Western Real Estate Business

OCT 2018

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

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www.REBusinessOnline.com Western Real Estate Business • October 2018 • 51 Sanderson: There is so much noise in the system that our audience has a tough time remembering specific mes- sages. The key is to create a buzz that is different from the rest of the noise so that your audience pays attention to your message. To do this, you need to first understand the unique appeal of your property or service, as well as the real needs of your target audi- ence. Once clear, you can develop messages and create strategies to cut through the noise and grab attention. This process could entail harnessing the latest and greatest in technology and trends, or it could be the exact opposite — taking something back to basics. Tamaki: Our clients are more aware of new technologies and are willing to invest in comprehensive brand- ing, marketing and innovations to achieve their growing expectations. With so much competition today to attract and retain tenants, every landlord wants to position and repo- sition their asset to be an amenity- rich, flexible workplace, attractive to Millennials or a creative workforce. Potential tenants are looking for new workplace experiences and want to fully explore their opportunities before making a next move. Using 360-degree virtual tours or virtual reality (VR) has become a standard way to show off a space. Drone vid- eos and virtual panoramas are also becoming mainstream. WREB: Any predictions for new, innovative tools in commercial real estate marketing? Sanderson: Yes, personalization. Delivering dynamic, creative con- tent to a targeted audience creates better engagement, guiding consum- ers down the path to conversion. In commercial real estate, this trans- lates to anything that can help poten- tial tenants visualize themselves in a space. Virtual reality is very power- ful in evoking emotion. Being able to personalize that experience by augmenting it with the use of an interactive tool further aids tenants in envisioning their new space with 3D walkthrough visualizations spe- cific to their workplace needs and budget requirements. I'd also love to see a virtual environment that isn't as singular as using goggles can be. What if that same environment was manufactured for an entire group so we could all experience it together and feed off each other 's energy in the experience? Tamaki: The future of commercial real estate marketing lies within artificial intelligence (AI). About 28 percent of companies have already adopted AI and 41 percent are slated to adopt it within the next two years. This technology will help deliver rel- Visually compelling deliverables like proposals, presentations, brochures and ad campaigns are complemented with multi-media channel content that differentiates, innovates and evokes emotion. immune to another issue that is defi- nitely on the minds of seniors housing investors: wage pressure. The national job market has become increasingly tight. The Labor Department reported more than 200,000 new jobs created in August 2018 and a jobless rate of 3.9 percent. Wage increases have belatedly begun to reflect demand. In Western markets, the effect is heightened because wage growth is starting from a higher point. Many states have set their minimum wage above the national average and are committed to raising them higher. Faced with these challenges, they must be more stringent about cost controls and strategic about rent increases. Western Properties Find Ready Buyers These higher labor costs do not seem to have diminished investor interest in Western properties. Perhaps the big- gest news this year has been HCP's ongoing divestiture of its senior hous- ing portfolio. Many of the properties in the transactions Capital One has financed so far in 2018 have also been in the West. This includes a group of 18 assets that a joint venture (managed by Seattle-based alternative invest- ment firm Columbia Pacific Advisors) acquired, as well as 10 assets being purchased by Chevalier International Holdings for management by Avamere Health Services, a regional operator in based Wilson, Ore. While this might not indicate a trend, it does demonstrate that inves- tors — especially those associated with large, regional operating companies — see value in these Western properties, especially to infill existing Western portfolios. n continued from page 49 W H A T ' S B U G G I N ' Y O U ? Pest Control for Professionally Managed Properties OFFICE RETAIL INDUSTRIAL RESIDENTIAL Eco-Friendly Solutions | Serving Southern California Pest Control Pigeon Control Termite Control Rodent Control Bee Control Gopher Control 1.877.522.2377 | www.AccessExt.com evant, personalized experiences in real time, learning what cli- ents want, identifying significant events, and making recommen- dations to reach the right clients at the right time. I also see Aug- mented Reality (AR) taking over VR in popularity. About 39 per- cent of large companies currently use virtual/augmented reality to enhance the ability for employ- ees to train in simulated environ- ments. We currently use VR for commercial real estate market- ing to show what does not yet exist, but integrating AR as an overlay for existing spaces can help a potential tenant visualize new concepts or a fresh build-out in an existing location. AR can create more immersive and emo- tional experiences for potential tenants. And with social media platforms supporting 360 videos, our mobile devices will eventu- ally replace websites for better user experiences for all market- ing communications. n

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