How Coronavirus (COVID-19) Could Affect Commercial Real Estate Transactions

The long-term effects of the coronavirus on the economy remain unknown, but we can predict some acute short-term effects on the commercial real estate market in general, and in particular on contractual relationships in this arena. There are many different implications of the force majeure concept described above for the commercial real estate world, but here we will describe just a few of them. The coronavirus outbreak has already had an impact on the supply chain for various materials required for construction. Similarly, government restrictions, such as curfews or lockdowns, could interfere with the ability of contractors to have the labor needed for construction, and there may also be delays in the issuance of construction approvals and permits.  Suspension of or delays in the ability of contractors to complete construction could be covered by force majeure provisions in construction agreements.

Spotlight

Landmark Companies, Inc

Landmark Companies is a full service residential and commercial development, brokerage, and construction company located in Clive, IA. The Landmark Companies’ team have built an enviable reputation in the local market with investors, builders, contractors and clients. We look at every project as unique with its own needs, problems to solve and different expectations to meet. We listen to your goals and objectives, then develop a concise plan on how we will help you meet or exceed your project’s standards.

OTHER ARTICLES
Real Estate Technology

Why Building Lifetime Engagement is Critical for Your Real Estate Business

Article | July 25, 2022

You may have heard the often-cited National Association of REALTORS® (NAR) statistic that 90% of homeowners would use their real estate agent again, but only 12% actually do. What you may not know is the reason behind it. According to Chris Stuart, president of PLACE, Inc., the real estate industry spends more on customer acquisition than any other industry but doesn’t invest the same amount in customer retention. The numbers back him up, with companies like Southwest and Marriott spending less than 3% of their marketing budget on customer acquisition, while the real estate industry spends a whopping 20% of its marketing dollars to add customers, only to lose them as they leave the closing table. Of course, retention in real estate is made more difficult by the fact that the average time between real estate transactions is five to seven years, not just a few weeks or months as it would be for retail or travel companies. Looking at other industries that focus more on customer retention, they do so not by offering a host of random services, but by creating a customer experience that brings people back over and over. With that in mind, here is a tactical approach that will allow you to prove your value month after month—for years to come.

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Real Estate Investment, Asset Management

Meeting Real Estate Expectations with Sustainability

Article | May 5, 2023

As the global social and economic consequences of the COVID-19 pandemic emerge, indoor air quality, for example, has emerged as a top priority for keeping building occupants safe and healthy. Workplaces and remote work arrangements are being reimagined by business owners, while retailers and restaurant operators continue to convert their physical spaces for social distancing or, in some cases, for an entirely new use. In this context, the expectations of asset owners from office, retail, hotel, and residential users have grown exponentially, and there is no shortage of new challenges and opportunities for commercial landlords. Sustainable environments with ergonomic furnishings, biophilic elements, natural daylight, and living green walls are meeting demands for lower operating costs, increased performance, and improved occupant well-being, as are healthy buildings with natural ventilation, enhanced thermal comfort, improved air quality, and green purchasing policies. One of many innovative examples is a manufacturer of smart windows that tint automatically based on outdoor and indoor conditions, improving people's health and wellness while lowering energy consumption. The digital twin — essentially a virtual copy of a building — is another example of how technology is being used to transform the real estate industry. By leveraging data analysis, building simulation, the internet of things, artificial intelligence, machine learning, and robotic process automation, digital twins have the potential to help building owners and operators bridge the physical and virtual worlds. The digital twin's resulting assessment, calibration, modelling, and scenario planning capabilities enable more efficient operations, reduced maintenance, increased energy savings, and real-time decision-making support for the physical building. The health of a building will be considered an amenity by its occupants as landlords take steps to improve air quality inside their buildings through smart building. Overall, healthy buildings improve occupant satisfaction, leasing rates, and building value. Buildings with better air quality and more natural light have lower absenteeism and, as a result, lower turnover and higher worker productivity, resulting in financial savings and increased value for the business. The same advantages apply to retail and residential buildings. Landlords and commercial tenants are discovering that recognized standards, such as WELL and Fitwel, are enabling an effective framework and leading practices in the ownership, occupancy, and management of their physical environments as they develop, implement, and manage healthy building efforts. A sustainable and healthy building prioritizes resource efficiency (energy, water, and materials) while enhancing positive building impacts on human health and the environment. Building owners and occupiers who are proactive in furthering these efforts are not only building resilience now, but also preparing for what comes next and beyond.

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Real Estate Technology

3 Things To Prioritize When Selling Your House

Article | July 18, 2022

Today’s housing market is full of unprecedented opportunities. High buyer demand paired with record-low housing inventory is creating the ultimate sellers’ market, which means it’s a fantastic time to sell your house. However, that doesn’t mean sellers are guaranteed success no matter what. There are still some key things to know so you can avoid costly mistakes and win big when you make a move. When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Even in a sellers’ market, listing your house for the right price will maximize the number of buyers that see your house. This creates the best environment for bidding wars, which in turn are more likely to increase the final sale price. A real estate professional is the best person to help you set the best price for your house so you can achieve your financial goals.

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Real Estate Investment

3 Ways to Simplify Leasing Out Your Commercial Property

Article | July 14, 2022

You have a commercial property and you need to lease it as soon as possible. In an ideal world, you would find a client as soon as your property is vacant. But we do not live in an ideal world. As a property owner or manager, you need to list your property, get the right contacts, and find a buyer who is ready to occupy immediately at a price that's efficient to you. It can be a tedious journey. That’s where a broker comes in. Filling your vacant properties is essential but navigating a labyrinth of procedures shouldn't keep you occupied, which is whyleveraging a brokernetwork is so important. Here are three ways you can connect with brokers to make the most of their services. Updating Your Inventory List If you've tried handing a PDF of your current available listings, you might want to reconsider your approach for better chances of success. Brokers must be aware of the properties you have available if you want them to consider yours. The issue with online CRE listings is that many of them are outdated. This may cause a broker to think they’ve found an ideal property for their client, only to discover it’s already leased out. This doesn’t make a good impression. In addition, static listings are not search-friendly. To cut to the chase, deploy a search-ready, updated portfolio. Simplifying things for brokers will keep them coming back and contribute towards building a positive association with them. Sharing an Inventory List Right to Their Inbox Simplifying property search isn’t all. What are you doing to make a broker’s life much easier? You don’t need to spend a ton on proptech to reach out to brokers on time. Set up a commercial real estate email list that directly emails your updated listings to the brokers, providing them with timely alerts on when a new property is on the market or reminding them that an existing listing is still available. Providing Easy Access to the Property Information Regular emails about your updated property portfolio is bound to keep brokers engaged and informed. Going a step further, you can create a mobile-friendly property information page for each of your CRE properties to ensure that brokers have all the information they need at their fingertips. This avoids any bottlenecks caused by having the wrong information or no information at all about the specifications of your properties. A Final Word of Advice One of the most effective things commercial property owners can do to guarantee their properties are continuously leased is to engage with brokers, keep them updated, and simplify ways for them to interact with your property.

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Spotlight

Landmark Companies, Inc

Landmark Companies is a full service residential and commercial development, brokerage, and construction company located in Clive, IA. The Landmark Companies’ team have built an enviable reputation in the local market with investors, builders, contractors and clients. We look at every project as unique with its own needs, problems to solve and different expectations to meet. We listen to your goals and objectives, then develop a concise plan on how we will help you meet or exceed your project’s standards.

Related News

Real Estate Investment, Asset Management

Juniper Square and Pereview Team up to Deliver Asset and Portfolio Insights for Private Real Estate Partners

PRnewswire | July 24, 2023

Juniper Square, the leading provider of partnership enablement for the private funds industry, today announced an exclusive partnership with Pereview, the only Life of The Asset® software platform supporting both equity and debt for real estate investments. By connecting Pereview's in-depth asset data to Juniper Square, joint clients can seamlessly share both asset-level and portfolio insights to improve fundraising efficiency and provide LPs with greater transparency. "Juniper Square and Pereview's combined offering provides a best-of-breed solution for fundraising and investor relations teams within leading GP organizations," says Matt Lawson, CMO at Juniper Square. "Until now, these groups have had to compile data from countless different sources just to get a comprehensive and clear picture of their investments. Our partnership with Pereview will change the status quo, allowing GPs to get a comprehensive and clear picture of their CRE assets and deliver it seamlessly to LPs through Juniper Square's partnership enablement platform." As a slower adopter of digital technologies, the commercial real estate industry has finally reached a tipping point. With Juniper Square's roots in investment management and Pereview's expertise in providing detailed reporting across the entire investment lifecycle from acquisition to disposition, these complementary strengths address the ever-growing need for timely, in-depth reporting. All data in the capital stack, from the investor to the fund to the investment to the portfolio to the asset to the property to the lease will be readily available for mutual clients. "Our partnership with Juniper Square provides a best-of-breed, full-stack solution for the marketplace with a custom integration built exclusively for our current and future mutual clients," said Daryl Pitts, senior vice president of global sales for Pereview. "Where Juniper Square is strong in the processes around raising the fund and investor relations, Pereview provides complementary strengths in comprehensive, globally compliant data aggregation and reporting to equip asset, portfolio, and fund management professionals with the 360 view they need to make data-driven decisions." "The combination of Pereview and Juniper Square provides complete coverage for all of our needs," said Dalfen Chief Investment Officer Max Gagliardi. "From the start of fundraising to investor reporting, from portfolio analysis to strategy at the asset level, all the way down to industry exposure and lease clauses—all of our data, across the entire investment lifecycle is supported. We now spend more time doing deeper investment analysis allowing us to drive value creation across our portfolio versus spending time updating many Excel files to answer the same set of questions over and over again. Pereview and Juniper Square have been a game changer for us. We've been able to support the growth of our platform and materially increase portfolio analytics capacity without having to grow the team significantly." In addition to Dalfen, existing mutual customers between Juniper Square and Pereview include PCCP, Ryan Companies, Rockwood Capital, Singerman Real Estate, and many more. About Juniper Square Juniper Square is the leader in partnership enablement for the private funds industry, offering a universal system for GPs and their LPs to seamlessly connect and communicate across every stage of their partnerships. Juniper Square empowers investment managers to accelerate fundraising, scale operations efficiently, and improve investor satisfaction. More than 1,800 GPs rely on Juniper Square to manage more than 32,000 investment entities that span over 500,000 LPs and $700 billion in investor equity. About Pereview Pereview is the leading provider of asset management software and portfolio analytics to the global real estate industry. Agnostic to OP platforms and preferred by LP's, GP's, Institutional Investors, Owners and Managers, Pereview is built by real estate professionals for real estate professionals. By aggregating, integrating and interpreting your internal and external disparate data into the industry's only all-in-one platform, Pereview provides actionable insights into every step of the investment lifecycle. Drive NOI, break down silos and make stronger, more accurate decisions based on your accurate and governed data. With all of your transactions, asset, and portfolio management data in one place across both equity and debt investments, a Pereview client has full visibility into The Life of The Asset®. With both out of the box and customization options, we help clients make more trusted decisions and Do More With Your Data®.

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Real Estate Technology, Real Estate Investment

MRI Software Acquires PropTech Services Leader Loci Solutions

PRNasia | July 17, 2023

MRI Software has acquired Loci Solutions Group Pty Limited, an Australian property technology consulting and outsourced managed services company serving commercial, industrial, and retail property markets across Asia Pacific. Loci Solutions is well-known as an MRI Certified Partner specialising in the implementation of property management systems (PMS) for property developers, managers, and owners/investors. It also provides value-add outsourced accounting and lease administration services, as well as concierge support. David Bowie, Senior Vice President and Managing Director for MRI Software in Asia Pacific, said, "I'm excited to officially welcome Nikki, Gwen, and the rest of the Loci team to MRI. This acquisition strengthens our MRI @Work™ capabilities and enables us to scale and better support our commercial clients in their business growth. We're particularly excited to add Loci's outsourced lease administration services to our portfolio, helping clients automate manual tasks, reduce costs, and accelerate time to value." "Loci has been one of our key partners for over 15 years, serving as our primary implementation partner for Property Management X (PMX) in APAC for most of this time. As we integrate Loci's capabilities into our solution suite, our clients will have a more consistent experience and further benefit from our combined PropTech expertise," he said. Loci co-founder to lead MRI @Work Professional Services and Support Loci CEO and co-founder, Nikki Steadman, will lead the APAC MRI @Work Professional Services and Support team, which supports some of Australia's largest and most complex commercial real estate portfolios. Speaking in her new capacity as Head of MRI Professional Services and Support for MRI @Work, Asia Pacific, Ms. Steadman says, "We've felt like an extension of the MRI family for the last 15 years, and it's an honour to be formalising our relationship. Creating a united team like this allows an even more integrated approach for our commercial clients. I am really excited about the depth and breadth of service and product we're able to offer together. It's my privilege to now lead the unified team as we work from beginning to end in a client's journey and success." Mr. Bowie says, "Rest assured, MRI remains committed to our core value of providing clients the ability to choose the service providers that best meet their business needs. We look forward to continuing to grow and enable our managed services and consulting partner ecosystem to meet client demands and deliver world class services with a sole focus of client success." The financial terms of the deal are confidential. About MRI Software MRI Software is a leading provider of real estate software solutions that transform the way communities live, work and play. MRI's open and connected, AI-first platform empowers owners, operators and occupiers in commercial and residential property organisations to innovate in rapidly changing markets. MRI has been a trailblazer in the PropTech industry for over five decades, serving more than six million users worldwide. Through innovative solutions and a rich partner ecosystem, MRI gives real estate companies the freedom to realise their vision of building thriving communities and stronger businesses. For more information, please visit mrisoftware.com/au.

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Market Outlook, Real Estate Investment

Workspace Property Trust Successfully Modifies and Extends $1.3 Billion CMBS Facility in Challenging Commercial Real Estate Capital Markets

Businesswire | July 06, 2023

Workspace Property Trust (Workspace), the preeminent US suburban commercial office property owner and partner for the Fortune 1000, announced today that it successfully modified and extended its approximately $1.3 billion CMBS facility, securing a two-year extension for loans supported by its nearly 10 million square foot portfolio of 146 suburban office and light industrial, R&D and flex industrial properties in 14 major metropolitan markets across the US. In additional to this portfolio, Workspace owns an additional nine million Class A square feet of commercial office portfolio across 59 properties in the US. The successful refinancing of this Workspace’s Class A portfolio is a major accomplishment in one of the most difficult commercial real estate and capital market environments in decades and reflects the strength, experience and operating performance of the Workspace management team. Iron Hound Management Company LLC served as financial advisor to Workspace. Workspace Strengthens Its Balance Sheet To Invest in Growth “We are thrilled to have successfully modified and extended our $1.3 billion CMBS facility with a two-year extension and significant equity participation,” said Thomas A. Rizk, co-founder and CEO of Workspace. “Getting this deal done in what many have described as the most challenging real estate market in decades was no small feat and is testament to the underlying strength of our portfolio, the resilience of the suburban office sector, the promise of our pipeline and the capabilities of Workspace’s vertically integrated national platform. With the strengthening of our balance sheet, we are now in the enviable position of driving growth by investing in our leasing operations and deploying state-of-the-market enhancements in key market locations as we double down on the opportunities in the suburbs. We appreciate the support of our lenders, partners and investors and are focused on the tremendous opportunities in front of us.” Workspace owns and operates suburban office buildings in 14 of the top 20 US metropolitan areas, including Atlanta, Philadelphia, Dallas, Charlotte, Tampa, Phoenix, Silicon Valley, South Florida, Houston, Portland, Seattle, Minneapolis, Chicago and St. Louis. Approximately 40% of the Fortune 500 have headquarters in Workspace markets and nearly seven million square feet of the Workspace portfolio is leased by companies included in the Fortune 1000. Workspace Suburban Markets Outperform Central Business Districts In addition to the financing news, Workspace also released the findings of a recently conducted analysis of national real estate data that highlight the meaningful outperformance of suburban commercial office markets over downtown commercial office locations. The data set, compiled for Workspace by CBRE Strategic Investment Consulting, a global leader in commercial real estate services and investments, underscores the strength, vitality and energy of suburban office markets as employers across the country reinvent how and where people work today. At the national level—and in key markets driving US economic growth— suburban office submarkets have outperformed central business district submarkets during each of the past three economic downturns, with smaller declines in rent growth and absorption rates and much steadier vacancy rates. This pattern has been particularly pronounced since the onset of COVID-19 and is leading to a fundamental reset in how corporate America is thinking about where and how their people should work. Based on the CBRE data, this resiliency is largely expected to persist through the current cycle, as many suburban locations continue to benefit from a rising number of occupiers and employees prioritizing the value of working closer to home. “Workspace Property Trust is differentiated by our proven core strategy – to provide innovative and responsive real estate solutions to the Fortune 1000 in fast-growing, highly desirable suburban commercial markets across the country,” said Roger W. Thomas, co-founder, President and COO of Workspace. “In the last year, we transformed our business by doubling our footprint to more than 19 million square feet of commercial and light industrial assets in some of the most vibrant markets in the US, offering our customers lifestyle oriented, community-based working environments that are fundamental requisites for corporations today. The CBRE data we are highlighting today is a clear and resounding affirmation that today’s most progressive companies – large and small – are investing in suburban markets, reversing decades of legacy thinking.” Mr. Rizk further stated, “New patterns of work and new demands by our tenants and their employees directly translate into the need for new long-term real estate innovation. We know the biggest single issue for our tenant partners is reducing the commuting time for their employees, allowing them to spend more time with their families. Our commitment to service and convenience and relentlessly focusing on delivering on our promise of “Work. Life. Balanced.” has solidified our partnerships with a number of Fortune 1000 organizations as they double down on their suburban footprints, investing significant dollars and resources in the lives of their team members. When Roger and I started Workspace, suburban office was a contrarian bet. The CBRE data validates what we’ve been experiencing on the ground over the last few years coming out of the pandemic: suburban office is benefitting from a foundational demographic shift to suburban submarkets in gateway metropolitan areas across the country where the quality of the work experience is the defining factor in leasing decisions.” Suburban Markets Outperformance: National and Local Metrics Nationally, suburban commercial office outperformed central business district commercial office in several key metrics, including vacancy, net absorption and rent growth. In 2022: By year-end, the national vacancy rate for suburban office was 17.2% vs. 17.6% for central business districts, the first time the suburban rate has been tighter since 1989. On net, the amount of suburban office space absorbed by occupiers in 2022 was equivalent to 0.3% of total suburban inventory. Meanwhile, downtown space was put back on the market (negative net absorption) at an amount equivalent to 0.2% of downtown inventory. Year-over-year rent growth in the suburbs was a full percentage point higher than in central business districts -- 1.6% vs. 0.6%. Additionally, when ranking U.S. suburban office markets across a variety of performance metrics, every Workspace market was represented within the top 15 for at least one metric, with several markets ranking in the top 15 multiple times. For example, over the past two years (Q4 2020 – Q4 2022): Fort Lauderdale and Miami tied for the sixth-highest increase in post-pandemic rent growth among all suburban office markets, with asking rent increases of 1.7% in both markets. Charlotte and Phoenix tied as the 11th highest in rent growth, with increases of 0.8% in both markets. San Jose ranked second for the most square feet of suburban office space absorbed and seventh for absorption as a share of total inventory. Other Workspace markets appearing in the top 15 for one or both of these absorption metrics were Chicago, Atlanta, Fort Lauderdale, and Miami. Based on forecasts for the next two years (Q4 2022 – Q4 2024): Workspace markets represented five out of the top eight suburban markets with the strongest near-term rent growth projections. These markets include Milwaukee, Phoenix, Houston, Miami and Fort Lauderdale. Dallas was the third-highest ranking market for the expected gap between the suburban and central business district vacancy rate – 22.4% in the Dallas suburbs vs 27.1% in the Dallas CBD. Other Workspace markets in the top 15 across this metric include Seattle, Houston, Kansas City, St. Louis, Fort Lauderdale and Minneapolis. About Workspace Property Trust Workspace Property Trust is a privately held, vertically integrated, full-service commercial real estate company specializing in the ownership, management, leasing and development of office and light industrial, R&D and flex space across the US. Founded in 2015, as combined Workspace owns and operates approximately 19 million square feet of suburban office and light industrial, R&D, Flex (IRDF) properties in markets across the country, including 14 of the top 20 US metropolitan areas. For more information on Workspace, please visit www.workspaceproperty.com

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Real Estate Investment, Asset Management

Juniper Square and Pereview Team up to Deliver Asset and Portfolio Insights for Private Real Estate Partners

PRnewswire | July 24, 2023

Juniper Square, the leading provider of partnership enablement for the private funds industry, today announced an exclusive partnership with Pereview, the only Life of The Asset® software platform supporting both equity and debt for real estate investments. By connecting Pereview's in-depth asset data to Juniper Square, joint clients can seamlessly share both asset-level and portfolio insights to improve fundraising efficiency and provide LPs with greater transparency. "Juniper Square and Pereview's combined offering provides a best-of-breed solution for fundraising and investor relations teams within leading GP organizations," says Matt Lawson, CMO at Juniper Square. "Until now, these groups have had to compile data from countless different sources just to get a comprehensive and clear picture of their investments. Our partnership with Pereview will change the status quo, allowing GPs to get a comprehensive and clear picture of their CRE assets and deliver it seamlessly to LPs through Juniper Square's partnership enablement platform." As a slower adopter of digital technologies, the commercial real estate industry has finally reached a tipping point. With Juniper Square's roots in investment management and Pereview's expertise in providing detailed reporting across the entire investment lifecycle from acquisition to disposition, these complementary strengths address the ever-growing need for timely, in-depth reporting. All data in the capital stack, from the investor to the fund to the investment to the portfolio to the asset to the property to the lease will be readily available for mutual clients. "Our partnership with Juniper Square provides a best-of-breed, full-stack solution for the marketplace with a custom integration built exclusively for our current and future mutual clients," said Daryl Pitts, senior vice president of global sales for Pereview. "Where Juniper Square is strong in the processes around raising the fund and investor relations, Pereview provides complementary strengths in comprehensive, globally compliant data aggregation and reporting to equip asset, portfolio, and fund management professionals with the 360 view they need to make data-driven decisions." "The combination of Pereview and Juniper Square provides complete coverage for all of our needs," said Dalfen Chief Investment Officer Max Gagliardi. "From the start of fundraising to investor reporting, from portfolio analysis to strategy at the asset level, all the way down to industry exposure and lease clauses—all of our data, across the entire investment lifecycle is supported. We now spend more time doing deeper investment analysis allowing us to drive value creation across our portfolio versus spending time updating many Excel files to answer the same set of questions over and over again. Pereview and Juniper Square have been a game changer for us. We've been able to support the growth of our platform and materially increase portfolio analytics capacity without having to grow the team significantly." In addition to Dalfen, existing mutual customers between Juniper Square and Pereview include PCCP, Ryan Companies, Rockwood Capital, Singerman Real Estate, and many more. About Juniper Square Juniper Square is the leader in partnership enablement for the private funds industry, offering a universal system for GPs and their LPs to seamlessly connect and communicate across every stage of their partnerships. Juniper Square empowers investment managers to accelerate fundraising, scale operations efficiently, and improve investor satisfaction. More than 1,800 GPs rely on Juniper Square to manage more than 32,000 investment entities that span over 500,000 LPs and $700 billion in investor equity. About Pereview Pereview is the leading provider of asset management software and portfolio analytics to the global real estate industry. Agnostic to OP platforms and preferred by LP's, GP's, Institutional Investors, Owners and Managers, Pereview is built by real estate professionals for real estate professionals. By aggregating, integrating and interpreting your internal and external disparate data into the industry's only all-in-one platform, Pereview provides actionable insights into every step of the investment lifecycle. Drive NOI, break down silos and make stronger, more accurate decisions based on your accurate and governed data. With all of your transactions, asset, and portfolio management data in one place across both equity and debt investments, a Pereview client has full visibility into The Life of The Asset®. With both out of the box and customization options, we help clients make more trusted decisions and Do More With Your Data®.

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Real Estate Technology, Real Estate Investment

MRI Software Acquires PropTech Services Leader Loci Solutions

PRNasia | July 17, 2023

MRI Software has acquired Loci Solutions Group Pty Limited, an Australian property technology consulting and outsourced managed services company serving commercial, industrial, and retail property markets across Asia Pacific. Loci Solutions is well-known as an MRI Certified Partner specialising in the implementation of property management systems (PMS) for property developers, managers, and owners/investors. It also provides value-add outsourced accounting and lease administration services, as well as concierge support. David Bowie, Senior Vice President and Managing Director for MRI Software in Asia Pacific, said, "I'm excited to officially welcome Nikki, Gwen, and the rest of the Loci team to MRI. This acquisition strengthens our MRI @Work™ capabilities and enables us to scale and better support our commercial clients in their business growth. We're particularly excited to add Loci's outsourced lease administration services to our portfolio, helping clients automate manual tasks, reduce costs, and accelerate time to value." "Loci has been one of our key partners for over 15 years, serving as our primary implementation partner for Property Management X (PMX) in APAC for most of this time. As we integrate Loci's capabilities into our solution suite, our clients will have a more consistent experience and further benefit from our combined PropTech expertise," he said. Loci co-founder to lead MRI @Work Professional Services and Support Loci CEO and co-founder, Nikki Steadman, will lead the APAC MRI @Work Professional Services and Support team, which supports some of Australia's largest and most complex commercial real estate portfolios. Speaking in her new capacity as Head of MRI Professional Services and Support for MRI @Work, Asia Pacific, Ms. Steadman says, "We've felt like an extension of the MRI family for the last 15 years, and it's an honour to be formalising our relationship. Creating a united team like this allows an even more integrated approach for our commercial clients. I am really excited about the depth and breadth of service and product we're able to offer together. It's my privilege to now lead the unified team as we work from beginning to end in a client's journey and success." Mr. Bowie says, "Rest assured, MRI remains committed to our core value of providing clients the ability to choose the service providers that best meet their business needs. We look forward to continuing to grow and enable our managed services and consulting partner ecosystem to meet client demands and deliver world class services with a sole focus of client success." The financial terms of the deal are confidential. About MRI Software MRI Software is a leading provider of real estate software solutions that transform the way communities live, work and play. MRI's open and connected, AI-first platform empowers owners, operators and occupiers in commercial and residential property organisations to innovate in rapidly changing markets. MRI has been a trailblazer in the PropTech industry for over five decades, serving more than six million users worldwide. Through innovative solutions and a rich partner ecosystem, MRI gives real estate companies the freedom to realise their vision of building thriving communities and stronger businesses. For more information, please visit mrisoftware.com/au.

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Market Outlook, Real Estate Investment

Workspace Property Trust Successfully Modifies and Extends $1.3 Billion CMBS Facility in Challenging Commercial Real Estate Capital Markets

Businesswire | July 06, 2023

Workspace Property Trust (Workspace), the preeminent US suburban commercial office property owner and partner for the Fortune 1000, announced today that it successfully modified and extended its approximately $1.3 billion CMBS facility, securing a two-year extension for loans supported by its nearly 10 million square foot portfolio of 146 suburban office and light industrial, R&D and flex industrial properties in 14 major metropolitan markets across the US. In additional to this portfolio, Workspace owns an additional nine million Class A square feet of commercial office portfolio across 59 properties in the US. The successful refinancing of this Workspace’s Class A portfolio is a major accomplishment in one of the most difficult commercial real estate and capital market environments in decades and reflects the strength, experience and operating performance of the Workspace management team. Iron Hound Management Company LLC served as financial advisor to Workspace. Workspace Strengthens Its Balance Sheet To Invest in Growth “We are thrilled to have successfully modified and extended our $1.3 billion CMBS facility with a two-year extension and significant equity participation,” said Thomas A. Rizk, co-founder and CEO of Workspace. “Getting this deal done in what many have described as the most challenging real estate market in decades was no small feat and is testament to the underlying strength of our portfolio, the resilience of the suburban office sector, the promise of our pipeline and the capabilities of Workspace’s vertically integrated national platform. With the strengthening of our balance sheet, we are now in the enviable position of driving growth by investing in our leasing operations and deploying state-of-the-market enhancements in key market locations as we double down on the opportunities in the suburbs. We appreciate the support of our lenders, partners and investors and are focused on the tremendous opportunities in front of us.” Workspace owns and operates suburban office buildings in 14 of the top 20 US metropolitan areas, including Atlanta, Philadelphia, Dallas, Charlotte, Tampa, Phoenix, Silicon Valley, South Florida, Houston, Portland, Seattle, Minneapolis, Chicago and St. Louis. Approximately 40% of the Fortune 500 have headquarters in Workspace markets and nearly seven million square feet of the Workspace portfolio is leased by companies included in the Fortune 1000. Workspace Suburban Markets Outperform Central Business Districts In addition to the financing news, Workspace also released the findings of a recently conducted analysis of national real estate data that highlight the meaningful outperformance of suburban commercial office markets over downtown commercial office locations. The data set, compiled for Workspace by CBRE Strategic Investment Consulting, a global leader in commercial real estate services and investments, underscores the strength, vitality and energy of suburban office markets as employers across the country reinvent how and where people work today. At the national level—and in key markets driving US economic growth— suburban office submarkets have outperformed central business district submarkets during each of the past three economic downturns, with smaller declines in rent growth and absorption rates and much steadier vacancy rates. This pattern has been particularly pronounced since the onset of COVID-19 and is leading to a fundamental reset in how corporate America is thinking about where and how their people should work. Based on the CBRE data, this resiliency is largely expected to persist through the current cycle, as many suburban locations continue to benefit from a rising number of occupiers and employees prioritizing the value of working closer to home. “Workspace Property Trust is differentiated by our proven core strategy – to provide innovative and responsive real estate solutions to the Fortune 1000 in fast-growing, highly desirable suburban commercial markets across the country,” said Roger W. Thomas, co-founder, President and COO of Workspace. “In the last year, we transformed our business by doubling our footprint to more than 19 million square feet of commercial and light industrial assets in some of the most vibrant markets in the US, offering our customers lifestyle oriented, community-based working environments that are fundamental requisites for corporations today. The CBRE data we are highlighting today is a clear and resounding affirmation that today’s most progressive companies – large and small – are investing in suburban markets, reversing decades of legacy thinking.” Mr. Rizk further stated, “New patterns of work and new demands by our tenants and their employees directly translate into the need for new long-term real estate innovation. We know the biggest single issue for our tenant partners is reducing the commuting time for their employees, allowing them to spend more time with their families. Our commitment to service and convenience and relentlessly focusing on delivering on our promise of “Work. Life. Balanced.” has solidified our partnerships with a number of Fortune 1000 organizations as they double down on their suburban footprints, investing significant dollars and resources in the lives of their team members. When Roger and I started Workspace, suburban office was a contrarian bet. The CBRE data validates what we’ve been experiencing on the ground over the last few years coming out of the pandemic: suburban office is benefitting from a foundational demographic shift to suburban submarkets in gateway metropolitan areas across the country where the quality of the work experience is the defining factor in leasing decisions.” Suburban Markets Outperformance: National and Local Metrics Nationally, suburban commercial office outperformed central business district commercial office in several key metrics, including vacancy, net absorption and rent growth. In 2022: By year-end, the national vacancy rate for suburban office was 17.2% vs. 17.6% for central business districts, the first time the suburban rate has been tighter since 1989. On net, the amount of suburban office space absorbed by occupiers in 2022 was equivalent to 0.3% of total suburban inventory. Meanwhile, downtown space was put back on the market (negative net absorption) at an amount equivalent to 0.2% of downtown inventory. Year-over-year rent growth in the suburbs was a full percentage point higher than in central business districts -- 1.6% vs. 0.6%. Additionally, when ranking U.S. suburban office markets across a variety of performance metrics, every Workspace market was represented within the top 15 for at least one metric, with several markets ranking in the top 15 multiple times. For example, over the past two years (Q4 2020 – Q4 2022): Fort Lauderdale and Miami tied for the sixth-highest increase in post-pandemic rent growth among all suburban office markets, with asking rent increases of 1.7% in both markets. Charlotte and Phoenix tied as the 11th highest in rent growth, with increases of 0.8% in both markets. San Jose ranked second for the most square feet of suburban office space absorbed and seventh for absorption as a share of total inventory. Other Workspace markets appearing in the top 15 for one or both of these absorption metrics were Chicago, Atlanta, Fort Lauderdale, and Miami. Based on forecasts for the next two years (Q4 2022 – Q4 2024): Workspace markets represented five out of the top eight suburban markets with the strongest near-term rent growth projections. These markets include Milwaukee, Phoenix, Houston, Miami and Fort Lauderdale. Dallas was the third-highest ranking market for the expected gap between the suburban and central business district vacancy rate – 22.4% in the Dallas suburbs vs 27.1% in the Dallas CBD. Other Workspace markets in the top 15 across this metric include Seattle, Houston, Kansas City, St. Louis, Fort Lauderdale and Minneapolis. About Workspace Property Trust Workspace Property Trust is a privately held, vertically integrated, full-service commercial real estate company specializing in the ownership, management, leasing and development of office and light industrial, R&D and flex space across the US. Founded in 2015, as combined Workspace owns and operates approximately 19 million square feet of suburban office and light industrial, R&D, Flex (IRDF) properties in markets across the country, including 14 of the top 20 US metropolitan areas. For more information on Workspace, please visit www.workspaceproperty.com

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