Acclaim Insights

Distribution Center Wage Escalation Trends

In today’s labor market, it can be extremely difficult to find quality labor. The effects of COVID-19 and responses to the pandemic continue to drive wages up. Distribution employers will need to stay ahead of these trends to control costs in the coming years and budget accordingly. We looked at wage escalation in the distribution…

California’s Challenges Demonstrate the Intricacy of Corporate Site Selection Decisions

Companies have been leaving California’s high tax and minimum wage environment for years despite the deep talent pool of workers. The state’s myriad of problems, including the thousands of homeowners currently at risk from wildfires, illustrates the delicate balance companies must navigate when deciding where to relocate their call centers, manufacturing plants, distribution centers, software…

Global Shipping Container Shortage Shutting Down American Exports

The global shipping container shortage of 2020 and 2021 is having huge effects on shipping and container prices. It’s causing delays in deliveries and increased costs for exporters. You may be asking why the shipping container shortage is so profound and how we ended up in this situation. Are you also wondering what’s being done…

Making Sense of the US Warehouse – A Tenant’s Perspective

Anyone that leases warehouse space, knows how frothy markets have gotten. Rates and operating expenses will continue to rise for the foreseeable future. However, opportunity still exists to get a good deal that boosts your profitability and efficiency (see “Silver Lining” below). There is a relatively short window of opportunity on the horizon. Some facts…

C-Suites Biggest Challenges/Concerns for 2021!

As 2021 begins, a new survey from The Conference Board reveals the biggest issues that will keep business leaders up at night in the new year. CEOs in the United States are more worried about higher corporate taxes and increased regulation, but less worried about global political instability and disruptions to global trade. And compared…

2020 Business Climate

Year end 2020 best states for business climate & overview of key metrics.

Why IBM Brought Remote Workers Back To The Office – And Why Your Company Might Be Next

In 2009, IBM reported that 40% of its 386,000 employees in 173 countries were working remotely. That policy allowed IBM to sell off its office buildings at a gain of almost $2 billion. Hailed as a savvy business strategy, the trend of telecommuting was soon in full swing. Impressive, right? Why then, in March of…

Planning for a Return to the Workplace

Leaders of businesses will return to a more discerning workforce that will expect continuous assurances that they are working in a safe environment. This will include posted displays of updated safety, health and wellness information and resources for employees, visitors, and occupants throughout the building, both inside and outside the workplace. Establish a multi-disciplined Team:…

How to Safely Transition Back to the Workplace

The coronavirus has turned everything upside down. However, our clients are beginning to wonder how they can best bring people back into the office when the crisis subsides. This will be a transition rather than an “all in” move. We know from several recent studies that a well-designed workplace is still overwhelmingly the place that…

Metropolitan Measures of Job Growth, Low Wage Workers & Change in Median Wage

Wage rate and job growth analytics for top markets in US.

What Drives Corporate Real Estate Portfolio Productivity?

Leading real estate professionals, site selection consultants, and C-suite executives have begun to focus not just on pure cost, but more on the performance of real estate as a strategic asset. Together, we are looking increasingly at real estate’s contribution to overall company results and realizing return on investment (ROI). Yes, return on investment. Now…

Office Building Parking Ratios-Often Overstated

Office space occupants are getting more and more efficient, which is good for the corporation’s bottom line, but a big challenge for the company’s CRE team and landlord’s alike. The average parking ratio across all classes of offices buildings, nationwide is 3.12 cars per 1,000 rentable square feet of space. Today’s most efficient space users…

Attracting Top Tech Talent

Competition for Tech Labor remains fierce. A recent Tech Talent research report ranking 50 U.S. and Canadian markets according to their ability to attract and grow tech talent provided a few surprises amongst the perennial favorites. The Tech Talent Scorecard rankings are determined based on 13 metrics including: tech talent supply, growth, concentration and cost,…

Relocate vs. Lease Renewal – How to Decide

The old adage of “it’s always cheaper (and easier) to renew” doesn’t hold true today. A lot depends on your updated space utilization metrics, goals for that particular facility, design criteria and labor analytics. A few interesting points to consider when working through this decision: There is an efficiency delta of ±15% when re-configuring existing…

FASB Sets Lease Accounting Change Effective Dates

On November 11, 2015, the Financial Accounting Standards Board (FASB) decided upon the effective date for the long awaited and much debated new lease accounting standard requiring companies to recognize leases on their balance sheets. The effective date for public companies will be in fiscal years (including interim periods within those years) beginning after December…

How to Use Corporate Real Estate Data for Competitive Advantage

How does your company’s real estate support and enhance corporate goals and objectives? I.E. – if a corporate goal is to be a low-cost producer, does the real estate footprint support that objective? If retaining and attracting talent is critical, how do locational decisions, workplace decisions, and facilities decisions advance that goal? Many C-suite executives…

Compliance with New FASB-A Team Effort

In 2016 the Financial Accounting Standards Board (FASB) and international Accounting Standards Board (IASB) changed accounting rules so that in the near future, companies will be required to show virtually all leases on their balance sheets. This solution will require detailed planning and preparation that all companies will need to address promptly and with collaboration…

How Much Space is Enough Space?

Whether you are planning a new office, renewing an existing lease or developing company-wide space standards, developing updated design benchmarks and occupancy strategies will prove extremely helpful. A company’s real estate can and should be an enabler of the business plan! When a new client engages my team, we take nothing for granted. Far too…

The Evolution of Corporate Real Estate

Corporate Leaders: What is your vision of the ideal workplace? Is it the same vision as that of the ideal labor force that you are trying to attract and retain? Does it truly represent and enable your vision for culture? Real estate markets around the world are tightening, and will continue to do so for…

“Industry Standard” Office Space Measurement

Different cities, different landlords, different space measurement methods! Accurately defining your leased square footage is important. How can you best protect your company’s interests and assume that you are getting the amount of usable and rentable square footage that you bargained for? Since 1915, the BOMA Standard Method for Measuring Floor Area in Office Buildings…

Corporate Real Estate’s Contribution to Merger & Acquisition Success

When a company acquires or merges with another company, it’s often also acquiring outstanding obligations, holdings, liabilities, employees and real estate assets. M&A due diligence should include a comprehensive evaluation of all real estate assets and liabilities. Having an experienced and knowledgeable real estate professional included early in the process of an M&A transaction will…

Workforce Trends Driving Location Strategies

Labor analytics – using a combination of both primary and secondary data – will help a company to ensure the location it is considering will be able to meet its workforce needs, today and in the foreseeable future. Understanding your potential workforce, and/or your current workforce is critical when undertaking a site selection project. Ensuring…

Three Questions to Ask Your Corporate Real Estate Team

With markets tightening dramatically around the country, most of the “low hanging fruit” opportunities for cost reduction are gone. Your team needs to be keenly positioned to bring value in other ways. Three key questions to flush out their preparedness and capabilities: How will you use data to better align the company’s real estate with…

Your Termination Option, How Good Is It?

An office lease is a long term commitment, but the real estate needs of your business are subject to change. Armed with foresight and enjoying maximum leverage (because you were still talking with multiple landlords) you had your broker negotiate a right for you to terminate your lease early. With a termination option in your…

Best Strategies for Renewing a Lease

Your company’s lease for office, warehouse or manufacturing space is set to expire in the not too distant future. Given that markets around the country are tightening rapidly, and rents are rising, how will you create leverage and drive the best results? You can always simply exercise the renewal option in your lease. Only about…

How to Mitigate the Effects of FASB Lease Accounting Changes on your Company

The effective date of January 2018 is fast approaching. With regard to leases for corporate real estate, finance executives and their teams can take the following steps to prepare and mitigate: Review each of your leases, starting with the largest obligations to clearly understand how they will be accounted for under the new rules. Focus…

Myths Associated with Renewing Your Company’s Office or Industrial Lease

It seems like a relatively easy, “cut and dry” decision. Your lease is scheduled to expire within the next year or two. There doesn’t seem to be anything terribly wrong with your space or the building. Your cost of space seems competitive from what you can tell, and you don’t have the time, or patience…

Structuring a Tenant’s Right of First Offer to Lease Additional Space

If you have a Right of First Offer (“ROFO”) on certain space, then the landlord must offer to lease the ROFO space to you (when it becomes available) before it can be put “on the market” for lease. Most office leases structure ROFOs so that it is the landlord who makes the initial price offer,…

Far Fewer Global CEOs Expect to Reduce Office Space Than Last Year, KPMG Survey Finds

In a sign that expectations of a permanent work-from-home culture may be overstated, a fresh KPMG survey of top CEOs worldwide found a mere 17% plan to shrink their overall offices, an abrupt drop from the nearly 70% talking about it in August. The sharp drop in office plans for the next three years comes…

Case Study-4 Ways to Optimize Warehouse Efficiency

When Monster Moto opted to shift its assembly of minibikes and go-karts from China to Ruston, La., the company moved into a new 100,000-square-foot factory. After the move – which included 22 UPS semi-trailers packed with equipment, an inventory of spare parts and 5,000 finished bikes – UPS and Monster Moto sat down to figure…

Why the Office Simply Cannot Go Away: The Compelling Case for the Workplace

We’re in the midst of the most significant reinvention of work in our time. We’ve proven people can work anywhere and the greatest social experiment—sending everyone home to do their work—has decimated barriers to working away from the office. Some contend people are working with a reasonable level of productivity from home. And this is…

What’s Driving Recent Corporate Relocations?

Interesting study on Site Selection in 2020. No surprise that companies are leaving some of the largest, most expensive, and congested cities. Some of this is no doubt driven by the current pandemic, but that is a short-term driver. More likely that taxes and unfavorable legislation are bigger impetus of these strategic migrations. What is…

Raleigh’s Office Rent Growth Among the Top of the Nation Amid Pandemic

While the coronavirus outbreak is wreaking havoc on office demand, Raleigh, North Carolina, is outperforming most other markets throughout the nation. The Tar Heel State’s capital city ended the third quarter with average rents up about 4.6% year over year, one of the highest marks in the nation. Raleigh’s performance is nothing short of remarkable…

Regional Project Rankings by Total Projects

Top states ranked for the number of new projects starts for key US markets.

Workspace Design & Technology Improvements Post COVID-19 Crisis

Facilities lessons from times of crisis: September 11 taught us about evacuation protocols and design/ safety criteria to aid exiting without confusion. Hurricane Katrina taught us the need for business contingency plans and the risk of single location strategies. Superstorm Sandy taught us the need to be able to work remotely in times of crisis.…

How Will Corporate Culture & Office Space Change Post COVID?

Leadership will improve. Throughout a crisis, leadership is of vital importance. It has also become clear which leadership behaviors are most effective. In the toughest times, the leaders who excel are those who communicate clearly, stay calm and strong, demonstrate empathy, think long-term and take appropriate decisive action. Corporate leaders will become more effective overall…

Change in Share of Digital Services Jobs

Top markets for growth and digital service jobs, some predictable and some surprises.

The Slow Death of Open Offices

First, you tear down the walls and dispense with the soulless cubicles. Then you put everyone at long tables, shoulder to shoulder, so that they can talk more easily. Ditch any remaining private offices, which only enforce the idea that some people are better than others, and seat your most senior employees in the mix.…

Negotiating a Contraction Option? Here Are Some Details to Consider

A contraction option is a fixed right in your lease to reduce the size of your premises at some future date, but prior to your lease expiration date. You can use it to downsize an office space prior to the lease’s scheduled expiration date. As you might expect, landlords (and their lenders) vigorously resist giving…

Office & Industrial Lease Expense “Pass Throughs”- Management Fees

Over the years we have found that operating expenses (OE) are among the most misunderstood real estate cost component, particularly because there is no clear standard of how these costs are addressed in leases. OE pass throughs can easily grow over a lease term to significant levels, particularly given the “compounding” nature of how they…

Preparing to Comply with New FASB/IASB Lease Accounting Standards

There has been a ton of talk, and articles published on this subject. We all now are aware of what’s coming and when. Here is a concise summary of what you need to know and do to comply and get ahead of the curve.   EXECUTIVE SUMMARY Preparedness is the key The intent of the…

What Every Leader Should Know About Corporate Real Estate

Perception is finally changing! Corporate real estate is not merely an operating necessity; it’s a strategic resource. It affects everyone – customers, employees, investors, regulators. Real estate is not easy to manage. In many organizations, real estate remains a reactive, second order staff function, focused on discrete projects and transactions rather than on the company’s…

What Corporate Leaders Expect from their Real Estate Team

ENABLE THE BUSINESS PLAN Develop and propose solutions proactively to build sustainable, trusted relationships with key business and functional stakeholders. It’s also an opportunity to add value consistently across the business cycle, rather than at the time of transactional or operational events.   DON’T LIMIT YOUR FOCUS TO FACILITIES & REAL ESTATE Instead, focus first…

Better Analytics for Corporate Real Estate

Historically, most corporations have analyzed the lease or purchase of office and warehouse space using standard financial analyses of the project’s direct impact on “bottom line” figures like net operating income or EBITDA. Cutting edge corporations today are applying better operational and quantitative views to determine the true impact on a broader and more meaningful…

Your Lease is Expiring in a “Hot” Market

The market pendulum has fully swung to “landlord favored” in the vast majority of markets in the USA and globally, and is likely to stay that way for several years to come. This shift, coupled with rising inflation (that will increase the cost of building operating expenses), means significant cost increases for corporations whether they…

Site Selection – A Moving Target

Every year, different industry groups, consultants and government entities publish their lists of “Top Locations for Business” (Cities, States & Countries). While the intent is good, and the methodology sound, there is significant fault in the findings and corporations should only use them as a comparative starting point. The data points are solid: Accessibility, cost…

7 Indicators That You Need to Audit Your Office Lease

Few areas hold as much impact on capital outlay as real estate and leasehold expenses. Ensuring that your company is not overpaying is integral to fiscal management. You know an audit is in order when you see:   SIGNIFICANT JUMPS IN OPERATING EXPENSES / ADDITIONAL RENT Performing a simple trend analysis of your year-to-year operating…

10 Strategies That Maximize Workspace Efficiency

Corporate leadership ranks “overall efficiency” as very high on their list of priorities. It’s not always directly related to corporate real estate, but it should be. When you tour one of your company’s facilities, it seems to be fairly efficient. What isn’t fully apparent are the significant gaps in utilization rates & overall efficiency created…

Corporate Real Estate that Enables & Supports Your Business Plan!

“If you always do what you always did, you will always get what you always got”. -Albert Einstein   OLD SCHOOL THINKING The historic approach goes something like this: “We currently lease X square feet. We probably need about the same going forward or Y square feet because we have fewer people or more people,…

Key Considerations: Value Creation

Although corporate real estate and facilities represent a very significant portion of the balance sheet and operating expenses, they often do not receive the attention they deserve despite the huge potential for creating competitive advantages, reducing costs and improving operating efficiency. Corporate real estate must be viewed as a strategic asset, not a liability or…

Key Considerations: Office Space Construction / Renovation

The costs to construct / renovate and furnish office space are key components in your company’s overall cost of space, particularly under current economic conditions. During the past few years, the costs of labor and materials have increased sharply while the lack of availability of each has become a significant problem. In addition, municipal permitting…

Key Considerations: Location

Current Work Force Time is leverage. Most companies do not allow enough lead time to adequately prepare for, analyze, and execute a successful relocation or renegotiation of an existing lease. Have your team develop a timeline, including critical action dates, for use throughout the project.   Commutation Studies When comparing alternative locations, identify and map…

Key Considerations: Corporate Moves / Relocation Planning

A move is the best time to implement new work processes and technologies to help create greater efficiency, raise productivity and morale, and control long-term occupancy costs. However, problems in the relocation process most frequently arise through insufficient planning. The following should help you avoid common pitfalls during your company’s next move.   Assemble Team…

Key Considerations: Service Providers

Commitment Commitment is the cornerstone of great service in today’s highly demanding, rapidly changing business environment. It is essential that service providers are committed fully to delivering comprehensive solutions that satisfy the client’s short and long-term needs.   Communication Efficient reporting and regular interaction are key to any successful relationship. Communication timetables, forms, and parameters…

Key Considerations: Pre-Planning

Advance Preparation The odds of achieving optimum results on any real estate project are greatly increased when sufficient time is given to fully analyze needs and develop a thorough plan of action. The size and complexity of the requirement will dictate how many months in advance to begin a needs analysis, compilation of locational data…

Tenant Space Allotments & Design Parameters

Whether you are planning a new office or developing company wide space standards, having “design benchmarks” can prove extremely helpful. The following information is an average for general office use. General space allocation should be approximately 150 to 200 usable square feet (sf) per person. This figure can vary depending upon your use, industry, and…

Top 10 List For Corporate Relocation / Lease Renewal

Prepare 18-24 months in advance Time is leverage. Most companies do not allow enough lead time to adequately prepare for, analyze, and execute a successful relocation or renegotiation of an existing lease. Have your team develop a timeline, including critical action dates, for use throughout the project.   Location, location, location Choose the most suitable…

Market Intel