valuing experience and affordability, helped to put Airbnb on the map.
The intimacy of renting accommodations in a stranger’s house, though, wasn’t for everyone – and inventive and creative hoteliers see an opportunity in the supply of aging motels. Often, these relics had remained in families for generations or had owners who were simply overwhelmed by the challenges of running a profitable operation. Either way, buyers and investors found eager sellers – and the revivalism revolution began.
The new hoteliers have pretty much stumbled upon a formula for re-doing an old motel, one that celebrates the personality of the structure without demolition. That formula’s success, though, is based on a few key elements:
On a local level, several South Florida motels have found a way to pay homage to the region’s historic and nostalgic architecture while creating a hip-but-authentic place for not only a new generation of travelers but also an aging Baby Boomer population looking for a stroll down memory lane. In Miami, there’s Vagabond and the New Yorker. Both are known for their nod to classic vintage style and an independent and community mindset. A little further up the coast, in Fort Lauderdale, is Manhattan Tower, with its iconic tower and Intracoastal views.
At Morris Southeast Group, we’ve written extensively about the opportunities to repurpose old structures into something else – and we think it’s fantastic to repurpose an old motel into a celebration of its glory days that serves a new market of travelers. To learn more about hidden retro gems and other property investment opportunities, and/or our other CRE services, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at email@example.com.
Although it was developed in 1984, it took until quite recently for 3D printing to become part of our everyday vernacular. In recent years, its use has grown by leaps and bounds – from printing artificial limbs and organs to weapons to food. It seems that the only thing that might hold back 3D technology from here is lack of imagination.
That’s why it’s time for anyone interested in CRE to pay attention. While experts debate how long it will take for 3D printing to become a viable, common technology in the real estate business, there is no doubt that it will – and that it is set to have an impact on all aspects of the industry.
When it comes to engineering and design, 3D printing was once considered a novelty act – a tool to create three-dimensional models of future projects that clients could examine from all sides – and household décor items. Printers, though, have gotten quite a bit larger and the technology has jumped forward.
Using a technique called “additive building” or “additive manufacturing,” the 3-D printer scans a blueprint of a structure, and then “prints” with a soft concrete that is applied in stacked layers. Around the world, construction and technology firms have joined forces to make this technology possible, and nations are taking notice:
In the United States, 3D printing has been relegated to specific projects, such as efforts to restore the facades of historic buildings in NYC or as exhibition projects on college campuses. Much of this is because the long-range vision for 3D technology has outpaced what already exists. While some imagine a future of entire 3D-printed communities filled with homes for less than $4,000, there simply is not a system in place for field inspections and building codes to ensure a project’s structural, electrical, and plumbing integrity.
There’s also the matter of jobs. 3D printing is sure to cause a disruption in the job market, particularly in the construction field. While there will be a greater need for designers, engineers, and innovators, many construction workers will have to be re-trained to be incorporated into this new field or find work in other areas.
Similarly, the real estate industry will also have to adapt to a 3D future. As the technology becomes more cost effective and readily available, professionals will have to understand the technology and help clients to also envision 3D possibilities – from new construction to remodels to interiors.
At the same time, available properties will also undergo a transformation. Some retail properties, for example, will only need to house a 3D printer and it’s supplies for print-on-demand products; everything from housewares to furniture to whatever else one can imagine. Similarly, small industrial properties and warehouses may again be re-purposed, this time into local 3D printing centers or storage and fulfillment facilities.
If all of this sounds like the stuff of some far-fetched sci-fi film, Morris Southeast Group would like to remind everyone that it wasn’t so long ago that virtual reality just seemed like a neat gimmick. Today, it can be a necessity for a real estate deal. Similarly, e-commerce has radically reshaped CRE as well as commerce as a whole in a relatively short time. This is why we keep an eye on the future while providing top-notch service and investment advice in the present. To learn more about property investment opportunities, and/or our other services in South Florida, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at firstname.lastname@example.org.
When it comes to attracting quality tenants, there’s already plenty of information about using lighting. Much of it, though, has to do with landscape lighting, security lighting, and specific lighting – such as ambient and task – for residential properties.
When it comes to commercial properties, lighting can be just as crucial to attracting top-quality tenants. For years, LED has been the standard but we are now experiencing a lighting revolution. In fact, new and improved technologies are almost being developed as fast as, well, the speed of light.
The first LED light was developed back in 1962, and its early usage was usually in the computer tech industry. Over the decades, improvements in delivery of LED light, as well as its relatively low cost and energy efficiency, have made LEDs very common. This increase in demand combined with what some experts see as a glut on the market have led to a push for differentiation – and this, in turn, is leading to customizable options for specific industries.
Perhaps the most exciting innovation in the world of light is Li-Fi, which is short for Light Fidelity. Presently, we are all familiar with broadband and Wi-Fi – and just as the name implies, Li-Fi means the light bulb is the router, with data traveling at 224 gigabits per second on the rapidly blinking waves of an LED bulb. In other words, where there is an LED light bulb, there is Internet.
Presently, a major disadvantage is also one of its advantages. Since LED light cannot penetrate walls, a signal’s range can be limited. On the other hand, it means that a company’s internal communications are secure from users in another room, building, or even outside.
The team at Morris Southeast Group is always excited about advances in technology and its impact on commercial real estate. It’s important to keep properties relevant to meet the changing needs of owners, investors, and tenants. To learn more about property investment opportunities, and/or other services, call us at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at email@example.com.
Most urban dwellers agree that development projects such as renewable energy, homeless shelters, public transportation, and affordable housing are good for their communities. But when it comes to where those projects are located, many local residents come down with a case of NIMBY (Not in My Backyard). One of the many results of this syndrome is an increase in land use restrictions, which a 2015 study estimated cost as much as $1.5 trillion in lost productivity.
In South Florida, developers have had their successes and failures in countering the NIMBY response. Below we detail several thoughtful, proactive ways to engage a community and respond to concerns about a new development.
It can be tempting to adopt a defensive posture when a community group pushes back on a project. In these situations, step back and imagine the scenario from their side. We all have families, live in neighborhoods, and want a quiet, safe place to call our own. Anything that seems to threaten that can be seen as dangerous and scary. Show respect for local residents and take the time to listen to their concerns.
To effectively mitigate this opposition, it’s crucial to address its root causes, which often fall into these buckets:
Personal connections made in one-on-one conversations or meetings of small groups are the most effective way to build support. Large, public hearings are more difficult to manage and can often fuel the fire of resistance by giving potential opponents an opportunity to network on site.
Most people are not economists or urban planners. They don’t care about the 30,000-foot view; they care about the view from their porch.
An essential starting point in working against any NIMBY opposition is to find those who already believe in your cause. People will follow the crowd and if they believe that a majority of their friends and neighbors support your project, they are more likely to follow suit.
If you can rally supporters to speak out on your behalf – in person or online – even better. Residents who may be on the fence are more likely to lean in your favor if they hear testimony from their neighbors in a public forum or see positive chatter on social media.
Identify and target specific pockets of support:
A comprehensive communication strategy can work wonders to convey a message consistently and clearly. As one-on-one interactions with residents inform your understanding of the issues involved, incorporate them into your messaging. Proactively address the most glaring concerns – traffic and parking, environmental impact, strain on services, neighborhood preservation –and your message will be one of collaboration rather than confrontation.
Share as many details of the project as possible so that they become familiar and, frankly, unremarkable, to your core audience. The more ordinary your plans seem, the less misinformation is likely to circulate.
Every NIMBY movement has its own unique motivations and local roots and thus requires a unique and locally-inspired approach. The more time you take at the outset to listen, understand and reflect back the community’s values, the more likely you are to gain supporters and minimize naysayers. We at Morris Southeast Group are proud community partners and are always tuned to the needs of our neighbors. For a free consultation on commercial real estate investment or property management services, call us at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at firstname.lastname@example.org.
Automation is the new black when it comes to speed and cost efficiency. Miami’s own Sedano’s grocery outlets, in partnership with Massachusetts-based Takeoff Technologies, is wearing this new style proudly as they deploy what is being called the world’s first “robotic grocery store.”
If successful, this new model will offer other retailers a brave new world of online growth at a fraction of the current cost of doing business. They will roll out the technology in 14 of Sedano’s 34 locations, and Takeoff plans to launch similar programs at five additional regional and national U.S. retail chains.
The process is fairly simple: customers order groceries from their phone or laptop, artificial intelligence-enabled robots at Takeoff’s automated fulfillment centers fetch the items, and Sedano’s staff helps sort and get them ready for in-store pickup or out the door for delivery. Takeoff’s system then automatically restocks inventory as needed, filters customer service requests, and provides reporting and analytics.
The grocery business can be cutthroat. Its low margins and high volume have companies always on the lookout for an edge. Robots bring a new opportunity to simplify processes and cut down on labor expenses. And the sector is growing, expected to reach $100 billion by 2022, with the overall warehouse robotics market expected to increase at a compound annual growth rate (CAGR) of 11.8 percent between 2017 and 2022, putting it at $4.44 billion in value.
These automated shoppers can yank 60 items off the shelf in a manner of minutes; 900 per hour. By contrast, living, breathing shoppers can only grab 60 per hour. Every week, the system processes as many as 3,500 online orders per location, with promises of delivery within two hours. These numbers dwarf those seen by traditional stores that rely almost exclusively on manual processes.
These automated micro-fulfillment centers offer efficient service and significant cost savings because, among other reasons, they don’t take up as much room. They each need only 8,000-10,000 square feet, sometimes installed in the grocery store itself, which greatly shortens the distance between supplier and retailer and saves a boatload of cash, since they don’t have to build a physically separate distribution center.
It also shortens the distance between warehouse and customer, with orders able to be picked up mere steps away from where they are stored and delivery options being that much faster.
While a pioneer in many respects, Sedano’s is not the only grocer to dip their toe in automation.
In its quest to solve the conundrum facing all modern supermarkets – offer a robust and changing selection of products at a reasonable cost and still bring in enough profit to pay the bills – South Florida’s own Sedano’s has embraced disruption and is charting an exciting course towards the future. The impact on CRE will be interesting, especially if automation moves grocers toward finding smaller spaces in strategic locations – not to mention the impact the technology will have on other retail businesses.Morris Southeast Group keeps abreast of innovation and trends in South Florida business and their potential impact on CRE, and we’d be happy to help you find your next investment opportunity. 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 email@example.com.
If there’s one thing that’s been made perfectly clear over recent years, it’s that e-retail has had a tremendous impact on commercial real estate. As consumers have changed their shopping habits and as retailers of all sizes have had to keep up with the digital times or close their doors permanently, building landlords, owners, and developers are holding vacant spaces.
Before nailing shut the coffin on brick-and-mortar stores, now – today – would be a great time to rethink how to fill these vacancies on a short-term-but-profitable basis. The pop-up economy is a solution that may boost CRE. These limited, seasonal or otherwise short-term businesses that need to lease space fast can rejuvenate the economy in areas while salvaging a CRE investor’s ROI on an empty space.
Ironically, the pop-up phenomenon is an outgrowth of e-commerce. In a digital field that is growing increasingly crowded, online retailers have had to find new and creative ways to reach consumers and to test out new products and brands. At the same time, a younger consumer demographic accustomed to swiping left or right for everything is, at the same time, craving experiential activities that can be shared on social media.
The answer, as it turns out, is the one thing e-commerce has decimated … the one thing retailers have known since the dawn of the marketplace: There is really no substitute for face-to-face interaction between shop owner and consumer. And the pop-up seems to check all of the necessary boxes while delivering this in-person experience.
Most people are familiar with seasonal pop-ups, such as costume stores in the weeks leading up to Halloween. As a $50 billion industry, though, there is a lot more variety in the pop-up world. In fact, pop-ups encompass a broad range of themes, including new businesses, product introductions, museums, art galleries, and spaces filled with selfie opportunities. Furthermore, there are now several online services to help link building owners and pop-up tenants.
To help attract tenants, pop-up leases are short term, generally running from six weeks to a year, although – depending on the business – this could be modified. In addition, pop-up rents can be as much as 50% lower than those with a traditional lease. The justification for this is that very little space modification needs to be done to the vacant space. Tenants require ease in moving and moving out, while landlords do not want to get bogged down with constantly remodeling or providing extensive maintenance.
Pop-ups come in all shapes and sizes, from a store within a store to a collection of pop-ups under a single roof to vacant street level space to kiosks to mall locations. With the success of a pop-up comes buzz, which then leads to increased foot traffic, publicity, a rejuvenation of the property and surrounding neighborhood, and a chance to put an energized spotlight on the desirability of the property’s location.
For the landlord/owner, all of this adds up to generating revenue – either from a single or a series of pop-ups, a short-term pop-up that may want to make a longer commitment, or a long-term tenant that sees your property in a whole new light.
At Morris Southeast Group, we’ve written extensively about the impact of e-commerce and the potential in repurposing buildings. In each case, we’ve always been excited. It’s the same with pop-ups because South Florida has already witnessed their impact – just take a look at Wynwood in Miami and MASS in Ft. Lauderdale – and there are more opportunities all around us. To learn more about pop-up possibilities, property investment opportunities, and/or our other services, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at firstname.lastname@example.org.
A lot has been written in recent years – on this blog included – about the evolution in the commercial real estate market, particularly as a string of retail giants
For an answer, one only needs to look at the rapidly changing demands being placed on healthcare real estate. Some of the final product, as developers, researchers, and other parties come together, is not only good for the business of medicine, it benefits the common good – even providing hope for patients and their loved ones.
Once upon a time, healthcare real estate meant the construction of bed-filled towers but insurance costs and delivery of services have changed in recent years. In today’s marketplace, there is a greater focus to provide more localized services that focus on specific populations.
With this in mind, new medical office construction was the go-to solution. Such an effort can take 18 months or more, and in the world of healthcare, that is often entirely too long. For healthcare providers, one solution was hiding in plain sight: vacant storefronts in malls and strip malls. What was once a supermarket or retail store can be transformed into a state-of-the-art medical facility via a thorough remodel.
When it comes to specific populations, the fastest growing one is people dealing with dementia or Alzheimer’s. As the Baby Boomer generation ages, so too is the number of diagnoses which in turn places a tremendous strain on the healthcare system.
A treatment that has shown great promise is reminiscence therapy, in which caregivers encourage patients to actively talk about past events and their own lives. When combined with prompts that stimulate memories, such as photographs and music, patients experience a marked improvement in mood, cognition, and communication.
To further enhance the reminiscence therapy experience for patients, there is a global effort to develop safe spaces that encourage memories. From Amsterdam and Miami to San Diego, healthcare professionals, developers, and designers are entering partnerships to create villages and town squares that bring patients – most of whom are in their 70s and 80s – to the world that existed between the years 1950 – 1961. As this population passes, memory prompts can be updated to better reflect the experiences of a new group of patients.
While some of these projects are new construction, such as Miami Jewish Health Systems Health Village (set to open in 2020), other efforts are filling already existing warehouse spaces. The George G. Glenner Alzheimer’s Family Centers partnered with the Senior Helpers and the San Diego Opera Scenic Studio to build a reminiscence therapy town square in a 9,000-square-foot warehouse. There, 14 storefronts and memory-stimulating activity stations greet patients.
The group is expanding to other markets, with another town square in Maryland and its first franchise in Chicago. The organization is now moving away from warehouses and toward spaces that are centrally located, such as empty box stores, shopping centers, and strip malls.
South Florida, it seems, is an ideal location for these efforts. An aging population in which many are diagnosed with dementia and age-related cognitive impairment makes reminiscence therapy particularly valuable for local citizens – and there are available properties that can be transformed into villages and town squares.
For a free consultation with Morris Southeast Group or to learn more about our property investment opportunities and/or other services, call us at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at email@example.com.
Miramar, FL; January 29, 2019 – President Ken Morris, SIOR, RPA, of Morris Southeast Group announced that he has represented the worldwide leader in marine propulsion systems, ZF Marine Propulsion Systems Miramar, LLC in a 62,552-square-foot industrial warehouse lease in Miramar, a southern Broward County community near Hollywood and Pembroke Pines.
The 10-year lease, at 15351 SW 29th St. – Bldg. C, in Miramar Centre Business Park, which has a total of 125,104 square feet and was built in 2008. The rental rate was not disclosed. Mercury Marine-Miramar and Aero Accessories are the other tenants in the building.
International property investor and asset management firm, Heitman, owns the property. Larry Dinner with CBRE represented Heitman in the transaction.
“After evaluating 17 peer locations in the southwest Broward County submarket, and factoring in where employees live and related considerations, the Heitman property was clearly the best choice for our client,” said Ken Morris.
ZF Marine manufactures a complete line of propulsion systems for commercial boats and pleasure-craft boats, including transmissions, propellers, shift and control systems, surface drives and thrusters for numerous applications. In the commercial field, ZF Marine products can be found on tugboats, inland river-tow boats, passenger ferries, fire/police and naval patrol boats. Its pleasure-craft components are suitable for speedboats, yachts, sail, sport fishing and related watercraft. ZF Marine serves customers throughout the U.S., Canada, Mexico and the Caribbean from its Miramar headquarters. https://www.zfmarinepropulsion.com/
About Morris Southeast Group
For more than 35 years, Morris Southeast Group has been recognized as one of South Florida’s leading providers of commercial real estate services. Located in Weston FL, Morris Southeast Group is a full-service firm specializing in owner and tenant representation, corporate services and investment sales in the office, industrial and retail sectors throughout Miami-Dade, Broward and Palm Beach Counties. For more information contact President Ken Morris at (954) 474-1776 or visit www.morrissegroup.com.
Last November, 300 scientists and 13 federal agencies collaborated to produce the latest National Climate Assessment, a congressionally-mandated quadrennial report on climate change and its expected effects on our nation and the world. The results presented a stark picture of what kind of world we may leave our children if nothing is done to change our role in this global issue.
South Florida is well-known as the canary in the coal mine for how climate change may affect U.S. coastal areas, as many of the worrisome predictions in the report are already taking place here and have been for some time – rising tidal levels, hotter temperatures, potentially stronger hurricanes, increased flooding, vanishing coral reefs, and longer mosquito seasons.
Luckily, the region is also known for its proactive response to this issue, particularly in the real estate market.
Real estate buyers and investors are showing their concern about climate change in their purchase decisions. They want to be sure the view (and the property itself) will be there for generations to come.
South Florida has shown its commitment to solving the problem and put its money where its mouth is, to the tune of $200 million dollars to counteract flooding associated with higher sea levels. The Florida Keys are preparing to spend as much as $500,000 for each mile of road that will be raised up out of harm’s way.
Key structural elements of coastal cities, particularly those in South Florida, are at great risk. These include bridges, roads, transportation, and power grids. If left unchecked, sea levels could render sections of the U.S. coastlines uninhabitable.
Local efforts to combat this go back a decade or more. In 2009, four counties – Broward, Miami-Dade, Monroe, and Palm Beach – teamed up to form the Southeast Florida Regional Climate Change Compact to coordinate efforts across county lines. Their initiatives have included:
Planning and zoning boards across the region continue to scrutinize building codes and implement proactive changes to raise height limitations for sea walls, place roads, water, sewer, and electrical systems on the higher ground, and install massive pumps to send water back into the sea.
The most commonly-understood impact of climate change is on the natural world. It should, therefore, come as no surprise that the National Climate Assessment cites many environmental concerns which play a major role.
South Florida is home to a growing number of municipalities who embrace green building standards to combat climate change and support sustainability. Support from investors and property owners have spawned some significant efforts in Miami. According to the 2017 National Green Adoption Index, 12.29 percent of the city’s commercial real estate is certified as green, or 33.91 percent of total square footage in green buildings.
In addition, with the assistance of the Office of Miami Resilience and Sustainability, city officials have racked up the following accomplishments:
Green construction pays off not only for the environment but for the bottom line. According to Miami-Dade Green, businesses that opt to go green save 15 to 30 percent on cleaning costs, 35 percent on energy bills, and as much as 60 percent on water.
Eighty-five percent of the U.S. population lived in major cities in 2015, and this trend is expected to continue well into the future. Cities are responsible for around 80 percent of greenhouse gas emissions, which gives them significant influence on local policy on how to handle the problem.
The South Florida real estate market has seen opportunity on the horizon and dipped its toe into the tiny space and micro-unit movements, opening doors to a more sustainable and affordable way to live in the heart of a major city.
Morris Southeast Group is certain that South Florida’s best days lie ahead, despite the challenges posed by climate change.
Let us help you find the property that fits your budget and needs. 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 firstname.lastname@example.org.