11HighGrove Partners 2015 commercial property trends report

22 HighGrove Partners 2015 commercial property trends report

3

TABLE OF CONTENTS

Introduction

Strike A Balance With Lighting

Provide Outdoor Seating

Become A Hotspot

Maximize Focal Points In New Ways

Heal With Therapeutic Gardens

Improve Walkability

Reduced Water Consumption

Updated Site Furnishings

Commercial Property Trends & You

4

5

5

6

6

7

7

8

8

9

3HighGrove Partners 2015 commercial property trends report

4

Atlanta, we have a problem. Our attention span is on the decline.

According to the National Center for Biotechnology Information, the average attention span of a human being is eight seconds, one second less than that of a goldfish.

Isn’t it time we slow things down? This year, nonresidential property managers and building owners are in the driver’s seat to make this happen. When your property lives up to its potential, it will encourage longer lunch breaks, reduce stress and increase return visits. More importantly, it will make others pay attention to what your location has to offer.

The National Association of Realtors expects nationwide vacancy rates for commercial properties — office, industrial, retail and multi-family — to see very little change this year. However, an increase in commercial rent is projected across the board, with office and industrial rents seeing a near 3 percent rise, retail up 2.4 percent and multi-family up 4 percent. And, the American Institute of Architects projects nonresidential construction will see a spending increase of more than 8 percent.

And as commercial real estate projections continue in a promising direction, you should, too — by proactively addressing your property’s needs. Now that we have your attention, here are 2015’s most significant commercial property trends.

4 HighGrove Partners 2015 commercial property trends report

5

Thanks in part to the lingering effects of the economic downturn, the last few years have been tough for commercial landscape lighting, as it’s struggled to make the cut as a top priority for many properties.

“Lighting may not have been an important part of the package 20 or even a few years ago; it most definitely is now,” indicates Gib Durden, vice president of business development for HighGrove Partners, Austell, Georgia.

This outdoor lighting resurgence is particularly evident at higher-end retail settings and for a majority of the new mixed-use (live, work and play) developments. Today’s typical lighting applications strike a balance between art and safety.

Downlighting is one popular technique properties are implementing to create an attractive moonlighting effect that can also illuminate large circulation areas.

Strike A Balance

WithLighting

Sit down and stay awhile. Today, executives in offices across the country recognize what a few minutes away from your desk can do for your health. Throw in a breath of fresh air and a sun kiss of vitamin D — and you’ve got yourself one revitalized employee.

With the addition of outdoor seating, “Office campuses are encouraging people to linger a little longer outside,” Durden says. This rings especially true for those properties with dining facilities. And when you’re located in a great weather city like Atlanta, why not take advantage of it?

Current seating trends place an emphasis on privacy by offering generous space between seating areas through the use of moveable furniture.

Provide Outdoor Seating

5HighGrove Partners 2015 commercial property trends report

6

Become a Hotspot

From a curb appeal standpoint, standing out from the crowd is a must. And if last year taught us anything, it’s this: Go big and go bold. Landscapes boasting bright, contrasting colors continue to impress — even from a distance. And playing off your brand’s color scheme is another popular option.

But it doesn’t stop with color. Properties are also consolidating multiple smaller flower beds to create larger statement pieces in their landscapes. Less really is more.

“Combining beds at certain focal points in the property — signage, entry ways and other high-traffic areas — help alleviate budget concerns,” suggests Mark Knaggs, vice president of sales and client services for HighGrove Partners. “It makes sense visually and financially.”

Maximize Focal Points In New Ways

Average smartphone owners check their phones more than 150 times a day.

When you read a stat like that, you start to realize how crucial Wi-Fi accessibility is for our highly connected society. Today, office parks are taking notice of the versatility a Wi-Fi connection can bring to the workplace. The inside of a building is no longer the only place work can get done.

From Millennials (also known as Generation Y-Fi) to Baby Boomers, today’s workforce expects their Internet connection to work seamlessly as they travel from fifth floor cubicle to shaded courtyard bench. Wireless access is no longer a perk; it’s an expectation.

Outdoor Wi-Fi accessibility gives workers a respite from their office’s fluorescent lighting and remain connected to email without leaving the grounds, explains Kevin McHenry, land services manager of HighGrove Partners. “People want to get outside, enjoy the weather and still work.” (And there’s nothing wrong with that!)

6 HighGrove Partners 2015 commercial property trends report

7

Heal With Therapeutic Gardens

Do healing gardens really heal? According to a litany of modern medical research dating as far back as the mid-1980s, they most certainly do — particularly in institutional settings.

Typical healing gardens are lush and layered with minimal hardscapes (e.g. wide cement walkways and large statues), situated far from noisy parking lots or designated smoking areas.

Whether it’s through an outside space or even a view from a window, access to gardens can legitimately reduce stress and even speed recovery. For medical campuses undergoing new construction, gardens are now an important part of the design.

Improve Walkability

Ask any commercial property manager and they’ll tell you: Getting from Point A to Point B should never be a hassle. That’s why many of today’s commercial real estate upgrades are decidedly pro-pedestrian.

From multifamily developments to heavily trafficked retail centers, improved walkability is a top priority. Upgrades making this happen include designated raised walks across vehicular routes and rejuvenated streetscapes to provide an attractive separation between the curb and sidewalk.

Parking lot islands are another area suspect to walkability improvements. “If people are continually cutting through the flower beds or grass areas of your islands, add stepping stones to create additional, easier pedestrian access,” Durden says. “If they’re going to go through it, give them the avenue to do so.”

An assortment of commercial properties are also adding walking and bike trails for tenants. “It can be used before work, after work, during lunch — encouraging a more active lifestyle without going off site,” explains Knaggs.

7HighGrove Partners 2015 commercial property trends report

8

Reduce Water Consumption

When new developments neighbor older properties, dated furnishings have a tendency to stick out like a sore thumb. As rental and occupancy rates in the office market continue to make small strides in the right direction, investments are being made to update site furnishings with a campus look, which is a prevailing style that has proven itself to be quite timeless.

Commercial park benches and lamp posts in classic, old-world styles are built to last forever and maintain that timeless aesthetic.

“For several years, properties stayed status quo and updates weren’t being made,” explains Durden. “Today, more and more people are looking at the outside space and aren’t solely focused on the inside space.”

Update Site Furnishings

When a sustainability initiative can boast an impressive ROI, it’s hard to not take notice. Green and cost effective has a nice ring to it.

That’s why so many of the region’s commercial property managers are interested in doing what they can to improve water conservation. Aside from the basics of planting the right plant in the right place, McHenry says proper irrigation management — using high-efficiency sprinkler heads and smart controllers — can curb water usage by up to 40 percent.

Exploring your turf options will also make a difference, adds Knaggs. Some properties are transitioning away from fescue turf to more warm season turfs. Artificial turf is another application perfect for high-traffic, hard-to-water areas while still providing a natural look.

(Want more insight into how your commercial property can better manage its water supply? Download our FREE e-book all about water management.)

8 HighGrove Partners 2015 commercial property trends report

9

Is your property trending?

With HighGrove Partners, it can be!

If you would like to further discuss the relevant trends found in this report,

please give us a call at 678-298-0550 or use the contact form on our website.

9HighGrove Partners 2015 commercial property trends report