CRE

Building Management Post-Pandemic

The real estate sector’s efforts to mitigate the threat of the contagion by securing buildings have already put it at the forefront of the global response. However, the industry’s most important contribution will be in helping to create an operational framework, within which some semblance of normalcy can be restored.

TECHNOLOGY WILL BE A CRITICAL ENABLER

Innovative technology solutions will facilitate real estate owners and operators to navigate the new conditions and recover from the challenges posed in the post pandemic recovery phase. These are some of the most impending issues that rightfully need to be solved:

Diligent and rigorous sanitation methods: It has been estimated that we are several months away from an effective vaccine to combat Covid-19. In the interim, prevention is the only viable strategy at our disposal. Tech-enabled hygiene management facilitates the automation of tailor-made and venue-specific disinfection and deep cleaning routines, which can be rolled out at a portfolio scale. Such digital tools also enable inventory management to ensure the availability of essential supplies, and platforms on which to share live sanitation and health updates with occupants.

Contactless visitor check-in and occupant comfort controls: Restoring tenant and occupant confidence is perhaps the most significant role the real estate industry can play in GET REAL Waterfall Villa Residences in Chandler Models are open at Chandler’s newest lock-and-leave condominium community, Waterfall Villa Residences, by Ironwood Development Group. The private, gated, resort-style community featuring open and modern single-level villas is attracting buyers from all demographic groups. Villa layouts are designed with the flexibility of two- and three-bedroom floorplans ranging from 1,225–1,630 square feet, including an attached two-car garage.

Behind the private gates, buyers are greeted with a palm-lined luxury pool with cabanas and firepit, ramadas and gathering areas and lush green community spaces.

While adapting to new safety procedures, Waterfall sales offices remain open under the direction of Cambridge Properties, the community’s managing broker. The Sales Team is providing virtual and private, onsite opportunities to facilitate the home-buying journey while prioritizing the health and safety of buyers. liveatwaterfall.com reviving economic activity. Contactless visitor entry with QRcode-enabled mobile sign-in, touch-free elevator entry and exit, app-based control of ambient comfort like temperate and lighting, and more, can help build trust with occupants.

Portfolio-wide analytics, compliance and automation: Cloud-based analytics and compliance monitoring of building systems across properties will be crucial to respond with agility to the new HVAC guidelines and dynamic tenant needs when properties open. For instance, stakeholders can gain portfoliowide visibility of adherence to new HVAC guidelines and indoor air quality data, identify areas to act on immediately, and provide live dashboards to tenants on HVAC compliance. Operators are better equipped to deploy changes to multivendor building automation systems across properties such as bulk changes to schedules and overrides, automating triggerbased sequence, audit logs and more.

Unified, Portfolio-wide Operational Command: Gaining a datadriven 360-degree view of operations, from a unified digital hub is a game-changing advantage in the current crisis. Such software platforms allow CRE businesses to simplify the implementation of custom solutions, and automate workflows ranging from sanitation and routine maintenance to tenant management and remote BAS operations, from a single command center. —Prabhu Ramachandran, founder and CEO of Facilio Inc. (facilio.com), an enterprise-wide platform for data-driven property operations and

maintenance across real-estate portfolios by Mike Hunter

Car-Free Lifestyle for Culdesac Tempe Tenants Planned to open in 2021, Culdesac is a $140-million project with 636 residential units, 24,000 square feet of retail and 35,000 square feet of amenities on 16 acres. Residents will not have private cars or parking spaces although the retail area will have ample parking with 150 spaces for retail visitors and resident guests. In typical developments, the parking lots often dictate the design — and without this constraint, Culdesac Tempe is able to offer three times the average amount of green space, along with friendly courtyards and community spaces, contributing to a walkable lifestyle.

The development is designed around the mobility needs of residents, with on-site light rail station, dedicated rideshare pick-up zones, on-site scooters, bikes, and on-site carshares for weekend trips.

Culdesac is appealing to residents all over the country. The national waitlist is comprised of 40 percent of people outside of Arizona. culdesac.com

Q1 OFFICE MARKET STRONG

Colliers International reports the Greater Phoenix office market posted a healthy first quarter, being the 32nd consecutive quarter with positive net absorption. More than 100,000 square feet of positive net absorption took place in the first three months of 2020 and the vacancy rate remained below 13 percent. Leasing has declined during the coronavirus crisis, but experts anticipate a rapid improvement after the economy is reopened.

Vacancy is expected to marginally increase during the year because of new supply coming online and businesses re-evaluating their space criteria. The economic impact of the COVID-19 outbreak is nearly impossible to estimate and data is emerging every day. colliers.com/en

Q1 Multifamily Shows Initial Effects of COVID-19 The Q1 2020 Phoenix Multifamily Quarterly Report recently released by ABI Multifamily shows that, while the start of 2020 was strong — with rent growth, healthy occupancy rates, lower cost of living and high renter demand all pointing to another extraordinary year — the quarter had a poor finish in the month of March as a result of the initial effects of COVID-19.

The future has yet to tell how the multifamily industry will be impacted by the COVID-19 global pandemic. With a development pipeline full of planned and under-construction properties, the timeline for the completion of these projects is unclear. Currently, an estimated 23,347 units are in the planning stages across 93 properties. A total of 19,730 units were listed as under construction in 79 properties. abimultifamily.com

Manor Scottsdale

How Multifamily Urban Living Will Thrive Post-Pandemic It is not lost upon us multifamily developers, owners and operators that fear, as it relates to a person’s living accommodations, is a very real concern in the age of COVID-19. In fact, we are already diligently working to further flesh out new building and design standards for urban communities, especially as it pertains to high-density vertical communities.

Innovations such as touchless access, package concierge, virtual walkthroughs and tours as well as voice control technology are less of an ideation and more of a standard as we look forward.

As renters continue to be concerned, it’s important that we overcommunicate with them about actions being done to ensure their health and wellbeing. They want to know that communal spaces are being routinely sanitized, extra attention is paid when cleaning and preparing units for their occupancy, and clear social distancing protocols are in place and enforced regularly. In the wake of this pandemic, these are becoming a much higher priority than they may have been in the past for both residents and investors alike and will ensure these multi-family developments continue to thrive.

Prior to the pandemic, the Greater Phoenix area was one of the top three metro areas in the U.S. in terms of both population and employment growth. According to figures provided by real estate economists, Arizona accounted for 10 percent of all interstate and international moves in the U.S. Once the COVID-19 pandemic eases, migration is anticipated to return to regular levels. In fact, Arizona could see many more people and businesses moving from dense coastal cities and states like New York and California to warmer and more hospitable markets such as Arizona, and when they do, the multifamily urban living communities will be ready for them. —Michael D’Andrea, vice president of development at the Related Group (www.relatedgroup.com), which has built and managed more than 90,000 condominium and apartment residences across the country and around the world and is currently breaking ground on Manor Scottsdale, a multi-family development with 286 residential apartment homes on 6.5 acres located at the southwest corner of Joan De Arc Ave and Scottsdale Road that will be available in late 2021 Luxury Apartments Planned for North Phoenix Hines, the international real estate firm, along with a joint venture partner, recently acquired 11 acres in north Phoenix, where it plans to develop a 325-unit, luxury, for-rent residential property.

Hines’ multifamily property, located at the northwest corner of Happy Valley Road and 35th Avenue, will consist of six, three-story buildings. An additional one-story building will include a clubhouse and fitness amenity that surrounds the pool. In total, Hines will develop 318,000 square feet.

Hines broke ground only a short time before on its first luxury for-rent property in the Phoenix market: Adeline, which will be a 25-story, 379- unit high-rise community at the Collier Center in downtown Phoenix. The firm has 165 developments currently underway around the world.

“Hines jumped at the opportunity to work with our partners on this project on Happy Valley Road. Our luxury multifamily project is positioned well to meet the expanding need for suburban luxury multifamily options in the submarket,” said Robert Trujillo, managing director for Hines.

Hines’ property is part of a larger commercial development by the Pederson Group of Phoenix, which owns the adjacent existing 167,000-squarefoot Stetson Village shopping center and has plans to develop seven acres of a mix of retail services directly in front of Hines’ multifamily development on Happy Valley Road. Established in 1983 by Jim Pederson, Pederson Group Inc. specializes in the development of Class A retail shopping centers in Phoenix and throughout Arizona.

“The Pederson Group acquired the 23-acre site from the Arizona State Land Trust,” says Jim Pederson, CEO. “We sought a quality multifamily developer to partner with us to create a fine mixed-use project.” The area is near high-quality employers such USAA, W.L. Gore and Honor Health, as well as The Shops at Norterra and Interstate 17.

The unit mix is expected to be: 161 onebedrooms, 140 two-bedrooms, and 24 threebedrooms. Rent prices haven’t been finalized yet. Plans call for the multifamily construction to start in the fourth quarter of 2020. —Mike Hunter

Hines hines.com The Pederson Group pedersoninc.com