Properties Magazine May 2017 : Page 35

sitting right in front of the player. The crossover to real estate is inevi-table. In fact, a company named Matterport has already taken the lead in using augmented reality within our indus-try. Think about the potential implication of touring real estate or viewing future devel-opment against the existing landscape. its entire lifetime. Again, some emerging com-BULKING UP Shelborne Global panies have provided Solutions, a Brooklyn, New York-based a good preview of the real estate investor, continues to add future. Uber recognizes local office properties to its portfolio. that not everyone wants Last month, the company acquired two to own a car and fig-office buildings in Chagrin Highlands ured out a way to get that totaled 225,000 square feet. This them what they need, brings their total Cleveland portfolio to when they need it, using just over 400,000 square feet but look an easy-to-use interface. for their holdings to increase dramati-Airbnb is doing the same cally over the course of 2017. –AP in the hotel industry and WeWork is doing the same in the office space Driverless vehicles industry. Think about the implications on Ten years ago, Lexus introduced a real estate industry that has already seen an option called IPAS, or Integrated the average area per office worker drop Parking Assist System. Most dismissed from 250 square feet to 140 square feet. this as a silly option being offered by To close his presentation, Jack used the a fancy upscale car manufacturer. Last year, Tesla Motors introduced a feature example of a single lily pad on a pond. called Autopilot that is capable of fully Each day, the number of lily pads would operating the vehicle (albeit they also double. On the 20th day, only 0.1% of recommend that this be engaged only on the pond would be covered and on the limited access highways). And despite 25th day, just 3.2% of the pond would some recent missteps, Uber continues be covered. But on the 29th day, 50% to be a driving (no pun intended) force of the pond would be covered and the with self-driving transportation technol-next day, the 30th day, the pond would ogy. Face it, gang: this technology is be completely covered. His point: if you coming and fast. Think about the impli-wait until you notice the change, it’s too cations to our existing transportation late. So the key for a business’s success system and the real estate infrastructure is to identify trends and adapt before it that has been built around it. becomes apparent to everyone else. As I look around our local real The internet of things estate market, I see plenty of evi-Amazon was founded just over 20 years dence of this. In the retail market, ago and started as an online bookstore. At I see selected developments such as the end of last year, the company’s market Crocker Park and Pine Crest flourish-value was larger than WalMart, Target, ing while other developments such Best Buy, Macys, Kohls, Nordstrom, as Meadowbrook Market Square and JCPenney and Sears – combined. They Severance Town Center languishing. have boldly stated that their goal is to In the office market, I see Class B and ‘deliver everything in the world’ and their C office buildings that are struggling real estate warehousing inventory is back-in the shadow of new Class A build-ing that up – over 150 million cubic ings that are garnering rents more (not square) feet at last count. And they than double as compared to their older continue to innovate, ranging from the counterparts. And in the industrial concept of ‘chaotic storage’ for inventory market, I see companies continuing to logistics to Amazon Echo for artificial ‘make do’ with the existing inventory intelligence to Amazon Go for quick of buildings rather that spawn wide-pickup grocery to drones for package spread new construction. What will delivery. Unless you’ve been under a rock, we all be seeing just a few short years their impact has been obvious but think from now? P about their potential continued implica-tions on the retail landscape. Alec Pacella, CCIM, senior vice president Daus, You Know? Share versus own Jack used a great analogy for this one; the average drill is used for 13 minutes in at NAI Daus, can be reached by phone at 216.455.0925 or by email at apacella@naidaus. com. Follow him on twitter @dausyouknow or his blog at 35

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