Alex Olson, Clemons Real Estate

At MWM we are focused on all things commercial real estate and property development.  The focus of our Broker Spotlight segment is to highlight the personal goals and achievements of Kansas City’s up-and-coming brokers and to tap into their coveted, first-hand industry knowledge on current and future market conditions. The August Broker Spotlight is on Alex Olson, real estate agent with Clemons Real Estate.

MWM: Let’s start from the beginning - when and why did you choose real estate as your career path?

OLSON: I started as a real estate investor in 2018. Real estate has always intrigued me but I didn’t really fall in love with it until I built our dream home in 2017. Reading ‘Rich Dad Poor Dad’ at the age of 14 piqued my interest also, but I didn’t completely understand the concepts. Once I understood my appreciation for physical structures, the economics of real estate, and how it propels the US Economy, I was hooked. Then, a mentor recommended that I get my real estate license and I welcomed the challenge. 

MWM: What asset class in CRE do you focus on?

OLSON: Multifamily sales and net leased property sales.  In particular, representing 1031 exchange buyers who need cash-flowing assets in Kansas City {Editor’s note: A 1031 exchange allows you to sell one investment or business property and buy another without incurring capital gains taxes – as long as the exchange is completed according to IRS rules and the new property is of the same nature or character (like-kind).}

MWM: What are the market trends you are experiencing with your clients currently?

OLSON: Multifamily prices continue to soar in Kansas City, but still, investors are divesting on the west coast and moving their money to Kansas City.

MWM: What’s your forecast for the local and national CRE market?

OLSON: Multifamily will continue to thrive in Kansas City as the cost of construction remains high and home affordability continues to be an issue for some. In addition, net-leased properties that are more recession-resistant (medical office, veterinary/pet care, dental, national credits with online presence) are more attractive as a more passive investment vehicle for out-of-state buyers. 

MWM: What are your biggest challenges right now?

OLSON: Finding great deals in multifamily is challenging for some clients but a great deal is in the eye of the beholder. Understanding their primary objective is a way to understand what aspects of any deal are best for them for the moment. In addition, showing 1031 exchange buyers that a net leased property may be a better option; in particular, if they are out of state or want a more hands-off approach to cash flow. 

MWM: From your perspective, what can KC do to push ahead of the curve?

Olson: I am very optimistic about Kansas City. We need city leaders and economic development groups to continue to push jobs into the Kansas City metro market. Jobs are what drive activity and Kansas City has the resources (space, affordability, labor force, and employers) to propel the Midwest forward.

MWM:  How can prospects contact you for more information?

Olson: Reach me at alex@clemonsrealestate.com, on LinkedIn or mobile at 816-591-0825.

Moving beyond 2020 with Beyond Brokerage

Meet Jayme Miller, CCIM, commercial realtor at Beyond Brokerage, a NorthPoint Development company providing brokerage services to third-party clients.

Miller shifted into CRE after working a job in corporate supply chain.

“It was a good, comfortable job but it wasn’t fulfilling. I was about to turn 30 and knew I did not want to spend my career there. I did some soul-searching to figure out what I wanted to be when I 'grew up' and after I discovered commercial real estate, it was if a light bulb turned on and everything came together! I knew exactly what I wanted to do and haven’t looked back since,” Miller said.

RT: When considering a lead, what do you look for specifically?

We look for someone who looks for a partnership approach and values win-win transactions just as much as we do. My team works with a variety of users, everyone from the investor who owns one or two buildings to REITs with a big portfolio. We also love working with buyers or tenants. We have transacted on office, retail, land, industrial and multifamily. Really it all comes back to the partnership- If the partnership is right, we make it work.

RT: What are market trends you are experiencing with your clients currently?

JM: One thing Covid taught us is that we never know what the future holds! The pandemic came on fast and strong and drastically impacted dozens of industries, some positively and some negatively. We are seeing many tenants ask for Covid provisions in their leases. Many landlords have been accommodating. We are also seeing some hesitancy to commit to long, seven to 10-year lease terms.

RT: What do you see moving forward, as we move beyond 2020?

JM: The market definitely softened earlier this year but came back with a roar because the fundamentals were still strong. Our Q4 was one of our strongest quarters on record! Overall, property owners are having to think and re-think about futuristic uses for their assets. What worked yesterday may not work tomorrow.

RT: What challenges and opportunities are your main asset classes facing now?

JM: Retail is going through a major shift. Online shopping was already taking away demand for retail space, and the pandemic sped up that adaptation rate. Retail owners are having to figure out what to do with their buildings, particularly big box spaces. There’s opportunity there to create experiences people cannot get online, and to use space to create community. I see that in the Creekside development in Parkville, where they are putting a courtyard with programming between retail spaces. The new owners at Zona Rosa are also working to develop more community spaces. The other big opportunity in retail is to create spaces at affordable rates for local tenants. People like to shop local, and the pandemic highlighted how important that support is.

There is a lot of uncertainty in the office world. When will people come back to work? Will we see a shift back to private office to encourage social distancing? Will companies need a bigger footprint because they will be spreading people out? Or will they need less because a certain percentage of their employees will stay remote? The opportunities for office owners include thinking about health-focused initiatives such as windows that open, increased janitorial/sanitization and upgraded HVAC filtration.

RT: How do you feel about the state of the market in Kansas City and why?

JM: I am very optimistic! Kansas City is a great mid-sized market. We see capital coming here from the coasts because it’s so affordable. Kansas City has really been on an upward trajectory over the last 15 years. Executives move here reluctantly as part of a relocation and end up falling in love with the city. Our fundamentals are strong and there is still a ton of opportunity in underdeveloped areas.

RT: Can you share any other current and future projections if any?

JM: I predict the market continuing to grow, albeit at a slower rate, in 2021. Longer term I see downtown/Crossroads continuing to attract high quality tenants. I see Midtown developing, particularly along the KC Streetcar line and into the Martini Corner area. I am excited about all the activity on Troost; that will be great for that area and there are some fantastic and responsible players involved. I see continued development of “micro communities” like what is being created in downtown Overland Park and downtown Shawnee.

Jayme can be reached at Jayme@Beyondbrokeragekc.com or 816.261.2006.

CBRE's Colleen McPherson Roble shares state of 2021 healthcare market

Colleen McPherson Roble is a senior associate at CBRE and has over 20 years of experience in sales and leasing in the healthcare industry. More recently, she has focused on meeting the real estate needs of physician groups and investors. Colleen’s connections span nationwide and the relationships she has forged with physician tenants/building owners, investors and healthcare colleagues has led to marked increases in profitability and overall return on investments. Her leads originate from physician practices that lease or own their medical office space. She can be reached at colleen.mcpherson@cbre.com. Let’s get to know Colleen:

RT: What asset class in CRE do you focus on and why?

I have dedicated 20 years to the healthcare leasing and capital markets niche. I started in Phoenix in 2000 as the “office condo queen” and most of my clients were physician owners. As healthcare systems changed, many physician groups became employed by the hospitals. Hospital systems began monetizing medical office buildings to REITs and I adapted by working on sale/leasebacks and leasing for REIT landlords and medical practice tenants.

RT: What are market trends you are experiencing with your clients currently?

COVID-19 has impacted practices bottom line with lower patient visit volumes due to risk/reward concerns for elective procedures and routine appointments. Tele-health has increased tremendously this year, office waiting areas are spread out, patient testing prior to office visits has been implemented and numbers of visitors allowed with patients has been dialed back. I am pleased physicians will all be vaccinated first, as they must be commended for serving patients without skipping a beat even when there was the unknown risk of the COVID-19 virus.

RT: What do you see the local and national CRE rebound including?

We are currently offering a Pandemic Relief Solution for medical practices at the Welltower (real estate investment trust) portfolio of rent abatement for several months in 2021, as this will be with us awhile. With the low interest rates, a new party in the White House and other changes in healthcare we are seeing with reimbursements, I believe we are cycling back toward more physician groups working independently and considering purchasing their outpatient office spaces again.

RT: What have you done to adapt to the changes in CRE?

In order to succeed in healthcare real estate, you must be nimble because outpatient medical office situations are impacted by not only patient demand; but by hospital system strategic plans and capitalization and government. In the end, a medical tenant building is the most solid form of real estate investment, medical practices are stable and always going to be a demand service. From a marketing perspective, the current trend is toward virtual tours with tools such as Matterport and Zoom that are efficient, safer and easier for busy physicians to tour space.

RT: What challenges and opportunities are your main asset classes facing now?

COVOD-19 has posed the biggest challenge this year causing financial strain on medical practices not experienced leading to unheard of requests for rent abatement and reduction of suite size. On a positive note, the pandemic has brought about changes from air quality improvement in the office, to increased tele-health and technology implementation, to improved sanitary protection procedures making a medical office a safer place going forward.

Are you optimistic about the state of the market in Kansas City?

I am optimistic about the healthcare niche in Kansas City as the hospital systems are strong, people are staying in town, as work from home is a more acceptable practice. People are moving to Kansas City due to the better cost of living, again positively impacting patient volume. Once the country has been vaccinated in 2021, there will also be a pent-up demand for elective procedures and in person visits, which will also be positive for outpatient medical office buildings.

RT: Can you share any other current and future projections?

Lease rates will stay solid as they are tied to higher tenant improvement allowances required for medical office than regular office. Shorter term lease commitments may loom, as practices want to stay as nimble as possible as telehealth grows in popularity. Overall, I expect the outpatient medical office market to stabilize in 2021.

Curry's Sweeney signals KC's Northland 'heating up'

Today's MWM Broker Spotlight features Dan Sweeney, a broker and property manager with Curry Real Estate Services.

MWM: Why did you decide to choose a career in commercial real estate?

Sweeney: I grew up with family in the real estate business, so I learned some things by osmosis. I started out in property maintenance and moved into property management taking care of condominium homes associations. In 2019, I made the transition to commercial property management and in 2020, began doing both brokerage and management.

MWM: What are market trends you are experiencing with your clients currently?

I am still seeing buyers and sellers willing to make deals happen. Interest rates being at historic lows are incentivizing buyers to lock in for the long term. With the growing demand in the trucking and related logistics-based groups, I am seeing an increased interest in my industrial properties as well.

MWM: What do you see the local and national CRE rebound including?

A health-safe workplace will be the new normal whatever the post COVID-19 environment looks like. Landlords and tenants will need to adjust to the new norms and create new ways to interact with each other and their clientele to succeed going forward.

MWM: What challenges and opportunities are your main asset classes facing now?

I see the same challenge everyone does – the stress on the retail / service sectors especially where in-person gathering is essential to business success. While we also are seeing changes in how companies make use of office settings vs WFH (working from home), that is somewhat offset by businesses wanting more space to make more space for their workers, with demand particularly acute among legal and financial service providers. And again, industrial opportunities have increased with demand from logistics support, transportation and manufacturing users.

MWM: Can you share any market projections for KC?

I believe the Kansas City commercial real estate market will bounce back given how diverse our industry base is, which shelters our community from major economic downturns. With the new airport, potential new data center coming to the region and the Northland in particular really could be heating up in the near future!

JLL's Anné Erickson shares, reimagines what's next for CRE

In this week’s MWM Broker Spotlight, we’re featuring a bright and talented commercial real estate associate in the Jones Lang LaSalle (JLL) Kansas City office - meet Anné Erickson. Erickson maintains a strong passion in her CRE career by bringing together different ideas, people and companies - all in an effort to benefit her clients.

Erickson grew up in the real estate business watching her family invest in real estate across the KC metro since the day US Route 69 came through their family farm just southwest of Corporate Woods. This experience fascinated Erickson, especially from a business perspective of value generation in owning properties and the development activities that took place thereafter.

RT: Tell us more about you and your career, Anné! What first sparked your interest in commercial real estate?

AE: Early in my career, I worked overseas directing investment research projects on emerging global economies. No matter the country, real estate was a central part of this work and how foreign investors can invest in the construction and real estate sector. Like many who were involved in our family real estate through the years, it is to no one’s surprise that I landed my career in commercial real estate.

RT: What excites you about your day-to-day career?

AE: Being let in ‘under the tent’ with clients and prospects. I focus my business in tenant representation, working with the actual company leasing or purchasing property. My job is to understand what my clients are going through from an operational standpoint to identify commercial real estate solutions that will compliment and impact their business plans. It’s not just about finding them a space; it’s about using real estate as a tool to advance their business. The diversity of getting to know different leaders and business sectors in Kansas City keeps it fresh and exciting to me.

RT: What leads do you look for?

AE: I represent businesses looking for real estate. Our team is the tenant representation leader in Kansas City because of our strengths in occupancy planning and financial analysis. And yes, being a rare female in a male-dominated industry, it’s always fun to work with Kansas City’s incredible women-owned businesses!

RT: Can you share how you keep your skills sharp in this competitive industry?

AE: It is important to focus on what skills are unique to you and your team and become the expert in your focus area. The pandemic has made this even more important as businesses are looking to us to figure out what is next. I specialize in occupancy planning as it impacts employee attraction, retention, morale, and overall business effectiveness with office users. In addition to the basic cost of real estate, there are very substantial monetary impacts related to employee productivity, satisfaction and attrition that have a direct relationship with the work environment.

These topics need to also be addressed and considered in the real estate analysis because a 10% increase in workplace staff productivity or a lowering of employee attrition by 5% often can have far more financial impact on your bottom line than saving $0.50 off your base rent.

RT: What’s your vision and advice for a successful CRE industry moving forward?

AE: We can no longer look to the past to understand how business success will be achieved in the future. Every organization must examine the priority areas of their business and begin to “reimagine’ all aspects of business in the context of the new normal. C-Suite teams who successfully reimagine business today will be tomorrow’s business leaders.

I expect the Kansas City real estate market will rebound likely faster than many larger cities in the US. I believe that will be in part because of our diversified economy which helps insolate us from as much market volatility. As well, given the nature of the COVID environment, many companies today have realized the benefits of having a larger and less dense city to conduct operations.

Employees are redefining work and re-entry on their own terms. Business leaders need to redefine the role of their traditional workplace. Workers need to be confident in their health and wellness before they return.

We understand the vast majority of office employees around the country are looking for a hybrid office/work from home situation post-pandemic. Therefore, the office place will continue to play a substantial role in innovation, collaboration and culture creation.

RT: How can prospects contact you for more information?

Anné Erickson

M: 913-220-3636

D: 913-469-4657

Anne.Erickson@am.jll.com

linkedin.com/in/anne-erickson

7500 College Boulevard, Suite 920