Archives for 2018

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Tokenization is a complicated process which can yield high returns.

Imagine owning a piece of the Empire State Building or the Prudential Center. Seems far-fetched? Not really. Due to tokenization, owning a piece of a major property has become a  viable proposition.
To state it simply, tokenization divide an asset into investable bites. In commercial real estate, this could be a property owner breaking down a building into shares, with each share holding a particular value. This value is then represented by tokens which can be subsequently traded.
Real estate tokenization has a cautious but optimistic outlook mainly because fractionalizing, or breaking up properties into sections, is not new. After all, REITs, which own and operate income-producing real estate, are also popular and have been around since the 1960’s.
Tokenization is made possible by blockchain, an ever-growing list of records, known as blocks, which are linked via cryptography. Each “block” contains the transaction data, the date/stamp plus a cryptographic notation of the previous block. Its value lies in the blockchain’s ability to validate and track transactions in real time without the use of a bank or another third party.
“Tokenization of real estate is a highly complicated process,” says Jude Regev, Founder and CEO of Jointer. “Currently, REITs provide liquidity to the funds but can be expensive for retail investors. After all, some REITs have a high minimum entry. However, tokenization will give investors the opportunity to invest in top buildings like the Empire State Building.”
If a real estate company is looking to raise $40 million, for example, four people will invest $10 million each plus try and get a private stake in the business. Because it is locked up in the transaction and due to the size of the investment, these investors may extract a premium on their funds. However, if the same $40 million project tokenizes a portion of its real estate capital, it can have up to 2,000 investors.

Still Cautious

With tokenization, most investors are educating themselves but are cautious to execute their monetary investment.
“Blockchain and the tokenized securities market have given access to the commercial real estate asset class,” says Regev. “Investors looking to diversify their portfolio can purchase tokens that represent a fraction of equity and income stream but major issues such as liquidity and risks have remained unaddressed.”
Some of the obstacles include a vulnerability to scams, false claims, liens and credit scams, knowing the seller has no incentive to act fair and trusting the dividends distribution. At times, there can be a lack of management, risk disclosure, conflicts of interest, limited liquidity and restrictive selling, Regev tells GlobeSt.com.
Even with the anticipation of high returns, it might take some time for the industry to fully trust using tokens or blockchains but Regev believes that tokenization will grow as more people realize it can deliver healthy financial returns.
By: Tanya Sterling (GlobeSt)
Click here to view source article.

CB Report says employees appreciate some privacy along with limited noise.

The open office concept, a hot design trend over the last 10 years, has now declined in popularity due to lack of privacy concerns plus the constant distractions that are part of an open environment. According to new research commissioned by Coldwell Banker Real Estate LLC and conducted online by The Harris Poll, three fourths of employees don’t mind working in open office spaces as long as there is access to private areas such as phone rooms or small work areas and if there is minimal noise and distraction.
“The open office began as a way to encourage a collaborative atmosphere,” says Charlie Young, president and CEO, Coldwell Banker Real Estate LLC. “Taking down cubicle barriers and bringing people out of closed-door offices was thought to be a way to encourage more face-to-face communication. With the rise of email and IM communication in the 2000s, open-offices were thought to facilitate in-person communication over electronic communication.”
What actually happened, he said, was that workers felt like they had no privacy. There was simply no space to have a private conversation.
The Coldwell Banker Commercial survey also found that employees consider private and quiet spaces more important than team-meeting spaces. Sharing workspace was also not as appealing as 52% are uncomfortable working in an open office with multiple employees officing in one workspace.
So how do current employers like their offices configured? People want offices with spaces for different styles of work as well as for a variety of employee functions. For example, the HR manager may need a private, quiet office for one-on-one conversations but a marketing manager may need a more open space for a quick huddle with her team, Young tells GlobeSt.com. Other stats:
•88% of employees indicate a preference for amenities such as on-site food options, parking and outdoor spaces. • The desire for parking was down from the 2017 Coldwell Banker Commercial consumer survey which found 64% of U.S. adults found enough parking helpful. This year-over-year decline perhaps indicates a change in commutes. • 37% would enjoy outdoor lounging spaces at the workplace.
Then there are the amenities that employees don’t necessarily want.
Most workers are looking for simple improvements that would make a big difference in their work experience, Young says.  “Our survey found that only 34% of adults thought a fitness club at their office location would be helpful. Similarly, only 31% thought a nap room would be helpful, and only 25% thought a recreational center would be helpful.” In short, these amenities might be nice perks in large offices for larger companies, but most office workers don’t see the real need for them, he says.
As office configurations transition it’s important for commercial building designs to accommodate a variety of working styles, Young continues. He notes that the survey found that 63% of Americans feel their office could better configure its physical space. “In 2019 we will continue to see a demand for offices that have versatile workspaces for a variety of working styles.  The open office isn’t dead it’s just evolving.”
By: Tanya Sterling (GlobeSt)
Click here to view source article.

New Mexico’s largest medical marijuana producer is suing the state health department over regulations that govern edibles, salves, lotions and other products infused with cannabis.
Ultra Health contends the department doesn’t have the authority to license legal cannabis manufacturers, which take the raw material from producers and turn it into baked goods, beverages, candy and other products that can be sold in the producers’ dispensaries.
The manufacturer category resulted from rules adopted by the state in 2015.
The lawsuit says producers like Ultra Health have to pay fees of up to $90,000 a year, while manufacturers of cannabis-infused products only have to pay $1,000 a year.