Do you ever wonder what happens when professionals from similar sectors all come together? Topics are presented, issues are discussed, revelations are shared, and knowledge is brought back to their respective corporations. Last month, Sachse Construction’s Director of Program Management, Noah Wolfson, had the opportunity to virtually attend the 2020 CenterBuild Conference. After three day’s of thought leadership and collaboration, five important topics seemed to be on everyone’s mind:
1. Renovations and Updates
As time progresses, so does the industry. Renovations used to be a cosmetic decision however today this is no longer optional, it is a necessity. To remain competitive and relevant, landlords must take their existing properties to the next level.
Landlords agreed that the three most common renovations at shopping centers include:
• Exterior entrances and access points
• Activation of more common areas and open spaces
• Rehabilitating/transforming anchor spaces
The current pandemic has also allowed landlords to re-examine the efficiency and function of their HVAC systems and make necessary upgrades that provide maximum filtration and outside air exchange. The “HEPA filter” has become a “buzz” term that every landlord is researching for their property for its advanced filtration capabilities.
Sachse Construction provides an in-depth analysis on how landlords are continuing to upgrade their properties in this guide available for download!
2. Material Increases
Material prices are escalating at faster rates than in years past, largely due to recent environmental factors and disasters. Multiple areas around the world were hit by devastating forest and wildfires destroying lumber. COVID-19 also has influenced price increases in several ways: delays of shipping, industry shutdowns causing decreased productivity, and more homeowners have been embarking on renovation projects while working from home. Material cost increases are currently ranging anywhere from 5% to 15% with lumber being the exception and exceeding the average at over a 100% increase.
3. Opportunity for Acquisitions
Looking to expand your real estate portfolio? Now is the time to buy! If you are a developer looking to acquire new assets, the combination of high inventory and historic low interest rates is making it a buyer’s market. Many landlords are scouting distressed retail assets with the intention to make building upgrades and lease up vacancies just in time for the COVID-19 vaccination to be widely distributed later this year.
4. Cannabis and Provisioning Centers
Cannabis is presently recognized as one of the most rapidly growing sectors in the real estate industry. Two major factors are contributing to its growth: legalization and increased vacancies. Across the country, there is a significant increase in states – as well as the country as a whole – legalizing and decriminalizing cannabis. As a result, a greater need for cultivation centers and provisioning centers has been required to meet demands. Vacant properties have easily transitioned to meet this need for cannabis distributors.
Learn more about how this industry is trending in Sachse Construction’s cannabis market analysis.
5. Municipality Discord
COVID-19 has impacted lives and industries in numerous ways. One of the major impacts to the construction industry is slowing down of municipal approvals, resulting in construction delays. Hours at municipal offices are either shortened or non-existent due to closures, with many staff members working from home. These factors not only create delays halting the progression of a project, but also cost money. There is no insight as to when municipalities may be up and running at full capacity, which can be an unsettling for many landlords looking to make building upgrades. This is where construction managers become not only beneficial, but also critical. Hiring the right construction partner can alleviate this burden by utilizing their existing relationships with local municipality and governing authorities to speed up the approval process.
In today’s industry, landlords are being adaptive to the everchanging retail atmosphere and climate. As a result, landlords are constantly developing and implementing new approaches and ideas to evolve their properties with the times.
Contact Noah Wolfson, Director of Program Management, at firstname.lastname@example.org to learn how Sachse Construction can help optimize your retail property in 2021.