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15 May 2014
Spotlight Permalink
commercial property managers

MJ Employee Elected to NAIOP Developing Leaders Council

May 15, 2014

Danielle-D-Andrea_ImageThe NAIOP San Diego Developing Leader program was established in 2005 to provide a networking platform to enhance emerging careers for professionals aged 35 and under through education, mentorship, community involvement, and peer support in the commercial real estate industry.  The program aims to establish leadership, develop programs and services, give back, outreach to local universities, and provide opportunities for giving.

With over 200 participants, the Developing Leaders make up a large portion of the NAIOP San Diego chapter.  Danielle is actively involved with the Developing Leaders program and NAIOP San Diego, and sits on multiple committees.  Danielle’s 7+ years of experience in the commercial real estate industry, coupled with her marketing and sales efforts in the commercial real estate management sector in San Diego County, allows her to provide a unique perspective to the Council.

After receiving a Bachelor of Business Administration with an emphasis in Real Estate from the University of San Diego, Danielle began her career in commercial real estate.  In 2009, Danielle joined Meissner Jacquét Commercial Real Estate Services where she continues to provide professional marketing and sales services to drive corporate initiatives in delivering commercial real estate services to the firm’s clientele, while garnering potential clients and maintaining current client relations. Danielle directly contributes to Meissner Jacquét’s mission to enhance the ownership experience for our clients, to empower our team members, and to build professional, value-based relationships with our tenants, vendors, and industry organizations.

Meissner Jacquét is proud to have Danielle represent our company, NAIOP San Diego, and the commercial real estate industry, and we congratulate her on her leadership role within the Developing Leaders Council.

Sources:

Meissner Jacquet Commercial Real Estate Services

15 May 2014
Perspectives Permalink

The Business Case for Green Buildings

May 15, 2014

A report written by The World Green Building Council gives a comprehensive review of the costs and benefits of building green for commercial real estate developers, investors and occupants. The facts may surprise you.

The report’s key findings show that, “green” design and construction costs are not much higher than conventional “non-green” construction. Design and Construction Costs Research discloses that when you incorporate solid cost strategies, good program management and well-thought out environmental strategies into the development process right from the start, costs stay at a more reasonable level. Building conventionally may still cost a bit more, but the gap in costs between the two building styles is much narrower than many developers realize.

Tim Meissner, Principal at Meissner Jacquét Commercial Real Estate Services, notes that “performing a sustainable building analysis can aid a property owner by providing them with recommendations regarding energy management, and sustainability practices that can be incorporated into a capital plan.”

Buildings with increased sustainability are proving to be valuable assets. Buildings’ investors and occupants are both more savvy and engaged in the environmental and social impacts of green construction. They want to invest, live and work in buildings that incorporate green technologies, green energy design, healthy air quality systems and environmentally sound waste management techniques. The more sustainable the building, the more marketable it becomes and the more quickly tenants flock to it and stay. Tenants also agree to higher rents and higher sales prices when they know the building has sustainability credentials. In fact, as green becomes more mainstream, “brown” building rental discounts are making an appearance.

Green buildings save money through reduced water and energy usage in the long and short term. Operating costs and maintenance costs not only show a marked decrease, but the savings incurred over time can offset any premiums paid for design and construction.  But the whole process only works at a maximum level if it is managed effectively, monitored and measured regularly, and has the buy-in of both commercial real estate owners and occupants.

People like working in a green building and productivity studies show it. Employees react positively to healthier air quality, correct lighting, better waste and recycling management, and proper ergonomic furnishings. However, many companies are not convinced that the cost of making the office green is worth the expenditure.  Jerry Jacquet, Principal at Meissner Jacquét, notes that “energy performance benchmarking can be a useful tool for owners to realize the potential for cost-savings, not only for the property owner but for the tenants as well.”

The risks of investing, owning or occupying a building that is not sustainable have become higher and more costly. Regulatory commissions across the globe are developing stricter building codes, writing laws directed at bans for precarious buildings, and calling for the adherence to city or statewide energy efficiency standards. These risk factors affect rental income and the buildings’  value. Green buildings are built to withstand more weather onslaughts, address regulatory issues, and factor tenant preferences into the initial design.

If we go green where we work, live, and shop, we will not only live better, but we will also keep a healthy bottom line in the long term. The World Green Building Council report asserts that, “By greening our built environment at the neighborhood and city scale, we can deliver on large-scale economic priorities such as climate change mitigation, energy security, resource conservation and job creation, long-term resilience and quality of life.”

Sources:

  • The Business Case for Green Building – by the World Green Building Council
  • An Introduction to the Cost Benefits of Green Buildings – from Curbed University
15 May 2014
Digest Permalink

Why Worry About Energy Management?

May 15, 2014

Owning and operating commercial real estate is a time-consuming business.  Whether it is overseeing property operations, tenant relations, construction management, capital improvements, or lease renewals; property issues are labor intensive and require constant attention.  Adding to this already complex business is the demand for energy management and sustainability in commercial spaces.

Minimizing energy consumption, water and waste use are but a few of the existing sustainability practices, but these only graze the surface.  Investing in efficiency can deliver long-term returns for property owners, tenants, and employees.  A professional, third-party real estate management company can help navigate this ever-changing tide by providing building owners with confidence, stability, and relevant solutions.

Important to delivering operational excellence and superior service is having superior technology.  Appropriate technology and well-qualified vendors allows commercial real estate managers to track building energy and water intensity in order to benchmark performance.  This cutting-edge energy technology, coupled with energy management and sustainability practices, sets the foundation to achieve optimum building efficiency.  Think lower costs and increased net operating income.

An established third-party real estate management company also has buying power and access to the most qualified vendors and service providers.  This access can offer commercial real estate owners savings on operating expenses and capital expenditures, which can be passed on to the tenants.

In January 2014, California Assembly Bill AB1103 became effective, mandating that owners disclose energy usage at the time of sale, lease to single tenant, or refinance of non-residential buildings.  Even if this mandate isn’t strictly enforced, today’s commercial real estate market and tenants are demanding energy efficient space.  Obtaining a sustainable building analysis is the first step towards understanding a building’s energy performance.

Meissner Jacquét Commercial Real Estate Services is a talented team of real estate professionals who aligns with real estate owners in strategic business decisions concerning their assets by understanding and achieving ownership goals.  Meissner Jacquét’s oversight allows our clients to focus on their core business and to be confident that their assets are in capable hands.  In a constantly fluctuating real estate market with unending time constraints, we provide our clients with a platform to leverage their resources.   We pride ourselves on being the forerunner in the business of commercial real estate.

Meissner Jacquét provides commercial real estate services to Office, Retail, Industrial, and Commercial Owner Association properties to institutional and privately-held investors.  To learn more about Meissner Jacquét’s services, please contact Allison MacDonald at 858-373-1234 or [email protected].
Sources:

  • California Energy Commission, Nonresidential Building Energy Use Disclosure Program (AB 1103)
  • Meissner Jacquet Commercial Real Estate Services
15 May 2014
Newsletters Permalink
Construction Management Companies

High Bluff Del Mar

May 15, 2014
Property Name: High Bluff Del Mar
Case Study: Construction Management
Property Location: 12555 High Bluff Drive, San Diego, CA 92130
Property Description: Office Space, 72,706 Total Square Feet

Client Requirements
With only 24 hours of notice, Meissner Jacquét Commercial Real Estate Services took over the real estate and construction management of the High Bluff Del Mar office building, located in the Del Mar Heights / Carmel Valley submarket, and immediately implemented solutions to resolve tenant retention issues. Meissner Jacquét directly interacted with the city to obtain proper permitting for construction projects that were underway prior to takeover and managed the construction process according to the restricted timeline and budget.

Process
Meissner Jacquét worked closely with the city on all tenant improvements, including 13 office build-outs and base-building improvements, including ADA compliant locker rooms, upgrading the elevator finishes, stairwells, building directory and tenant signage. Meissner Jacquét completed all construction projects on time and within budget, while ensuring the existing tenants quiet enjoyment. The creation of building standard finishes enabled prospective tenants a short turnaround time to take over available space and aided in accurately forecasting rents.

Client Testimonial
Meissner Jacquét provided excellent construction management services and their management team exhibited competence in resolving outstanding issues.
Richard Demirjian, General Partner – Scientific Investments, LP

Result
Meissner Jacquét succeeded in upgrading the base-building finishes and increasing tenant retention to the current occupancy rate of 87.6%. Meissner Jacquét continues to provide professional real estate services to this excellent office asset.

Sources:
Meissner Jacquet Commercial Real Estate Services

01 May 2014
Updates Permalink

Office Market Highlights

May 1, 2014

Overall market conditions for office properties in the San Diego market are continuing to show signs of stability, as evidenced by several positive market indicators.

The table below summarizes vacancy rates and rental rate data from CoStar Group, compiled by Integra Realty Resources – San Diego.

chart-1

 

 

 

Currently, the office vacancy rate is approximately 11.9%. This is generally similar to the previous quarter and to one year ago. Over the past three years, the office vacancy rate has decreased slightly less than 3%. While this change is not significant, it nevertheless shows signs of an improving market.

The average office asking rental rate (gross) is $26.80 per square foot per year, a slight increase from the previous quarter, and about a 4% increase from one year ago. After a period of general stability over the past few years, rental rates are beginning to increase once again.

In addition to the above indicators, overall completions and net absorption figures were reviewed. The following data is from REIS, Inc., compiled by Integra Realty Resources – San Diego.

chart-2

 

 

 

 

Construction began slowing down as the economic recession was felt in the late 2000’s. By 2012, REIS, Inc. reported no completed office properties. However, in 2013, construction resumed with a reported 249,000 square feet completed. Based on current market activity, it appears that completions will continue to occur in 2014.

As with completions, absorption was affected by the latest economic recession with negative absorption numbers from 2008 to 2011. However, San Diego has experienced positive absorption for the past three years.

Overall, the San Diego office market continues to improve. Decreased vacancy, increased rental rates, newly completed office product, and positive absorption all indicate strengthening market conditions.

Sources:

REIS, Inc.

CoStar Group

Compiled by Integra Realty Resources – San Diego

IRR logo sml New

01 May 2014
Digest Permalink

Multi-Generational Workforce Dictates Office Space

May 1, 2014

Gone are the rows upon rows of cubes and filing cabinets and the abundance of private offices. Today’s corporate office takes on the shape of an interactive, collaborative space.   The challenge that corporations, and those that deliver commercial real estate office space, are faced with includes accommodating as many as four different workforce generations in one building.  With the baby boomer generation readying to retire or phase out and the millennials at the beginning of their careers, there is a need to deliver space that is flexible enough to accommodate the shift in workplace preferences.  What should today’s commercial office space look and feel like?  A flexible design that incorporates moveable partitions and modular furniture allows for the private offices required by the baby boomers, whereas upon their retirement these systems can be moved to fulfill the open space and collaborative meeting areas deemed necessary by the millennials.

This is not a trend to ignore, with the baby boomer generation (those born between 1946 – 1964) totaling about 76 million and the millennials (those born between 1980 – 2000) over 77 million, the multi-generational workspace demands will continue to redefine the country’s commercial real estate hardscape.  Add to that the increasing popularity of urban living among both generations, office deliverers and occupiers must conduct an analysis of their current space to take into account if it is a space that will continue to work for all of its occupants while attracting and retaining talent.

The goal is to create spaces that make work a better place for the employee or tenant.  This goes beyond a roof and four walls.  The millennial generation calls for more – a vibrant location, a short commute, amenities for everyone, multifunctional working/learning/social space, access to technology, and sustainability.  What happens when these so-called necessities are unobtainable?  What it comes down to says Jerry Jacquet, Principal of Meissner Jacquet, is that the work space “be an enjoyable environment that allow employees to be empowered and productive.”

Existing suburban office buildings must learn how to compete with urban locations.  When it’s impossible to offer walkability, easy access to mass transit, or a short commute, the emphasis can be placed on amenities.  By shifting the focus from private spaces to public areas, such as fitness centers, modern eateries, and designated outdoor gathering areas, employees feel that their wellness is valued.  A workforce with an increased feeling of value can translate into increased productivity.  Kevin Tagle, Meissner Jacquet’s Vice President, enlists the help of the company’s Employee Advisory Committee to reimagine a space within their office headquarters that is “inviting so that team members have an opportunity to collaborate in a relaxing atmosphere.”  The popularity of workstations with low or no wall dividers and glass inserts further enforces the collaborative, flexible feel and allows more natural light to infiltrate and be delivered to a larger amount of employees, versus to only those with offices located along exterior-facing walls.

Does this workplace trend call for more or less space?  Even though the workspace per capita is decreasing to give way to collaborative space, the overall occupancy of space remains the same.  This is good news for developers, property owners, and corporations who are looking to incorporate these realities into their current buildings and prospective developments.

Sources:

  • NAIOP Development Magazine Spring 2014:
    • The Next Generation of Corporate Offices
    • Back to the City: Déjà Vu All Over Again
    • Co-working Centers Revolutionize the Workplace
    • Eight Steps Toward More Functional Office Space
01 May 2014
Spotlight Permalink

Why Worry About Backflow?

May 1, 2014

Chemicals, bacteria or other contaminants within the customer’s plumbing can potentially flow back into the supplier’s system, creating a threat to all water consumers.

Backflow is the reversal of normal water flow due to backsiphonage (suction) or backpressure. A cross-connection between the drinking water and any potential source of contamination is a threat to public health. Fortunately, public health has improved in the United States due to water suppliers’ requirement to adhere to the Safe Drinking Water Act, to eliminate or protect cross-connections and prevent backflow.

There are many types of backflow prevention methods: air gaps, vacuum breakers, check valves, double check valves. A properly installed backflow preventer in the right application helps block the risk of contamination through a cross-connection. Water suppliers can require customers to employ specific methods to address threats in various circumstances.

Pacific Backflow Company helps real estate property owners and commercial real estate managers meet these requirements. Serving San Diego County for over 30 years through testing, repair, installation, protection, maintenance records, and emergencies. Contact Pacific Backflow to learn more.

Pacific.Backflow.Company.Logo.2

01 May 2014
Trends Permalink

Commercial Property Deals on the Rise

May 1, 2014

The next wave of commercial property deals is surging to a 10-year high, according to the Urban Land Institute (ULI) and Ernst & Young (EY). The team recently forecasted commercial property transactions to reach $430 billion by 2016. Their outlook projects a steady advancement of the U.S. economy coupled with continuing vigor of real estate capital markets. Added to this positive mix is an expectation of unflagging growth in both the commercial real estate and housing sectors.

ULI and EY surveyed 39 leading industry economists to get their prediction on what course real estate will take in the short and long-term. ULI analyzed the resulting data earlier this year. This Consensus Forecast reflects consensus reached on 27 economic and real estate indicators.

One key indicator–the market for securities backed by commercial mortgages–has rebounded from the recession and market participants are optimistic about the quality of the securities being offered.

Also expected to rise are retail rental rates, which have not risen since 2007.

“Respondents to the Consensus Forecast survey project consistent growth in the real estate industry, bringing some key factors back to pre-recession levels and others moderating to long-term averages,” Anita Kramer, vice president at ULI Center for Capital Markets and Real Estate, said in the statement.

Global real estate leader for EY, Howard Roth, commented, “Although we’ve made significant improvement over the past year, the recovery has been uneven globally and many risks still exist, including high global unemployment, high government debt, deflationary pressure in advanced economies, weak domestic demand, capital flow volatility in emerging markets and the potential impact from Fed tapering in the US. Still, all signs point to a continued gradual improvement in both the economy and real estate market fundamentals.”

The Consensus Forecast keeps adding to their good real estate industry news with several positive prognostications about the overall economy and employment.

Meissner Jacquét Commercial Real Estate Services agrees with the forecast that the commercial real estate market is on the wave of continual improvement.  Jerry Jacquet, Principal of Meissner Jacquét, adds that “commercial construction has started to pick back up, especially with multi-family development, property repositioning, and tenant improvements, all resulting in increasing jobs and production.”

Sources: URBAN LAND INSTITUTE: Commercial Property Transaction Volume On Course To Reach A Ten-Year High By 2016, Says New ULI-EY Real Estate Outlook

01 May 2014
Perspectives Permalink

The Office of the Future

May 1, 2014

Everything is about to change in the typical business office – — and soon. Look for the future to show up at your physical (or virtual) water cooler any day now.  The innovations around how we work are moving at warp speed, and they seem to focus on the following three key elements.

Productivity & Asset Management

Companies everywhere are looking for ways to raise the productivity of their workers, without sacrificing the quality of the output or crippling their physical assets. JLL (Jones Lang LaSalle), who specializes in financial and professional commercial real estate services, calls their new approach to workforce productivity proworking. The concept is to match what the worker sees as an ideal environment and work mode with the goals of the company.

A number of organizations are adopting this idea in some form or fashion. Many offer telework part time or fulltime (made a no-brainer with the advent of the Internet and smart devices), cyber conferencing to minimize travel, and formal office hoteling.

When teleworkers perform work in the office, a computer system tells them which desks are available. Because no matter what the changes, collaboration is still important.

Technology

All of these changes will be shaped by technology, of course. Here’s a scenario painted in a recent video released by Bloomberg that gives a pretty startling view of tomorrow’s office. Click here to view the video.

After getting assigned a desk by the scheduling computer, the office worker logs into her department meeting via her avatar and starts her day by talking with a 3D holograph of her boss, who has just asked his robot assistant to bring him coffee. As the worker moves through her day, every app she uses and how long she uses it is tracked, along with her emails responses and their tone. This applies even if she is taking advantage of the company’s BYOD (bring your own device to work) policy. And her heart rate is monitored. She gets an electronic notification if she’s been sitting too long that tells her to get up and walk around. When she does, she runs into telepresence robots, remote-controlled, wheeled devices with a digital display screen enabling video screening, roaming the hallways.

Atmosphere 

And wrapping it all together is an optimized work environment. According to The Business Insider, “Google’s office space is a great example. Its unique shared, open spaces are there to promote “accidental encounters,” but the company also has plenty of enclosed rooms structured for concentration and deep-thinking work.”

The list of “musts” for today’s ideal office atmosphere include: ergonomically correct chairs; green plants; good lighting; aromatherapy (yes, aromatherapy); great air quality; EMF (electromotive force) protection; the right colors; music; breaks; and well thought-out organization (think Feng Shui).

In line with enacting green initiatives, Meissner Jacquét Commercial Real Estate Services envisions a car-sharing program where its real estate managers have access to a corporate fleet of electric vehicles for use in property visits.  Already Meissner Jacquét  has oversaw the installation of electric vehicle charging stations at select retail centers under its management, “the movement towards energy management and sustainability practices coincides with establishing an optimized work environment,” said Tim Meissner, Principal of Meissner Jacquét.

What does this all mean for commercial real estate?

“There is a human-centric shift in worker enablement and corporations are now using this approach to improve their business performance,” said Bernice Boucher, Managing Director of JLL’s workplace strategy.  “Proworking is a natural extension of co-working at the enterprise level, consistently providing professional and well-maintained work environments to mobile professionals by owners of real estate. Businesses need a way to overcome the barriers presented by traditional real estate models and achieve greater flexibility.”

Sources:

Businessinsider.com

Forbes.com

Bloomberg.com

22 Mar 2014
Digest Permalink

Cross-Border Opportunities

March 22, 2014

Events in San Diego and Baja California have highlighted the importance of industrial supply chain opportunities between U.S. businesses and Baja California.  The San Diego Regional Chamber of Commerce believes that economic growth can be experienced by harnessing these supply and sourcing opportunities.  So what does cross-border commerce look like and what do U.S. businesses have to gain?

During a recent discussion in March hosted by NAIOP (National Association of Industrial and Office Properties) San Diego that featured former Mayor Jerry Sanders, the issue of cross-border manufacturing was discussed as it relates to the impact on jobs and commercial real estate development.  Sanders, who currently serves as the President and CEO of The San Diego Regional Chamber of Commerce, expanded upon the importance of the cross-border terminal and the need for cross-border rail.

Mentioned was the Cali Baja Bi-National Mega-Region Initiative, a long-term economic development strategy which includes San Diego County, Imperial County and Baja California in Mexico.  This Mega-Region is a unique location for businesses to invest as it has the largest concentration of population along the U.S.-Mexico border.  The immediate pros include the opportunity for businesses based in the U.S. close to the Mexico border to maintain their corporate business operations in the U.S. but manufacture their products in Mexico.  This ability to contract manufacture offers businesses a significant cost reduction due to the differentiated wage and land cost structure.

The development of the cross-border terminal, a pedestrian bridge that would allow Americans and foreign travelers to cross the border directly into and out of Tijuana’s General Abelardo L. Rodriguez International Airport, is included in a series of border improvements which would aid in the Mega-Region’s success.

In addition to the effort to institute a cross-border terminal, Sanders also discussed the advantages of rebuilding the historic cross-border railroad that would provide the Mega-Region with cross-border freight train service.  The rail service would aid in diminishing the significant amount of truck traffic that is experienced along the Mega-Region’s main interstates.  By transferring the transportation of components manufactured in Mexico and delivered to the U.S. from trucks to rail, the Mega-Region is able to remain competitive and deliver products more efficiently.

On a state level, cross-border operations allow businesses based in California to maintain their corporate business operations, instead of moving to other, more business- friendly states.

Among the advantages of cross-border manufacturing is the by-product of the maintenance and creation of jobs.  More businesses will look to the Mega-Region when considering opening a headquarter or satellite location.  From automotive and aerospace to electronics and medical devices, including companies such as Toyota and DJO Global, U.S. businesses are already taking advantage of the cross-border supply chain opportunities.  Toyota Manufacturing de Baja California assembles Tacoma pickups at a plant located outside Tecate and transports them by truck to the U.S.  Whereas DJO Global has been operating in Tijuana for decades and has helped to attract many of their major suppliers to Mexico in order to keep up with their demand.

San Diego and Imperial Valley have the capability to economically benefit from its border ties with Baja California and the Mega-Region Initiative aims to strengthen those ties and create jobs on both sides of the border.