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September 9, 2021

Self-Storage Demand Is Booming, Generating Huge Gains For Investors

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Buoyed by elevated migration, business disruptions and life changes brought on by the coronavirus pandemic, the self-storage market enjoyed major gains in 2021 —both nationally and across Texas’ major metropolitan areas.

Occupancy and rental rates for self-storage units skyrocketed this year in what experts point to as a major turnaround for a state that used to be one of the most oversupplied in the country. And while other traditional asset classes have struggled, the gains generated by self-storage REITs are drawing the attention of institutional investors looking for an alternative place to put their money.

“As long as we've tracked data in the storage industry, we've never seen growth like this,” Yardi Matrix Editorial Director Chris Nebenzahl told Bisnow.

Self-Storage Demand Is Booming, Generating Huge Gains For Investors

The pandemic spurred residential migration that led to greater use of self-storage units across the country. Nationally, street rates for climate-controlled, 10 feet by 10 feet self-storage units surpassed record highs in July, growing by an average of 12.4% year-over-year, according to Yardi Matrix’s August 2021 National Self Storage…

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Best Little Lab Space In Texas: Will Building Boom Level Up Lone Star Life Sciences?

Texas real estate and development news often focuses on who’s entering the state, like the California-to-Austin tech company relocations that have helped buoy the state’s economy. 

But Texans in the life sciences world have been paying a little more attention to who’s leaving the state, specifically homegrown firms like Instill Bio (which opened an LA research hub) and Peloton Therapeutics (acquired by Merck). Like others who left before them, these companies found the local ecosystem of lab space, venture capital funding and paths to commercialization lagging or lacking. 

“In Dallas, we’ve had an enormous amount of science created here that hasn’t stuck around,” JLL Senior Vice President and Dallas Region Lead Ethan Garner said. “A great idea or discovery needs access to capital, space for growth and the right government support, and until recently, all three legs of those stools didn’t exist in North Texas.” 

Best Little Lab Space In Texas: Will Building Boom Level Up Lone Star Life Sciences?

A recent string of high-profile projects seeks to not just reverse that trend, but to turn cities like Houston and Dallas into high-profile destinations for biotech firms and startups. Two projects in particular — Pegasus…

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Lessons Of 9/11 Echo (And Frustrate) As CRE Grapples With Another Existential Crisis

Lessons Of 9/11 Echo (And Frustrate) As CRE Grapples With Another Existential Crisis  

After she saw the second plane hit, office broker Mary Ann Tighe decided to walk across town to Marsh & McLennan’s Sixth Avenue office and sit down with a client.

The company had an office in Midtown, but it also had space in each of the twin towers, with nearly 2,000 employees there on that day. Tighe, CEO of Tri-State at CBRE, knew the space well — she had put Marsh & McLennan in the buildings, along with a number of other tenants.

At around 5 p.m. she walked back across the city, watching as people came up from Lower Manhattan, covered in ash and in shock. When she reached Second Avenue, she saw Larry Silverstein, the towers’ developer, by chance on the street and she started to cry. 

“Larry put his arms around me and said, ‘Sweetheart, we're going to rebuild,’” Tighe said in an interview about the terrorist attack's immediate impact on the city. “It was a period of intense misery, confusion. People were just sort of stunned and not knowing, what came next?”

Ultimately, Marsh & McLennan lost 295 employees on Sept. 11, 2001.

Over the past 18 months, as Covid-19 wreaked havoc across the globe, New York real estate players have recalled the dark days of 2001 — and the collective will to bounce back — as a beacon of hope as the city grapples with a new recovery challenge.  When people left New York City in…

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Everyone's Hiring At Once: Two-Thirds Of CRE Firms Facing Covid-Era Talent Shortage

Everyone's Hiring At Once: Two-Thirds Of CRE Firms Facing Covid-Era Talent Shortage  

Roughly 60% to 70% of all commercial real estate firms are facing a talent shortage or talent challenge, according to a leading industry analyst, a hindrance to performance that, in part, comes from long-term issues with attracting and developing the best staff. 

CEL & Associates CEO Christopher Lee, whose firm releases a widely read CRE compensation study every year, said that Covid and a shift toward hybrid work have created challenges for the industry. The sudden acceleration of deals this year, after the pandemic slowdown of 2020, also contributed to a booming marketplace where it seems like every firm is hiring at once. 

But the current problem finding talent has stemmed in large part from existing issues within the industry, Lee said. Roughly 44% of workers in CRE are over 50, a demographic concentration that creates a bottleneck that stymies youth hiring, mobility, and career advancement (other industries typically are 25% to 30%…

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