JLL Research releases Q2 North America Industrial Outlook

JLL National Research just released its Q2 North America Industrial Outlook. It is reporting that industrial vacancy is now below a prior cyclical low, and will trend toward 7.0 percent by year-end. Rents are increasing as new development continues to play catch-up after 2010-13 marked a 50-year delivery low.

Rent growth is pronounced in those regions with vacancy rates well below the national average. Southern California, the Northwest and Southwest lead in year-over-year asking warehouse rent increases. Gains are expected as market fundamentals tighten in the Midwest, Northeast, Mid-Atlantic and Southeast.

But how is Boston doing?

  • The Greater Boston industrial market experienced its strongest leasing quarter of the year, posting 235,061 square feet of positive net absorption
  • Sales activity continues to expand in the sector
  • Q2 saw 24 industrial sales transactions from properties over 30,000 square feet
  • The development of build-to-suit projects in Greater Boston is becoming more prevalent
  • The 495/Mass Pike submarket continued to be one of the best preforming industrial markets in the region

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The outlook is good for the Greater Boston market. Build-to-suit projects are beginning to materialize as predicted in the previous quarter, due to the great market conditions and the region’s antiquated supply. We are experiencing the start of a new industrial development cycle with market conditions not seen since the early 2000’s! We expect to see investor activity and more build-to-suit deals in the near future.

View our Boston Industrial Highlights – Q2 2014 research report for more details on Greater Boston’s Q2 performance.

Sailing in Newport

Our Mass Pike/Route 128 and South Brokerage teams, and clients took to the high seas for a thrilling day of sailing out of Sayer’s Wharf in Newport, RI.

We chartered two classic 12 Meter-class yachts, the Columbia and Heritage, both of which competed in past America’s Cup challenges. After racing practice with captains and crews, a spirited one hour race ensued.

Following the competition guests enjoyed a post-race cruise around beautiful Narragansett Bay, cocktails, and a walking tour of Newport. Above are some photos from an invigorating day.

4th Annual Rockin’ Real Estate Harbor Cruise

Over 200 CRE professionals mixed business with pleasure on the decks of the 4th Annual NAIOP Harbor Cruise last night, featuring networking, cocktails, a freshly shucked oyster bar and live music by B11. Friends and colleagues connected while enjoying a 360 degree view of Boston’s ever-changing waterfront.

Upon arrival attendees were encouraged to bring school supplies benefiting Building Impact’s efforts to equip children with pens, pencils, notebooks and book bags.

It was an evening enjoyed by all, eventually wrapping up at Bostonia Public House for additional appetizers and signature cocktails hosted by Synergy Investments.

 

Project and Development Services continues growth with four new hires

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Ted Finnerty

Ted Finnerty joins the Boston team from JLL’s New York office, where he was a Vice President and Associate Director. Prior to coming to Boston, Finnerty led the 12-person capital improvement team for the Empire State Building. The team implemented owner work, over $80 million of construction annually, and oversaw another $60 million annually of tenant installations. His experience also includes a number of tenant fit out projects of varying sizes for a variety of clients. Finnerty has a Bachelor of Arts degree in History from Dartmouth College and a Master of Science degree in Construction Administration from Columbia University. He is a LEED Accredited Professional and was named to Real Estate New York’s “Top 30 Under 30” list in 2007.

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David Gifford

David Gifford has broad experience in all aspects of project management, with a focus on hospitality, multi-unit housing, and commercial interiors. Recently he has managed several projects for Fidelity Investments, including the renovation of 120,000 square feet of office space for 12 unique business units, consolidating them from three separate buildings into one. Prior to joining JLL, Gifford managed and led the design of the 455,000 square foot W Boston Hotel & Residences and the interior design and fit out of Tremont Tower in Boston, a 116,000 square foot high-rise luxury condominium complex. He has a Bachelor of Architecture degree from the Boston Architectural College and an Associate of Applied Science degree in Architectural Engineering from Alfred State University.

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Frank Plati

Frank Plati comes to JLL from Consigli Construction, where he was involved in project management and site supervision for assignments including renovations at Landmark Center, MIT, Emerson College, Harvard and Equity Office. Prior to Consigli, Plati was with Shawmut Design and Construction, where he focused on retail projects. He has a Bachelor of Science in Architectural Engineering Technology from Wentworth Institute of Technology.

Dee Brooks is an experienced project manager who has successfully managed projects in the commercial, retail, restaurant, insurance and medical fields. She was recently responsible for interior renovations of 40+ T-Mobile retail stores in the Northeast region, as well as the move management of 2,200 employees to a new location for the UnitedHealth Group. Other representative clients include Aetna and The Hartford. Brooks is a Green Globes Professional and attended Middlesex College in Middletown, Connecticut.

With the addition of Finnerty, Gifford, Plati and Brooks, the PDS group has grown by six in 2014. The Boston team is now comprised of 35 project and development management professionals.

Quiet! Please!

From Bob Best, Executive Vice President

From Bob Best
Executive Vice President

Why aren’t open offices as productive as they could be? The main culprit is noise.

In a recent New Yorker article Maria Konnikova writes: “In laboratory settings, noise has been  repeatedly tied to reduced cognitive performance. The psychologist Nick Perham, who studies the effect of sound on how we think, has found that office commotion impairs  workers’ ability to recall information, and even to do basic arithmetic.”

Blocking out the noise with earphones and music is not the answer.  That, too, interferes with mental acuity.

As many of us working virtually in coffee shops and public places, the same problem applies. Between public announcements, piped-in music and bad acoustics, we are fighting a losing battle.

I thought noise-cancelling earphones were the answer. Apparently not.

The answer is for office planners and the people who want us to visit their places and buy their stuff (e.g. coffee), to make these environments worker-friendly. That means making them quieter.  Please!

JLL Boston Research team gains momentum

As the market in Greater Boston rises, so do the forces of our JLL New England research team. Headed up by Director Lori Mabardi for the past 4 years, the team is now up to six full-time members to help our Market further deliver the best-in-class research we are known for. Thearin Than and Jordan Yarboro, Senior Research Analysts, will continue to serve their important roles of delivering market insight internally and externally while focusing on the incorporation of technology and innovation.

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Lisa Strope (top) & Nate Ardente (bottom)

A big welcome to Lisa Strope, who joins us as Research Manager coming from Harvard Business School where Lisa helped co-author the HBS Case Studies for their Real Estate program. Prior to her work at HBS, Lisa was a Development Director for Keystone Development Group in Berkeley, CA.

An additional welcome to Nate Ardente, who initially joined JLL as an intern in June and turned full-time this month. His focus will be on the Rt.128, Rt. 495 and South markets, as well as Industrial and Hartford.  He joins us after graduating from Tulane University with a Master’s Degree in Sustainable Real Estate Development with a concentration in Finance.

Alec MacKinnon, the third new member of our team, is a student at Northeastern studying economics and joins us from the Coop program for the fall semester. Alec interned with Avalon Bay last summer and will be assisting our team with special projects until December.

These additions and enhancements deepen the bench, capabilities and expertise of the JLL Research Team to expand the knowledge we continue to bring to the table for our clients and colleagues.

EMD Serono’s Transformational New Workspace

JLL Construction has completed construction of a new 14,000 square foot transformational office space for EMD Serono on their Billerica, MA campus. The project included the complete renovation of a former lab building on site adding a mezzanine level, multiple stairways, and significant system and building upgrades.

The Sagamore Building offers a biopharmaceutical working environment where Research and Development project teams can collaborate, communicate and share knowledge in the pursuit of new therapies for patients with unmet medical needs around the world.

 

The open office space features workstations with flexible use for individual or cross-functional group work, and is designed for optimal acoustics, with sound absorbing materials and a sophisticated sound masking system. A variety of shared spaces encourage collaboration and communication, including complex multimedia technology and videoconferencing capabilities to connect with other global EMD sites. There are also ample huddle and private interaction rooms, as well as a lunch/break room, interactive café and fitness center. The building was designed with energy efficiency and environmental sustainability as top priorities and is pursuing LEED Certification.

“Collaboration across all disciplines was necessary throughout this project to meet EMD Serono’s goal of creating a very unique and inspiring workspace, totally transforming the building within its existing envelope,” said JLL Project Executive Larry Carpenter.

Joining Larry on the JLL Construction team was Superintendent Dan Browne, Chief Estimator Karl Ginand and Estimator Greg Steele.

The project team also included architect Ellenzweig, MEP engineer BR+A, structural engineer LeMessurier Consultants, and commissioning agent DMI.

JLL Summer internship program at a glance

Untitled-1From Kate Ellicott
Marketing Intern
 

How is it already August? This summer has flown by and the interns have been working hard getting to know JLL. Since June we completed three major projects together.

The group researched, collaborated and evaluated case studies based on realistic client situations, and pitched ideas on how to meet clients needs. It was a great way to learn about the commercial real estate industry.

In the first assignment, the interns created a pitch for a GPS company looking to expand their portfolio. The second case study was geared toward presenting to an investment group interested in purchasing new properties. The group focused on a specific building’s assets and leasing team strategies.

The third project was a competition. Split into two groups of three, the interns had to create materials for a kick off meeting. Utilizing the strengths of their team members, each group came up with unique approaches to the assignment and offered fresh ideas to the opposing group. In the end, one group was chosen by the “client” for offering the more innovative solution.

In addition to the case studies, the interns also worked closely with their respective service groups including Brokerage, Research and Marketing. We are grateful for the experience and exposure during our summer at JLL!

Left to right: Kate Ellicott, Michael Cobb, Ryan Moores, Alec Mackinnon, Nate Ardente and Alex Ginsberg  (not pictured: Kevin Cellucci)

Left to right: Kate Ellicott, Michael Cobb, Ryan Moores, Alec Mackinnon, Nate Ardente and Alex Ginsberg (not pictured: Kevin Cellucci)

 

 

Building on the JLL Construction team

JLL Construction is pleased to announce the promotion of a veteran team member and addition of three new ones.

Niles Carter, a 15 year JLL veteran, has been named Director of Field Operations. As Director of Field Operations, Niles will oversee all field operations, closely monitoring all projects and helping ensure coordination with all local agencies involved.

The three new superintendents to the field operations team include:

Dennis Carsno joins JLL Construction from Integrated Builders, where he was responsible for the supervision of several tenant fit outs and renovations. Throughout his 20 year career, Dennis has successfully completed a variety of projects, including retail, schools, residential and office.

Brendan O’Connor brings over 30 years of experience to JLL Construction. He has been involved in all aspects of both heavy and commercial construction. Most recently, Brendan was with DC Beane & Associates, where he worked on projects for Liberty Mutual, 3D Systems and Shire Pharmaceuticals.

Wayne Strout re-joins JLL Construction, where he has worked in all phases of construction for a variety of projects, ranging from base building work to complicated upgrades of existing structures and construction of pharmaceutical plants.

Please join us in congratulating Niles on his role and welcoming our new hires to the JLL team! Click here to read more.

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Mobile workers of the world disunite

From Bob Best, Executive Vice PresidentFrom Bob Best
Executive Vice President
 

The idea that what you do is more important than where you do it is more widespread than you might think.I just read a report from IDC that by 2015 over 1 billion workers (over 1/3 of all workers) will be mobile, the fastest growing segment of the worker population.

No wonder. The average commute time in the U.S. is now over 25 minutes. Why waste time and fuel? With a booming technology of mobility-enabling devices, companies and workers are moving away from the traditional static workplace. Working anywhere is more sustainable and it can be more productive.

Worldwide organizations are realizing that time zone differences almost necessitate a mobile workforce. Since teleconferences are 24/7, that 2am global conference call is a lot easier to stomach in pj’s from your home.

There is an entire growing culture of mobile workers, sharing technologies and ideas to make mobility even more effective. Here are s few sites oriented to the growing mobile workforce:

Mobile Work Exchange

Global Workspace Association

CTIA-The Wireless Association

Think about what you are doing right now. Does it really matter where you are?