Tag Archives: office

Wal-Mart – IT??

Post By : admin 5 April 2018 Leave a comment

Do you think of IT when you hear Wal-Mart? Most people don’t, but Wal-Mart has an emerging technologies office which makes sense when you consider that Amazon and other online retailers are likely taking a chunk out of its sales. Wal-Mart already has 2,000 technologists on staff in Silicon Valley, but it’s opening a new office in Plano, Texas, April 5 in a Common Desk coworking space in Granite Park.

Wal-Mart has already opened an office on the campus of the University of Texas at Dallas to provide an atmosphere for engineering students and companies to work together. Wal-Mart feels this to be a treasure trove of scoping new talent.

The purpose of these techno offices is to use technology to improve store experience. Problems can be detected earlier with these new systems Wal-Mart wishes to put in place.

To read the article in its entirety, please click here.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate (also known as a tenant rep) with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

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US Office Vacancy Lowest in 10 Years

Post By : admin 23 March 2018 Leave a comment

According to a report produced by Transwestern, office vacancies in the US as a whole are at their lowest in 10 years. That’s pretty amazing when you consider that they also report that 70.7 million square feet (SF) of new construction has been started during that same period. But office demand follows job creation so with unemployment at 4.1%, the lowest since late 2000, this makes sense.

The top 10 markets for net absorption (the net change in the total SF of office space occupied) were lead by Dallas/Fort Worth with over 5 million SF absorbed, followed by San Jose/Silicon Valley with about half that, then Settle, Northern Virginia, Austin, Phoenix, Detroit, Las Vegas, St. Louis and Baltimore.

Notwithstanding the top absorption markets, the top 10 markets for rent growth looked different: Boston at 15%, followed by San Francisco, Charlotte, Orlando, Raleigh/Durham, Oklahoma City, East Bay/Oakland, Phoenix, Los Angeles and Portland. Some of those intuitively make sense because they are land-constrained cities with a huge tech presence. Others were a surprise.

The cities with the most new space under construction are New York with over 16 million SF underway, Dallas/Fort Worth with over 8 million SF coming, Washington, DC at 7.6 million SF, San Francisco at 6 million SF, and Denver at 5 million SF.

The future looks bright for the national office market so long as jobs hold up. If there is a downturn in the economy and companies stop hiring and start laying workers off, things will change.

For the rest of the report, click here.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate (also known as a tenant rep) with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

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WeWork – Will it Work in a Downturn?

Post By : admin 22 February 2018 Leave a comment

The New York Times just published a feature on WeWork called The WeWork Manifesto: First, Office Space. Next, the World. It’s a very interesting article about how WeWork has gone from start-up idea to a market valuation of $20 billion in only 8 years.

It’s a very interesting article and I really have to give credit to the co-founders for creating something that appears to be working so well. It’s good for companies to have options. WeWork is one of many providers of co-working space. It’s hip, cool and very open space. There are some real benefits to it – chief among them being flexibility since tenants don’t have to lock into long-term leases.

Co-working providers claim to save companies a huge amount of money while providing flexibility and the kind of space that younger employees want. This is true, but you have to remember that if you rent a dedicated desk in a co-working location, each person typically gets a 4-foot-wide table with another table immediately next to it for another person. So a typical 10-foot-by-12-foot office that you would give a staffer in a traditional office build-out, would likely have 4 people in it at a co-working office. While prices vary by location, those 4-foot tables go for $500 a month. So that one office costs $2,000 a month. It’s easy to see how co-working providers can afford to offer free beer and other amenities.

WeWork has been in business for 8 years now – all of which have been in an expanding economy. It will be interesting to see what happens when the economy takes a dip. I hope they do well, but I’m dubious. Practically every executive suite operator went under in the recession of the late 80’s and early 90’s and landlords ended up taking back the empty spaces left over. Since WeWork members are on month-to-month contracts, they can move out quickly if they start feeling the effects of a downturn and are trying to reduce cost. Thus, WeWork and other co-working providers will lose revenue much faster than building landlords whose tenants are committed to multi-year leases. That will put a major strain on their ability to stay in business, much less grow.

So while a recession may result in tough times for the operators of co-working locations and executive suites as well (think Regus), they remain a great option for tenants who need short-term space for projects or when testing the water in a new market.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate (also known as a tenant rep) with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

Categories: Uncategorized