Community Events

A dynamic event can not only help strengthen a community but also boost satisfaction with your building overall. If you’re unsure of where to start when planning an event, keep in mind that food is ALWAYS a good idea. To throw a stress-free community event, consider something simple like hosting a local food truck in your building’s parking lot or providing ice cream in the lobby for a refreshing midday treat. Providing tenants with the opportunity to have fun lunch options as well as get outside and interact with one another.

If you have the bandwidth to take your events one step further consider hosting a summer BBQ with additional outdoor games and activities. Alternatively, if your property has the space available, throw out the idea of hosting a monthly farmer’s market. Which is a great way to engage your tenants, allow them to shop locally on their break, and support your local businesses, enhancing your reputation along with tenant morale.

Providing a variety of health-driven events such as outdoor fitness classes that tenants can opt to join is also a great way to boost productivity. 69% of businesses that implemented healthy building features reported improvements in employee satisfaction and engagement. If your space permits it, opting to host these activities outdoors is not only the perfect way for tenants to enjoy the summer weather and take a break from the office air but for you to implement healthy features without the cost of altering your existing space.

Increased Flexibility

Typically, our buildings have set start times when tenants are allowed to enter the premise and begin work. However, in the summer months, those times should be more flexible. By enabling tenants and employees to work flexible hours means that when they show up, they’ll get things done. Rather than sitting watching the clock, team members will be able to come in earlier than usual and complete their projects with more time to enjoy the evening and summer activities.

Outside of just schedules, make your work more flexible by taking it mobile. For instance, try suggesting walking meetings. Dependent on your location, walking meetings are the perfect opportunity to promote a change of pace (literally) and get a breath of fresh air. Walking meetings allow tenants to get the blood flowing and the conversations started, forcing staff to step away from the computer and out of the office for some fresh air and fresh perspective.

Run a Building Wide Summer Contest

Host a photo contest either internally or through the help of social media. Ask tenants to share photos of their summer activities and then create a fun contest for the building members to vote on the most adventurous activity. Alternatively, you could host a contest for tenants to post photos of their cookouts to vote for the best summer BBQ meal. Outside of bragging rights, you could offer winners a small prize such as tickets to a ball game or outdoor concert.

Looking for more ways to motivate your tenants this summer? Take a look at Friedman’s Tenant Surprise videos to get some out of the box ideas.

Will Lund
Director of Commercial Property Management

Industrial Spaces

With the growth of online retailers and same-day shipping services like Amazon, industrial real estate demand skyrocketed last year. We expect the same to stay true in 2019 and beyond. However, it’s not just eCommerce organizations that are driving the industrial buzz, up and coming concepts such as food halls, co-working spaces, legalized marijuana, and urban dwelling have begun to reshape the way industrial spaces are being utilized. For example, turning automotive plants into restaurants and parking lots into multifamily units. The industrial vacancy rate in Metro Detroit is 3%, which is the lowest in recent history. The future for industrial holds endless opportunities.

Suburban Areas

Millennials, those as young as 23 and as old as 38, are one of the largest populations in the world. Sources expect this generation to outnumber America’s Baby Boomers in the next few years. This generation is beginning to focus on placing roots and starting families, gravitating towards the suburbs. Investors looking to capitalize on this generation should consider investing in commercial properties within the surrounding suburban areas where multifamily homes, retail spaces, and offices will be in demand over the coming decade.

Senior Housing

The senior care sector has been a growing market as Baby Boomers begin to age. It’s estimated that by 2035, the number of Americans 65 and older will reach 79.2 million. This rising number will likely create a demand for more assisted living and long-term care facilities, nursing homes, or independent elderly communities.

Commercial Office Space

As the demand for office-using jobs continues to increase, the value of commercial office space continues to rise, specifically in once overlooked secondary markets. With construction costs continuing to climb, new developments will likely take a back seat and repurposed office spaces in Commercial Business Districts will be in high demand. Take, for example, the co-working boom. The growing trend of repurposing floors in Class B or C office buildings to Class A standards and allowing various businesses to rent the space they need. Providing them with an updated, trendy office at little cost to them. Leaving the door open for new, out of the box uses for old spaces.

Multi-Family

As the recession made its mark on the economy, it also left its mark on the multifamily market. The number of single-family homes that have been converted to rentals during this time sparked extreme interest. That change coupled with a shift in focus on amenity-rich buildings, resort style living, and urban lifestyles initiated the multifamily boom. Over the last decade, there has been a plethora of multifamily construction taking place across the United States. The attraction of multifamily development is so profound that investors are waiting for the day that supply outweighs demand.

Reach out to learn more about the changing investment landscape.

Jared Friedman
Director of Opportunities

Josh Miller, Senior Associate, Investment Advisory Services, represented the purchaser and seller in the transaction, in collaboration with Ryan Denomme, Director, Friedman Finance who sourced the financing for the buyer.

ABOUT FRIEDMAN REAL ESTATE

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 11,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives.

For more information, please visit: www.friedmanrealestate.com.

ABOUT FRIEDMAN REAL ESTATE

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 11,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives.

For more information, please visit: www.friedmanrealestate.com.

ABOUT FRIEDMAN REAL ESTATE

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 11,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives.

For more information, please visit: www.friedmanrealestate.com.

Traditionally, grocery needs are often scarce as a result of the limited amount of space available and demographic demand for full-blown grocery stores. Take, for instance, the history of the city of Detroit. In previous years, the only real option for Detroit resident’s everyday grocery needs was either gas station mini-marts, the few Save-A-Lots within the city limits or driving out of the downtown area to go to stores in the suburbs. Part of the luxury of living downtown is that many urban dwellers do not need cars for their work and pleasure activities, drawing even more attention to the lack of grocery choices in walkable distance.

Most available groceries are prepackaged or non-perishable items. Sure, one could argue that Eastern Market is available for shoppers to get fresh produce; yet, farmer’s markets are limited by their seasonal crops and vendor hours.

One significant challenge still remains for large grocers. Whether or not there are enough full-time residents in Detroit that warrants a need for a full store, which is why grocery stores are starting to get an appetite for smaller urban storefronts.

Thus, sparking the idea of ‘street concept’ markets, right in the heart of the downtown area. This idea of creating smaller scale stores offering fast casual items, fresh produce, and grab-and-go-meal options in urban locations.

Whole Foods Market set the stage by opening its doors to urban shoppers with its Midtown Detroit location neighboring Wayne State University, the DMC medical campus and Little Caesars Arena (to name a few). One of the first urban stores of its kind, Whole Foods entered the market with a smaller footprint than its Flagship Stores. Knowing Detroit had a need, but unsure how the city would react, the grocer opted for the more modest storefront with less parking. However, being it’s the first urban market to enter the 313 in decades, its success has been unwavering, resulting in Whole Foods searching for additional parking sites to meet consumer needs.

Whole Foods’ success has triggered several stores to open in the downtown area, including Michigan-based Plum Market. The upscale grocery has recently created a luxury solution for the downtown area with its 8,000-square-foot storefront located in the Ally Detroit Center, which opened just this month. This urban location is larger than their standard Plum Market Kitchen model (located at the Detroit Metropolitan Airport, Oakland University and Northwestern University north of Chicago) to accommodate the grocery need and expanded seating.

With the Whole Foods boom, rumors flew that Trader Joes was set to open in Corktown, but that was nothing but a spoof. In just the last few years, Meijer announced a smaller-format location on East Jeffersonand Target has been searching for a smaller footprint to come to the city. However, the issue of space and limited parking remain roadblocks.

As eCommerce grocers such as Shipt, Instacart, Amazon, Walmart, and various home delivery services have become a welcome solution to this problem, larger grocers will need to continue to address the urban challenge to compete in these downtown areas. And at the rate their moving, Detroit’s shortage of fresh, fast and healthy food options should soon be an issue of the past.

Steven Silverman

Senior Vice President, Investment Advisory & Brokerage Services

• Customer service team
• Service team
• Property Management team

Hear more about how we stand apart from the competition from Will Lund, Director of Commercial Property Management:

What is the Ask Friedman series?

The Commercial Real Estate (CRE) industry is like an umbrella. Many different types of CRE services, specialties, departments and deals are available under the label “commercial real estate.” With such a wide array of capabilities, coupled with the fluctuating economic landscape, we find that there are many questions and misconceptions around the CRE industry.

We’ve turned to our team of experts to answer your questions and discuss the future landscape of commercial real estate. The team will offer expert insights for investors, developers, landlords, tenants, buyers, sellers and everyone in between to get a sneak peek into the workings of the CRE umbrella. Our goal with this series is not only to provide expert knowledge on commonly asked questions and debunk any CRE concerns but to also introduce the faces behind the iconic Friedman signs.

ABOUT FRIEDMAN REAL ESTATE

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 11,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives.

For more information, please visit: www.friedmanrealestate.com.

• A new level of operational data insights
• Efficient building maintenance
• Insight into potential investments
• A level playing field against the competition

Hear more from Scott MacDougall, Director of Technology:

What is the Ask Friedman series?

The Commercial Real Estate (CRE) industry is like an umbrella. Many different types of CRE services, specialties, departments and deals are available under the label “commercial real estate.” With such a wide array of capabilities, coupled with the fluctuating economic landscape, we find that there are many questions and misconceptions around the CRE industry.

We’ve turned to our team of experts to answer your questions and discuss the future landscape of commercial real estate. The team will offer expert insights for investors, developers, landlords, tenants, buyers, sellers and everyone in between to get a sneak peek into the workings of the CRE umbrella. Our goal with this series is not only to provide expert knowledge on commonly asked questions and debunk any CRE concerns but to also introduce the faces behind the iconic Friedman signs.

1. Keep high traffic areas free from workspaces

Certain areas in the office should remain free of workplaces, such as the area near copy machines, breakrooms, restrooms and elevators/stairs.

2. Create ‘Quiet Zones” and Designated ‘Call Rooms’

Designating a room or an area in the office as a “quiet space” where there are no phone calls, music, conversations, etc. allowed provides employees with a space to focus free from distractions.

3. Utilize Spaces Natural Lighting

In the initial design of the space, look for ways to bring in more natural light. Studies have shown that incorporating natural light into the workplaces leads to an overall enhanced employee satisfaction, increased productivity and improved energy savings. A win-win for all.

4. Install curtains/moveable screens as walls

Curtains or screens give you the ability to block off areas and give staff the appearance of a room within a room. This is ideal for meetings or situations where employees need an area for more focused work and can easily be opened back up once completed.

5. Add adaptable furniture/storage spaces

To accommodate the flexibility of the space, opt for high-back sofas, couches that are comfortable and chairs that have reclining adjustments. Choosing furniture that has the ability to create spaces and conform to spaces are key to achieving a flexible workspace. In addition to the seating arrangement, including adequate, secure storage, such as a rolling file cabinet, for those employees that have too much paperwork to cart around.

Looking to create a flexible workspace but don’t know where to start? Reach out to our construction and design experts so we can help you create your ideal office space.

With the help of over 100 employees located all over the U.S., Friedman inspected and underwrote the portfolio located in 10 different states and 30 separate submarkets in less than 30 days. Fifteen dedicated transition teams were mobilized to onboard each property within 48 hours of closing.

“For more than 30 years, Friedman has had a unique ability to create incredible opportunities for our clients. By tying together our expertise in brokerage, marketing, financing, property management, and construction, we are able to execute and deliver at every phase to ensure a successful outcome”, said Jared Friedman, Director of Opportunities at Friedman. “This was an amazing opportunity for us to showcase the ability of our integrated platform. We look forward to creating value for the owner, and to making The Friedman Difference for the residents of these communities”.

About Friedman Real Estate

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Multi-Family, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 22,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives. Additional information is available at www.friedmanrealestate.com and on LinkedIn, Facebook, Instagram, YouTube and Twitter.

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ABOUT FRIEDMAN REAL ESTATE

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 11,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives.

For more information, please visit: www.friedmanrealestate.com.

• Increased public transportation
• Driverless cars
• Smaller parking fields

Ultimately leading to smaller footprints building wise and less retail acreage. Discover how the face of retail is changing and what that means for commercial real estate from Andrew Ledger, Managing Director of Brokerage Services.

What is the Ask Friedman series?

The Commercial Real Estate (CRE) industry is like an umbrella. Many different types of CRE services, specialties, departments and deals are available under the label “commercial real estate.” With such a wide array of capabilities, coupled with the fluctuating economic landscape, we find that there are many questions and misconceptions around the CRE industry.

We’ve turned to our team of experts to answer your questions and discuss the future landscape of commercial real estate. The team will offer expert insights for investors, developers, landlords, tenants, buyers, sellers and everyone in between to get a sneak peek into the workings of the CRE umbrella. Our goal with this series is not only to provide expert knowledge on commonly asked questions and debunk any CRE concerns but to also introduce the faces behind the iconic Friedman signs.

Ryan Denomme, Director of Friedman Finance, originated the loan through a local bank.

“The property is located within a neighborhood of the city that is just starting to experience the tremendous growth in property value that other areas of the city have realized over the last few years. The owner, a local non-profit, acquired the property in shell condition and put substantial resources into the renovation.” said Denomme.  “It was challenging to find a lender who understood the location and the ownership group, but ultimately we were successful in matching the sponsor with a loan that allowed them to accomplish their goals.”

Friedman Finance specializes in matching investors and owners of commercial real estate with sources of capital. Utilizing our network of banks, credit unions, life insurance companies, CMBS lenders and private equity investors, we provide debt and equity solutions for investment real estate projects of all types. Friedman Finance is a subsidiary of Friedman Real Estate.

ABOUT FRIEDMAN REAL ESTATE

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 11,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives.

For more information, please visit: www.friedmanrealestate.com.

In just the past decade, several neighborhood retailers fell victim to the retail ruins. With a dense population of consumers and a steady workforce, these urban neighborhoods where stores like Sears and Toys “R” Us once sat, provide demographics that are ideal for last mile distribution.

Take Akron, Ohio for example. The Rolling Acres Mall has been sitting vacant since 2013. To meet the expectations of consumer delivery and take advantage of existing real estate, it’s been reported that Amazon is planning to build a 695,383 sq. ft facility in its place.

Like any transformation, there are challenges, especially with real estate. Zoning issues have prevented many commercial retail developments in the past, but, conversion from retail to industrial has shown to be very risky and quite time-consuming. It’s no secret that municipalities are eager to transform these vacant buildings in such a way that it will generate money. Officials in wealthy residential areas are still reluctant to change and are under the notion that these sites may be more suited to be re-tenanted with other retailers or transitioned to mixed-use and multi-family facilities.

Investors are finding a way around these challenges by looking to transitional and gentrifying urban areas that have retail spaces that have been vacant for a significant amount of time. Last mile conversions have and will continue to take place across the country and become increasingly popular as consumers continue to demand faster delivery times no matter if they are in Kentucky or NYC. As a matter of fact, since 2016, there have been 24 industrial redevelopments at former shopping centers or big box stores since 2016 with most happening in the upper Midwest so far.

Steven Silverman and Kyle Simon, Investment Advisory Services represented both the seller, and the buyer in the transaction.

ABOUT FRIEDMAN REAL ESTATE

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 11,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives.

For more information, please visit: www.friedmanrealestate.com.

Download our City Highlight: Southfield, MI eBook to explore the incentives that have made this centrally located city in Southeastern Michigan, Michigan’s leading business hub.

So, who lends the money?

When it comes to commercial mortgages, the ultimate goal is to secure the lowest rate and the best terms. The client’s needs, asset type, occupancy, and overall risk profile are some of the factors that impact financing terms.  Some lenders specialize in only specific asset types; for example, agency loans for multi-family and CTL lenders for single credit tenant buildings. For the most part, lenders will lend on a variety of asset types and situations, so having a reliable mortgage broker who understands the market and the current environment can be very advantageous.

If you’re in need of a commercial mortgage or looking for assistance in navigating the lending process, reach out to one of our financing specialists to see how we can help you secure the lowest rate with the best terms.

Ryan Denomme
Director of Friedman Finance

• Where the client wants to be
• How they intend to use the space
• Finding and viewing the perfect space
• Time to negotiate and sign an agreement
• Any office design changes

Steve Eisenshtadt, Senior Vice President of Brokerage Services, uncovers the factors that must happen before a you can move into a new office space:

What is the Ask Friedman series?

The Commercial Real Estate (CRE) industry is like an umbrella. Many different types of CRE services, specialties, departments and deals are available under the label “commercial real estate.” With such a wide array of capabilities, coupled with the fluctuating economic landscape, we find that there are many questions and misconceptions around the CRE industry.

We’ve turned to our team of experts to answer your questions and discuss the future landscape of commercial real estate. The team will offer expert insights for investors, developers, landlords, tenants, buyers, sellers and everyone in between to get a sneak peek into the workings of the CRE umbrella. Our goal with this series is not only to provide expert knowledge on commonly asked questions and debunk any CRE concerns but to also introduce the faces behind the iconic Friedman signs.

We know how vital having the right workspace is to businesses. When being trusted to create a space for a client, delivering top quality work, on-time, and without any surprises is the Friedman way.

Seven years ago, DataNet came to Friedman looking for a complete build-out of their entire suite. From design to laying carpet, our focus was to help them achieve their company mission of assisting manufacturers in making the highest quality products for the lowest possible cost. The Friedman team not only helped DataNet create their ideal space but have been supporting them with our proactive management approach ever since.

Hear how our team was able to show DataNet #TheFriedmanDifference:

“Joining the Friedman team means there are infinite opportunities for my clients to grow,” said Salmaci. “The back-end support and team atmosphere at Friedman are truly like no other. They go above and beyond to provide the necessary tools to be the best in the industry.”

A graduate of the University of Michigan, Tarick began his real estate career in 2001 following a successful professional boxing career under the tutelage of hall of fame trainer Emanuel Steward at the world renowned Kronk boxing gym in Detroit. Tarick made a brief comeback to boxing in 2005 when he was featured on NBC’s boxing reality show “The Contender”. Over the years, Tarick has listed and sold numerous commercial properties throughout Downtown Detroit, Dearborn, Downriver and various Metro Detroit locations. His experience spans across all commercial property types, including office, retail, industrial, multi-family, mixed-use, and development land.

“Tarick brings real-world commercial real estate experience and has an extensive client network within the community.  We are confident he and his clients will greatly benefit from Friedman’s significant operational and marketing support,” said Andrew Ledger, Managing Director, Brokerage Services.

About Friedman Real Estate 

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 11,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives.

For more information, please visit: www.friedmanrealestate.com.

RECon 2019

Today the market is truly changing the way retail real estate is utilized. With big box stores downsizing and physical retailers shifting their focus, developers and property owners are turning to creative measures to revive empty storefronts. The RECon conference at the Las Vegas Convention Center & Westgate Hotel will house eager retail owners, developers, and influencers looking to creatively discuss new ways to use retail space from May 19-22.

What can you expect to see at RECon 2019?

The retail landscape and the real estate industry is changing at a rapid pace, and the focus of RECon 2019 will be around the emerging disruption taking over the traditional space. At RECon 2019 you will be hearing about what the growth of the market looks like and what retailers are searching for as far as leases and spaces go. Some of the significant trends we expect to see at RECon 2019 are:

QSR Growth

As retailers are still looking to expand into different markets, I believe the attention of this year’s event will focus on QSR’s, discount type retailers, and personal service projects. I think with the stability of the current market; we will witness more conversation around the retail disruption and where the industry is headed over the next five to ten years.

• Alan Stern, Friedman – Michigan

2020 Expansion Strategies

National retailers and tenant reps are expected to begin discussing their 2019-2020 rollout expansion strategies. This includes new concept stores and rebranding plans, particularly from larger retailers. In addition, as the market remains at its peak, lenders will become more open to discuss their future lending plans while developers will show more willingness to meet with brokers to discuss both growth and sustainability strategies.

• Mark Zeidman, Friedman – Houston

Networking, Network & Network

RECon has always been a great place to reconnect and put a face to the many industry names you corresponded with over the years. Between scheduled meetings and working on solidifying pending deals/leases RECon 2019 is three days of hard work. For the Chicago market, my main goal is to meet with as many commercial real estate developers/owners located in or near the Chicago market as I can to further develop a strategy for the future of the retail real estate industry.

• Kellen Duggan, Friedman – Chicago

Friedman at RECon 2019

“Friedman is excited to have such a large group of retail real estate professionals attending this year’s conference. We believe this year’s event will be well attended and productive,” said Andrew Ledger, Managing Director of Brokerage Services.

Friedman will be tackling RECon in full force, with experts from our various regional offices. Be sure to follow us on social for more RECon 2019 coverage and key takeaways after the event.

Learn more about Friedman and RECon 2019. Hope to see you there!

Steven Silverman Investment Advisory Services represented the buyer in the transaction.

ABOUT FRIEDMAN REAL ESTATE

As one of the largest privately-held full-service commercial real estate organizations in the nation, Friedman Real Estate provides clients with a single point of contact for the full range of Advisory, Property Management, Brokerage and Construction services that it offers.

Friedman manages more than 140 commercial properties encompassing more than 16M SF and more than 11,000 apartment homes throughout the United States. Friedman’s brokerage team has over 800 current listings with $10 billion in closed transactions. As owners and managers of commercial property for 30 years, Friedman understands what it takes to achieve results that maximize their clients’ objectives.

For more information, please visit: www.friedmanrealestate.com.

• A Downtown walkable area
• A prevalence of young professionals
• Their trademark demographic

eCommerce retailers are trying to be strategic in finding these Urban locations to attract millennials and the older workforce who are increasingly shopping online. Hear more from Steven Silverman, Senior Vice President, Investment Advisory & Brokerage Services:

What is the Ask Friedman series?
The Commercial Real Estate (CRE) industry is like an umbrella. Many different types of CRE services, specialties, departments and deals are available under the label “commercial real estate.” With such a wide array of capabilities, coupled with the fluctuating economic landscape, we find that there are many questions and misconceptions around the CRE industry.

We’ve turned to our team of experts to answer your questions and discuss the future landscape of commercial real estate. The team will offer expert insights for investors, developers, landlords, tenants, buyers, sellers and everyone in between to get a sneak peek into the workings of the CRE umbrella. Our goal with this series is not only to provide expert knowledge on commonly asked questions and debunk any CRE concerns but to also introduce the faces behind the iconic Friedman signs.

As the Great Recession made its mark on the economy, it also left its mark on the multifamily market. The number of single-family homes that have been converted to rentals during this time sparked extreme interest. As the economy began to turn the corner, the demand for urban living took off initiating the boom in multifamily construction.

Trends To Look Out For

Amenity-Rich Apartment Buildings

According to a study by the National Multifamily Housing Council, 55% of renters said they wouldn’t enter a lease that didn’t have a fitness center. Furthermore, 7% of people indicated that they specifically decided to rent rather than buy because of amenities. Since living spaces tend to be on the smaller side, residents are making their decisions based on amenities such as a gym, pool, hot tub, community grill/fire pit, high-speed internet, and parking storage. They are relying on common rooms for entertaining guests to offset the size of their living space.

Growth in luxury apartments

Developing amenity-rich apartments is part of a growing trend in high-end apartments. Apartment List released a study unveiling the fastest-growing segment in the U.S. housing market is that of high-income renters, households earning at least $100,000 a year. At a moment in time when household incomes increased by 7%, the number of high-income renter households increased by nearly 48% from 2008 to 2017.

Another driving force for the growth of luxury apartments is the more onerous task of qualifying and securing a mortgage loan in today’s economy. Even though incomes have risen at a steady pace after the Great Recession, the harsh mortgage loan criteria coupled with student-loan debt has made renting the most financially feasible solution for high-income households.

Urban Centers

Over the last few years, urban areas have witnessed a surplus of young, well-educated, high-income renters flocking to the cities for the downtown lifestyle and a higher concentration of jobs.

Where the most growth is taking place

The focus today has been shifted to a work-live-play mentality; known as the 18-hour environment. Many spaces are being repurposed and redeveloped to include aspects of multi-family, office, and retail to embrace this growing trend. More and more companies are migrating to these environments. For example, our tenant representation services recently helped Smile Direct Club grow from 15 to 2,000 employees in Nashville in just two years. That shift coupled with a low cost of living, good job demand, warm climates, and friendly governments is why we are seeing so much growth in the following locations:

• Nashville, Tennessee
• Denver, Colorado
• Raleigh, North Carolina
• Charlotte, North Carolina
• Austin, Texas
• Houston, Texas
• Phoenix, Arizona
• Orlando, Florida

Jared Friedman
Director of Opportunities