Spotlight On: Andrew Burnett, Senior Principal, Stantec

Spotlight On: Andrew Burnett, Senior Principal, Stantec

By: Max Crampton-Thomas

2 min read June 2020 —Global design and engineering firm Stantec likes to think beyond traditional traits to focus on building communities,  Senior Principal Andrew Burnett told Invest: Miami in an interview. The company goal is to deliver continuity while protecting diversity and creative thinking. Stantec calls it “cultural resilience.”

 

 

What recent Stantec landmarks in the Miami-Dade region would you like to share? 

Recent landmark projects in full swing include Wynwood Square, a 12-story mixed-use facility that includes apartments and retail space; the 30-story YotelPAD Miami condo and hotel project under construction; and a 43-story Luma tower in Miami’s Worldcenter. And there are a lot of new projects to be announced soon and currently coming on board. Each asset within our portfolio contributes to our growth in the creative services space, beyond architecture and interior design, but also engineering and resilience. We think beyond traditional physical traits and focus on how our vast team builds our communities and what we create so there is continuity in our lives and the spaces we inhabit and to ensure that we protect diversity and creative thinking. We call it cultural resilience. 

How has your emphasis on cultural resilience unlocked your success? 

From a business perspective, a model that focuses on a single person is inherently limited to that individual. Whereas a business with tremendous expertise and resources in multiple channels, like Stantec, focuses on collaboration and the bandwidth to achieve more. When we empower people and foster collaboration, we are able to affect more positive change, get more involved in opportunities and better affect our clients’ bottom line. 

How would you rate local industry efforts on environmental resilience? 

There is a significant level of agreement across the industry related to what we are facing and where we need to go. It is only a matter of how and there are varying perspectives to harness. Our government agencies, utilities, partners, clients, insurance agencies and lenders all commonly understand the need to mitigate prevalent risks and maintain our quality of life. There is power in the collective movement and I am optimistic about our future and path. 

What opportunities and innovations can we expect from the post-COVID-19 period? 

There is a shift of trust and working in a different way. It may pose opportunities to bring in industry experts who normally could not access a project in South Florida. Now, they can have an influence and we can tap into knowledge we may not have been able to tap into before. Companies can even attract a different type of workforce that we could not attract before by operating with new flexibility. Also, we take proximity for granted and do not always make the best use of our time because of it. When it is an amenity or a luxury, you make better use of it. 

What will 2020-21 look like for Stantec and Miami-Dade? 

We have been quite busy, which is a reflection of the busy private development market. Projects are moving forward and the entire development community is gearing up for when the play button is pressed. In 2009, during the H1N1 outbreak, we established a pandemic committee, granting us an effective way to respond quickly to the pandemic and set up a remote work setting. Fast forward to today: Our productivity levels have allowed us to meet established deadlines and keep projects moving forward, continuing business as usual. Our current outlook for 2021 does not project significant levels of interruption. We want to continue to support that in any way we can. 

To learn more, visit: 

https://www.stantec.com/en

 

 

South Florida real estate leaders analyze opportunities in current economic cycle

South Florida real estate leaders analyze opportunities in current economic cycle

By: Felipe Rivas

Virtually every sector of the economy has been pinched, crushed, or depleted by the initial impact of conducting business during the coronavirus landscape. Months into the “new normal,” industries and businesses have had to adapt operations to cope with COVID-19 related challenges. While many businesses remain embattled by the current economic cycle, innovation and opportunity are beginning to rise from the initial shocks of the novel coronavirus. 

 

In South Florida, a region hit particularly hard by coronavirus, real estate professionals are closely monitoring the impact of COVID-19 to the market while analyzing current and future opportunities. “Simply put, the South Florida industrial real estate market is healthy, even in the midst of a global pandemic,” Miami Cushman & Wakefield Managing Partner Gian Rodriguez told Invest: Miami. “When you factor in the scarcity of developable industrially-zoned land, a growing population, single-digit vacancy rates, steady air and sea cargo volumes from our ports, as well as positive lease absorption of industrial product, it’s no wonder the major institutional owners and occupiers have a large stake in our market,” he said. These factors coupled with demand for e-commerce provide opportunities for distribution, logistics and warehousing subsectors in Miami-Dade County. “With the onset of COVID-19, we’ve only seen an increase in demand for well-located distribution space, further spurred-on by stay-at-home mandates which have only bolstered online orders.  Just take a look around, there are UPS, FedEx, DHL and Amazon trucks rolling down our streets almost on an hourly basis, and each one of those come from a warehouse within our market,” Rodriguez said. 

New construction will likely experience a growth in demand as population growth continues in South Florida and residents settle into the suburbs and other communities away from the downtown areas. “While we are only in the early innings of the COVID-19 impact on real estate, we are following several trends closely. New construction may have an advantage over existing, as residents will likely equate “new” with “clean and safe,” Lesley Deutch, principal with John Burns Real Estate Consulting in Palm Beach, told Invest: Palm Beach. “We are also anticipating a trend we call ‘the Great American Move.’  For safety reasons, financial prospects, life change improvements, personal comfort, or employment, we expect a surge in household and business relocations that will provide new strategic opportunities for the real estate market,” she said. This trend will likely create opportunities for real estate developers, investors and home builders. “New construction can incorporate technology such as air purification and touchless lighting which will appeal to future residents. A stronger focus on health and wellness will translate into new housing product with better home offices or private workspaces in apartments, flexibility for multigenerational living, private outdoor space, and a preference for functionality over design appeal in the home,” she said.   

 

 

To learn more about our interviewees, visit: https://www.realestateconsulting.com/

https://www.cushmanwakefield.com/en/united-states/people/gian-rodriguez

 

 

Spotlight On: Angelo Bianco, Managing Partner; Crocker Partners

Spotlight On: Angelo Bianco, Managing Partner; Crocker Partners

By: Felipe Rivas

2 min read June 2020—Shrinking office space has led companies to focus more on the rehabilitation and renovation of Palm Beach’s office space. Angelo Bianco, managing partner of Crocker Partners, walks Invest: through the main trends in the office niche, how it imbues sustainability and resilience into its projects and why Boca Raton is the buoyant business center it is today.

 

 

What is your take on the evolution of the office sector in Palm Beach?

Palm Beach County’s office market has not changed as much as others. Office users by and large have not changed. Even considering new trends such as co-working spaces, it makes up a small fraction of our portfolio. We have observed tenants in Palm Beach County making an effort to reduce their square footage per employee, parallel with technological advances. The need for law firms to have file storage, for instance, has declined dramatically. We still see the desire for private offices and a significant portion of traditional office use. Some companies have switched to open offices, but the pendulum is swinging back even faster now due to the pandemic. The trend to create more private offices and more square feet per employee will offset the impact from the other trend we expect following the coronavirus crises: more telecommuting. Although technology has changed the need for space, the human condition has not changed. People still appreciate privacy and separation from their co-workers.  

What primary factors explain these preferences?

Our Palm Beach portfolio consists of 3 million square feet of office space. Most of our tenants have renovated their space over the past 10 years. Even though firms have grown since the 2008 crisis, their footprint has not gotten larger than it used to be because they use the same office space much more efficiently. Shortly before the coronavirus crisis, we reached the point where employment gains fueled by the longest economic expansion in our history backfilled the space lost during that last downturn.

We are on the cusp of a new disruption with the COVID-19 pandemic. The good news for office landlords is that tenants have already reduced their space needs per employee significantly and during this past economic expansion have not taken additional space for growth. Although some office tenants will be significantly impacted by the pandemic, office tenants and their landlords should be in a good position to weather this storm.

How do you view the residential and industrial sectors?

During the first 10 years of our company’s existence, we developed and invested in many property types: hotels, multifamily, retail, office and industrial. Over the years, we specialized in office buildings primarily and although our business has done quite well as a result, the over concentration in one product type has prevented us from participating in the significant growth experienced in multifamily and industrial property over the last 10 years, particularly in Palm Beach. Despite the recent impact on the multifamily market, we believe that this sector will continue to benefit from the constant inflow of people moving into the area who require housing. This is the same reason that we are bullish on industrial. The Southeast region of the United States is an area that continues to see fast-paced growth in employment and population so investing in front of that is critical. 

What is your assessment of the up-and-coming Boca Raton market?

Boca Raton is by far the biggest employment base in the county. It dwarfs any other market. If you took all the office space in West Palm Beach and doubled it, you would still fall short of where Boca Raton is positioned. It has been a business hub for decades and will continue to be an attractive place for companies to headquarter. The quality of life is phenomenal, plus it has an unparalleled access in Palm Beach County to an incredibly well-educated, well-informed workforce. This is part of the reason we have been headquartered there for 35 years.

What is Crocker Partners’ outlook for 2020?

2020 is going to be a muted year. Any noncritical, ongoing investment project is likely to be delayed until 2021. Everything has stopped dead in its tracks due to the COVID-19 outbreak. Regardless of when businesses restart, it takes time to remobilize, meaning projects will not realistically recommence any sooner than 4Q20. The delay will be made worse by the fact that everyone will want to restart their projects at the same time. By Q121, we expect to be back to business as usual. We expect to spend much of the remainder of 2020 focusing on ensuring a safe workplace environment for our tenants. In April, we formed a Remobilization Task Force headed by our director of construction and development and consisting of senior regional managers in consultation with our vendors and contractors to review and implement governmental and industry guidelines and evaluate best practices and potential capital improvements to facilitate a healthy work environment. We are also in the process of hiring a full-time director of environmental health who will absorb the responsibilities of the Remobilization Task Force on a permanent basis and research and implement physical changes and protocols with the hope of making our buildings the paragon of environmentally health and safety in the industry.

To learn more about our interviewee, visit: https://crockerpartners.com/

 

Spotlight On: Tim Perry, Managing Partner, North American Properties

Spotlight On: Tim Perry, Managing Partner, North American Properties

By: Felipe Rivas

2 min read June 2020—The new real estate landscape will belong to those companies who find value through innovation, differentiation and that are ready and able to provide safe environments for their guests. Tim Perry, managing partner of North American Properties, provides the details of how the company is tackling development, leading the community out of isolation, and where it sees opportunity for future investment.

 

How is your “Smart Development” concept influencing projects across Atlanta’s real estate landscape?

North American Properties began to retool our approach to property operations during our reprogramming of Atlantic Station, a 138-acre mixed-use development in Atlanta that was once on the “death watch” list of many real estate pros. We deployed a hospitality-focused approach, implemented a strategic remerchandising plan and created a heavily activated environment for guests to enjoy. Through trial and error, we curated a robust and mixed-use experience that resonated with the community and turned around the property. We even trademarked the term ExperienceMaker™ to refer to the concierge and operations team that delivered this intrinsic sense of place and belonging to guests – we became stewards of the community’s asset. We were able to deploy this same formula at Avalon in a nationally recognized way and found that the street level activation was only part of it – the ancillary developments were a large contribution to the overall success of a mixed-use destination. Whether working in an office, living in a residential unit, or staying in the hotel, each component contributed to the greater effect, and rent reflected 40%-plus above market. 

We are now deploying this same concept at Colony Square in Midtown Atlanta, and Newport on the Levee in Newport, Kentucky. Colony Square will feature the first dense infill theater in the market along with a nationally renowned operator launching a Food Hall. In Newport, amid the leasing angst created by COVID-19, we signed eight leases while on quarantine and opened the Bridgeview Box Park, a colorful, open-air box park featuring local restaurants and retailers, on the Ohio River at the beginning of the summer. Elements like these are not just for our guests, but drive the desire to live near and work near the amenity-rich “Smart Development.”

 

How is your company tackling ground-up developments?

Residential fundamentals are strong, both in single family with low rates and with multifamily as the trend continues to slowly move toward rent vs own. We will see how the long-term effects of density affect in-town locations, but we are very optimistic on close suburbs where the cost can be reduced. The COVID-19 effect also has turned some landlords of office/retail properties into land sellers of portions of their site for residential, due to lease encumbrances that are expiring or businesses not opening following the pandemic. Commercially, we are seeking existing assets that are mixed-use, or can be turned into a mixed-use development. For example, a surface-parked suburban office project may present an opportunity to add neighborhood amenity retail, residential, hospitality, and at a lower basis than ground-up development of the entire property. It is the community that has to accept the project, so we are being selective. 

 

What is your assessment of the CARES Act?

Small businesses lead the country out of tough economic times – they are nimble, creative, and entrepreneurial at heart. The initial PPP program was really beneficial to small businesses, and was a very creative way of using businesses to essentially put unemployment checks into people’s hands until the program changed and midsized businesses no longer were able to gain that access and employees found themselves in a long queue for unemployment. Having said that,  the SBA was trying to find a few solutions for millions of business problems and not all fit, so I applaud the states for letting small businesses reopen to find millions of solutions for the millions of problems. Every industry will be impacted with unemployment over 20% but capital injections into small business will lead us out again.  

 

How is your company tackling the COVID-19 outbreak?

Safety is our first concern, and several weeks before any municipal restrictions were announced, we formed a task force called “Better Together” in order to focus on each property, the unique challenges with each, and our own office staff for a safe re-entry into an open economy. While sanitization and masks were the easy conclusions, our team also researched and invested in virus-killing UV lights, security enforcement of social distancing, forced flow for pedestrian traffic, and an enhanced code of conduct such that every guest feels welcome.   

 

What are North American Properties’ expectations in Atlanta toward 2021?

Innovate and differentiate. There are great assets with unrealized potential that may or may not trade at a discount the market wants but have ample return to invest at values that are still accretive to opportunistic investors. The capital stockpile in the market will be rewarded by smart buys sooner rather than cheap buys later.

 

To learn more about our interviewee, visit:https://www.naproperties.com/leaders/tim-perry/

 

 

Spotlight On: Randy Hall, President & CEO, Batson-Cook Construction

Spotlight On: Randy Hall, President & CEO, Batson-Cook Construction

By: Felipe Rivas

2 min read May 2020 — Despite the prevalent challenges of construction costs and a depleted talent pool, Atlanta continues to showcase growth and a business-friendly environment for construction players. In an interview with Invest:Atlanta, Randy Hall, President and CEO of Batson-Cook Construction, talks about how his company is thriving in the market and tackling the issues the sector faces.

 

 

How did Batson-Cook’s perform in 2019?

We have been in the Atlanta area for six decades. 2019 was a good year for Batson-Cook.    We are approaching $700 million in revenues as a company and exceeded our business expectations in 2019. We launched several construction projects across the Southeast in 2019 and some new ones in 2020. The most prominent to break ground is Emory University’s Winship at Midtown cancer facility. We work for all the healthcare systems around town, from Northside Emory, Piedmont, Cancer Treatment Centers of America, Northeast Georgia Medical Center, to name a few. Historically, half of our business is in healthcare, the other half is in commercial construction. We are primarily a Southeastern-based contracting firm; however, in 2019 we opened an office in Dallas and we are growing our presence there. Even through the pandemic, new work continues to be widespread. We have received several new project awards through the second quarter of 2020.

 

How are construction companies tapping into the demographic and economic synergies of the Southeast region?

We follow the demographics in the areas where our offices are located. Each city has its own personality and needs. Batson-Cook does its best to be flexible and agile to serve those needs by offering a diverse suite of services and expertise across the Southeast. The Southeast still enjoys constant migration flows from inhabitants in the Northeast and the West Coast. Of our seven offices, Atlanta is by far the largest in terms of revenue. Atlanta’s airport and its pro-business environment are major catalysts for continued growth in Atlanta.

 

How are construction companies and academic institutions collaborating to cater to talent needs?

Our recruiting team dedicates a significant amount of time to interactions with 10 different academic institutions. We intensely promote internships at different levels in collaboration with college institutions that have construction programs. We employ between 40 and 50 interns each summer and 30-40 year round. We are delighted with our relationship with higher education institutions across the state of Georgia. Kennesaw State, Georgia Tech and Georgia Southern are the best recruiting grounds for talented young people who share our core corporate values. Historically, more than 90 percent of our interns accept our job offers at the end of their internship.

 

How are you navigating the prevalent challenges the construction industry faces?

Most of the work that Batson-Cook does involves a significant portion of pre-construction. We understand how to manage the construction process and by getting involved early in the design phase, we can maximize the opportunity to complete a project as economically for our clients as possible. An uptick in construction costs impacts the entire value chain. We are constantly looking for better ways to build so owners can achieve what they are looking for at the lowest cost possible. 

 

We are proud to work in an industry that is considered essential in the United States. All our projects have continued to work successfully during the COVID-19 pandemic. Because our industry continues to suffer from a shortage of qualified labor, we are hopeful that unemployed workers will find the construction industry to be a viable alternative to their previous place of work.

 

What is your outlook toward 2021?

Even though the hospitality market has been dramatically impacted by COVID-19, more so than the other spaces that we work in, we still see opportunities for hospitality. Healthcare systems continue to expand and grow; however, funds are being shifted from capital expenditure budgets to operations. We are optimistic that impacts to the healthcare industry due to the pandemic will not dramatically impact future construction work. 

 

To learn more, visit: http://www.batson-cook.com/

 

 

Spotlight On: Sandi Bargfrede, Managing Partner, ACRE Commercial Real Estate

Spotlight On: Sandi Bargfrede, Managing Partner, ACRE Commercial Real Estate

By: Max Crampton-Thomas

2 min read May 2020 — The real estate market will know a before and after COVID-19 as soon as activities resume. Sandi Bargfrede, managing partner of ACRE Commercial Real Estate, talks to Invest: about what to expect from Orlando’s market as the pandemic unfolds. 

 

How did ACRE Commercial Real Estate close 2019? 

2019 was a stellar year as not only did we see a tremendous increase in volume, but we also saw an impressive uptick in new retail concepts entering the Central Florida/Orlando market. ACRE specializes in retail third-party leasing, property management and tenant representation and we had never seen such a stronger increase in all aspects of our business than we did in 2019. In addition to strong growth in tenant representation, in the last year we also secured a significant stronghold in the Downtown and surrounding area in the mixed-use sector. 

How does your company capitalize on being an all-female commercial real estate firm? 

Women provide a different perspective on retail as we are typically the shoppers and we usually plan the family social activities. We are able to use this to our advantage as we can bring a different point of view to a project. ACRE did not set out to be an all-female firm. That said, we are all-female-owned but we are always open to hiring exceptional professionals, male or female. My business partner and I have been in this business for 20-plus years each and we have witnessed the industry evolve with more 

professional women entering the historically male-dominated field now more than ever. We believe this trend will continue and we will continue to provide the required mentorship platform for all in the business looking to thrive. 

What unique business opportunities does Orlando offer to your business and operations? 

Seventy-two million people per year visit Orlando, bolstering a strong service and hotel industry, where retail spaces are required to provide for these visitors. The retail opportunities are therefore exponential. We are seeing a significant wave of people moving here due to recent job growth figures, with close to 12 percent overall job growth in Orlando itself. With all of this growth, we are seeing a surge in new development from shopping centers to urban mixed-use communities. These new developments provide ACRE the opportunity to use our experience to work with developers before they break ground. Utilizing our extensive background in leasing, tenant representation and development allows us to create a project with not only the proper infrastructure but also the ability to create the synergistic tenant mix required for a project to be successful for the retailer and developer alike. 

What is your assessment of Orlando’s commercial real estate market? 

It is very strong as there are many vibrant areas that are growing in the Metro Orlando market, such as Hamlin, Lake Nona, Apopka, Clermont and downtown to name a few. We are seeing a housing boom in Orlando and these areas are all creating retail destinations for services and amenities along with community-driven gathering spaces for their residents and visitors. 

How has the COVID-19 outbreak altered the Central Florida real estate market? 

We do not believe it will resemble the 2008 crash, especially if we can get back to work sooner than later. It will definitely change the landscape considering the ever-changing social distancing guidelines and measures. These will certainly have a lasting effect on retail and restaurant margins. However, it will also open the door for reinvention and creativity toward preservation. 

We have always been outside-the-box thinkers. Recession-proof and Amazon-resistant have been part of our vocabulary and now we added pandemic and social distancing to the mix. We will find new ways to create tenant mixes that reflect the changes in our “new normal.” We offer consulting and advisory services to our clients and believe these services will be more valuable than ever to assist with navigating this new unknown landscape together. We have always treated our projects like they are our own and will continue to do so. 

What is your outlook for 2020-21? 

There will be a slight correction in the retail portion of the commercial real estate landscape. This will translate into greater inventory of second generation space available, which will most likely result in a reduction of rental rates until the absorption of inventory is stabilized. We do have a positive outlook as we head into 2021 and businesses start to recover. That said, it is difficult to predict as the COVID-19 effect is still unknown. All in all, we believe there is room for a fast recovery and in the end, Orlando will be stronger than before. 

 

To learn more about our interviewee, visit: 

https://www.acrefl.com/

Georgia nurtures positive business activity despite pandemic

Georgia nurtures positive business activity despite pandemic

By: Felipe Rivas

2 min read May 2020 — The COVID-19 pandemic has upended the national economy since its arrival in early March. As the phased opening of the local and national economies begins, states are looking to safely move past the outbreak that shuttered businesses, halted economic activity and sent unemployment rates soaring. Though March and April were characterized by challenging economic times for the nation, Georgia’s diverse business foundation proved to be resilient in the face of pandemic-related adversity. From distribution giant Amazon to local, highly-technical operations expanding in the Peach State, the region celebrated continuous business wins in a time marked by uncertainty and shelter-in-place measures.  

As e-commerce continues to boom, Amazon looked to expand its footprint in Georgia and fully take advantage of the state’s robust distribution infrastructure. In late April, the retailer announced plans for a new fulfillment center planned for Appling, in Columbia County. The new, multilevel operations facility will feature innovative Amazon robotics technology and create 800 full-time jobs, while marking the largest investment of its kind in Columbia County.

“Amazon’s continued investments in Georgia are a testament to all that our state can offer, including the logistics and top-notch workforce needed for their growing global business,” Gov. Brian Kemp said. Amazon employs more than 3,500 full-time employees in Georgia and has existing operations in Jefferson, Braselton, Lithia Springs, East Point, Kennesaw, Macon, and Union City. “I could not be more proud to welcome them to the Central Savannah River Area, and I am excited for the hardworking Georgians who will benefit from this new operation,” Kemp said. 

Amazon leaders touted Georgia’s workforce as a major contributor to its success in the region. “We are proud to continue our investment in Georgia with great jobs and a new, state-of-the-art fulfillment center in Columbia County to serve our customers across the state,” said Robert Packett, regional director of Amazon operations. “The Peach State and its incredible workforce have been vital to our ability to provide great selection, competitive prices and the Prime services we know our customers love. We are excited to create 800 new full-time jobs, with industry-leading pay and benefits on Day One, in the community.”

In similar fashion, local biotechnology company RWDC Industries announced in May a $260-million expansion of its operations into Athens-Clarke County, slated to create some 200 jobs. Founded in an innovation lab at the University of Georgia in 2015, RWDC Industries has emerged as a global leader in developing cost-effective alternatives to single-use plastics. “RWDC Industries is a perfect example of Georgians’ creative approach to solving problems and finding great success, thanks in part to state resources like our public university system,” Gov. Kemp said. RWDC will expand into an existing 400,000-square-foot facility in Athens. 

This announcement comes as consumer demand for sustainable alternatives to plastic continues to grow. RWDC Industries is a biotechnology company that develops innovative and cost-effective biopolymer material solutions, including polyhydroxyalkanoate (PHA). PHA is fully biodegradable and can be used as a substitute for plastic in a wide range of daily, single-use consumer goods, from straws to utensils to cups and plates to lids.

“We are excited to see RWDC expand its operations in Athens and add a substantial number of new well-paying jobs,” said Athens-Clarke County Mayor Kelly Girtz. “Athens is the home of the University of Georgia, and we have a long record of supporting innovation and industry. Like communities across America and the world, we want to see a reduction in plastic pollution, and we have high hopes that RWDC, with the help of the Athens community at their new facility, will be able to solve that problem.”

 

To learn more, visit:

https://gov.georgia.gov/press-releases/2020-04-27/amazon-announces-new-fulfillment-center-creating-800-new-jobs-columbia

https://gov.georgia.gov/press-releases/2020-05-05/rwdc-industries-invest-260-million-athens-clarke-county-expansion-create

https://gov.georgia.gov/press-releases/2020-05-08/1-roof-trusses-plans-17-million-investment-130-jobs-decatur-county

https://gov.georgia.gov/press-releases/2020-05-05/sk-innovation-begin-construction-second-georgia-battery-facility-july

https://gov.georgia.gov/press-releases/2020-04-29/batter-foods-invests-34m-fulton-co-waffle-plant-creates-162-jobs

 

 

Spotlight On: Steven McCraney, President & CEO, McCraney Property Company

Spotlight On: Steven McCraney, President & CEO, McCraney Property Company

By: Yolanda Rivas

2 min read April 2020 —  The strength of the commercial real estate sector relies on the major roadways that run in and around Orlando, Steven McCraney told Invest:. He also notes that the location of Orlando is a great anchor to position his business as it provides ease of access to everywhere the company needs to be, as well as how the primary growth of his company has clearly been the warehouse and distribution space. 

How connected is the strength of the commercial real estate market to the major roadways in Orlando? 

The strength of the commercial real estate sector relies on the major roadways that run in and around Orlando. The last 50 years in Florida were all about the I-95 corridor, from Jupiter to Coral Gables. If you were to drive that route today there is not an available parcel of land on the roadway. We believe the next 50 years for Florida are going to be primarily focused on the I-4 corridor, from Tampa Bay to Lakeland to Orlando and onto Daytona Beach. While Daytona has not started to pop yet, the thing that we know is that there are two major roadways in Daytona, I-4 and I-95, which leads us to believe that it will be a good market at some point in the near future.

 

Why is Orlando the most ideal location for your operations? 

The Orlando economy continues to thrive. It’s attracting new residents, it’s generating new jobs and the increased interest is driving industrial users into the market because of the ability to distribute out of the state of Florida from the region on a one-day basis. We relocated to Orlando because the area places us right in the middle of the state. We operate throughout the Southeast and Orlando, which anchors us in the middle of everywhere that we need to be. It also provides the ability to move easily throughout the Southeast because of the region’s dynamic airport.

 

In regard to your business operations, where have you seen the most growth?

We are industrial developers. That is our mainstay and focus. This is complemented by third-party property management. As of late, the growth has clearly been the warehouse and distribution space. The total industrial space in Orlando is 123 million square feet, which breaks down into roughly 100 million square feet of warehouse distribution, 13 million square feet of manufacturing and the remainder is made up of office, flex space and distribution product. Here’s what we know: warehouse is the new retail. If a person is ordering online, whether it’s products,  clothing or food, the merchandise is likely not coming from a store, it is almost certainly coming from a warehouse. This is attributed to e-commerce growth and third-party logistics. Over the next few years, we are going to see the markets continuing to change and expand. From an industry perspective, I believe we have a trajectory that is at least 15 years long. While the product may continue to change, that product is coming from somewhere and that somewhere is a warehouse. As social distancing is ever more important and various markets are now under a “shelter in place” order, it is clear that suppliers, like Amazon, are still delivering essentials through package products to each and every home.

 

What market trends have had an effect on your business? 

We are always looking for ways to leverage technology in our business. Whether it’s roofing systems, lighting or super-flat floors, we want a logistics facility to be plug and play for a customer. The biggest challenge in recent years is rising costs. This can be broken down into the rising labor cost and the cost of materials. For example, the cost to build out a 1,500-2,000-square-foot office space within a warehouse space today can easily run around $250,000. That number exceeds $100 per square foot. At the same time, we have seen strong rent growth and because of that we have been able to keep pace. As we presently enter an economic downturn due to this pandemic, one would expect the cost of goods – both labor and material – will correct. Most of us in the industry went through the last recession and we know how debilitating it was. Moving forward, we have to be cautiously optimistic as we enter this challenging economic cycle and be mindful of our leverage, occupancy, quality of tenancy and our construction exposure.  

 

To learn more about our interviewee, visit: 

https://www.mccraneyproperty.com/

Spotlight On: Thomas Jewsbury, Executive Director, St. Pete-Clearwater International Airport

Spotlight On: Thomas Jewsbury, Executive Director, St. Pete-Clearwater International Airport

By: Max Crampton-Thomas

2 min read April 2020 — Prior to the current COVID-19 pandemic that is challenging all sectors of the local economy, the St. Pete-Clearwater International Airport was coming off a record growth year in 2019. Executive Director Thomas Jewbury spoke to Invest: about looking at a slew of new projects to increase its capacity while also looking to attract more traffic via new airlines to the Tampa Bay region.

 

What construction projects are ongoing at the airport and what impact are they expected to have when completed?

 

In 2020, we’ll finish our parking renovation project. It will expand long-term parking to accommodate more passengers. We are also focusing attention on the airfield. We have a $20-million project to rehabilitate the pavement surface of our primary runway. We expect to finish that project by the end of the year. We are also doing improvements to the terminal’s apron, replacing some of the asphalt with concrete, and converting an old runway into a taxiway. Those are projects that are underway.

We are also set to complete our airport master plan this year, defining our capital improvement program for the next five, 10 and 20 years. A big focus of that master plan is the future development of the terminal building. The next phase of terminal development will look at ways to increase efficiencies by consolidating the TSA’s passenger screening checkpoints and possibly the ticketing area.

We have a 130-acre undeveloped site that used to be a golf course. We are looking to develop that site for both aeronautical and non-aeronautical use. Before we can break ground, we had to conduct an environmental assessment. We just received approval from the FAA and received a finding of no significant impact. That sets the stage for us to improve our infrastructure. To develop the aeronautical parcels, we need to build new taxiways, which is included in our capital plan.

Among finished projects, we did an upgrade to our security system, and built part of a $4.5 million maintenance facility for our own airport maintenance workers. The facility is located on the airfield, it gives workers direct access and makes our operation more efficient. 

In addition to what the airport is doing, Allegiant Air invested $4 million to build a new maintenance/operations facility. They lease their space from the airport.

 

What economic impact does the airport have on the region?

Over a year ago, we concluded an economic impact study. At that time, we were doing just over 2 million passengers a year. It showed an economic impact on the community of over $1 billion annually. We’ve had several recent meetings with various airlines to try to attract new service. In addition to that, we are working with Allegiant to expand to additional cities, add more capacity and also try to incorporate international service. That is always an ongoing effort.

 

How does the airport contribute to sustainability in the Clearwater and Tampa Bay Region?

Our master plan has a focus on sustainability. It was important to us that we also championed another master plan that’s on the way, called the Gateway Master Plan. It looks at this area of Pinellas County and how the future infrastructure will be developed, including how other transportation modes will interact with the airport. It also identifies potential areas of the airport that could be converted for other transportation modes. The Gateway Master Plan is being drafted by Forward Pinellas.

 

What challenges is the transportation industry facing in Florida?

Surface transportation is one of the biggest hurdles. The Florida Department of Transportation is constructing the Gateway Express that will result in an elevated toll road to connect to Interstate 275. It will run in front of our airport. This will provide greater connectivity. 

 

To learn more about our interviewee, visit: 

https://www.fly2pie.com/

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