Is proximity to mass transit becoming less of a draw for apartment renters?

In the few years since companies like Uber and Lyft began to offer their ride sharing and carpooling options to riders in San Francisco, the premium earned by apartments near mass transit has dropped.

Apartment dwellers have traditionally been willing to pay a premium to live near mass transit stops in urban markets. But fueled by the proliferation of ride-sharing services, a rise in use of electric vehicles and other factors, that allure has begun to lessen in the Golden Gate City and that effect could spread elsewhere, according to new findings from MetLife Investment Management.

“When we look at what makes real estate assets most attractive to tenants, access to transit has traditionally been near the top of the list,” says Adam Ruggiero, head of real estate research for MetLife, which recently released its new report, “On the Road Again: How Advances in Transportation Are Shaping the Future of Real Estate.”

Apartment renters have more options to get around, which may be diluting the amount of extra rent that they are willing to pay to live near a subway stop or light rail station. In the few years since companies like Uber and Lyft began to offer their ride sharing and carpooling options to riders in San Francisco, the premium earned by apartments near mass transit has dropped—but not disappeared.

“It might lower the spread but it does not erase the spread,” says Justin Bakst, director of capital markets for CoStar Risk Analytics, which provided data for the MetLife report.

The introduction of ride sharing and carpooling services in San Francisco coincided with a decline in rental premiums for on-transit apartments (defined properties within a five-minute walk of a transit stop) from a historical average of 20 percent to only 15 percent today, according to the MetLife report

 

Read more from National Real Estate Investor

 

 

Google Proposes One Million Square Foot Project in Sunnyvale for 4,500 Employees

The second half of 2017 brought some much-desired attention to San Jose, the self-proclaimed capital of Silicon Valley. It all started when Trammell Crow announced that its Diridon Station project was tied to Google, and the subsequent negotiations the Mountain View tech giant started with San Jose’s elders to expand even further in the city. A slew of activity emerged in the city from hotels to office buildings to apartment complexes trading hands and institutional investors really zeroing in on the opportunity this could bring. The 86-acre, 4 million square foot approval Apple received from the city of San Jose in 2016 was not even mentioned in the news—the excitement seemed to be all about Google.

Yet Google’s ambitions are much broader than just one city. In late December, Google initiated plans with the city of Sunnyvale for a roughly 1.042 million square foot office project on approximately 40.5 acres of land it owns in the Moffett Park district. The ten parcels that Google owns are bounded by Caribbean Drive, Mathilda Avenue, Bordeaux Drive and Borregas Avenue. There are thirteen single story buildings on the property today totaling 801,670 square feet, and they include a combination of warehouse, light manufacturing, R&D and office uses, according to a letter submitted to the city by Google’s Senior Director of Design and Construction, Joe Van Belleghem.

Read more from The Registry

4 Ways that Driverless Cars Could Impact the CRE Industry

Companies ranging from the big automakers in Detroit to tech firms in Silicon Valley are pouring research dollars into driverless cars, and this development is projected to completely change the future of commercial real estate. This transition creates opportunities for new investment as well as challenges for existing properties.

Read more from NAI Global

Greenprint Report Shows Real Estate Industry Continues to Reduce Energy Consumption, Carbon Emissions, Water Use

A new report from the ULI Greenprint Center for Building Performance shows that several of the world’s leading commercial real estate owners and managers are making significant progress in reducing energy consumption, carbon emissions, and water use in their buildings.

Since Greenprint started tracking building performance in 2009, the energy consumed by members’ properties has dropped 13.9 percent, carbon emissions have decreased 17.9 percent, and water use has dropped by 12.1 percent. The reductions occurred even as building occupancy rose, suggesting that greater space use does not necessarily cause a decline in building performance.

Read more from Urban Land Institute

Here’s How CRE Developers are Taking Sustainability into Account

Sustainability in the real estate sector affects a large amount of companies. Sustainability is often referred to in residential real estate, with topics such as rain water harvesting, energy alternatives and recycling surfacing, but commercial real estate value can also be enhanced with sustainability efforts. Here’s how CRE developers are taking sustainability into account.

Read more from NAI Global

A Simple Way to Implement New Technology in Old Properties

With tenants typically only occupying office buildings during the day, a case could be made that it’s a waste of space and energy for buildings to sit empty after quitting time while landlords continue paying operating costs 24/7.

Read more from VTS Hightower Blog

Voters to decide on raising bridge tolls to fund $4.45 billion in transportation funding

Last week the state Legislature passed SB 595, which will now ask voters in all nine Bay Area counties to decide on whether to phase in the rate increase. For some local commuters, that could add up to as much as $9 to cross the Bay, money which will then go toward beefing up the region’s existing infrastructure and transit agencies.

Read more from San Francisco Business Times

Will Smart Sensor Tech Become a Leading Amenity in CRE?

Smart technology and the Internet of Things continue to make waves in the commercial real estate industry. For the multifamily specifically, smart sensor tech will change the way residents live and will enhance their way of life by offering new benefits. For other sectors such as retail, the sensor technology can help determine traffic flow. These are just a few of the reasons smart sensor tech is set to become a leading amenity in CRE.

Read more from NAI Global

DisruptCRE Coming to San Francisco, September 15th

SAN FRANCISCO, CA – August 29, 2016 – The national technology and commercial real estate conference, DisruptCRE, is coming to downtown San Francisco on Thursday, September 15th. The conference will take place on the 12th floor of Tishman Speyer’s Class A office building, 333 Bush Street, a distinctive, 541,900-square-foot mixed-use tower in the heart of San Francisco’s dynamic North Financial District. Standing at almost 500 feet, the building is one of the city’s tallest skyscrapers, boasting commanding views of the nearby waterfront and surrounding skyline.

DisruptCRE sources the best industry professionals and entrepreneurs to provides educational and thought provoking discussions centered around emerging CRE technologies. Topics range from IoT (Internet of Things) that are being integrated into our commercial buildings, tenant engagement and concierge services, to newer “Tech Tools” such as virtual reality, and real estate’s secondary market.

“We take the topics that are crucial to the future of this industry, and unpack them in a way that makes it easy to digest,”says Mariel Ebrahimi DisruptCRE CEO and conference day host.

Attendees will be treated to a top notch CREtech experience from the moment they arrive. Starting with a Virtual Reality Experience Center powered by exhibiting company, Matterport, a 3D media platform creating immersive experiences to navigate and share space in 3D. Attendees will be able to connect with real estate projects through the use of virtual reality technologies via headsets, Gear VR and Google Cardboard. The educational side of the conference day kicks off with a fun, rapid-fire segment called “Meet the Disruptors” where CRE tech companies have 45 seconds to pitch their company to attendees.

Participating CRE tech companies include Building Connected, Comfy, Brevitas, Indoor Reality, Managed by Q, Matterport, MRI Software, Raisal, Real Liquidity, Reonomy, Skyline Exchange, VTS, ZoomProspector & more!

Three educational panels are provided, anchored by the popular “State of CRE & Tech: The Executive’s POV,” where some of the most recognizable and powerful executives in the industry will shed light on how technology is affecting the industry on a local and global scale. Executive’s will also explore the CRE tech products and services that are currently in the marketplace, what are they investing in or implementing now, and what is coming up on the horizon that gets them excited.

According to Ebrahimi, panels are filled with CRE and investment industry titans including Deborah Boyer, Executive Vice President and Director of Asset Management at The Swig Company; Jordan Nof, Head of Investments at Tusk Ventures; James Kilpatrick, President at NAI Northern California, Stuart Appley, Managing Director GWS Technology Solutions at CBRE, Lindsay Baker, President at Comfy, Kevin Guy, CEO at RealLiquidity among others.

The conference closes with a casual “cocktails and nosh” networking event where attendees can re-visit the showcase for networking and demos in a casual atmosphere to engage personally with the tech companies, sponsors, VC’s, and other real estate industry leaders.

For more details: http://disruptcre.com/cities/sanfrancisco/