Commercial Investment Real Estate

SEP-OCT 2017

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.

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CCIM.COM September | October 2017 39 If a business isn't looking to hire, but instead wants to capitalize on the time and bandwidth of its cur- rent team members, business avia- tion can allow these employees to use their time to build business and create winning strategies. According to a National Business Aviation Association survey, passen- gers are 20 percent more productive on board a company aircraft than in the office. This is particularly impor- tant as the use of laptops, iPads, and other business tools on commercial f lights comes under scrutiny for safety reasons. When commercial real estate professionals fly private, they can work on any device of their choosing. Helping employees create true work and life balance leads to con- tinuous growth for businesses by creating a happier, more productive workforce. Maximize Efficiencies W hether look ing for eff iciencies in time or budget, business avia- tion helps commercial real estate professiona ls do more w ith less. For e x a mple , once l a st-m i nute pricing, rental cars, and hotels are accounted for, making the jump to flying private is often a cost-effec- tive alternative to the commercial route. And while the value of being there can't be directly quantif ied, it is worthwhile when cultivating relationships and often can result in increased revenue opportunities through deals that may not close without travel. Business aviation allows commer- cial real estate professionals to wisely invest their time, capital, and peo- ple. Whether through the purchase of an aircraft or reservations on a charter, employees go places quickly and effectively, while growing the business. Angelo Fiataruolo is general manager of KCAC Aviation in Olathe, Kan. Contact him at angelo@kcac.com. While technology has opened the lines of communication, nothing can replace personal contact. Increase Access Not a l l business occurs in Los Angeles, Chicago, or New York Cit y. Often, clients are based in smaller markets, such as Eden Prai- rie, Minn. Private aviation provides increased access to secondary and tertiary areas. In fact, commercial flights can only access roughly 500 airports, while private f lights have access to more than 5,000 airports. When time and business are on the line, the ability to arrive at the desired location quickly is desirable. Often what spurs companies to first use business aviation, specif ically charter, is an issue professionals didn't anticipate, such as taking a last-minute trip to survey a new job or visit a client during a crisis. When examining the cost of a charter service, it's surprisingly close to the cost of f lying commercial. Last-minute commercial flights can range from $600 to $1,200, round- trip. By using a charter option to go the same distance, the total cost of this flight for up to six people comes to about $6,500 or $1,083 each. Boost Talent Acquisition According to ManpowerGroup, 40 percent of all global employers report talent shortages. As these w o r k f o r c e s h o r t- a g e s c ont i nu e to ex pand and a f fect the industry, companies must have initiatives in place to attract and retain top talent. The opportunity to travel is an effective recruitment tool. How- ever, relentless business travel can wear down even the most dedicated employee and contribute to the turn- over of talented individuals. Business aviation gives employees the ability to take a business trip and return in time for dinner. They will experience less burnout. the travel process, use their time effi- ciently, and experience increased busi- ness growth. Achieve Business Growth According to the National Asso- ciation of Realtors' 2016 Q4 Com- mercial Real Estate Market Survey, the volume of investment sales has accelerated, with 69 percent of Real- tors reporting closed transactions. As the economy remains on the upswing and the real estate mar- ket capitalizes, finding new ways to extend commercial real estate pro- fessionals' reach to out-of-market areas becomes a critical strategy for building business. It's no coincidence 88 percent of the top 50 companies in the Forbes Global 2000 are business aircraft users, according to a study by NEXA Advisors LLC. Business growth is the No. 1 reason companies invest in business aviation. Their employ- ees can arrive where and when they need to be. They also recognize the immeasurable value of a face-to-face meeting. Relationships drive business in the commercial real estate industry. EXTREME-PHOTOGRAPHER

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