Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/700533
July | August | 2016 Commercial Investment Real Estate A What key points attract nonprofit tenant interest? Office Leasing Trends As traditional office tenants undergo a seis- mic shi in their space-using habits, office leasing professionals realize that less-well- known tenant groups, such as nonprofit organizations, are coming to the fore as office space users. Nonprofit organizations are a group that may be under the radar in many markets, but understanding what drives this growing field can help to meet their tenant needs. Colliers Not-for-Profit Advisory Group based in Toronto works with a wide selec- tion of nonprofit clients in such segments as charities, associations, and national/local health, educational, institutional, housing, and religious organizations. Colliers' spe- cialized group informs nonprofit clients how to reduce real estate costs, minimize risk, and maximize flexibility within their lease agreements and owned properties. It also assists clients to create workspaces that promote and support the organization's cul- ture, mission, and identity. Earlier this year, Colliers' nonprofit group conducted a survey of more than 50 senior executives of nonprofit organiza- tions. e group released the results from its inaugural Not-for-Profit Office Trends Benchmarking Survey. e report identified three key areas that nonprofits need to consider in their pur- suit of maximizing capacity, optimizing impact, and ultimately increasing produc- tivity within their real estate. Not surpris- ingly, these touchpoints — access, identity, and collaboration — mirror trends among general tenants in office-using space, but to vastly different degrees. Can Location Affect Turnover? For nonprofits, the old real estate motto of location, location, location has become transit, transit, transit. Of the survey respondents, 42 percent identified proxim- ity to transit as the most important factor in choosing their office space. e other most important considerations for office space included creating better effi- ciencies; promoting team collaboration; main- taining flexibility to downsize and expand; and attracting and retaining employees. Further, the survey found it was vital for nonprofit organizations to not only consider access for employees, but access for volun- teers, board members, and funders as well as access to local amenities. A nonprofit's ability to maximize organi- zational potential and capacity greatly hinges by Peter Davies, CCIM, and Matt Johnson shironosov/Thinkstock