Coolest Technology that Could Affect Commercial Real Estate

Smart Solar Roadways 1

Today, I want to share with you a company that has a wonderful idea. If they can get this commercialized, it would revolutionize parking lots and roads. Imagine solar panels as surfaces in parking lots, roads and even highways. This is a short article with just some highlights. I would love to see the day where an abundance of our […]

A Timeline of Lease Accounting

For the past couple years, we have been tracking the proposed law change that will reclassify the way businesses account for their commercial leases. Since 1977, a company’s office lease has been treated as an operating expense. Businesses may soon be forced to record it on their balance sheet under new accounting rules. If this new […]

WeWork: Now a $5 Billion Co-Working Startup

WeWork 1

Over the years, I have leased space to several executive suite operators. These “tenants” lease a large amount of space, then re-lease it to small tenants sharing conference rooms, administration services, etc. During the last recession, most of them closed down leaving a specialized kind of operator - small, local and personal. Regus is the only international company that made it through […]

Buildings That Move???

Moving Building

Dynamic Architecture is designing a whole new way to build buildings AND each floor moves independently while rotating. Pretty cool, huh?    Here are some highlights: 1—Each floor rotates 360 degrees, independently or in a concerted manner. Much like the fancy restaurant at the top of a building we have all been to, but in these buildings every floor rotates. […]

Functional Office Space Basics

While we represent office tenants and landlords each and every day, we are always looking to give our clients basic, simple advice. Below is an article that does this for creating functional office space. When we work with our tenant clients, we focus on the basics like: 1—Determine how much space the company will need (I […]

Pressed Suits in Your Office?

Pressed Suits

Leave it to The Economist to call squeezing office space “pressed suits.” Not only is office space becoming more open, it is becoming less personal. Mobile workers and the fact that 50% of all workers are not in the office at any given time, have led to no personal desk environments. In many offices, you show up and get assigned a desk […]

Commuter Science

Commuter Science

Every now and then I see a cool graphic that I need to share. Below is one I pulled from National Geographic on commuting and how much time is spent per year in rush hour all over the world. My home of Phoenix is pretty low, but if you live in London, Stuttgart, Paris or Los Angeles—sorry. […]

World’s Coolest Offices 2014

Coolest 1

Once a year I send out the coolest office spaces in the world. Below is the 2014 version. Take a look at some really off the wall, crazy and cool spaces. The article is so big, we had to put just a few of the photos below, but a link to the entire article is just a click away highlighted […]

Where Everyone in the World is Migrating – in One Gorgeous Chart

Migration

World migration is not a typical topic on my mind. However, the immigration from Mexico to the US is. You see, I was raised in a city less than 20 miles from the Mexican border. My parents still live in Sierra Vista, ground zero for the illegal immigrant movement and the border patrol. So immigration is a topic […]

The Coppola-Cheney Group: A Look Back at a Solid 2014

By The Numbers 2014

Once a year, I like to take a break from my weekly narrative to do two things: First, I like to look back and see how we did in 2014 as a team. Below is our year by the numbers. It was a fine year. I am grateful for our clients and proud of the work we […]

What Happens When You Sit All Day?

I have been working a lot over the past few months. Sitting, typing, meeting. Sound familiar? Below is a cool infographic on what happens when we sit all the time. The results are not very good. So I have highlighted in yellow some ways to offset all the sitting. Doing some cat/cow yoga postures in the office is always fashionable, right?    On […]

Top 10 Emerging Trends in Real Estate for 2015

The Urban Land Institute is a thoughtful group of committed real estate practitioners who are global in their membership and thoughts. They have recently produced their emerging trends for 2015. You can click here for the complete document. Below I have included a few pages of Chapter 1 for a quick review, the entire document is lengthy.    Here are my personal highlights—most of […]

Day 5: The One Commercial Real Estate Tech Company that Changed Our World

In my final narrative for the week, I thought I would end with the company that I believe has made the most impact on our business: CoStar. Before CoStar, all companies had to do their own property research. This was time consuming and expensive. When I first started in the industry, each quarter, every broker in our firm had to […]

Day 4: Tech Companies Trying to Eliminate/Assist Commercial Brokerage

Hope you are finding this week’s series interesting. We are in the homestretch. Below are six additional companies to review. Zillow is probably the only household name among them. Enjoy. Craig 602.954.3762 ccoppola@leearizona.com   Company Name:  http://www.gethightower.com/ Upper Management: Brandon Weber, CEO Donald DeSantis, CDO Niall Smart, CTO Business Strategy: Hightower’s strategy is two-fold: One, to sell software to owners who […]

Day 3: Tech Companies Trying to Eliminate/Assist Commercial Brokerage-First Six

Over the next two days, we will review 12 different technology companies that are in the commercial real estate space. Before I look at the companies that are trying to take business from commercial brokerage companies, a little background is necessary. I want to break the commercial brokerage industry down into two key segments: leasing and investment sales. […]

In The Know: Phoenix Office Report Q4 2014

A lot can happen in a year. Our fourth quarter 2014 Phoenix Office Market Report came out last week and it looks noticeably different than our Q4 2013 report. Below is a link to the report and here’s a brief summary: The metropolitan Phoenix office market absorbed 620,000 net square feet (SF) in Q4 to push […]

My Third Book is Now Available: The Art of Commercial Real Estate Leasing

Final Front Cover - The Art Of Leasing

I have spent almost 100,000 hours of my life committed to leasing commercial office space. After completing 3,500 commercial lease transactions and 30 years in the business, I decided to write the follow up to my first book How to Win in Commercial Real Estate Investing and have now written a book on commercial office space leasing. The […]

A Floating Neighborhood for NYC

NYC Floating Skyscraper

When density meets demand, creativity pops up. What the??? New York is planning to create a whole neighborhood for 65,000 people OVER an active rail yard. See below for some cool renderings and a moving graphic that is worth watching. To summarize: –They will build 300 concrete and steel caissons that will be inserted 40-80 feet into the ground.  –Then […]

Competition Is for Losers

Competition is for Losers

Today, I want to have a discussion about competition. Peter Thiel’s, founder of PayPal, article below got me thinking about basic lessons I learned in college 30 years ago and have experienced every single day since. The commercial brokerage business is brutal. Eighty percent of people who come into our business are gone within five years. Those of us […]

Another Look at the Corporate HQ for Tech Companies

Tech_12_ NY Times

In the beginning of 2014, I ran a five-part series on the new gigantic and expensive corporate headquarters that are being designed and built by the leading tech companies in the world. As we close the year, the NYT ran an updated article (we have included it below) on most of the headquarters we researched. They also had a […]

Cozy in Your Cubicle? An Office Design Alternative May Improve Efficiency

cozy cubicle

Open office design, benching, and cool space layout have been topics we have discussed over the past few years. Below is a very interesting article on the start of the open office space movement and why it failed miserably. Today, we are seeing open office layouts in over 70 percent of new space designs. That does not mean the C-Suite […]

Employment Growth – Employer Payroll Survey vs. Household Survey

My favorite economist who tracks the national economy and the US office market is Peter Linneman. He produced the graph below which shows job loss and gain during the recession. This graph demonstrates exactly why I follow the jobs market so closely and why most office markets in the US have been slow to recover. Surprisingly, there are just a few […]

One Commercial Real Estate Tech Industry to Watch Close for the Good AND the Bad

Crowdfunding 1

Crowdfunding has become a hot market for all kinds of ideas, such as the potato salad guy who raised over $55,000 for his recipe (Click here to learn more). The commercial real estate market is not immune to this new trend. With the passage of a new law, there has been a 334% increase of crowdfundings in commercial real estate properties year […]

Spheres of Influence

OIT - 787 Structure Suppliers

Every now and then I see cool graphs that grab my attention. Site Selection magazine ran the below graphs showing the top industries and the top projects of the year (2013).   I found the following insights: –Where companies are headquartered and the size of each company are very interesting. There is some clustering, but not always. –Transportation is driving the […]

More Rules for Thanksgiving Touch Football

Touch Football 2014 _1

Once again, Jason Gay usurps any business narrative for this week. His rules for Thanksgiving have become a tradition for us to send out and this year is no exception. See below for all his rules, but I loved these three in particular:   —#13–While I love SEC football, this is great. – “No, SEC family thanksgiving touch football is […]

7 Bold Commercial Real Estate Predictions

7 bold r.e. predictions

In my weekly narrative, I spend quite a bit of time thinking, talking, and looking at the future. Below are seven bold predictions by some of the leading thinkers in our industry. Here a few key predictions that stand out: –Malls will soon be extinct –Technology will run buildings (we see that coming today) –Green buildings will become the norm […]

Downsizing and Space Utilization

Increasing space utilization is a goal almost all of the tenants we represent have. Below is an article that discusses the inherent difficulties of attaining the perfect space and layout. At the end of 2013, tenants were space planning to 180 SF per person. As described in this narrative previously, this brings a large number of issues to the forefront, […]

Are you in an unhealthy office relationship?

Below is a cool infographic on some of the issues affecting workspace. This includes air quality, temperature variations, natural light, and, of course, noise in any open environment. I really like the summary of unhealthy and healthy office space situations. If you are looking for space, make sure you think about these issues as you design your office. If you are […]

Market Insight: Q3 2014 Phoenix Office Report

Q3 2014 Phoenix Office Market Report_Page_1

Finally, some good news. The Metro Phoenix Office posted just under 800,000 SF of net absorption for the third quarter. A significant number of the tenants I talked to while canvassing buildings have either just expanded or are considering expanding in the near future. Despite the strong absorption, vacancy remains high at 21.6% across the entire market. Except for […]

Burnout Is the Consequence of a Broken Way of Work

photo-2

Some of the below article is complete new-age BS. I do think, however, that there is some value in giving it a quick overview, focusing on a few key items. I hope you can get a gem or two out of this article as you get closer to the end-of-the-year review process for your team. For my team, I know we don’t […]

Modern Floating Home and Tunle Sap

Floating House2

This week, I have an article, some cool photos, and a very different narrative from my usual e-mail. I recently found an article and some photos about a very cool floating home–see below. This home got my mind racing to a place called Tunle Sap.   A few years back, I had the opportunity to take a fabulous trip […]

An Analysis of U.S. High-Rise Construction Activity in This Century

high-rises

Below is a 2013 article Andy Conlin sent me analyzing high-rise construction in the United States. David Holmes takes an in-depth look at the major economic factors affecting skyscrapers (defined as buildings 18 stories or higher in this article) built since 2000. This timeline would include only one construction cycle and two recessions, but the conclusions are interesting. I’ve […]

The Most Expensive Cities in America

beverly hills

The decadent lifestyles of the rich are more unbelievable than ever. Foreign cars, luxury homes, and all the toys that go along with the money. Below I’ve combined a couple articles about the most expensive cities in the US where these people are living. Click through to the interactive map in the first article to see […]

Transbay Tower To Become “Salesforce Tower” With Monster Lease

Salesforce HQ

Jealousy can be a terrible thing. In this case, I am so jealous of the latest monster lease done in San Francisco: 714,000 SF lease with a 15 and a half year term. Hats off to them. While I have done plenty of large leases, I have not yet negotiated a 700,000 SF+ lease.   OK—Who on this email wants to […]

World’s Top 15 Megacities–Growing and Growing

I am a third generation Arizonian. When I was born in Tucson in 1961, the population of Phoenix was 440,000. Today there are over 4.3 million in metro Phoenix making us the 13th largest metropolitan area in the US (see Top 13 areas below). Growth is expected to continue like crazy and by 2050, we should have over 7,000,000 […]

5 Measures of Arizona’s Economy As Fall Season Arrives

AZ economy_fall 2014

The local paper in Phoenix, The Arizona Republic, published a great summary about the Arizona economy and my favorite topic—Jobs. Please take a look below for the full article, but here are a few highlights:   –We are still at 60% of jobs recovered from pre-recession numbers. –Construction, typically our get-out-of-the-slump card, is severely lagging. –One bright spot […]

Phoenix Housing Double Dip Recession?

No recovery is smooth. There are fits and starts. There are blue skies and cloudy. The Phoenix housing market, which in past years has driven the office market, has cooled off and is pulling back. Nobody thinks this will be a full recession, but there are clear signs that all is not peachy in Phoenix. I believe this to be true […]

Arizona’s Water–A Quick Overview/Status

AZ water

As I speak to out-of-state users, owners, and investors, one of the most popular topics I get to discuss is water. The general feeling by out-of-state people is that Arizona is a desert and we are running out of water. Not true. Below is a great summary written by the local paper, The Arizona Republic, that covers the top 5 reasons […]

Market Knowledge: Phoenix Office Report Q2 2014

The Phoenix office market continues to slowly improve. Too slow for my taste, but improvement is always good. Unless you are in Tempe, Chandler or Scottsdale, the market is not improving as fast as owners and investors would like. Lee & Associates Arizona released its second quarter Office Market Update in July and showed that […]

Government’s Empty Buildings Are Costing Taxpayers Billions

govt

Here is an interesting idea: a database of buildings you own and whether or not they are occupied. Seem simple? Turns out, not for the federal government. Estimates show they may own up to 77,000 buildings that are empty or not fully utilized. The cost to keep them amounts to more than $1.7 Billion per […]

Top Ten Issues Affecting Real Estate

One of the most thoughtful organizations in commercial real estate is The Counselors of Real Estate. I have been a long time member and find their membership and work output to be outstanding. In June, we published our top 10 issues affecting real estate. Below is that list. My favorite topic over the past six […]

Headphones Are the Latest Office Accessory

headphones

I am always on the lookout for new trends in the Commercial Office market and potential side effects/tangents. You may recall in a previous narratives my ongoing discussion about “open plan” office space. Since I was one of eight founders of Lee & Associates Arizona in 1991, we have worked in this type of environment. […]

This Is Not Your Ordinary Call Center Space

zappos

For years, US-based companies outsourced their call centers overseas to save money. In many cases, this created a backlash from customers because of poor language skills, limited knowledge of the product and an inability to get through to someone who could actually help solve your problem. We did a deal with an India based company […]

22 Gorgeous Startup Offices You Wish You Worked In

start up offices

We all have this picture of a startup office, at least I do – Steve Jobs, working out of his parents’ garage. Mark Cuban, making his first billion dollars by starting a company in his dorm room. We now have commercials where they wax nostalgic about startups (Here is a Dell commercial in case you […]

Tiniest Homes on Earth

tiny homes

I have sent you $100 million homes and condos that are now reaching that same level. I sent the top ten land owners including Ted Turner who once again was the top land owner in America with over 2,000,000 acres. Today, you get to see the world’s smallest homes. How small? Less than 500 square […]

Week 3–The Changing Office Market…Into Condos??

Vancouver_1

I have bemoaned this anemic job recovery to no end. Without jobs, office space is difficult to lease. One outcome of this slow recovery is that owners and developers are getting creative with their buildings. Or, more likely, the new owners who bought the building from the bank that reposed the project are now redeveloping […]

Week 2–Most Expensive Condos in the World and Who Owns Them

taleoftwolondons

Normally, I am focused on office space, employment numbers, trends and wild-looking buildings and spaces. This week I’m looking at something a little different, but still following the major themes. Below is a long but fascinating article about the most expensive condos in the world and who owns them. Written as an investigative piece by […]

First We Send You $100 Million Homes, Now Apartments–A 3-Week Report

new york

I got some really interesting replies from my narrative about $100 million dollar homes. I knew there was a bigger market for homes worth less than that, but the amount of condos selling for $50 million or more is amazing – Condos – No yard. Below is some of the craziness going on now in […]

Floating Office for Startups? Let’s Get Outside of the Box Today

floatingpics

I love entrepreneurs. I have no idea if this will work, but I saw this company and looked over the website and thought what a creative mind. AND of course, what creative office space. Blueseed (http://blueseed.co/) is a group trying to raise money to build a ship that will sit 12 miles off the coast […]

The Top 12 Ingredients in Site Selection You Need to Know

GPEC

Recently, I attended an interesting event on site selection at the Greater Phoenix Economic Council’s (GPEC) office downtown. They hosted a panel of corporate site selectors from New York, Texas, California, Ohio and Colorado who discussed their criteria when choosing a city and project. These types of events are exclusive to members of the GPEC […]

Highlights from Arizona State University’s Annual Economic Outlook

Over the last two weeks, I have talked about the numbers behind the job numbers in the US and Arizona. Of course, there are people much more qualified and articulate who actually track this kind of data for a living. Arizona State University’s annual Economic Outlook produced some quality information that I thought I would […]

Comparing the U.S. and Phoenix Economies

fastestgrowingcities

Last week I discussed the labor market and what is happening in Arizona with job gains and the office market. This week I have pulled some information from the Brookings Institute on our economy and the recovery compared to the rest of the US. Here are some of my takeaways: –Phoenix will remain one of […]

A Look at the Numbers Behind the Current Headlines About Job Creation

Jobs

Job creation news made headlines a few weeks back touting that the United States had recovered all of the jobs that were lost during the great recession. In Arizona, however, we are still way behind our pre-recession levels. Over the next two weeks, we are going to try to tie jobs, the Phoenix office market, […]

American Cities May Have Hit ‘Peak-Office’

peak office

I had never heard of the term “Peak Office.” In simple term, Peak Office is like Peak Oil, where the market for the future is less than the past. (Just for fun, I included a peak oil graph below. If you want to read more about Peak Oil, here is a link to a short […]

My Investment Book is Published!

How to Win Final Cover

Earlier this week I sent out a narrative on investors and what kinds of yields they look for when investing. One of the reasons I founded Lee & Associates in 1991 (along with seven other Principals) was to become an investor in Real Estate. Since 1991, I have brokered hundreds of building sales but more […]

Reaching For Yield: The High Risk of Investments

One of the most intellectual groups I belong to is the Counselors of Real Estate. It is an invitation-only group of 1,000 people all over the world. They vet each candidate extensively. Now that I write that, I’m wondering how I got invited to join. Anyway, at the annual convention, they had one of the […]

Highlights From an Interview with the Legend, Sam Zell

Sam Zell is one of the true giants in the commercial real estate industry. He is a genius and has crossed every product type and market across the United States. I have highlighted some of his comments below from his interview at the Urban Land Institute Fall meeting. Here are a few “gems” I found […]

Market Insight: Phoenix Office Report Q1 2014

q1officereport

Want to know the latest trends in the Phoenix Office market? Here’s what’s going on: Our first quarter Office Market Report was just released this week with some interesting stats. We had an excellent quarter for net absorption, the most important measure of the market’s health. We absorbed 727,000 SF, and if we keep that […]

NAIOP’s ‘Office of the Future’ Competition

Entry Street

Last year NAIOP held another office of the future competition. Below are the four finalists and their concepts. Here is a summary: –Hickok Cole out of Washington DC suggested a building with a second “skin” that could help filter sunlight and change as heat and light change. –Miller Hull from Seattle talked about adaptability where […]

The Construction and Leasing of One World Trade Center

worldtrade-2

Like most Americans, I followed the terrorist attack on the World Trade Center closely. Unlike most, I have continued to track the progress of the redevelopment with interest because of the office space component. Today, you get a quick update on the office space and some interesting thoughts. First, we are now into 2014, and […]

Design Forecast for 2014–Six Meta-Trends

Gensler1-1

Each year Gensler puts out a very informative marketing and informational piece that I find fascinating. I copied a couple of the key pages from this year’s piece and they are below. Get your reading glasses out or just see my highlights. They talk about Six Meta-Trends: –Mobility and performance—I have spent a lot of […]

Thoughtful Outlook for Office Space in 2014

Annually, I review a large number of commercial office research. Below is a link to the UBS Global Asset Management US Real Estate Market Outlook 2014. With all of the cumbersome reports published, I find this one to be very concise and insightful. The entire report is 28 pages but we have included the key […]

Week 5: The Best for Last or at Least the Most Expensive–Apple’s New HQ

Apple Insider1

Eighteen months ago, I sent out the initial renderings of Apple’s new campus. Now you get an insider’s view. “Apple Campus 2,” as it is called, looks like a spaceship that has landed and the price tag is out of this world as well. Five billion dollars. This was Steve Job’s last big project he […]

Week 4: Some Normalcy–Samsung’s North American HQ

Samsung HQ 2

We have spent the last three weeks looking at billion dollar spending binges by some of the most well-known companies in the tech industry. I am taking this week to get back to the real world, but just for a week. Next week, we will take a trip to somewhere out of this world in […]

Week 3–Google’s New Headquarters and a Bonus

Google HQ 1

Continuing our tour of billion dollar plus new headquarters, we turn to Google. Google is planning on building nine buildings with the now familiar pedestrian and bicycle friendly environments. When completed, this 1.1 million square foot project in Mountain View, CA, will be comprised of nine fairly traditional buildings connected by “messy” courtyards. Below is a bunch of renderings that […]

Coppola-Cheney Recap a Strong 2013

Mark Boisclair Photography, Inc.

I know you were expecting a cool corporate headquarters narrative. Sorry. Every week you get a narrative from me about the office market, real estate or some other story I find interesting. Our real job is providing world class service representing office tenants and landlords in the Metro Phoenix market. We had a great year. Below is a […]

Week Two of Our Five-Week Review of the New Corporate Headquarters–Amazon

Amazon2

Last week started our five week review of new corporate headquarters with a review of Facebook’s billion dollar investment. Today, we move north to Seattle and Amazon. Can you believe Amazon has spent $1.4 BILLION in just the past 12 months on building a headquarters they are now calling a company town? Facebook wanted a low rise, garden feeling while Amazon is going with spheres […]

A 5-Week Review of New Corporate Headquarters – First up: Facebook

Facebook4

Some of the world’s biggest companies are designing and building World Headquarters. These are not just your run-of-the-mill buildings, rather they are unbelievable in scope and design. AND the companies we analyzed are taking dramatically different approaches. Enjoy the designs, thoughts behind them, and a more intimate understanding of the companies themselves. First up is Facebook. Over the past […]

Q4 2013 Office Market Report

Our fourth quarter 2013 Office market absorption numbers came out last week. A short summary: We are making progress but absorption fell below expectations. We concluded the year just under 1.3 million SF of net (not gross) absorption. Net absorption is the true measure of a market’s performance. The net absorption in 2013 was down 36% from 2012, however, we beat […]

5 Years After The Crisis, Big Banks Are Bigger Than Ever

First, a disclaimer: I am a capitalist. I believe free enterprise is flawed, but that it is, by far, the best system to create wealth and operate a country. Below are two articles that show what is happening with banking in the US. First is a graph and quick article comparing the four largest banks in 2008 vs. 2013.  The US government has created an environment […]

The Slow Death of the Private Office

I continue to track the development of the new, collaborative office place including the new headquarters of some of the biggest companies in the world. But, there is starting to be increasing backlash against the open office space. I came across the article below in Fortune that details some of the negatives of having an open work space. Certain companies rely […]

Top 20 Most Unusual, Unique And Exotic Buildings of the World

Unique Bldg 12

Valued Customer–In my pursuit to provide the most informative narrative of office buildings, space, representation, and in general, interesting articles, I never thought I would be sending something with buildings in the shape of a shoe, a piano, and a picnic basket. Well, I am and here they are below - the “Top 20 Most Unusual, Unique and Exotic Buildings of the […]