Recovery in FIRE markets?

On a recent trip to New York, I had the opportunity to have a conversation with Deidre Bolton of Bloomberg Television about Colliers’ outlook on commercial real estate.

One of the major trends we touched on is the unevenness of the office market recovery. Colliers Research has observed for over a year that the strongest performers (in terms of job creation and office vacancy rates) have been what we call “ICEE” markets: those with an employment profile that strongly favors intellectual capital, energy and education, rather than markets traditionally associated with “FIRE” (financial, insurance and real estate) employment.

Recently, we've started to see the traditional FIRE markets catching up: FIRE absorption climbed to 73% of the ICEE total, up from 44% in 1H 2013; this counter-trend is supported in the October employment numbers.

But a closer look reveals an interesting fact: Most of the absorption in FIRE markets comes from submarkets with an ICEE profile. Submarkets such as West Los Angeles, New York – Midtown South, Chandler, AZ, and even Downtown Las Vegas are notable clusters of technology employment. Several Atlanta submarkets, allied with top universities and research institutions, are part of Atlanta’s transition from FIRE to ICEE.

The newly released North American Office Highlights report will takes a deeper dive into this topic, and includes a list of key submarkets to watch that are outperforming (or are poised to outperform) the metro areas in which they’re located.

Investing from the Ashes

Yesterday I had the opportunity to appear on a very interesting panel at the Bloomberg Commercial Real Estate Conference: “Investing from the Ashes: The Distressed Market.”

The panel examined the investment outlook and areas of both risk and opportunity in distressed real estate. Representing the viewpoint of special servicers was Robert Lieber of C-III Capital, while Billy Macklowe offered the owner’s perspective, focused particularly in New York City.

As was mentioned on the panel, right now the outlook for distress is a mixed bag: We’re at a four-year low for new distress, but there are signs that 2013 volume will increase. CMBS loans remain the largest share of outstanding distress, and there’s another major wave of delinquency in the future as the 10-year loans from 2005-7 mature.

We see the next generation of opportunity is in secondary markets, where population growth and fundamentals (housing, job growth, etc.) are starting to rebound. In some cases like Tampa and Memphis, these markets are early beneficiaries of the shift in global trade patterns and changes in our logistics network in anticipation of the 2015 Panama Canal expansion. We also see industrial property as a stable asset class, with the least exposure from CMBS distress.

From our perspective, the greatest market risk is from interest rate sensitivity. A rise of 200 basis points in interest rates over the next two years—below the long-term trend—could, by our estimation, potentially add 20 to 25 percent new distress to the market. The hope, of course, is that interest rates would be rising in response to other positives in the economy as a whole, but it’s nonetheless a major risk for investors in the distressed space.

I very much enjoyed the opportunity to participate, and hear the perspectives of our peers in the market. Thanks to Beth Jinks and Bloomberg News for making it possible.

Here is a link to the video: http://bloom.bg/PShonm

Colliers Again Named an Outsourcing Leader

Colliers International has again been named to the International Association of Outsourcing Professionals® 2012 Global Outsourcing 100® service providers list. 

Every year, IAOP recognizes the best outsourcing firms across multiple industries, as selected by an independent judging panel. This is the seventh consecutive year that Colliers has been honored with this distinction. The Global Outsourcing 100 is more than just a ranking--it is a critically important resource for any company seeking best-in-class service providers and vendors.

The complete list will be unveiled by IAOP on July 23. You can view the 2011 results here. 

Thanks to all of our professionals and staff for once again establishing Colliers as a leading global real estate services provider.

Industry Veteran Appointed Colliers International UK PLC CEO

Colliers International is pleased to announce that Tony Horrell has accepted the position of Chief Executive Officer, UK and Ireland, effective immediately.

London-born, Tony began in the property industry as a graduate student and has a deep level of experience in the London office market and international capital markets. Before joining Colliers International, Tony was with Jones Lang LaSalle for over 27 years where he steadily grew and expanded their capital markets business. Prior to leaving the firm in 2009, Tony was International Director and Head of Capital Markets in Europe, a business of 450 professionals across 24 countries facilitating €35- 40 billion per year in sales, acquisitions and finance transactions.

As Chief Executive Officer, Tony will be responsible for the direction and growth of the Colliers International business and joins the company at an exciting time with the recent launch of the new Colliers International brand, an initiative signifying the unification of the Colliers business around the world.

Colliers International’s Chief Executive Officer, EMEA, Chris McLernon said: “Tony is the ideal fit for Colliers International. His passionate commitment to providing clients with exceptional service and track record of growing a national and regional business will help us grow the Colliers International business in the UK and Ireland to a top tier position.”

Tony commented: “I am delighted to be joining Colliers International at a time when there is an absolute passion to grow the business. The culture of the company to ‘go the extra mile’ and provide ideas and opportunities for clients matches my own enthusiasm for the industry.”

Colliers International Further Expands into the Charlotte Market

Colliers International has bolstered the unprecedented growth of its U.S. platform with the addition of one of Charlotte’s most highly regarded commercial real estate firms, Clarus Properties Inc. The firm also announced that two of Charlotte’s top commercial real estate professionals will join the organization.

As Colliers International, Clarus Properties will transition from being a regional player into a key component of one of the world’s leading real estate brands, with 15,000 employees operating out of more than 480 offices in 61 countries and with revenues of nearly $2 billion.

“We remain committed to our goal that Colliers International becomes the unparalleled market leader in the U.S.,” said Dylan Taylor, chief executive officer of Colliers International in the U.S. “In every recent instance where we’ve expanded our platform, it has been the most client-centric and culturally aligned firms in those markets that have combined forces with us. Clarus Properties is only the latest example of how Colliers International continues to attract the best that the industry has to offer.”

This latest arrival to the Colliers International platform brings the number of markets added in 2010 to nine.

Greg Copps, SIOR principal and cofounder of Clarus Properties, said: “After serving our clients under the Clarus Properties brand since 2005, we are excited to have joined global industry leader Colliers International. We’re also thrilled to have two of our market’s top professionals joining us as we embark upon this new era.

Lawrence Shaw. SIOR, also a principal and cofounder said: “As part of Colliers we will leverage our ongoing commitment to deliver the highest quality commercial real estate services in the region. Our clients will continue to rely on our local market expertise and relationships, while benefiting from the national and international growth opportunities and resources of Colliers International.”

The two brokerage professionals who have joined Colliers International’s new Charlotte office as partners are Brad Grow and Brent Royall. In addition, Edward “Teddy” Chapman, SIOR has been promoted internally to partner. Grant Miller rounds out the organization’s brokerage team.

Brad Grow most recently worked for Cassidy Turley, where he served as a senior vice president/principal in the firm’s Charlotte office. While working there, Grow was actively involved in leasing up projects owned by both institutional and regional developers. In 2008, the Charlotte Commercial Board of Realtors selected Grow as the second highest office leasing producer in the Charlotte market. Among the many clients that Grow has assisted are Lennar Homes, UBS, Pizzagalli Properties and Lord Baltimore Properties. Grow holds a SIOR designation.

Prior to entering the commercial real estate industry, Grow served as a Special Agent for the U.S. Secret Service, working on both protection-focused and investigative assignments.

Brent Royall has thirteen years of corporate real estate experience where his primary focus has been on office tenant representation. He most recently served as a Senior Vice President and office tenant broker at Keystone Partners, a Charlotte-based full service commercial real estate firm. Before Keystone, Royall also worked previously as an office tenant broker for both The Staubach Company and Lincoln Harris. Among the many clients that Royall has assisted are Wachovia, Doosan, Cisco Systems, Duke Energy, Koch Industries, and State Farm Automobile Insurance.

Royall is a graduate of the United States Military Academy at West Point, NY. He also holds an MBA in Real Estate Finance and Development from The Belk College of Business at the University of North Carolina at Charlotte. Royall also holds designations from both SIOR and CCIM.

As a partner at Colliers International’s new Charlotte office, Teddy Chapman, SIOR will continue to specialize in industrial property transactions and assist his clients with a range of services including landlord and tenant representation, lease negotiations, site searches and acquisition/disposition assignments. Chapman has more than 10 years of experience working with industrial properties in multiple markets around the country.

Greg Copps and Lawrence Shaw – whose working relationship spans 17 years – along with Kirsten Patterson established Clarus Properties in 2005. The team has more than 80 years of combined commercial real estate experience representing both tenants and landlords in both North Carolina and South Carolina. Notable clients include Lord Baltimore Properties, Service Express, Arvato Services (formerly BMG Music), Weston, Verus Partners, Ross Stores and Home Depot.

Earlier this year, Colliers International announced that it combined operations and global real estate services platforms with FirstService Real Estate Advisors. Since then, the organization has embarked on an extensive rebranding effort in which all its local operations have adopted the Colliers International name and branding. Clarus Properties will do the same.

Colliers International has expanded its platform in eight other markets in addition to Charlotte this year alone, including Raleigh-Durham, Chicago, Cincinnati, Columbus, Grand Rapids, Indianapolis, Long Island and Nashville.

Commercial real estate shows a faint pulse

The real estate industry is rising to the dawn of a national rebound, says market insiders in New York, Boston, Los Angeles and Seattle. http://www.msnbc.msn.com/id/38150802/from/toolbar

Welcome to my blog

Thank you for visiting. I am Dylan Taylor, CEO for the US for Colliers International. Colliers is the third largest commercial real estate firm in the world with over 15,000 employees in 54 countries. Our global headquarters are in Seattle, Washington. Colliers is known for its enterprising spirit and its commitment to service excellence. We value our culture and our ability to have a positive impact on the communities in which we operate. We are accelerating success. http://www.colliers.com/