Relina Bulchandani

Seeing apartment occupancy hold steady despite a surge in new supply is a testament to the strong demand in the industry. In May, U.S. apartment occupancy was 94.2%, consistent with the start of the year, according to RealPage. Even with increased deliveries, renters are absorbing units at a healthy rate, showing stability for 17 months. Carl Whitaker from RealPage noted that this steady occupancy amid a 40-year-high supply wave indicates a stabilization point. While some Sun Belt markets, especially in Texas, faced lower occupancy rates, other regions saw slight increases or remained flat. Rent changes, while modest, followed seasonal trends, with national rents inching up 0.2% year over year and 0.5% month over month in May. #Rentals #MarketTrends #Apartments #Lighthouse

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Our partners at JLL are right. GenAI's effectiveness hinges on the quality of the data it's trained on. In #commercialrealestate, data lags behind other industries in terms of quality, scale, and accessibility. One of the unique challenges the industry faces is the fact that every property is financed differently and acts as its own business, creating lots of complications when it comes to data sharing and maximizing its value for everyone in the value chain. More than any radical technology innovation, proptech companies that figure out models (business, legal etc.) that incentivize data sharing from the many disparate constituencies will be the ones positioned to actually bring GenAI's promise to the industry. What are the best examples of companies that are doing this today? https://lnkd.in/e9kW3EXT

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The demographics of the #outdoorhospitality industry are evolving. An unaffordable housing market for millennials, coupled with 1/3 of the workforce still remote, makes RVs an attractive alternative. Ownership is becoming a status symbol and a culture. As the market expands, so does the product offering. Luxury resorts are on the rise with robust amenities such as marinas, pools, gyms, pickle ball courts, co-working spaces, farm-to-table dining, and even wellness programs. #alternativeinvestments #alternatives #alternativeassets #privateequity #glamping #outdoorliving #campground #rvindustry #rvliving #rvlifestyle https://lnkd.in/esV-wM9U

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Surprising statistics on the PDX metro tech landscape from JLL research. When i first joined the Tenant Rep team at JLL, the technology was our industry of focus. Just over a year into my career, the pandemic hit and the sentiment "tech is dead in PDX" began to echo through different professional and social circles. We never counted tech out. The truth is tech is not dead in PDX, it's just has less visibility compared to the 'Silicon Forest' heydays. The number of tech companies in the metro has increased 40.3% between 2020-2023. More insights on the tech workforce and sub-industries in the video below: Technology top 5 - Q1 2024:

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After an amazing (and busy!) three years, the time came for me to leave JPMorgan Chase and Co.  I am appreciative of the opportunity to work there, to grow, to learn, to innovate, to build, and to partner with countless amazing individuals and organizations. I was exposed to many impressive technologies, inspiring ideas, and new ways of thinking that have helped me grow. I am immensely proud of what we accomplished. Also, I have never worked harder - Here are some of my takeaways, in no order: 1.    If you are stuck OR facing something that has never been done before, ask yourself “What am I solving for?” A path should materialize. Thank you Alec Saltikoff 2.    If fundamentals do not hold, something is very wrong. Call it out. In response to a question, I was once informed that a company’s “secret sauce” was in their ability to break The First Law of Thermodynamics with their product. The discussion did not go well from there. Be respectful of everyone’s time and get out. 3.    If you are a Subject Matter Expert, do not drown stakeholders in detail. Your job is to protect stakeholders from the water - describe the water, do not give swim lessons. 4.    Always recognize and celebrate a win with your team. 5.    Value the opinions of those that disagree with you. Understanding their position is learning, incorporating the understanding into your solution, growth.   6.    80% of closing a deal is negotiating tail-risk. Losing a deal for fear of extremely unlikely outcomes is tragic. If you have the right partner, avoid posturing in how you solution. This is the work.  Get it done. 7.    Convince by helping others conquer challenges they own and helping them become more successful.  8.    Always be prepared to have the conversation you most hope to encounter. Walk into every meeting with your top pitch/need/ask on the ready.  9.    There are moments where groups need inspiration. These moments are palpable (even on Zoom!) Step up when this happens and don’t mess it up. I am already focused on my next adventure, more to come soon on what is next for me -

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Corporate Real Estate and Workplace Strategy teams... You have a blind spot when monitoring occupancy and utilization data. Here is an infographic explaining InnerSpace's capabilities, which go a step above traditional methods by allowing a 100% field of view into how your portfolio is operating. Let me introduce you to the #FutureOfWork!

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Rethinking Multifamily Tech Adoption: This is the first in a series of 7 articles exploring key process changes essential for making informed decisions for a more efficient, responsive, and technologically adept future for both operators and their technology partners. #multifamily #mutifamilytech #renew

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The most important mentorship doesn’t happen at work. Having mentors and mentoring others is a key part of professional life, but some of the most important mentoring we do is with our kids. This summer, our daughter will graduate from high school 👩‍🎓 and head to college, so I’ve been thinking about life lesson materials I can share with her before she leaves the nest. So far the ones below stand out for me.  (Based on their popularity, these are not super original ideas). "Designing Your Life". 🗝 Great book 📖 by two Stanford professors about applying design thinking to create a meaningful life. https://lnkd.in/g85G7MYh "Make Your Bed".  🛏 Fun read by a former Navy Seal about principles from Seal training to help overcome life’s challenges.   https://lnkd.in/gqGyBpKU Steve Jobs’s Stanford Commencement Address. 🎓   19 years later and it’s still one of the best commencement speeches I’ve seen.  https://lnkd.in/gUEzwqhN The poem Ithaka, inspired by the Odyssey 🌊 🔱 , about life’s journey. ⛵ In high school, a teacher shared this with our class and I’ve always liked it.  https://lnkd.in/gixzfGya What do you think?  Are there materials that resonate with you that you’d recommend for this milestone? #mentoring

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🌟 Welcome to Moto Monday at Layer 10! 🌟 Innovation requires courage and vision, especially in the ever-evolving landscape of commercial real estate technology. This week, we draw inspiration from a powerful insight: "True innovation in commercial real estate technology is not for the faint-hearted. It’s for those who are not just open to change but who actively pursue it as a means to lead and redefine the industry standards." This quote encapsulates the bold approach we champion at #Layer10. Embracing and driving change is how we lead and set new benchmarks in the industry. 🔗 Discover more about our pioneering efforts and the mindset behind our success by reading the full #BuildingTomorrow newsletter edition here: https://lnkd.in/gDXmQnJm. As you embark on this week’s journey, consider how you can actively pursue innovation and lead in your field. What changes are you ready to embrace to redefine your industry? 🚀 Join us every Monday for more insights and motivation. Together, let’s shape the future of commercial real estate. Let's build tomorrow, today. Ken at Layer 10 #Innovation #CRETechnology #IndustryLeadership #MotoMonday

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Hard to believe it's May already. As we quickly approach summer and the halfway point in 2024, where does the San Francisco Office Market stand? From a 10,000 foot vantage point things are scattered but generally trending upward.... slowly. For savvy buyers, workplace leaders, and companies, there is opportunity abound. The Good: - Demand up to near pre-pandemic 2020 levels - Companies prioritizing physical workplace once again as a central part of overall workplace strategy - Sales market has opened up. New owners are coming in, resetting basis, and providing the market new leasing opportunities at competitive rents and modernizing & amenitizing stale projects. - Narrative on San Francisco is shifting - The startup & Innovation ecosystem remains headquartered here The Bad: - Vacancy continues to rise - Interest rates remain high - Most professional services firms downsizing - Construction costs remain prohibitively high Some of the notable recent deals: - Figma renewed 98,000 SqFt lease at 760 Market - Adyen leased 150,000 SqFt at 505 Brannan - Rippling leased 123,000 SqFt at 430 California Street - The city of SF leased 157,000 SqFt at 1455 Market Street - Indian Consulate leased 25,054 SqFt at 71 Stevenson - Pillsbury Winthrop renewed 100,000 SqFt lease at 4EC - KPMG renewed 138,000 SqFt at 55 2nd - Goodwin Proctor leased 58,991 at 525 Market In addition to the larger transactions, there seems to be a significant increase in startup demand 📈. The 1,000-3,000 SqFt requirements of today, will become the 5,000-50,000 SqFt requirements in several years as they receive follow on funding. Outlook: - Vacancy will continue to rise through 2024 - Smart tenants and investors are taking advantage of the "reset" in property values Lastly, to end on positive note - the city has been cleaner and there seems to be much more energy downtown. Multiple clients who have toured recently have commented that they were surprised by how "Good" it felt downtown. Hope the positive momentum continues! I remain optimistic and confident in San Francisco Raise Commercial Real Estate #SanFrancisco #officeleasing #workplace

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"The next Industrial Revolution has begun," with businesses and countries converting existing data centers into "AI factories." - Chief Executive Jensen Huang. This Wall Street Journal article highlights how the AI boom is transforming the industrial development landscape. From chip manufacturing to infrastructure development, the demand for AI capabilities will continue driving a new era of industrial development forward across so many sectors. #IndustrialDevelopment #AI #DataCenters

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🌟 It's Moto Monday with Layer 10! 🌟 "Technology in real estate is no longer just a feature; it’s the backbone that brings modern spaces to life, orchestrating every element from climate to security, to create environments that are not just buildings, but living ecosystems." This underscores the transformative role technology plays in the built environment. From enhancing energy efficiency to ensuring seamless security, technology enables us to create spaces that adapt, respond, and thrive. 🔗 Explore how we're integrating these innovations in our full blog post here: The New Backbone of Real Estate: Technology as the Operating System of Space | Layer 10 (https://lnkd.in/ga8MfdNK). How does technology impact your space? Share your experiences and join the conversation this Moto Monday! Let's innovate and inspire together. Ken at Layer 10 #Layer10 #RealEstateTechnology #Innovation #SmartBuildings #MotoMonday

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My favorite aspect of building proptext is the creative autonomy we have to cover emerging real estate technology companies that are changing the way we invest in the future. In the most recent issue, we covered Finresi, a private debt real estate marketplace enabling users to fractionally invest in notes for individual properties from Los Angeles to Miami.  These investments yield between 10-12%* with short-term maturities (7-12 months).  Why does Finresi win right now? - Average single-family cap rate: 5%, +/- some tenths  - Real rate of return (net of inflation): 1.5% - Dwindling appreciation returns: Even with an arbitrary 3% for appreciation, your ceiling is 4.5%.  Add leverage at 7% plus, and the math only gets worse. With Finresi, you are: - Selecting individual assets - Generating a return immediately, no lag from closing - Investing short-term  - Achieving an 8%+ real rate of return - Investing in assets curated by a team of acquisitions and hard money lending specialists who pre-underwrite every platformed deal to ensure quality If you think we are two years away from a more balanced market, why not invest on the other side of the deal until buy and hold pencils out closer to historic averages? I’m all in on this side of the investing equation.  From my perspective, Investing in first liens provides a win-win: premium returns and security from asset-backed loans with plenty of downside protection. Take a look and let me know what you think of Finresi in the comments! Give Jeff Gopshtein a follow as he builds this platform out and make sure to subscribe to the newsletter if I haven't harassed you enough this week to do so. 😎 *visit Finresi for investment return details #realestate #proptech #investing #sfr #technology  

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The advantages the new home market has over resale competition today is well documented...BUT what are the implications for remodeling? From our Resale Agent Survey, ~37% of potential resale listings are in need of renovations (major concerns are outdated kitchens and needed interior maintenance). However, the comparative advantage gap of new homes over resale competition is so large today (e.g., production builders offer rate buy-downs and quick move-in-ready homes) that sellers of existing homes can't close the gap and are holding off on remodels: (see below graphic) Cannot afford repairs is number one reason given for homes not being remodeled prior to listing = cannot make the economics make sense to close gap with the new home market What are the implications: -We estimate ~16% of the variation in remodeling activity is explained by housing turnover - Fewer remodels prior to listing implies turnover does not have the same leverage: less upfront remodels prior to a sale -Potential shifting of timing of a remodel to buyer with offered credits -To the extent the advantage of new homes persists, remodels are delayed...matter of "when" and not "if" these remodels rebound as the housing stock continues to age Great insights Jody Kahn Dillan Krieg What do you think? Share your thoughts in the comments. #remodeling #newconstruction #housing #jbrec

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As the American dining room disappears from new residential construction, we are faced with a question, can our need for connection outweigh years of societal and economic shifts to preserve space for gathering? As M. Nolan Gray writes in a recent piece in the Atlantic, "As households and dining spaces have contracted, the number of people eating alone has grown... nearly half the time we spend eating is spent in isolation, a central factor in America’s loneliness epidemic and a correlate to a range of physical- and mental-health problems." Whether by choice or by accident, the new homes we are creating often don't leave space for more than a couple of people to sit down to eat together. What does it say about us as that we have deprioritized space for shared meals? As we face a loneliness epidemic, this shift in design away from larger dining spaces seems, at best, shortsighted and, at worst, harmful to our collective well-being. Pressures in the American housing market such as increased land and material prices, zoning regulations that discourage family-size apartments, societal shifts in shared dining, and a culture that often values independence over community have all contributed to the emergence of the great room and the disappearance of dedicated dining spaces in homes. So what can we do to encourage social connection and gatherings through residential housing design? Firstly, we can embrace the great room without limiting its adaptability. Built-in bars and islands, for example, dictate how a great room can be laid out. If instead we leave that space open for a table or movable island we can allow units to flex with the needs of the residents. Additionally, great rooms are often the result of building layouts with limited access to natural light. If our code were more supportive of multi-family housing design that didn't limit access to windows (such as single-loaded corridors), we could reduce the need and demand for great rooms and make homes feel more welcoming. Another solution is often employed in cohousing: having a community dining space. In a typical cohousing community, each unit can be designed to be smaller and more efficient, while still providing private kitchens, dining spaces, living rooms, bedrooms, and bathrooms for each unit. This is because cohousing community designs often include shared features such as a common dining room, kitchen, guest room, laundry room, and more. So, each household has what they need while saving on space that might otherwise be dedicated to items and functions that aren't needed day-to-day and can be better utilized as a shared resource. We need to be more mindful of our choices and how they shape housing, to avoid further isolating the people who call our buildings home. We should be creating housing that recognizes and embraces the value that shared gathering spaces, such as dining rooms, bring to not just a home, but to a community, and to our culture. https://shorturl.at/oTOBL

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According to a new report, the office-to-multifamily conversion pipeline surged from 12,100 units in progress to over 55,000 between 2021 and 2024. While new #multifamily starts are slowing down overall, the conversion projects now in active development or construction represent a record high. Check out five of the largest office-to-residential conversions underway across the US right now:

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Last week in NYC, I hosted 2 of my off the record lunches. The first one was with 7 CFO's and the second one was with CRE Exec's. Like all of these lunches, the participants and specifics will remain confidential with no attribution but I am happy to share the themes. CFO Lunch (all institutional CRE private funds CFO's at firms ranging from ~$1b of EUM - $100b++): - A lot of discussion around how the private funds rule is being both interpreted and implemented. Seems there is still a lot of variance across firms. - Valuations. Gross vs. Net reporting and "IR" vs. "Marketing" were all discussed at length with attendees swapping notes on what is happening inside their shops looking for consensus on what is "market" as the guidelines are really designed as guardrails. - SEC audits. They are real and understanding what the SEC is focused on will help ensure when your time comes.. you are prepared to reduce the potential disruption they can cause to your business. Be prepared. Interestingly valuations was a bigger part of the picture than most attendees had assumed. - Redemption queues. Still quite sizable but some GP's with queues have noted LP's recently rescinding. Could this be a sign of green shoots or just one off for the GP's and the LPs impacted? - Valuations came up in a lot of different context. More on that from a LP panel I hosted in a follow up post but a theme that I draw across discussions is that regardless of what your appraisers tell you (for whatever reason)... you need to be real with your markets, even if just your internal assessment, with your LP's. - It wouldn't be a CRE lunch in 2024 without a discussion on #AI. We kept it brief and the key take-away is that we are not there yet. Several participants referenced pilot projects that resulted in model outputs that were completely and totally wrong. A focus on data governance remains a priority for those in attendance. - Private Wealth remains a very attractive channel but attendees noted that the operational complexity is currently a drag on the LP base viability. Specifically the need for each RIA to have their own reporting can be quite cumbersome. Not to mention the $ is certainly not free-flowing and the channel requires a lot of work and in many cases a re-working of the middle and back-office. Unlocking operational efficiency will help unlock this market. - Oh..and... Office. Of course it came up. We had some of the largest owners of Grade A office in the room. Prime office space is in VERY high demand and generally under-supplied in most markets. Rent growth is strong as is occupancy. On the other hand, many assets are functionally obsolete and/or the basis just doesn't make sense. These have gone back to the bank. It's a slog and will be for a while as the balance of assets works it's way through the system. I hosted a CRE Exec lunch the following day (no CFO's) and will post about that later this week along with the NYPEN GP/LP Panel I moderated.

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The amount of homes listed for sale and then delisted – taken off the market without selling – is rocketing to all-time highs. Rising delistings are a sign of a pricing imbalance, with asking prices higher than what buyers are willing to pay.

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