Archives for March 2020

Cities Want Community Focused Retail

March 26, 2020 by CARNM

Nadel Architecture + Planning says community-focused retail has been important during the entitlement process.

Investors aren’t the only players seeing value in experiential retail. Cities are focused on approving retail projects that have a community focus. Developers and architects pushing projects through the entitlement phase have seen the city show increased interest in those elements of new retail and retail redevelopment.
“The city is focused on creating great people places in communities. It seems to be an important factor that cities are considering now when we are going through the approvals process for entitlements. They are looking at placemaking, and they are sensitive to that,” Greg Lyon, principal and design director for Nadel Architecture + Planning, tells GlobeSt.com.
The trend is community, and the exact amenities in each retail center depend on the project. “Of course, it takes more than the city’s pull to create spaces that truly serve the community needs,” says Lyon. “There are, of course, nuances,. If the property is more culinary based, you are going to want to have more communal dining areas, you are going to want more operable roll-up walls to allow indoor-outdoor space. It is all about bringing people together so that they can interact in these environments. But, it depends on the use.
Lyon recommends all stakeholders get together earlier and look closely at the micro-market. “The project works best when the developer wants to dive in to the aspirations of the community and do something authentic and who is sensitive to the demographics and psychographics of the lifestyle considerations,” he says. “Clients that are willing to bring in all consultants at the beginning end up with a richer more immersive environment.”
Some developers are already on board, but others are still adapting to the new market and consumer demands, which Lyon says are long-term trends. “Some developers have spent a majority of their career working on destination retail shopping that is commodity driven are now challenged with having less shop space, no large anchor tenants and shift uses to service people,” he says. “For those developers, there is a little more of a discussion about where the market is going. There are also developers that are very savvy with new trends and are focused on creating these type of environments.”
As an added benefit, Lyon says that there is typically a cost savings in designing a center in this way. “When you do approach a project like this, there is a savings in the architecture,” he says. “The environment that the shopper experiences is everything that happens in front of the storefront. A lot of times, if we are working with a developer from the beginning, we can focus on the environment and the architecture becomes a backdrop to that. From the client’s perspective, it can be a cost savings.”
By: Kelsi Maree Borland (GlobeSt)
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Report: Physical Security Tech in Smart Buildings Attracted Over $2.9B in Global Investment in 2019

March 26, 2020 by CARNM

Industry investments ran the gamut from established manufacturers to newer market entrants as well as both traditional and emerging tech

Over $2.9 billion was invested in firms providing physical security solutions for residential, commercial and industrial facilities in 2019. The data from our new report, “M&A and Investments in Smart Buildings H2-2019,” reveals the extent of global investment in the physical security sector since 2017.
This article updates and extends our previous article from August 2019, “High Levels of Physical Security VC Investment Continue into 2019 with $355M Raised So Far.” Whereas the first article focused on commercial and industrial buildings, this report also includes security solutions aimed at the residential market, including multi-occupancy apartment buildings and smart homes.
One transaction in 2019, the post-IPO equity for Motorola Solutions by private equity firm Silver Lake Partners, accounted for $1 billion. Even discounting that single transaction, physical security technology still ranked as the highest funded category last year within smart buildings.
An analysis of the high value deals reveals a consistently higher level of funding provided in the Chinese market for smart home, smart building and physical security solutions, such as AI-driven face recognition. For example, Megvii, the Chinese developer of Face++ face recognition software, closed a Series D financing round in May 2019 amounting to $750 million.
New entrants addressing alternative ways to control access to buildings are using a range of technologies including AI, electronic locking, sensors and biometric authentication. Companies receiving funding in 2019 include Alcatraz AI, B-Secur, Comydo, Glue, HAVENLock, Igloohome, Latch, Level Home, Nexkey, Open App and Proxy.
Level Home, the provider of the Level Lock, which transforms an existing lock into a smart lock, allows consumers to preserve the design of their homes, emerged from stealth in October 2019. The company announced a $71 million corporate round of funding with strategic investors, Walmart and Lennar Homes.
In August 2019, Latch, a smart lock maker targeting the apartment buildings market, completed a $126 million financing to accelerate its growth in the new construction and retrofit markets. The round was closed led by growth equity firm Avenir alongside existing Series B investors including Brookfield Ventures, Lux Capital, RRE, RxR Realty, Tishman Speyer, Third Prime, Camber Creek, and Primary Venture Partners.
Emergency response and mass notification solutions for public buildings, workplaces, stadiums, schools and other venues have also attracted investors in 2019. Startups receiving funding in 2019 included AlertMedia, RapidSOS and Volan Technology.
In October 2019, RapidSOS, a New York-based emergency technology company, announced the closing of a $55M funding round. The latest investment was led by Energy Impact Partners (EIP), the largest energy technology investment firm backed by a coalition of leading global utilities. The round, which adds $25M to an initial close of $30M, accelerates RapidSOS’s work partnering with thousands of public safety agencies, most major public safety software providers, and connected device companies to transform emergency response and disaster management with data-driven solutions through life-saving building data and connected equipment.
AI video analytics will be a main game changer for security over the next 10 years, according to the recent Memoori report, “The Physical Security Business 2019 to 2024,” and many new entrants are receiving funding as AI technology applied to video surveillance has convinced the market that it will become mainstream. New entrants in this space who closed investments in 2019 include Actuate, Boulder AI, Calipsa, Athena Security, Umbo Computer Vision, Viisights, and Vintra.
Evolv Technology, a Boston area start-up founded in 2013, has developed weapons-screening systems to detect anyone attempting to carry a weapon or other threat into venues without slowing the flow of visitors or employees. By fusing the latest sensors and Cortex AI, Evolv delivers weapons detection smart enough to screen thousands of people without the need to stop and empty pockets or remove bags. Their $24 million preferred stock financing closed in October 2019 with investment partners including Bill Gates.
The gunshot detection industry is still in its infancy with just a handful of solutions. One company is Active Guardian, who has attracted $2 million seed funding from Stanley Ventures, the VC unit of Stanley Black & Decker, in December 2019. The startup has developed a plug-and-play gunshot detection technology device intended to allow critical information to be sent to first responders during an active shooter situation.
Technology advancements are changing the security landscape for buildings and incumbent players will need to work with startups through strategic alliances, M&A and investment to maximize their effectiveness in protecting the occupants of smart buildings.
Our latest report covers investments focused on the operations and management stage of the building lifecycle across 7 segments – Building Automation, PropTech, Building Energy Management, Physical Security and Life Safety, Building-to-Grid, Building Fabric and Smart Home. Our analysis reveals which startups are being funded or acquired as well as which established players are attracting growth equity or acquiring technology to augment their portfolios. For more information about the report, click here.
By: Daphne Tomlinson (SIW)
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NAR's COVID-19 Response Hotline Available for REALTORS®

March 26, 2020 by CARNM

The National Association of REALTORS® announced a new hotline that members can call if they have questions about the association’s response to the COVID-19 pandemic. Members also can call the hotline for the latest information on what programs and services are being developed to help them in their business during this time.
“Our members’ well-being and their businesses are of paramount importance to us at this unprecedented time,” NAR said in a statement announcing the hotline.
The hotline number is 800-874-6500.
After calling that number, members will be asked to follow specific prompts before being connected to a Member Support Representative to assist them with their questions or concerns.
NAR has also released several resources online for its members. NAR’s Outbound Member Engagement Program is sharing resources at nar.realtor/coronavirus. NAR also has released guidance to help REALTORS® respond to the coronavirus’ potential impact on their business.
By: NAR
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What the $2T Stimulus Package Means for You

March 26, 2020 by CARNM

The Senate passed a $2 trillion COVID-19 economic relief package Wednesday night with overwhelming bipartisan support. The bill now goes to the U.S. House at 9 a.m. EDT on Friday, where it is expected to pass. President Donald Trump has said he will sign it into law.
The measure includes $350 billion for the Small Business Administration 7(a) loan program. Under the terms, eligible businesses of 500 employees or fewer can get up to $10 million toward mortgage interest, rents, utilities, and payroll costs. A portion of these loans will be forgivable. “We worked with the drafters of this legislation to ensure that independent contractors and those living on a commission-based income will be eligible for the loans as well as the forgiveness provision,” said Shannon McGahn, senior vice president of government affairs for NAR.
The self-employed and independent contractors also are included in a dramatic expansion of unemployment insurance that could provide benefits for up to 39 weeks. These workers are not usually covered under traditional state unemployment benefit programs. In addition, the bill contains:

A delay in payment of employer payroll taxes, with half due by the end of 2021 and the other half due by the end of 2022.
$500 billion to support large businesses like airlines affected by the virus.
A one-time payment of $1,200 to most adult Americans and $500 per child.

“This is the largest financial rescue package in our nation’s history,” McGahn continued. “Combined with two other relief packages that have already been signed into law and a likely fourth bill in the near future, this action represents a seismic and definitive action to help Americans and the economy through this national emergency.
“We have worked closely with Congressional leaders and the administration during the past several weeks to ensure all three bills bring relief to the self-employed, independent contractors, and small businesses,” McGahn said. “The real estate industry is responsible for millions of jobs and is key to our national recovery.”
NAR will provide a complete analysis of the bill and how it affects REALTORS®. Watch for regular updates on nar.realtor.
By: NAR
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