CMF Briefs May 11, 2023
New study from ULI, INREV and PRI Helps Real Estate Navigate ESG Regulations
A new report from the Urban Land Institute, the European Association for Investors in Non-Listed Real Estate Vehicles and the Principles for Responsible Investment maps the evolving landscape for global ESG regulations and reporting standards relevant for real estate.
The report, Mapping ESG: A Landscape Review of Certifications, Reporting Frameworks and Practices, gives the industry a practical guide on how to navigate myriad ESG regulations, standards, and certifications. Following a mapping exercise and interviews with the experts, the study examines the purpose of the different ESG requirements and the different intended users of the information. It explores how the requirements overlap and where there may be an opportunity to condense the ESG reporting burden.
“ESG standards are evolving rapidly, and it is important for real estate to understand what global investors, tenants, and regulators are expecting from ESG reporting today, and what they will require in the future,” said Billy Grayson, Executive Vice President of Centers & Initiatives at ULI.
Self-Storage Grows as Apartments Shrink
StorageCafe reported recent trends like the adoption of hybrid work and apartment sizes getting smaller as well as migration patterns from urban to suburban areas have created new needs for storage units.
“Add those to other key demand drivers like baby boomers downsizing, the thriving RV market and the recent e-commerce boom and you have a self-storage sector poised for more growth,” StorageCafe said.
To get a grasp of the latest self-storage trends, who most uses storage away from home, and what drives both homeowners and renters to use self-storage, StorageCafe asked nearly 18,000 Americans about their storage preferences. It found:
• Across America, 21% of people declared themselves to be self-storage users in 2022 and an additional 15% said they intend to take advantage of the service in the future.
• Top self-storage users by generations: Gen-Xers make up the biggest share of storage users in the U.S (23%). They are followed closely by millennials, who have started feeling the need for extra storage space, perhaps because of growing families and increased spending power. Roughly 21% of millennials declared they are using the service.
• Main reason for using self-storage: Shrinking apartments created a strong need for extra space. Roughly 40% of current storage users reported lack of space at home as their primary reason for renting self-storage, overtaking relocating, which was reported by 34%.
• The item most common kept away from home is furniture, followed by clothing. Additionally, people also store home appliances, sporting items and hobby gear, as well as business items. Yet, tales of the strange things found in storage units are abundant.
• The U.S. cities that showed the greatest interest in self-storage in 2022 included New York, Chicago and Houston.
Click here for all survey results.
CBRE Acquires Commercial Land Surveying Service Provider
CBRE, Dallas, acquired Millman National Land Services, a provider of commercial land surveying services across the United States.
Millman, headquartered in Canton, Ohio, provides full-scale land services nationally, including American Land Title Association/National Society of Professional Surveyors surveys, telecommunications/cell tower surveys, zoning reports and real estate compliance solutions.
The acquisition gives CBRE the opportunity to provide ALTA/NSPS survey capabilities to clients directly—the top standard for all land surveys—as part of its Assessment and Consulting Services team within Valuation and Advisory Services.
Millman’s 75 employees, including those located in the firm’s Querétaro, Mexico office, will fully integrate with CBRE’s ACS team. Vincent Macauda, President and General Counsel, will continue to run the incoming team’s operations as a Managing Director for CBRE.
Carleton McKenna & Co. served as exclusive sell-side representative, Baker & Hostetler LLP acted as legal counsel and Martinet Recchia Inc. performed tax and accounting advising to Millman. Sheppard, Mullin, Richter & Hampton LLP acted as legal counsel for CBRE.
