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Archives for June 2020

1031 Like-Kind Exchanges, Insights & Updates

June 29, 2020 by CARNM

Get an update on the 1031 Like-Kind Exchanges, featuring Charlie Dawson, NAR’s Vice President of Engagement, and Evan Liddiard, NAR’s Director of Federal Taxation. The overview also includes the latest relief from the IRS on meeting transaction deadlines during the pandemic, covers recent IRS deadline relief provisions for investments in Opportunity Zones and highlights ways the program could be broadened. Watch video here.


1031 Like-Kind Exchanges, Insights and Updates Presentation
Source: “1031 Like-Kind Exchanges, Insights & Updates“

Filed Under: COVID-19

Remote Work Is Here to Stay, But Office Footprints Likely Won't Shrink

June 29, 2020 by CARNM

COVID-19 has accelerated companies’ acceptance of remote work, but social-distancing measures mean that they will continue to require roughly the same amount of office space.

The COVID-19 pandemic will set a “new normal” for the office workplace as companies adopt and integrate remote work practices deployed during the pandemic, according to a new report from Cushman & Wakefield. Consequently, it will morph from a single location to an “ecosystem of different locations and experiences.”
That said, the office isn’t going anywhere, according to the report, which is based on data from Cushman and Wakefield’s “Experience per SF” survey tool. It incorporates pre-pandemic responses with feedback from an additional 50,000 workers and employers worldwide during the current work-from-home environment. The global real estate services firm itself has about 53,000 employees in 400 offices and 60 countries.
The report forecast that office space size will generally remain unchanged, even though companies have been successful overall with workers performing their jobs remotely. Going forward, companies will allow employees more flexibility to work remotely, but any savings in square footage will be offset by the need for greater space for social distancing.
Social distancing measures could require companies to expand their office footprints by 15% to 20%, the report said, but it forecast no net change in footprint size if half of respondents indicating they would increase flexible work practices followed through.
But remote work is here to stay, the report found. Of respondents, 73% said companies should embrace flexible working policies, and companies recognize that some workers can successfully operate remotely at least part of the time.
According to the report, 75% of respondents agreed or strongly agreed that they were collaborating effectively with colleagues in the current environment–a 10% increase from the pre-COVID-19 period. Relatedly, employing collaborative technology tools is “no longer optional, but an imperative” for companies.
While team collaboration has held up overall and 90% of respondents said they felt their manager trusted them to carry out their job, employees reported that they are losing out on personal connection with colleagues.
Only a little more than half of respondents said they felt connected to their colleagues during the remote work period, the report said, and remote collaboration is task-oriented without the same opportunities for informal learning and mentoring.
The report found differences in the remote work experience by business function. Salespeople who were previously office-based were struggling the most, it said, because they are unable to “feed off face-to-face interaction.” Research and development teams also found the lack of face-to-face interaction impeded brainstorming and collaboration. By contrast, it said, operations and support personnel “appear to have little downside in their experience.”
What’s more, working from home brings its own challenges. It is a commonplace that millennials and Gen Z want flexible work options, but the report said 70% of that cohort reported challenges in working from home, compared with only 55% of baby boomers. Millennials, who are often juggling working remotely with child care and other responsibilities, said distractions and lack of space for focused work were issues, while Gen Z, defined as workers under 24, often have inadequate home workspace.
Cushman & Wakefield also found that overall employee wellbeing is suffering because of the blurring of work and personal time. “The sense of physical separation from work has evaporated,” the report said, with no “natural break” at the start and end of the workday, so employees find it harder to “switch off.”
Managers can support employees “by encouraging their teams to take time out and not be connected 24/7,” it added.
Source: “Remote Work Is Here to Stay, But Office Footprints Likely Won’t Shrink”

Filed Under: COVID-19

Seven Must Reads for the CRE Industry Today

June 29, 2020 by CARNM

The New York Times examines how office building owners and managers are grappling with elevator usage amid COVID-19 safety measures as workers return. Real Money looks at how Microsoft’s decision to shutter its stores highlights how Apple has succeeded where its competitors have struggled. These are among today’s must reads from around the commercial real estate industry.
  1. Going Up? Not So Fast: Strict New Rules to Govern Elevator Culture “Change is coming to the daily vertical commute, as workers begin to return to tall office buildings in New York and other cities. The elevator ride, a previously unremarkable 90 or so seconds, has become a daunting puzzler in the calculus of how to bring people back to work safely after the coronavirus pandemic kept them home for months.” (New York Times)
  2. Microsoft’s Store Closings Drive Home the Uniqueness of Apple’s Retail Success “Apple Stores appear to have done quite a lot over the years to convince millions of consumers to buy a second, third or fourth Apple device — whether immediately at a store, or later on through some other retail channel — and in doing so get them more hooked on Apple’s broader ecosystem. Likewise, with the help of Apple’s investments in store features such as its Genius Bars and free Today at Apple teaching programs, the stores also seem to have done a lot to keep users of a particular Apple device loyal when it’s time to upgrade.” (Real Money)
  3. Strip Mall REITs Face Uphill Climb As Tenants Struggle Amid COVID-19 “As purveyors of gyms, restaurants and other entertainment venues , REITs have taken a beating from the pandemic as online retailers expanded their reach—signaling what may be a longer-term shift in demand—and as uncertainty lingers, according to analysts Thomas Gorman and James Sullivan of BTIG’s REIT Research Team  in a recent report.” (GlobeSt.com)
  4. Black Homeownership Gets a Boost in Los Angeles: We’ll “Rebuild Black Wall Street” “Music manager Daniel Carter started Buy Back the Block to fight gentrification and help South L.A. residents move from renting to buying as novel coronavirus and recession disproportionately affect Black neighborhoods.” (Hollywood Reporter)
  5. New York Real Estate Market Sees Steep Rise In Listings After State’s Reopening “This week, after the city entered phase 2 of its reopening, contract activity increased 41%, reaching the highest numbers since the end of March, when the country shut down due to the coronavirus outbreak. New listings also increased 57% since last week, reaching a level not seen since March 2, according to data compiled by UrbanDigs.” (KSRO)
  6. The Long, Unhappy History of Working From Home “Even as Facebook, Shopify, Zillow, Twitter and many other companies are developing plans to let employees work remotely forever, the experiences of Mr. Laermer and IBM are a reminder that the history of telecommuting has been strewn with failure. The companies are barreling forward but run the risk of the same fate.” (New York Times)
  7. Can American skyscrapers survive the coronavirus? “One thing that coronavirus lockdowns showed employers over the past few months is that many Americans can work effectively from home — and fairly efficiently, too. The question now is what that means for commercial real estate in big cities. Will companies return to high-rise offices in densely-packed metropolitan areas or trade the convenience of proximity for a break on soaring rent prices? (FoxBusiness)

Source: “Seven Must Reads for the CRE Industry Today”

Filed Under: COVID-19

Watch the City Council Meeting on Monday, June 29th

June 29, 2020 by CARNM

Make Your Voice Heard!

GAAR & CARNM are working with other business organizations to stop the Premium Pay and Paid Sick Leave Ordinances set for vote on Monday, June 29th at the Albuquerque City Council Meeting.
These ordinances would force Albuquerque businesses to pay significant dollars at a time when they are struggling to stay open resulting in more business closures and lost jobs!


Tell City Councilors to vote NO to O-25 & O-26!

1. Submit a Comment to the City Council Meeting
Your comment will be shared with all City Councilors during the meeting. Tell them you are against Premium Pay O-26 and Paid Sick Leave O-25. Use this link to submit your comment: https://www.cabq.gov/council/find-your-councilor/comments-june-29-2020-council-special-meeting
Must be submitted by 2 p.m. on Monday, June 29, 2020.


2. Join the Press Conference Rally before the Council Meeting
Help show our strength when we gather with other business organizations and the community to tell City Council these ordinances are out of step with the current environment.
 Monday, June 29, 2020 at 2 p.m. at Civic Plaza.


3. Watch the Council Meeting on June 29, 2020 at 3 p.m.
Tune in the following ways to watch the proceedings:

  • Comcast:  GOVTV 16
  • YouTube:  https://youtu.be/P7JTQHft_nI
  • Live Stream:  https://www.cabq.gov/culturalservices/govtv

Resources:

  • Paid Sick Leave Ordinance O-26
  • Premium Pay Ordinance O-25
  • Understanding the Premium Pay & Sick Leave Ordinances
  • Agenda for the City Council Meeting

Coalition Partners:

  • Albuquerque Economic Forum
  • American Subcontractors Association NM (ASA-NM)
  • New Mexico Utility Contractors Association (NMUCA)
  • New Mexico Restaurant Association (NMRA)
  • Associated Builders & Contractors NM (ABC)
  • Asian American Hotel Owners Association (AAHOA)
  • Greater Albuquerque Hotel and Lodging Association (GAHLA)
  • Home Builders of Central NM (HBA)
  • NAIOP Commercial Real Estate Development Association
  • Albuquerque Hispano Chamber of Commerce (AHCC)
  • Rio Grande Foundation
  • Real Estate Community Political Action Committee (RECPAC)
  • Commercial Association of REALTORS® (CARNM)
  • New Mexico Business Coalition (NMBC)
  • Northern New Mexico Independent Electrical Contractors (NNMIEC)
  • Greater Albuquerque Association of REALTORS®
  • New Mexico Association of Commerce & Industry         

Source: GAAR

Filed Under: All News

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