Four reasons offices should consider following workers to the suburbs.

Recent surveys show that consumers are looking to move out of cities, and in one report released in June, 82% of workers indicated they’d prefer to work from home at least two days per week. Here are four reasons offices should consider following workers to the suburbs.

• Rental cost: Office space in the suburbs often rents for about 75% of the amount charged for comparable space in the local central business district. And sometimes the difference is even greater: The average cost of office space per square foot is $29.50 in downtown Chicago but $15.75 in nearby Oak Park, Ill.
• Parking rates: Average monthly parking costs are $430 in New York, $300 in Chicago, and $220 in Los Angeles. In the suburbs, parking is often free.
• Amenities: Suburban areas naturally offer greater space and ability for social distancing than cities, but they are increasingly offering other conveniences such as walkability, grocery delivery, restaurants, and bars and nightlife.
• Access to workforce: Even before the pandemic, millennials and younger Generation Xers were already leaving the cities. 2018 was the fourth year in a row that cities with more than half a million people lost residents aged 25 to 39 to lower-density areas.

©National Association of REALTORS®
Reprinted with permission

Proper hand hygiene is a key ingredient for staying healthy. Indeed, the Centers for Disease Control and Prevention says regular hand-washing is one of the best ways to remove germs and prevent their spread—important in fighting the coronavirus. That raises the question: What are the most effective hand sanitizing options? Here’s the rub on five variations:

Soap and water. There’s a reason surgeons scrub for surgery instead of grabbing a wet wipe. Washing your hands for 20 seconds in plain old soap and water is the gold standard. Scrubbing your hands lifts up stubborn dirt and allows the soap to bond to the dirt or chemicals and tear germs apart.

Antibacterial soap. Antibacterial soap may seem like an improvement over traditional hand soap, as it helps kill bacteria, but it actually does more harm than good. While the additives in antibacterial soap do kill germs, their chemicals are no faster at killing germs than regular soap, even though most consumers think they are. This false confidence means people using antibacterial soap tend to wash more quickly, believing they have received a more thorough cleaning than they really have.

Natural soaps. Natural hand soaps can be as effective as chemical-based hand soaps. However, soap making is still a science, whether you’re using olive oil or sodium lauryl sulfate. Imprecise measurements can lead to ineffective, irritating soaps.

Hand sanitizer. If there isn’t a sink nearby, hand sanitizer can be a hand hygiene hero. The caveat? It only works on mostly clean hands. Read: If your hands are filthy with soil, sweat, or grime, the sanitizer will be consumed by the gunk and won’t be able to kill the germs on your hands. Also, many people greatly underestimate how dirty their hands are and throw on only a little spritz of sanitizer, which won’t do the job. So remember to thoroughly wet all parts of your hands to avoid undersanitizing.

Hand wipes. Hand wipes, both antibacterial and traditional, are another a great option for people on the go, but they need to be used properly. If your hands are gross to start with—like after a messy lunch—you may have to use multiple wipes to clean your hands thoroughly. Using hand wipes properly takes longer than smearing around sanitizer or soapy water.

©National Association of REALTORS®
Reprinted with permission

Led by strong demand and pricing, industrial real estate is expected to flourish in the year ahead.

Led by strong demand and pricing, industrial real estate is expected to flourish in the year ahead. These four factors are fueling factory and warehouse gains.

1. Cold storage needs are rising. Food and beverage e-commerce is driving the demand for cold storage facilities. An additional 75 million to 100 million square feet of freezer and cooler space is expected to be needed over the next four years to meet the demand for direct-to-consumer food delivery.
2. Technology developments are shaping industrial spaces. Robotic piece-picking machines, autonomous vehicles, and more efficient sorting and picking have led to the construction of larger and taller distribution facilities—the total number of buildings with ceiling heights of at least 40 feet have increased from fewer than 200 in 2017 to a projected 275 in 2020, and new industrial developments of at least 500,000 square feet jumped from 180 in 2017 to 210 in 2019.
3. Distribution speed is blurring the lines between storage and retail. Mega retailers like Amazon and Walmart now offer one-day shipping. In addition, Walmart and Target use their retail stores as distribution points, creating a combination of warehouse and storefront.
4. Artificial Intelligence and machine learning are driving efficiencies. Automation technologies such as transaction processing, order trading and delivery, and supply-chain planning can reduce manual work, costs, and errors. In addition, businesses are projected to create more domestic supply chains as a result of the pandemic. If business inventory increases by 5%, an estimated 400 million to 500 million square feet of additional warehouse space could be necessary to accommodate the new level of goods stored in the U.S.

©National Association of REALTORS®
Reprinted with permission

Don’t know exactly what you want from a customer relationship management tool? Ask these questions to identify which options will address your true needs.

Choosing the right customer relationship management tool may be one of the most frustrating aspects of setting up your real estate business. Many practitioners have tried several systems but still can’t seem to find the one that fits their needs. If it works correctly, your CRM should serve as a silent partner, providing the structure to organize and nurture your contacts and relieve you of repetitive, mundane duties so you can focus on building your business. But too often, real estate pros find that their CRM doesn’t offer enough of the support they wanted.

Before choosing a CRM, you have to know what you want out of it. Blindly trying out systems can quickly become a waste of time. Micah Olson, associate broker at RE/MAX Results in Orem, Utah, advises that pros pass on CRMs that aren’t real estate–specific because they won’t be able to address your specialized needs. “I don’t see why anyone would want to customize a non-real estate CRM,” he says. “There are enough systems available today that are already set up for how real estate professionals work and the information they need,” he adds.

But Olson has learned that it’s rare for a single CRM to have all the features and functionality a practitioner needs. So how can you find the one that comes the closest? Here are some questions to ask as you look for the CRM that will work best for you.

1. Is it compatible with other tools you’re already using? Olson, who uses Top Producer(link is external), found that he could easily integrate video service BombBomb(link is external) and the Riley lead management system(link is external) into his CRM. Focus particularly on a CRM that will be compatible with your lead generation tools, Olson suggests. “Talk to your top three sources of leads and find out which CRM integrates most naturally with their system so you won’t have to enter [customer] information manually.”
2. Does it have robust automation features? A CRM’s capacity to set up and automate routine correspondence and marketing campaigns is probably most important for real estate professionals, Olson says. He’s created automated communication plans for a range of business opportunities, such as buyer and seller leads, new listings, valuation requests, buyers under contract, and follow-up with clients. “I can even set auto emails to go out six months after doing something like a valuation request, asking a client if they would like an update,” he says.
3. Does the CRM provider offer sufficient customer support? It’s important to know that if you run into problems using your CRM, you’ll get adequate assistance. When Joe Pryor, CRS, broker-owner of The Virtual Real Estate Team in Oklahoma City, upgraded to RealtyJuggler(link is external) four years ago, one of the aspects of the CRM he appreciated most was its video tutorials and step-by-step guides on how to use its features. “So you don’t have a huge learning curve,” Pryor says. And if he needed to call or email customer support, a representative was always quick to respond, he adds. “I really appreciate how personable, available, and responsive customer support is if you have a question.”
4. Does the company behind the CRM have staying power? Newer companies may be creating CRMs with more state-of-the-art features, but if they haven’t established longevity in the market, you could be stuck looking for another CRM if they go out of business. Mary Pope-Handy, CRS, CIPS, a sales associate with Sereno Group in Los Gatos, Calif., was using one CRM but the company folded. As a result, she lost all of the email records that were attached to her contact list. She wanted assurance that her next CRM provider would be around for the long haul, so she decided to use PropertyBase(link is external), which integrates with SalesForce.com(link is external), a longstanding company. “SalesForce is a big platform, and it won’t go out of business,” Pope-Handy says.
5. How much time are you willing to invest in learning a CRM’s features? “You can find a CRM system with basic functionality that’s easy to use—but it doesn’t do much,” Pope-Handy says. “Or you can choose a system that will do whatever you want, like track referrals, but you have to be willing to invest your time to learn how to use it.” She says her CRM can “do anything you can imagine,” though it took her about a month to learn how to navigate the system. So when you’re evaluating CRMs, first look at the basic features you need, then determine how many extra features you have the patience to learn.
6. Will the CRM be appropriate for everyone on your team? Chris Kallin, a sales associate at Realogics Sotheby’s International Realty in Seattle, says that when he joined the brokerage’s four-person Seattle by Design team a year ago, each team member was using a different CRM. “One of the first questions I asked was, ‘If we are going to use a CRM, why not implement the same system for everyone?’” Kallin says. Over several months, he sought recommendations from other real estate professionals, researched dozens of options, and tried several before narrowing his list down to the top three, based on factors such as price, user interface, and intuitiveness of the software. User interface in particular is an overriding factor when choosing a CRM for a team, Kallin says.
7. Do you want your CRM to focus on sales or relationships? When you launch your CRM, what kind of information first pops up? “If it’s a sales funnel and weighted opportunity figures, then it’s a sales-focused CRM, and that purports to be its primary value,” Kallin explains. “If it first presents you with contact records, then it’s more people-focused.” His team members emphasize client relationships, so they chose IXACT Contact(link is external) as their team CRM. Kallin especially likes a feature that includes the name of a client’s partner or spouse in each contact entry and uses both names in automated correspondence.

Remember that choosing a CRM is a personal decision and should reflect what you consider most important in your business, Kallin says. Once you’ve compiled a short list of potential solutions, the best proof is in their use. “Most CRMs offer a free trial,” Kallin notes. “Spend a couple of hours under the hood seeing how records are set up, what kind of action plans it provides, and how much of the work is already done for you. Then you’ll know which one is your best choice.”

©National Association of REALTORS®
Reprinted with permission

New renters over 60 are on the rise, growing 43% from 2007 to 2017 to reach 9.4 million.

In recent years, millennials have been the largest growth segment in multifamily rentals. However, renters over the age of 60 account for one-third of current rental applications in urban areas, and new renters over 60 are on the rise, growing 43% from 2007 to 2017 to reach 9.4 million. By 2035, the figure is expected to double. Here are five reasons for the surge.

1. Boomers are downsizing from larger homes.
2. They want to do less home maintenance as property management handles repairs.
3. Apartments offer age-friendly floor plans—no stairs, larger spaces for mobility devices, wider shower stalls.
4. Apartments may have amenities appealing to baby boomers, such as high-end fixtures and finishes or soundproofing.
5. Boomers have had time to accumulate savings and will be less rent burdened in managing expenses.

©National Association of REALTORS®
Reprinted with permission

Strong demand for multifamily rental units along with steady rent growth are bolstering the rental market.

Strong demand for multifamily rental units along with steady rent growth from the first quarter of 2020, projected through the first quarter of 2021, are bolstering the rental market. Here are four positive indicators:

• Year-over-year leases: In a recent NAR survey, REALTORS® reported a 33% year-over-year increase in dollar volume of new leases in the first quarter of 2020 in Class A and 35% in Class B/C, the best year-over-year leasing numbers across all commercial markets.
• Rent prices: Apartment rental prices are holding steady, rising an estimated 0.2% from June 2019 to June 2020. As of June 2020, the median price for a two-bedroom apartment was estimated at $1,192.
• Tenants keeping current: As of late June, 92.2% of apartment households in buildings with 5 or more units paid their rent—a level unchanged from a year ago.
• Construction: Multifamily starts have been on the rise since mid-2019, increasing from an annual rate of 333,000 in July 2019 to a peak of 619,000 in January 2020. There were 527,000 starts for multifamily units in February 2020.

©National Association of REALTORS®
Reprinted with permission

What to ask before entrusting a commercial cleaning business for your office in a COVID-19 world.

Everyone deserves to work in a dust-free, germ-free, and contaminant-free office—which is why hiring an exemplary commercial cleaning company is a must. In addition to finding out what a company’s rates are and talking to references, here are seven questions to ask before entrusting a commercial cleaning business for your office in a COVID-19 world.

1. Are you insured and bonded? General liability insurance and workers compensation insurance are must-haves. You’ll want to verify coverage to ensure you’d be protected in the event one of the company’s employees breaks something in your office or gets injured on the job.
2. What cleaning services do you provide? Some companies offer special services, such as window washing and hardwood floor buffing, that you may need in addition to basic cleaning tasks like dusting, vacuuming, and disinfecting surfaces.
3. What kind of training do your employees receive? You wouldn’t want a rookie mechanic repairing your car, would you? In that vein, you only want to hire people who are professionally trained to perform commercial cleaning duties. Pro tip: Find a company that performs background checks on its workers.
4. Do your bring your own cleaning tools and supplies? A full-service commercial cleaning company supplies its own vacuums, floor polishers, and other cleaning equipment, which makes the process seamless.
5. What businesses do you service with an office like mine? Experience matters, without a doubt, but you don’t want to just find out how many years a company has been in business—you also want to confirm that they have experience cleaning offices similar to yours.
6. Are you CIMS certified? A Cleaning Industry Management Standard certification from the trade group ISSA adds credibility to a professional office cleaning company. It’s among the most rigorous credentials developed for the industry.
7. Do you have a quality control process? You want to hire a cleaning company that tracks and manages the quality of its employees’ work.

©National Association of REALTORS®
Reprinted with permission

Short-term vacation rentals are working to integrate new technology and sustainability into operations and offerings.

With 96% of hotel guests carrying smart devices, and 70% of travelers indicating a preference for eco-friendly accommodations, hotels are working to integrate new technology and sustainability into operations and offerings. Short-term vacation rentals are well-equipped to offer the same services. Here are five ways they are following suit.

Digital guest experiences: mobile version of website, in-app chat, direct messaging.

Local guest experience opportunities: off-the-grid tours, volunteer work with local nonprofits, shopping for organic ingredients from local farms.

Sustainability: responsibly sourced toiletries; lights and thermostats that can be shut off or adjusted remotely; recycling options.

Augmented and virtual reality: virtual tours that provide the ability to see the interior before check-in; beacon technology to send virtual keys to guests’ phones; instructions for amenities such as laundry, security systems, and entertainment options relayed to renters through an accessible video library.

Smart homes and properties: voice technology, virtual concierge services, online guidebooks curated
by a host or property manager making local recommendations.

©National Association of REALTORS®
Reprinted with permission