AQ Roundup: 2018’s Hottest Topics

In 2018, you read a lot and wondered a lot – and came to us looking for answers on critical property management questions and insights on trends shaping the commercial real estate market as whole.

In honor of the new year, we decided to take a look back at what you cared about most in 2018.

How Second-Tier Cities Are Plotting a Coming Back

The kids are done with the big city. The millennial generation is increasingly deciding that there might be something to the simpler, cheaper life in America’s second-tier cities. Newly released census data analyzed by the Brookings Institute reveals that annual growth rates in small and non-metropolitan areas are picking up even as they fall in large metropolitan areas.

If the trend continues and the growth rate of small cities starts to beat the growth rate in larger cities, as was the case in the years before the recession, we’re likely to see more distributed growth in commercial real estate markets.

For commercial real estate professionals, the most important takeaway is that many of these smaller cities are poised to become more important markets in the coming decade. In particular, working with city leadership to create buildings that help them further the above three priorities may prove to be an effective strategy.

Read the full post here.

What is the Difference between Gross and Net Leases?

Commercial leases are never one-size-fits-all; every one is different and comes with its own, unique challenges.

At the highest level, there are two main types of commercial lease: Gross and Net. The type of lease affects who pays for several expenses associated with the property, and as a result, affects how certain interests are aligned in the landlord-tenant relationship.

Read the full post here.

If WeLive Isn’t How We Want To Live, What Is?

As WeWork’s errant venture WeLive has found out over the last few years, humans are capricious creatures. We crave company, but we also demand privacy. We pine for the close-knit communities that were once the hallmark of human life right up until that house next to our mother-in-law becomes available.

Just a few years ago, WeWork set out an ambitious goal – WeLive would make up 20 percent of its revenue by 2018. As our more astute readers may have noticed, it is 2018, and most of us have yet to give up our old-fashioned apartments with things like walls and private kitchens and affordable rents. As of today, there are just two WeLive buildings in operation, one in Manhattan and another in Arlington, Virginia. So is WeLive Doomed?

Read the full post here.

5 Sustainability KPIs You Should Be Tracking

Frankly, sustainability is a term you’re probably tired of hearing. Even though it’s overused, this concept is here to stay. Despite the slow start, commercial real estate is finally catching up.

Sustainability in commercial buildings is really a push for the triple bottom line: Planet, People, Profit. Your tenants will appreciate the sustainability efforts that are tied to health benefits – so much that they are actually willing to pay up to 35% more for green building office space. Your shareholders will appreciate the drop in operational costs. You can’t lose in these efforts, so it’s time to get started.

Read the full post here.

Metering and Submetering: The Property Manager’s Guide

In commercial real estate, metering is the best way of getting more information about what’s going on in your building. Every optimization project, from simple changes in the building’s heating schedule to major renovations, is more likely to succeed if the team behind it has access to detailed information about building utility flows from meters and submeters.

This guide is intended to tell you everything you need to know about what is possible with modern metering and submetering. With actions informed by a detailed look at the way utilities move through your building, it is possible to significantly reduce their consumption in some cases and shift necessary use to cut operational costs in others.

Read the full post here.