Upgraded Space = Upgraded Productivity

Have you ever worked in an office environment that felt like a cave, or had no natural light, or had plain drab colors everywhere you looked? Did you notice a tendency to being more tired or stressed in the atmosphere? I know that I have! What a lot of new studies have shown is a work atmosphere makes a huge difference in productivity. I read this great article in Utah Business Magazine this morning entitled "Office Deluxe" written by Sarah Ryther Francom. It discussed how a company could increase its productivity, decrease its turnover, and create a more positive corporate image by upgrading its work environment.

The article quoted Pamela Ballo, business coach at Thrive Living, she discussed the importance of fitting your office to your employees. “Companies that want to be competitive and keep their [employees] have to be flexible and have a positive culture...Work hard to create an environment and culture that actively supports your specific workforce,”.

Francom discussed two ways to make this happen. First was to "Lighten Up". This was accomplished in two ways. First by bringing brighter colors into the work area and more light, preferably natural light. Second was to update the decor, new furniture or even knocking down some walls to give a more open feeling.

The second way was to "Keep it Sizzling" or "Work hard play hard". The article discussed how employees are going to take mental breaks if you give it to them or not, so why not provide an atmosphere that will allow employees to de-stress!

Francom ended the article by discussing the cost advantage in revamping an old, ad equated work environment. She made this point by highlighting the cost of losing key employees and how that can far exceed the cost of a couple buckets of paint or as large an expense as new furniture!

To read the articles in full follow the link below:

http://utahbusiness.com/issues/articles/7583/2008/11/office_delux
PS. You may have to sign up for a membership.

NAI Global Forms Venture with Bluestone Real Estate Capital

NAI Bluestone to Assist Lenders, Property Owners in Credit-Starved Property Markets

NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, announced today the formation of a new venture with real estate investment banking firm Bluestone Real Estate Capital to provide creative financing solutions tailored to today’s challenging financial markets.

Bluestone Real Estate Capital is a real estate investment banking and advisory firm that specializes in arranging debt and equity financing for private and institutional property owners, developers and investors in major markets throughout the U.S. The company completes over $1 billion in transactions annually with a client roster that draws from leading institutional capital providers.

NAI Bluestone Real Estate Capital will work with lenders, property owners and investors to arrange debt and equity financing for commercial real estate assets. The NAI Bluestone team will also leverage their extensive experience working with banks and financial institutions to provide asset recovery strategies for non-performing and underperforming real estate assets, including asset evaluation, repositioning and disposition of properties and loans.

NAI Global President & CEO Jeffrey M. Finn and Bluestone Real Estate Capital Chairman Matthew McManus, said NAI and Bluestone joined forces in response to an urgent need for these services as the economic correction and credit crunch that started in the residential sector continues across most commercial property markets. The market today has become gridlocked with credit-starved property owners in desperate need of financing and lenders overwhelmed by problems in their existing loan portfolios.

“The turmoil in today’s capital markets has had a tremendous impact on lenders, who need help working through problems in their commercial real estate mortgage portfolios, and property owners and investors who are having trouble finding the financing they need for existing projects as well as new investments,” said NAI Global’s Finn. “Bluestone’s capital markets expertise dovetails nicely with our Asset Optimization practice and Accelerated Marketing Program, creating a debt and equity financing, asset disposition, repositioning and loan sale practice that is in high-demand in today’s market.”

“Bluestone is focused on providing innovative solutions to lenders who are facing one of the most difficult periods in commercial real estate history,” said Bluestone’s McManus. “NAI Bluestone combines NAI Global’s local market expertise and global reach with Bluestone’s commercial real estate debt and equity financing capabilities, creating a service offering to meet property owners and financial institutions’ immediate needs.”

NAI Bluestone is based in Philadelphia, PA, and works through NAI Global’s managed network, which includes over 5,000 professionals and 325 offices in 55 countries. NAI professionals complete over $45 billion in transactions annually.
Posted at 02:30 PM in

Commercial Real Estate, In the News, Investment/Capital Markets, Market Trends Permalink

Obama VS. Commercial Real Estate

The US made history yesterday in electing the first African American president. It will be interesting to see what the next four years will have in store. Regardless of your political standing I feel that a person has to take note of the amazing step forward in our society it is to see a person of an ethnic backround that 40 or so years ago could not vote has ascended to the highest office in the land. That is Historic!

Putting all other issues aside I thought I would use this opportunity to show how one of the new presidents policies could affect commercial real estate here in Utah.

President Elect Obama has been very open in his intention to raise capital gains taxes on any American making over 250,000 per year. He has been quoted saying, “certainly would not go above . . . 28 percent,” adding, “and my guess would be it would be significantly lower than that.” From all indications the rate will be in the 25% range. I am no economist and do not suppose to understand the macro economics on a tax decision like that but I feel that a change like that can effect the Salt Lake City commercial real estate market.

President Elect Obama also quoted the oracle of Omaha as saying a rate between 20 – 25% would not affect economic decision-making. Mr. Buffet is probably right for the Berkshire Hathaway’s of the world. When your portfolio is measured in the hundreds of billions then what is another couple million sent to Uncle Sam. But how does it affect a smaller market like Salt Lake. Lets look at some numbers. And I will oversimplify!

Bob the investor owns Property A:

Property A
Purchase Price: $1,000,000.00

Bob then owns the building for 2 years does some great improvements and takes the occupancy from 50% to 95%. Bob decides to sell the building that is now worth a great deal more.

Property A
Sales Price: $1,865,000.00

Bob has now realized an $865,000.00 capitol gain! The current capitol gains tax rate is 15% lets compare that with the possible 28% we could see in coming years.

15% = $129,750.00 to Uncle Sam
28% = $242,200.00 to Uncle Sam

Does this affect the decision making process of Warren Buffet? No! But it does affect the “Joe the Plumber” investors that are in this smaller market.

There is some good news from this change! ACT NOW! Now is the time for property owners that want to unload property to do it. Or they can sit out the next four years and hope for a different tax policy in 2013!

Follow this link to get the source info for quotations.
http://blogs.abcnews.com/politicalradar/2008/08/obama-clarifies.html

ELECTION DAY!

ELECTION DAY!

I hope that anyone that reads this blog knows that I am a very patriotic person. I firmly believe that the United States of America is a blessed nation and was set up by God for a purpose. I would challenge any person that objects this to read any history book about the Founding Fathers or many of the miraculous events that lead to the creation of our amazing constitution.


I will never on the other hand use this blog to promote one political agenda over another unless I feel that it is directly industry related ie. changes in tax code or eminant domain.


Today we have the opportunity to vote, which is one of the things that make this country so great. I have put the link below to a site that I found that takes a look at all the presidential candidates and you can compare positions side by side. Not by someone’s opinion of what that position is but by things they have said! Hopefully this is helpful in the decision process for anyone who reads.

http://2008election.procon.org/