Has your HBA created a dynamic program that helped you grow your business or expand your industry knowledge?
NAHB is now accepting nominations for the Association Excellence Awards, an annual program that recognizes the outstanding accomplishments of state and local HBAs (HBA Awards) and executive officers (Individual Awards) in the field of association management.
The HBA Awards feature categories like Best Community Service Project, Best Education Program and Best Membership Event. The award categories are judged by association size, so all associations have an opportunity to be recognized for their achievements.
If you’ve participated in a local HBA program that you think deserves recognition, we encourage you to let your HBA know the impact of that program on you and why you think it’s deserving of an AEA-HBA Award. Applications must be submitted by Executive Officers (or their designees), however, feedback from members can encourage them to apply and could strengthen their application.
Plus, it’s always great for HBAs to hear how their services are helping their members.
The deadline for AEA-HBA Award nominations is March 31. Winners of the 2018 AEA Awards will be announced in July. For more information about the awards, visit nahb.org/aea.
It’s been more than a year since my husband and I bought our Craftsman home, and I’m happy to report that we don’t count ourselves among the four out of 10 millennials who regret purchasing property. (There’s plenty of time to change our mind as we spend the next 29 years paying off our house.)
For those who didn’t catch the series the first time around, here it is in a nutshell: After finding out that our family of three was becoming four, we decided to move from our tiny West Adams apartment and attempt to buy a house in LA.
We searched in South LA and the Valley and ultimately found a three-bedroom, one-bathroom house in the city of San Fernando for under $470,000.
After spending most of my adulthood as a renter, playing my own landlord has its first-world pros and cons.
Rites of passage have included installing a Nest thermostat (and discovering that our breakers are mislabeled), upgrading bathroom faucets (oh, the joys of a basin wrench), and learning to sidestep all of the creaky floorboards that might wake a napping baby.
Like many new homeowners, we’re slowly building our collection of home maintenance tools and binge-watching every HGTV renovation show. (Vintage Flip, we’re taking notes.)
Today’s shoppers face an uphill battle in their search for a new roof over their heads. The City of Angels is an incredibly pricey place to live, and while home prices dipped last month to a median $607,500, the dwindling supply of houses hasn’t stopped people from buying in LA.
Since I’ve already revealed my own journey searching for a home, I asked a handful of fellow millennial homeowners who also bought houses within the last one to two years to share their honest experiences.
Here, five Angelenos tell us what it was like for them to buy in one of the least affordable cities (at least when it comes to mortgages). Read on to find out where they bought, how they saved for their down payment, what they wish they knew about the loan and buying process, and ultimately, the burning question, “Do you regret buying a house in LA?”
Renee, South LA
Architect Renee, 29, and her husband Gray, a 31-year-old freelancer who works in sound production, bought their first home in South LA’s Chesterfield Square at the end of June 2017. The couple (along with their tuxedo cat, Ellie) moved into their Craftsman home, built in 1912, just in time to “throw an awesome Fourth of July housewarming, with no furniture or fridge, that is.”
Their house features two-and-a-half bedrooms and one bath, “perfect for our family size, plus a little room for growth,” says Renee.
What do you love about your home?
There are original built-ins and molding throughout the living room and dining room. The kitchen was reworked at some point into a more open layout, making the 100-year-old house feel very modern in flow. We love that the house has great natural ventilation and is comfortable with windows open most of the year. We also love our fireplace and our open backyard with all of its open potential.
Where did you move from and why?
My husband and I moved from Boston to LA in 2013 due to his need to be closer to the film industry and my love of the weather. We originally settled in a back house near USC, and when we started looking for our house, we knew we loved the South LA neighborhood.
If you were previously renting, approximately how much was your rent?
We had a great deal with our rent at $1,450 a month for a one-bedroom when we moved out. But we were starting to burst at the seams and weren’t able to find as good of a deal for a two-bedroom.
How did you save for your down payment?
My husband had a trust fund from his grandparents who sat him down when he was 14 and told him it was for his down payment on a house. We were very privileged to have this down payment passed down to us.
In retrospect, what do you wish you had known about the loan application?
I was surprised, actually, at how easy it was to get a loan assessment. It’s a lot of paperwork for us freelancers, but loan representatives were very helpful and turned it around very quickly. The number they say they will let you borrow is way too high, at least in our case. So I hope most people also do their own calculations to make sure they understand what their mortgage, taxes, and insurance are going to be each month.
What was the most difficult aspect of your search process?
Being an architect, I had a lot of hangups about the style of the house—I initially wanted something Spanish- or bungalow-style which was really narrowing my search perimeters—so eventually I just went with neighborhood and budget, which is much more reasonable.
Any unexpected issues during the search, loan application, or inspection process?
The inspection process was a doozy. We had at that point really thought we had found ourselves a winner, right price, great street, etc. Then the inspection came back, and it was like, you need new foundations and plumbing, and you have a serious bird and termite infestation. A few people advised us to walk away; instead we negotiated with the seller for a reduction in price. We didn’t get as much as we wanted but the compromise felt okay, and I was able to get good deals on the renovations.
What do you love about your new neighborhood?
My neighborhood, especially my street, is a close-knit community going back decades. My neighbors have been so welcoming and helpful, and it’s really been a joy getting to know them. I also love that I’m basically 30 minutes from most places in LA; you can’t beat the commute from here.
What’s the biggest lifestyle adjustment you’ve made?
It’s funny, as an architect I deal with contractors all the time. But it’s usually general contractors, and it isn’t my house. Re-learning how to properly get three bids for every project, negotiate the price, show up, and make sure the work gets done properly was the biggest adjustment we’ve had to homeownership. Since we have both rented our whole adult lives, it’s hard to get out of the mindset of, “This problem needs to get solved now.”
Lastly, any regrets?
On the one hand I wish we had bought two years earlier when the market was better. On the other hand, buying a house and making that financial decision is huge and hard on a relationship. I’m also glad we waited and gave ourselves two years to mature and be ready for the curve balls that looking for, buying, and then owning a house throws at you.
The type of Craftsman you’ll find in South LA.Getty Images
Angela, South LA
Originally from Glendale, 33-year-old Angela bought a home in South LA last July. The LA native works in university fundraising and was living in Mar Vista before moving into her two-bedroom, one-bathroom Craftsman with her blind cat, Pantoufle, in tow. Her 1920s-built house includes a small den along with an unfinished detached garage with its own separate small office space.
What do you love about your home?
I love architectural style of the house and the fact that it’s painted orange and teal. Somehow, I feel like it works! Also, there are two big palm trees on either side of the walkway up to the front door, and you can sit on the porch and enjoy the breeze!
Where did you move from and why?
Mar Vista. Rent prices kept going up, and I was tired of sharing walls with my neighbors. I was also super tired of saving quarters for laundry.
How much was your rent?
$1,750 for a one-bedroom apartment.
How did you save for your down payment, and how much did you put down?
I saved 25 percent, or $130,000. My dad chipped in on the down payment, so he is part owner of the house.
What was the most difficult aspect of your search process?
Cost and competition. After putting down a number of offers, I came to realize that most of the places tended to end up selling for at least 15 to 20 percent over the asking price. Because my budget was pretty low by LA standards, there weren’t many ideal options for homes. The options were super limited, which of course can be difficult. But in some ways that made it easier as well because I didn’t have to live up to any expectations of finding the perfect home, and I didn’t have too many deal breakers.
What do you love about your new neighborhood?
People in the neighborhood seemed to have lived there for generations. Also, I get to see a lot of cared for stray cats!
What’s the biggest lifestyle adjustment you’ve made?
Fewer $14 cocktails, always bringing a lunch, no more cable TV, and an hour-long commute in traffic.
Lastly, any regrets?
I was too eager to redo my bathroom, and I feel like I made some hasty design choices! No regrets on buying the house though.
Tim, Encino
Before buying their first home in the San Fernando Valley this February, Tim and his wife, Katie, were living in a two-bedroom, two-bathroom apartment in North Redondo Beach. “When it came time to buy, we decided on Encino because my wife grew up here and always dreamed of buying her own home in the Valley, and actually in our exact neighborhood,” says Tim, 31, native who grew up in and around Long Beach. “Luckily, I started working at a new company right after we made the purchase, and am now able to work from home, so the commute issue didn’t last long.”
Tim, who works in project management in the healthcare industry, and Katie, a 28-year-old attorney, bought a three-bedroom, two-bathroom house in Encino Village.
What do you love about your home?
It’s a 1956-built single-story house, 1700 square feet, with three bedrooms and two bathrooms, and a two-car garage. My favorite feature is the original hardwood floors. They looked too light and a little worn down when we purchased the home, but rather than replacing them we had them refinished in a walnut color, and we’re really glad we did.
Where did you move from and why?
We originally shared a one-bedroom, one-bathroom apartment for $2,200 per month in Santa Monica. We then moved to a two-bedroom, two-bathroom apartment in North Redondo Beach at $2,800 per month for a little more room and slightly better commutes.
How did you save for your down payment, and how much did you put down?
Even though our income is more than enough to comfortably make the mortgage payment, we would never have been able to get into the housing market this soon without help from family for the down payment. The bulk of the down payment came from an investment account that my wife’s aunt and uncle started for her when she was born. This help enabled us to use our own savings to complete the rest of the down payment and to refinish the entire house, inside and out.
We bought our home in February of this year for $785,000 and we’re glad we got in when we did, because prices have already gone up. We put $157,000 (or 20 percent) down.
In retrospect, what do you wish you had known about the loan application process?
The loan application process wasn’t too difficult or stressful. We used a loan officer who has worked with our realtor (who is my childhood best friend) for many years. The two of them made the process smooth, but there were some headaches. The only bit of advice I have is to save everything related to your finances for at least two years before you plan to buy a home. We were missing a few documents, and tracking them down is possible, but painful.
What was the most difficult aspect of your search process?
Finding a home in the LA area that is in a safe neighborhood, has good schools, has a reasonable commute to downtown and other commercial areas, and does not cost $4 million. You hear about the shrinking middle class, and you can feel that if you’re house hunting in LA.
Any unexpected issues during the search, loan application, or inspection process?
If the previous owners are renting the house at the time they sell it, it can be a pain to coordinate inspections and move-in dates with multiple parties (owner and renters). It can be difficult to maintain a balance between empathy for the renters who need to arrange a new living situation and your excitement to move into your new home.
What you love about your new neighborhood?
I love walking our six-month-old Old English Sheepdog and meeting the neighbors. The neighborhood feels like the ones you grew up seeing on TV. There are kids playing basketball in the driveways, lots of dogs on walks, and little old ladies walking with two-pound weights in their hands. Our neighborhood also has direct access to Balboa Park with its soccer fields, baseball diamonds, tennis courts, and golf courses.
Biggest lifestyle adjustment you’ve made?
It is very hot in the Valley compared to the beach towns of southern LA County and the OC. In summer, A/C is a must, and you can’t walk your dog if the sun is up (unless you can get your dog to wear those silly shoes).
Lastly, any regrets?
Not at all. Home ownership brings some unexpected stressors (and related expenses), but my pride in owning a very small part of our great city more than makes up for those.
Irvin, South LA
Irvin, a data analyst, bought his South LA home over two years ago when the housing market was already tightening. The 30-year-old grew up in Koreatown and El Monte and was living on the Westside before buying a two-bedroom, one-bathroom Craftsman. “I bought the house all on my own. I believe the neighborhood is called Congress North, [but] there are so many different names for these neighborhoods,” he says.
A few months after buying his house, he adopted a dog and a few friends also moved in as roommates.
What do you love about your home?
The house was redone over the years but the original architecture was Craftsman. It was originally a two-bedroom, one-bathroom, but it had an extra bed and bath added. I love the backyard, and I also love that little by little I can make it mine. I also love the location, it’s very central and close to a lot of things and having the Metro rail just a block away has really been a big lifestyle change.
Where did you move from and why?
I was living in Baldwin Hills before, because it was close to Santa Monica and still affordable.
If you were previously renting, approximately how much was your rent?
$1,600 a month for a two-bedroom, one-bathroom apartment.
How much did you put down for your house?
I bought at $375,000 and put down $30,000. I actually got a steal, though it didn’t feel like it at the time. That included closing costs, origination fees, title insurance, etc.
In retrospect, what do you wish you had known about the loan application process?
I probably would have purchased the house under a land trust rather than purchasing it myself, because it makes transferring ownership much easier.
Most difficult aspect of your search process?
Two years ago houses wouldn’t last on the market very long. They would last a week a most before an offer was made and accepted.
Any unexpected issues during the search, loan application, or inspection process?
There were no real snags during the process. I feel like I had a good team and enough time to prepare for the process of purchasing a house.
What you love about your new neighborhood?
I love the people and the food. There’s a variety of authentic food from several different countries, and it isn’t overpriced. Also, ingredients that are normally hard to find can be found here.
Biggest lifestyle adjustment you’ve made?
A house is a huge responsibility. Being a homeowner means being ready to spend a lot of money and spending weekends working on things around the house. Using public transportation has also been a huge change, but it has definitely been for the better for the environment.
Lastly, any regrets?
None!
Angineh, Simi Valley
Before buying her two-bedroom condo in Simi Valley, Angineh, a 33-year-old insurance claims adjuster, was living with her parents in Burbank in order to save for her down payment.
Can you tell us more about the house and what you love about it?
It’s a two-bedroom condo, first floor with a patio that goes around the unit, complex has two pools. I love my place because it’s very cozy and in a quiet area. I get to grill in my patio, which I love.
How much did you put down for your house?
I saved $27,000 for the down payment and bought at $350,000.
In retrospect, what do you wish you had known about the loan application process?
Everything was new to me, and my agent was well informed in her field, so I didn’t really have any issues.
Most difficult aspect of your search process?
Traveling to different neighborhoods and deciding on a location.
Any unexpected issues during the search, loan application, or inspection process?
The seller wanted to back out, because there was a buyer who was willing to place a larger down payment.
What you love about your new neighborhood?
It’s quiet, and there’s no traffic.
Biggest lifestyle adjustment you’ve made?
I had to cut down on expenses for eating out and going out on weekends.
Real Capital Solutions has purchased a pair of Wilmington, Del., office properties from an affiliate of AIG Global Real Estate Investment Group for a total of $27.8 million.
The Louisville, Colo., investment manager paid $15.3 million, or $74.75/sf, for the Rockwood Office Park, with 204,725 square feet that's roughly 75 percent occupied at 501, 503 and 505 Carr Road; and $12.5 million, or $77/sf, for the 162,212-sf Courthouse Square, the former Alico Plaza at 600 North King St., which is just about 70 percent occupied.
The properties were marketed through CBRE.
The Courthouse Square building, near a commuter-rail station, has 10 floors and has undergone roughly $10 million of renovations over the past two years. And the Rockwood property received new heating, ventilation and air-conditioning systems, windows and renovated bathrooms and common areas 12 years ago.
The transaction marks the first investment in the Philadelphia region for Real Capital, a value-add investor that targets investments in 14 markets, from New Jersey on the East Coast to California on the West Coast. It owns apartment, retail, office, single-family and residential condominium properties.
Comments? E-mail Orest Mandzy, or call him at (267) 327-4281.
“The Weekly”
“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:
Breaking mortgage, CMBS, and REIT news
Quarterly league tables with rankings of B-piece buyers, book runners, and lenders
In case you missed this doozy last week...all we gotta say is damn (via Chicago Tribune):
Drivers, be patient, and find alternate routes if you can. Work on the Jane Byrne Interchange will go on for another four years.
That’s the word from the Illinois Department of Transportation, which has been rebuilding what used to be known as the Circle Interchange or, informally, the “spaghetti bowl,” since 2014. The finish date for the project had originally been projected at 2019. IDOT now expects it to be complete in 2022.
IDOT engineers warn that the biggest impact to traffic is coming in the summer of 2020, when a major ramp will need to be closed. This is the ramp from the inbound Eisenhower Expressway to the northbound Kennedy Expressway, which sees 26,000 cars a day.
Why is the project taking so long? It involves three different interstates, a constricted urban area, working around the CTA Blue Line, multiple bridges, a city water pumping station and the need to keep traffic flowing in a spot that sees 400,000 vehicles every day, said Steve Travia, engineer for project implementation at IDOT.
Im Zuge des Booms auf dem Wohnungsmarkt haben Projektentwickler das Potenzial von Wasserlagen erkannt. Waren einige Grundstücke entlang der Spree in der Vergangenheit noch von anderen Vierteln „abgeschottet“ oder wurden als Niemandsland bezeichnet, so hat sich dies durch die rasante Entwicklung der Stadt verändert. Besonders in Friedrichshain-Kreuzberg macht sich diese Entwicklung bemerkbar: Neue Wohnräume wurden geschaffen, viele Läden eröffnet und zahlreiche kulturelle Projekte ins Leben gerufen. Die Gegend erlebte einen beispiellosen Aufschwung: aus dem vergessenen Bezirk ist in wenigen Jahren ein Trend-Kiez geworden.
Begehrte Wohnlage – der Kiez als Lebensmittelpunkt
Die dort entstehenden Wohnprojekte gehören mittlerweile zu den begehrtesten der Stadt. Sie überzeugen nicht nur durch ihre zentrale Lage, sondern auch durch ihre hohe Lebensqualität. Kitas, Schulen und Supermärkte in unmittelbarer Nähe werten die neu entstehenden Quartiere auf. Es ist alles vor der Tür, was man zum Leben braucht. Der Kiez bietet sogar noch mehr: Hervorragende Unterhaltungsmöglichkeiten. Ein Konzert in der Mercedes-Benz-Arena, ein Spaziergang entlang der East Side Gallery oder ein Drink in einer der Top-Bars am Boxhagener Platz – das alles sind nur einen Steinwurf entfernt. Und im Herbst 2018 eröffnet die East Side Mall ihr Türen am Bahnhof Warschauer Straße.
Was jedoch ungeachtet dieser Vorzüge DAS Argument für diese Projekte ist: Die Wasserlage. Der Blick auf die Spree, in der sich die untergehende Abendsonne spiegelt, ist fesselnd wie ein Lagerfeuer. Inmitten einer Millionenstadt ist die Nähe zum Wasser, einem Sinnbild für Ruhe, begehrenswert. Nicht umsonst tummeln sich entlang der Spree und ihren Kanälen im Sommer tausende Menschen um den Alltag ausklingen zu lassen – ob alleine oder mit Freunden.
Nicht nur die Nachfrage steigt – auch Berlins Einwohnerzahl
Und so kommt es, dass nicht mehr viele Wohnungen mit Wasserlage verfügbar sind. Denn auch Käufer und Mieter haben natürlich schon lange ein Auge auf die neu entstehenden Wohnprojekte geworfen. Apartments sind daher schon oft noch vor Baubeginn vergriffen. Im Szenebezirk Friedrichshain, der unmittelbar an die Spree grenzt, stieg der durchschnittliche Quadratmeterpreis von Eigentumswohnung in den letzten Jahren auf mittlerweile 4.400 Euro an. Im letzten Jahr allein war ein Preisanstieg von 14 % zu verzeichnen. Und das auch nur, wenn es noch verfügbare Wohnungen zum Kauf gibt. Denn Berlin wächst weiter. Einer Prognose des Berliner Senats aus dem Jahr 2017 nach, wird die Stadt bis 2030 voraussichtlich um weitere 181.000 Personen wachsen.
Wo Wohnen am Wasser noch möglich ist
Die gute Nachricht: Wer sich noch einen Platz an der Spree sichern will, kann dies tun. Auf einem der letzten freien Grundstücke an der Spree in Friedrichshain macht das aktuell im Bau befindliche Wohnprojekt UPSIDE BERLIN im Zentrum der Metropole einen ganz besonderen Wohntraum wahr: Leben in unmittelbarer Nähe zum Wasser und mit einem atemberaubenden Skyline-Panorama.
Hier entstehen zwei Wohntürme mit Höhen von 86 und 95 m und 179 hochwertige Eigentumswohnungen mit exklusivem Blick auf den Fernsehturm.
Zusammen mit einem 1.500 m² öffentlichen Stadtplatz inklusive Restaurants, Cafés, Geschäften und Fitness-Angeboten, bietet der Standort zwischen den Bahnhöfen Ostbahnhof und Warschauer Straße eine lebendige Atmosphäre im urbanen Kiez.
The Canadian commercial real estate economy remains a positive market for investors as they remain enthusiastic about Canada after a record volume of transactions in 2017. That activity has remained through the first two quarters of 2018, mired only by a lack of high quality product available for acquisition. This should continue to position the Canadian commercial real estate market as on marked by competition and intense bidding. With the pace of interest rates hikes expected to remain measured, access to low-cost debt and equity capital will propel Canadian commercial real estate investment in 2018.
Vancouver:Interest rates continue to remain low and so the appetite for commercial investment real estate – in particular, apartment buildings – remains very strong in the Greater Vancouver area.
Edmonton:Edmonton remains a consistent market with strong, well-placed assets garnering investor attention and is expected to have one of the fastest growing economies in 2018.
Calgary:Retail and Industrial assets have remained stable in Calgary, while multi-family assets have shown signs of confidence as investors are willing to accept lower yields on new low-rise construction.
Winnipeg:Demand for good quality investment continues to be strong; however, if cap rates do increase due to rising interest rates, expect the multi-family market to be impacted first due to the low spread currently being experienced in the market.
Toronto:This early barrage of large scale transactions suggests the GTA is primed for another record setting year in terms of total dollar volume sales in the investment market. However, with rising interest rates we expect investors to be more cautious when it comes to non-core assets in tertiary markets.
Ottawa:Transaction volume in Ottawa has increased substantially year to date in Ottawa led by the multi-family market which has seen several large transactions between regional and local owners at increasingly low capitalization rates.
Several decades ago, corporations tended to stay out of politics. This wasn’t so much a matter of apathy as it was the product of a worldview summarized by Milton Friedman when he said, “The social responsibility of a business is to increase profits.” The campaign to push businesses to divest from Apartheid South Africa is an exception that proves the rule. While protests against the regime had really begun in the late ‘60s, it wasn’t until the mid-80s that major international banks fully succumbed to public pressure.
Four years after author Aaron Hurst announced the arrival of the “Purpose Economy”, much has changed. The majority of consumers want companies to be vocal about social issues. In a consumer capitalist society, we don’t just vote at the ballot box. We vote with our dollars and labor, too. As a result, business leaders have sometimes moved rapidly to take public positions that can influence policy, like Salesforce’s public rebuff of a discriminatory law in Indiana in 2015 or Patagonia’s campaigns about environmental policy. Corporations are now people, and people have opinions.
In a recent example of responsiveness, Starbucks closed 8,000 stores to hold training workshops about racial bias following an incident at one of their stores. Despite years of substantial investment in training that would help employees diffuse conflict, the company saw that there was more work to be done. Cynics might wave off such efforts as mere PR firefighting, but the consultants they hired for the training framed it differently: “The formational identity of Starbucks is centered around the creation of the ‘third place’…a public space where all are welcome and people can share the Starbucks experience.” This wasn’t just about the bad press from one incident; it was the realization that the company was not living up to its cherished values, and needed to take corrective action.
Yet, before we congratulate ourselves for our commitment to corporate responsibility, we should reflect on other, less-trumpeted changes to the relationship between business and society. The impact of the 2008 crisis still reverberates through much of America. Though the recession was technically over by mid-2009, it has taken workers ten years to recover—and some never will. Combined with a decades-long trend toward lighter benefits packages, the preference for independent contractors, and the continued struggles of retirement plans, this has called the social contract into question.
Workers are responding to this climate by demanding more social responsibility from their employers. Millennials and their successors will make up the majority of the workforce by 2020, and they expect a degree of moral alignment with the practices of their employers. For example, in a recent survey, 89 percent of Millennial employees said they want their employer to provide hands-on opportunities around environmental responsibility. Two thirds would take a pay cut to work for a firm that’s more socially responsible.
Of course, it’s easy to be in favor of social responsibility in the abstract. It gets more complicated when an organization starts making specific policy choices. Just ask WeWork, a research partner of PLASTARC’s that recently made headlines. Citing the environmental impact of meat production, they announced they would no longer serve meat at company events or reimburse employees for meat ordered on the job. Carnivorous clients and employees would not be barred from the premises, but would have to buy burgers on their own dime.
Public reactions ran the gamut from praise to castigation. Some lauded the company for taking a stand on a global issue of critical importance, highlighting WeWork’s claim that the move will save “…an estimated 16.7 billion gallons of water, 445.1 million pounds of CO2 emissions, and over 15 million animals by 2023.” Others criticized the decision as an impractical intrusion into the lives of employees, a publicity stunt, or even tyranny. What many critics miss is that this change looks less like a top-down edict than a reflection of the culture of their clients and employees. As a founder myself, I spend a lot of time thinking about how to provide a workplace that reflects the values of my team (which happens to include many vegetarians).
WeWork isn’t really breaking new ground, as a recent piece in Reason pointed out: “Over the years, a variety of companies have implemented policies banning alcohol, soda, microwave popcorn, and even snacks from some or all premises. Many large employers participate in Meatless Mondays, including Subway, Chipotle, Sodexo and Aramark.” These last two firms, which together employ over half of a million people, operate corporate cafeterias around the globe. They are not consumer-facing brands, so it’s harder to argue they’re doing it to be hip.
We at PLASTARC have seen firsthand how a history of activism can create success for a company. When PLASTARC was advising Unilever on change management a few years ago, they were in the midst of launching two new product lines geared to the growing vegan market: Ben & Jerry’s non-dairy ice cream and Hellmann’s vegan mayonnaise. The ice cream was a smash hit, while the mayo debuted with less fanfare. Both were quality products made by the same parent company. Why did the public react so differently?
Ben & Jerry’s had already spent years cultivating a reputation as an ethical company. They pledged to use 100 percent renewable energy, even though it might increase short-term costs. They started promoting LGBT equality in the late ‘80s, and have taken public positions on racial justice and campaign finance reform. They also paved the way for the B Corporation movement they would later join. This long history of advocacy generated a loyal following amongst the customers that would appreciate this new product. To borrow an apt turn of phrase, culture ate strategy for lunch—or maybe, in this case, dessert.
For its part, the architecture and design community has served the need for value expression through building certifications. The first generation of these, including LEED, focused on the environmental impact of buildings themselves. In recent years, this has been followed with certifications that also address the working conditions and well-being of the people within, like FitWel. It’s not hard to imagine a next step that includes a broader perspective; perhaps building standards like these and B Corporation Certification could overlap to create spaces for socially-conscious businesses. This could be especially helpful for startups, who often want to be good global citizens but may lack the resources to support their own robust social responsibility efforts.
Every now and then, we might find that we disagree with a given company policy or political stance. Individual and corporate choice can be used in service of ends that are either ‘good’ or ‘bad’. The intriguing challenge before us is to listen to the people we work and do business with and to try to represent their values in all their complexity. People who design, build, and manage workplaces may not have thought of themselves as moral, political, or philosophical actors in the past, but the physical environment is where the rubber meets the road. This process may sometimes be messy, but this is an exciting time to be in a field that can have a direct impact. Done well, it can strengthen the relationship between employee, employer, and customer. Through policy and thoughtful design, we can build workplaces and cultures that allow us to do well and do good.
As Art on the Mart continues to bring 2.5 acres worth of vivid projected color to the Chicago River, the management of nearby Marina City is demanding its unit owners limit their artistic expression when it comes to lighting the twin towers’ iconic balconies.
According to a recent memo to residents, the new rules—put in to place just before the holidays—limit balcony illumination to “clear white single strand lights.” The regulations prohibit colored and blinking bulbs as well neon, strobe, fiber optic, and lasers.
Uniform, all-white balcony lights were once the norm at the Bertrand Goldberg-designed complex shortly after its completion in the 1960s. At the time, the units were rentals and management provided the same brand lights to each tenant, noted Loop North News.
With the residences now under individual ownership and many owners not opting to live in the building full time, such uniformity will be hard to recreate, Marina City resident Chelsea Vines told Curbed Chicago.
“The whole situation is incredibly frustrating to me, because one of the reasons I chose Marina City as my home in the first place was due to the iconic shape of the buildings complimented by the colorful lights,” said resident Chelsea Vines.
“I put up clear bulbs the day I moved in. While that is not breaking the new rules, I have to admit that I’ve left them on all night every night this week in defiance.”
A second resident who didn’t want to share his or her name said, “I have a pretty good view of a lot of balconies and I haven’t seen any lights that would be seriously considered disruptive, and I haven’t heard anyone complain. [The lights] highlight the distinct architectural character that makes our buildings so wonderful to live in.”
It remains to be seen if and how Marina City’s management hopes to enforce the new rules. Colorful lights adorn many of the building’s petal-shaped balconies year-round and, with the arrival of the holiday season, it might be hard to put that particular genie back in the bottle.
Curbed Chicago Newsletter
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A new white paper by Freddie Mac outlines the significance of single-family rentals to the U.S. rental housing market, highlighting a dearth of financing options for the bulk of investors who own such housing.
According to the paper, SFRs, which are defined as rental housing units on properties with four or fewer units, comprise the single-largest source of rental housing in the country. These units house an estimated 25 million people nationally and play an outsized role in rural areas, where they make up about two-thirds of all rental housing. About half of the overall rental stock nationally is comprised of SFR housing.
The paper notes that since SFR housing is disproportionately owned by small investors, there’s no uniform terms or credit standards for loans on SFR housing—something Freddie Mac argues should change.
According to the paper, 88 percent of SFR stock nationally is owned by “very small investors”—those that own between one and ten units for the purpose of renting them out. This chunk of the market accounts for an estimated 19.3 million units of housing across the country. So-called “middle-of-the-pack” investors that own between 10 and 2,000 units are increasingly getting in on the single-family rental market. But large-scale institutional investors, so far, appear to be late to the “house party.” Such entities only own about 1 percent of the total SFR market.
It’s worth pointing out that Fannie Mae has had some skin in the single-family rental game since at least last year, when it began a partnership with Invitation Homes, a brand operated by Blackstone, the world’s largest private equity firm. Last year, Fannie Mae announced it would back $1 billion in debt collateralized by rental homes bought by Blackstone in the aftermath of the financial crisis. Disclosure of the partnership came just after Invitation filed an IPO, about two years ago. In total, Blackstone bought about $10 billion worth of single-family rental homes throughout the U.S. in the aftermath of the financial crisis. It owns roughly 50,000 such dwellings throughout the country.
When it comes to brand loyalty, tech brands lead the pack.
Nine of the top 10 brands in the 22nd annual Brand Keys 2018 Top 100 Loyalty Leaders ranking are digital brands, with Amazon taking the No. 1 spot. The only traditional retail brands to make the top 20 are Trader Joe’s, at No. 10, and Nike, at No. 18. Two fast-casual brands also cracked the Top 20 — Domino’s Pizza, No.12, and Dunkin’ Donuts, No.19 (See end of article for a list of the top 20 companies).
The ranking is based on a survey by brand consultancy Brand Keys of 84 product categories and 761 brands. The survey included more than 50,500 consumers ages 18 to 65. Respondents self-selected the categories in which they are consumers and assessed the brands for which they are customers.
But while digital and tech brands dominated the top rankings, non-digital brands moved up the list, an average of 11 positions, with a few making major leaps.
“That’s an incredible accomplishment in today’s marketplace where consumers are hot-wired to the Internet,” said Robert Passikoff, founder and president. Brand Keys. “Traditional brands have worked harder to create the emotional value connections necessary to bolster the loyalty bonds necessary for keeping current customers, developing new ones, and making profits.”
The retail brands that showed the greatest loyalty leadership gains in 2018 were T.J. Maxx (+38 to No. 35, currently with net sales up 12%) and Zara (+32 to No. 57, with same-store sales +2%).
2018 Top 20 Brand Keys Loyalty Leaders (Numbers in parentheses indicate last year’s loyalty ranking)
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