Free Compensation Survey Results for Participants

Participate in the 2012 Compensation Survey by May 11, and your company will receive a complimentary electronic copy of the full comprehensive survey report – a $1,200 value! NAIOP and CEL & Associates Inc. are teaming on the survey that will cover approximately 150 positions in commercial real estate and present results by company size, type, region and metro area. Your company’s participation is essential and will add significant impact to the national, regional and local data and help shape the future of commercial real estate.
An invitation to human resource and CFO executives has been issued, and a representative from your company is urged to respond and report compensation data on behalf of your entire organization. All survey responses are strictly confidential.
If your company would like to participate, contact Janet Gora at 310-571-3113.

Industrial Demand Holds Steady as Construction Rises

The pace of demand for U.S. industrial warehouse space is back to pre-recession levels, says Cassidy Turley’s 1Q12 U.S. Industrial Trends report. Since January 2011, net absorption has averaged 23.3 million square feet (msf) per quarter.  For perspective, the pace of absorption is stronger than that posted in 2004 and only slightly off 2005 and 2006 levels.  There was 26.5 msf of new warehouse product under construction at the end of 1Q12, up from 20.6 msf in the previous quarter, notes the report.
The industrial sector is experiencing a broad-based recovery with all but eight of the 67 metro areas tracked by Cassidy Turley reporting positive demand for warehouse space.  The top five markets in 1Q12 include:

• Chicago – 2.6 msf
• Los Angeles – 2.3 msf
• Phoenix – 1.5 msf
• Seattle – 1.47 msf
• Houston – 989,000

Asking rents have remained flat against a backdrop of steady demand, averaging $5.05 NNN in 1Q12.  Lack of new supply has helped rents remain firm with just 3.8 msf of new product delivering in the first quarter, well below the norm which is closer to 20 msf, says the report.

2012-2014 Strategic Plan Outlined in NAIOP Vision

During 2011, a comprehensive process was employed to shape an updated Strategic Plan that guides the association’s activities through 2014. Research and development of the plan included an all-member survey, focus groups with chapter leaders, a working session with the NAIOP Executive Committee, a review by the NAIOP Corporate Board, and development of a tactical plan for implementation.
As NAIOP looks to the future, it is important that it is prepared to meet the changing needs of its members and support the mission and vision of the organization.
Highlights of the 2012-2014 NAIOP Corporate Strategic Plan, outlined in NAIOP’s Vision, include:
Education, Best Practices and Research

• Establish NAIOP as the research center on industry best practices and trends
• Increase participation in NAIOP Corporate educational events
• Increase awareness of tools and resources available to chapters from NAIOP Corporate

Advocacy

• Ensure chapters and leaders have complete awareness of and can articulate the top three federal policy issues facing the industry on an annual basis
• Develop NAIOP as a premier resource for state and federal commercial real estate issues
• Increase contributions and participation in NAIOP-PAC

Networking and Business Opportunities

• Increase participation in the National Forums program
• Explore opportunities to promote NAIOP-to-NAIOP business deals
• Increase involvement of both CEOs and Developing Leaders, association-wide at both the chapter and corporate levels

The Real Impact of “Made in China”

What fraction of United States consumer spending goes for Chinese goods and what part of that fraction reflects the actual cost of imports from China?  The U.S. Content of  Made in China, a study by the Federal Reserve Bank of San Francisco, looked at these questions and revealed some surprisingly positive results.
Keys points from the study include:

• Although globalization is widely recognized these days, the U.S. economy actually remains relatively closed. The vast majority of goods and services sold in the United States are produced here. In 2010, imports were about 16 percent of U.S. GDP; imports from China amounted to 2.5 percent of GDP.
• A total of 88.5 percent of U.S. consumer spending is on items made in the United States. This is largely because services, which make up about two-thirds of spending, are mainly produced locally.
• 36 percent of the price U.S. consumers pay for imported goods actually goes to U.S. companies and workers, covering U.S. transportation, wholesale, and retail activities, including marketing the products.
• The U.S. content of Chinese goods is much higher than for imports as a whole – 55 percent – mainly due to higher retail and wholesale margins on consumer electronics and clothing.

The import content of U.S. personal consumption expenditures (PCE) attributable to imports from China is useful in understanding where revenue generated by sales to U.S. households flows. It is also important because it affects to what extent price increases for Chinese goods are likely to pass through to U.S. consumer prices.
Based on this study, since the share of PCE attributable to imports from China is less than two percent, it is unlikely that recent increases in labor costs and inflation in China will generate broad-based inflationary pressures in the United States.

NAIOP Vision 2012 Online

Take a look at where your association is headed in 2012 and review 2011’s successes in Vision, NAIOP’s annual report.

Inside, you’ll find…

• A letter from 2012 Chairman Bill Hunt and his goals for the year
• A new legislative agenda for 2012, largely focused on taxes, energy and transportation
• A look back at 2011 achievements and legislative victories
• NAIOP’s sustainable and energy policies
• A review of the 2012-2014 NAIOP Strategic Plan
• Information on the important work of the NAIOP Research Foundation
• Lists of chapter leaders, past chairmen and the 2012 Executive Committee and Board of Directors

Use this piece to help share the good work NAIOP is doing!

Assessing Your Parking Structure

What can owners do to mitigate parking structure repairs and protect their long-term investment?  NAIOP member John Porter provides an overview of parking garage condition assessments and how to prioritize current and future repair needs.

According to Porter, the structural components of a parking structure account for about 75 percent of the initial construction cost.  The assessment process is a collaborative effort to establish a repair strategy and prioritize repairs.  It is critical that the final report include thorough information to develop future budgets and maintain a revenue stream while extending the useful life of the structure.

Destructive and non-destructive testing methods can be used to further investigate specific areas of concern or to identify the cause of deterioration.  Common testing techniques include exploratory openings, concrete core sampling, chloride content testing and petrography (microscopic analysis of concrete).  Locations of severe distress may result in an engineering review to determine the safe capacity of the structure.