Click Here to learn more about the 2PC Fellows program.
Wednesday, December 30, 2009
Downtime
Commercial Advisors President and CEO Larry Jensen recently enjoyed some downtime at Greenbriar Lodge in Hazen, Arkansas with Kem Wilson and a few of the Fellows from Second Presbyterian Church (L to R Thomas Eastland, Chris Oliver, Larry Jensen and Kem Wilson). The Fellows Program is a nine-month Christian leadership development training program and internship for recent college graduates. Larry and Kem are on the Fellows Committee at 2PC and Thomas is currently interning with Commercial Advisors.
Click Here to learn more about the 2PC Fellows program.
Click Here to learn more about the 2PC Fellows program.
Recent Deals: Commercial Advisors Represents Sharp, Finance for Life and Dilley, Bachman & Glover
We've been busy!
Commercial Advisors President and CEO Larry Jensen and Associate Matt Weathersby along with James Yamauchi of Cushman & Wakefield represented Sharp Electronics in their 500,000 sf renewal at Memphis Oaks III.
Senior Vice President Kemp Conrad and Associate Jacob Biddle represented Finance for Life in their move to 5350 Poplar.
Jacob Biddle also represented Dilley, Bachman & Glover in their lease renewal at 6263 Poplar.
Read the Commercial Appeal article.
Commercial Advisors President and CEO Larry Jensen and Associate Matt Weathersby along with James Yamauchi of Cushman & Wakefield represented Sharp Electronics in their 500,000 sf renewal at Memphis Oaks III.
Senior Vice President Kemp Conrad and Associate Jacob Biddle represented Finance for Life in their move to 5350 Poplar.
Jacob Biddle also represented Dilley, Bachman & Glover in their lease renewal at 6263 Poplar.
Read the Commercial Appeal article.
Wyatt Aiken Featured on the Cover of the Memphis Daily News
Jeb Fields Featured in MBJ Article
Commercial Advisors Vice President Jeb Fields was interviewed by the Memphis Business Journal about the use of technology in Commercial Real Estate and the new CCIMREDEX website. Select the link below to view the article.
Use of technology to better serve clients growing in commercial real estate industry - Memphis Business Journal
Use of technology to better serve clients growing in commercial real estate industry - Memphis Business Journal
Wednesday, December 23, 2009
Merry Christmas from Our Family to Yours
As 2009 rolls to a close, the staff at Commercial Advisors would like to wish you and yours a very Merry Christmas and a Happy New Year. Thanks for following along with us here and stay tuned for 2010!
Stratas moving corporate HQ
Stratas moving corporate HQ - Memphis Business Journal
Commercial Advisors president Larry Jensen and associate Matt Weathersby represented Stratas Foods in lease negotiations. Select the link above to view the MBJ article.
Commercial Advisors president Larry Jensen and associate Matt Weathersby represented Stratas Foods in lease negotiations. Select the link above to view the MBJ article.
Monday, November 16, 2009
Help Wanted: Jobs Engine-Small Business
In all the nice-sounding rhetoric out of Washington about stimulus and economic recovery there has been deafening silence about the one historical reality which leads to the economic growth....jobs creation driven by small business.
We have heard about lowering barriers to access the Small Business Administration funding as evidence of real interest in small business. While the SBA loan program is a very important opportunity for some small businesses to access capital through the loan programs, the waiving of certain fees, deferred payments, and some loss carry-forward provisions, I would not view SBA and its programs as a comprehensive solution to ignite the jobs' creation engine called small business.
Here's history's answer to economic recovery. Small business has created more than 75% of all new jobs in the past 20-25 years. SBA is not a major ingredient in the solution to get small business growing and creating jobs.
Perhaps my view is overly simplistic, but I think I speak for a large number of people who are taking risks every month, entering into long term leases, hiring people with a promise of employment, paying health care benefits, and so on. I am part-owner of two service businesses with an employee headcount of just over 35 people. We have cut everywhere we can in hopes of making it through this period. The next cuts, if they are necessary, will be a radical change of our business model. We provide base salaries and health care benefits along with bonus opportunities which I would suggest are above industry standards.
More than 80% of the businesses in our region are "service-providing" and unlike "goods producing" do not have tangible assets. Our assets are the people and limited intellectual property. SBA is really not geared for service businesses. Further, I really don't need or want any stimulus money or a SBA loan.
I do, however, need my local community banker's partnership. For example, we have borrowed on a line of credit, which is guaranteed by the individual partners to operate one of our businesses. For the last year, I had been deeply concerned that the bank was going to call that loan or provide us with renewal terms which were onerous. As business owners we are personally guaranteeing those loans. We have worked hard to pay off the line of credit and we currently have no bank debt. If the bank had called the loan, it could have been devastating. Banking relationships have become unpredictable as the regulators have tightened scrutiny on the small banks forcing more stringent underwriting criteria. In one sense, that is good, but bankers seem terrified by the regulators' shadows.
For the last several years, we have worked hard to build up cash reserves in one of the businesses to stabilize the funds for daily operations. Because this business is an LLC, any moneys left in the company as reserves are taxed as individual income to the partners at the marginal rate. For example, if we try to build a cash reserve of $100,000 per year, we are now paying as individual owners an additional $32,000 plus in federal taxes which apparently is soon going to rise to $39,500. That is a heavy burden on a small business owner(s) to try to create a way to sustain a business and keep your talented employees in difficult times by having operating reserves.
It is good to know I am "rich" by the new standards, but I can tell you there are days when you ask yourself is the risk worth the reward? The combination of federal, state and local governments already take greater than 40%. Isn't that enough? To hear we are going to "tax the rich" really strikes at the heart of those who take the risks to create most of the new jobs.
What have you heard in all the rhetoric to help those who actually create the new jobs? You can hear a pin drop because of the silence.
You may be asking yourself "what can I do?" Write your congressman and senators asking them why there is no real help for small businesses.
We have heard about lowering barriers to access the Small Business Administration funding as evidence of real interest in small business. While the SBA loan program is a very important opportunity for some small businesses to access capital through the loan programs, the waiving of certain fees, deferred payments, and some loss carry-forward provisions, I would not view SBA and its programs as a comprehensive solution to ignite the jobs' creation engine called small business.
Here's history's answer to economic recovery. Small business has created more than 75% of all new jobs in the past 20-25 years. SBA is not a major ingredient in the solution to get small business growing and creating jobs.
Perhaps my view is overly simplistic, but I think I speak for a large number of people who are taking risks every month, entering into long term leases, hiring people with a promise of employment, paying health care benefits, and so on. I am part-owner of two service businesses with an employee headcount of just over 35 people. We have cut everywhere we can in hopes of making it through this period. The next cuts, if they are necessary, will be a radical change of our business model. We provide base salaries and health care benefits along with bonus opportunities which I would suggest are above industry standards.
More than 80% of the businesses in our region are "service-providing" and unlike "goods producing" do not have tangible assets. Our assets are the people and limited intellectual property. SBA is really not geared for service businesses. Further, I really don't need or want any stimulus money or a SBA loan.
I do, however, need my local community banker's partnership. For example, we have borrowed on a line of credit, which is guaranteed by the individual partners to operate one of our businesses. For the last year, I had been deeply concerned that the bank was going to call that loan or provide us with renewal terms which were onerous. As business owners we are personally guaranteeing those loans. We have worked hard to pay off the line of credit and we currently have no bank debt. If the bank had called the loan, it could have been devastating. Banking relationships have become unpredictable as the regulators have tightened scrutiny on the small banks forcing more stringent underwriting criteria. In one sense, that is good, but bankers seem terrified by the regulators' shadows.
For the last several years, we have worked hard to build up cash reserves in one of the businesses to stabilize the funds for daily operations. Because this business is an LLC, any moneys left in the company as reserves are taxed as individual income to the partners at the marginal rate. For example, if we try to build a cash reserve of $100,000 per year, we are now paying as individual owners an additional $32,000 plus in federal taxes which apparently is soon going to rise to $39,500. That is a heavy burden on a small business owner(s) to try to create a way to sustain a business and keep your talented employees in difficult times by having operating reserves.
It is good to know I am "rich" by the new standards, but I can tell you there are days when you ask yourself is the risk worth the reward? The combination of federal, state and local governments already take greater than 40%. Isn't that enough? To hear we are going to "tax the rich" really strikes at the heart of those who take the risks to create most of the new jobs.
What have you heard in all the rhetoric to help those who actually create the new jobs? You can hear a pin drop because of the silence.
You may be asking yourself "what can I do?" Write your congressman and senators asking them why there is no real help for small businesses.
Monday, November 2, 2009
Crime & Kids
Several years ago I was asked to chair the capital fund raising campaign for the Boys and Girls Clubs. At first I declined and was later persuaded to lead the effort. I agreed to this leadership role on two conditions which were at first resisted by the leadership and later agreed to when they realized I was not negotiable.
My two conditions were:
1) What is the scope of the problem with the 'at-risk' kids in our community? How many kids; where do they live; and what are their circumstances?
2) Who is doing something about the 'at-risk' kids and how many are being reached on a regular basis?
After several months of study and work, the results were reviewed on a zip code by zip code basis as follows:
1) Between the ages of 5-17, there are approximately 120,000 kids 'at risk'. I later did some further study and determined that in each year for the last ten years live births have been steady at 14,000-15,000 each year in Shelby County and approximately 60% of those children are born into situations and circumstances which place them 'at-risk'.
2) There are approximately 16-20 faith-based and secular organizations in Memphis which devote the focus of their daily mission to serve those children of our community. Boys & Girls Club would be among the leaders serving now almost 10,000 children. Among all the organizations, it is estimated that 40,000-50,000 'at risk' kids are weekly served in a meaningful way.
Further, it is factual based on Boys & Girls Club research that if a child is engaged in the daily program for five years the high school graduation rate of the Boys and Girls Club participants soars from city school's average of 60+/- percent to 95 per cent. Interestingly, I started checking around with the other organizations and found similar anecdotal information about graduation rates.
I later learned and confirmed several facts about the inmates in the Shelby County Jail at 201 Poplar. Approximately 90- 95% of the inmates are African Americans and do not have a high school education. Approximately 70% of those same inmates have some form of learning disability. If you study the school drop out rates among African American males there is a dramatic rise in the drop out rate in middle school where primarily young men get discouraged by their academic failures, have little or no parental support, encouragement, or engagement; and eventually they choose to drop out thereafter landing on the streets with a great likelihood of beginning multiple years inside gangs and interacting within the criminal justice system.
It is a startling fact to realize the State of Connecticut estimates and projects its need for prison beds based on the literacy rate in the fourth grade. There is a correlation with literacy (or lack thereof) with engagement in the criminal justice system.
Is there a solution to crime in Memphis? Education is obviously a key determinant of escaping a life of crime. However, I think we have overlooked another key opportunity to deter crime. I believe a huge step could be taken if we as a community should have the will and develop a community strategy to scale up the existing works of the organizations and agencies which daily touch the lives of ‘at risk’ kids in our town who need a regular opportunity to enter a loving, caring, and encouraging environment which is offered today and everyday in existing organizations such as Boys & Girls Club, Streets, Emmanuel Episcopal Center, Bridges, Memphis Athletic Ministries, Neighborhood Christian Centers and so on.
What is the secret of the success of these organizations? It is clearly evident to me there is a clear correlation between a high school education and avoiding a life of crime. However, what is the secret of these organizations' success? How are these people and organizations, who are not directly educators, able to get kids from the 60% to 90+% high school graduation? I would submit these committed people and organizations they represent become mentors and substitute parents by providing the vision, the encouragement, and accountability for 'at-risk' kids and their families.
My friend, Robie Williams, who is active in Boy Scouts with core city kids emphatically says, 'Boy Scouts don't go to jail!' and apparently neither do many of our core city children who have the opportunity to be engaged in ministries and agencies who care and love them on a regular basis.
My two conditions were:
1) What is the scope of the problem with the 'at-risk' kids in our community? How many kids; where do they live; and what are their circumstances?
2) Who is doing something about the 'at-risk' kids and how many are being reached on a regular basis?
After several months of study and work, the results were reviewed on a zip code by zip code basis as follows:
1) Between the ages of 5-17, there are approximately 120,000 kids 'at risk'. I later did some further study and determined that in each year for the last ten years live births have been steady at 14,000-15,000 each year in Shelby County and approximately 60% of those children are born into situations and circumstances which place them 'at-risk'.
2) There are approximately 16-20 faith-based and secular organizations in Memphis which devote the focus of their daily mission to serve those children of our community. Boys & Girls Club would be among the leaders serving now almost 10,000 children. Among all the organizations, it is estimated that 40,000-50,000 'at risk' kids are weekly served in a meaningful way.
Further, it is factual based on Boys & Girls Club research that if a child is engaged in the daily program for five years the high school graduation rate of the Boys and Girls Club participants soars from city school's average of 60+/- percent to 95 per cent. Interestingly, I started checking around with the other organizations and found similar anecdotal information about graduation rates.
I later learned and confirmed several facts about the inmates in the Shelby County Jail at 201 Poplar. Approximately 90- 95% of the inmates are African Americans and do not have a high school education. Approximately 70% of those same inmates have some form of learning disability. If you study the school drop out rates among African American males there is a dramatic rise in the drop out rate in middle school where primarily young men get discouraged by their academic failures, have little or no parental support, encouragement, or engagement; and eventually they choose to drop out thereafter landing on the streets with a great likelihood of beginning multiple years inside gangs and interacting within the criminal justice system.
It is a startling fact to realize the State of Connecticut estimates and projects its need for prison beds based on the literacy rate in the fourth grade. There is a correlation with literacy (or lack thereof) with engagement in the criminal justice system.
Is there a solution to crime in Memphis? Education is obviously a key determinant of escaping a life of crime. However, I think we have overlooked another key opportunity to deter crime. I believe a huge step could be taken if we as a community should have the will and develop a community strategy to scale up the existing works of the organizations and agencies which daily touch the lives of ‘at risk’ kids in our town who need a regular opportunity to enter a loving, caring, and encouraging environment which is offered today and everyday in existing organizations such as Boys & Girls Club, Streets, Emmanuel Episcopal Center, Bridges, Memphis Athletic Ministries, Neighborhood Christian Centers and so on.
What is the secret of the success of these organizations? It is clearly evident to me there is a clear correlation between a high school education and avoiding a life of crime. However, what is the secret of these organizations' success? How are these people and organizations, who are not directly educators, able to get kids from the 60% to 90+% high school graduation? I would submit these committed people and organizations they represent become mentors and substitute parents by providing the vision, the encouragement, and accountability for 'at-risk' kids and their families.
My friend, Robie Williams, who is active in Boy Scouts with core city kids emphatically says, 'Boy Scouts don't go to jail!' and apparently neither do many of our core city children who have the opportunity to be engaged in ministries and agencies who care and love them on a regular basis.
Wednesday, October 28, 2009
Kemp Conrad Attends New Generation Seminar
City Councilman Kemp Conrad has returned from Honolulu, Hawaii, Korea and Vietnam where he attended the New Generation Seminar put on by the East-West Center. Conrad was nominated by the American Council of Young Political Leaders (ACYPL) to attend the seminar, a two-week intensive educational, dialogue and study tour travel program that provides participants with an opportunity to strengthen their understanding of Asia Pacific-U.S. developments and challenges, build a regional network and become leaders with a more international perspective. Conrad was one of only 13 participants are chosen to attend out of a pool of over 200.
From October 4-18, Conrad traveled from Honolulu, Hawaii to Seoul, North Korea and finally Hanoi, Vietnam. Through his travels, Conrad learned about the challenges and policy responses in two Asian countries to the global economic crisis. Through meetings and visits he was exposed to a wide range of perspectives from government, private sector, labor, academia, civil society and the media to better understand the causes, consequences and future implications of this unprecedented challenge to the global economy. He was even able to stand in the North Korea Demilitarized Zone and received a briefing from the Chief of Staff of the US Pacific Command, based in Honolulu.
“The trip enabled me to build relationships with emerging business and political leaders from America and Asia Pacific. We saw first hand the global effects of the financial crisis – but also how countries have responded to it. Visiting Vietnam and Korea also served as a stark reminder that we truly live in a global economy that is very competitive, and the stakes are high” states Conrad. “America must renew its commitment to educational excellence and economic competitiveness such as lower taxes to maintain or economic dominance in the world.”
Kemp Conrad is president of Commercial Alliance Management, a third-party real estate leasing and management commercial real estate firm in Memphis. In 2008, he was elected to the Memphis City Council. This is the second time he has traveled overseas as part of an educational program. In 2004, through the ACYPL, he was a part of the 25th Anniversary exchange between America and China - that started just after President Nixon made his trip to China.
From October 4-18, Conrad traveled from Honolulu, Hawaii to Seoul, North Korea and finally Hanoi, Vietnam. Through his travels, Conrad learned about the challenges and policy responses in two Asian countries to the global economic crisis. Through meetings and visits he was exposed to a wide range of perspectives from government, private sector, labor, academia, civil society and the media to better understand the causes, consequences and future implications of this unprecedented challenge to the global economy. He was even able to stand in the North Korea Demilitarized Zone and received a briefing from the Chief of Staff of the US Pacific Command, based in Honolulu.
“The trip enabled me to build relationships with emerging business and political leaders from America and Asia Pacific. We saw first hand the global effects of the financial crisis – but also how countries have responded to it. Visiting Vietnam and Korea also served as a stark reminder that we truly live in a global economy that is very competitive, and the stakes are high” states Conrad. “America must renew its commitment to educational excellence and economic competitiveness such as lower taxes to maintain or economic dominance in the world.”
Kemp Conrad is president of Commercial Alliance Management, a third-party real estate leasing and management commercial real estate firm in Memphis. In 2008, he was elected to the Memphis City Council. This is the second time he has traveled overseas as part of an educational program. In 2004, through the ACYPL, he was a part of the 25th Anniversary exchange between America and China - that started just after President Nixon made his trip to China.
Monday, October 26, 2009
Shelby Farms
A few years ago, who could have imagined the 4500 acre Shelby County Penal Farm would be placed in a 50 year-old land trust by a unanimous vote of the Shelby County Commission to be operated by a citizens' board-driven, not for profit called the Shelby Farms Conservancy?
Plans are being developed by the park board for a proposed $100 million improvement package to include an expansion of the existing Patriot Lake, hiking trail developments, horseback riding, bike trails, recreational areas along with picnic and family reunion areas. Shelby Farms will soon be expanded and transformed into a 'green' asset for the entire Memphis community.
Go to the website http://www.shelbyfarmspark.org/sfpc/front and review the proposed plans and available activities for recreation and exercise.
Located in the very center of the Memphis population, Shelby Farms will soon be connected from Midtown Memphis by a seven mile trail along the former CSX railroad bed and a new pedestrian bridge over the Wolf River to give bikers and pedestrians access from the Humphreys Blvd area.
Now called Shelby Farms, the user groups and stakeholders have been engaged all through the process and the design plans reflect that input and engagement. In the next few weeks, Starry Nights, after a 10 year absence, will return with a 20 exhibit show for the entire community to enjoy from Thanksgiving through New Years.
Plans are being developed by the park board for a proposed $100 million improvement package to include an expansion of the existing Patriot Lake, hiking trail developments, horseback riding, bike trails, recreational areas along with picnic and family reunion areas. Shelby Farms will soon be expanded and transformed into a 'green' asset for the entire Memphis community.
Go to the website http://www.shelbyfarmspark.org/sfpc/front and review the proposed plans and available activities for recreation and exercise.
Located in the very center of the Memphis population, Shelby Farms will soon be connected from Midtown Memphis by a seven mile trail along the former CSX railroad bed and a new pedestrian bridge over the Wolf River to give bikers and pedestrians access from the Humphreys Blvd area.
Now called Shelby Farms, the user groups and stakeholders have been engaged all through the process and the design plans reflect that input and engagement. In the next few weeks, Starry Nights, after a 10 year absence, will return with a 20 exhibit show for the entire community to enjoy from Thanksgiving through New Years.
Wednesday, October 21, 2009
2009 REALTORS® Commercial Alliance National Award Recipients
The REALTORS® Commercial Alliance (RCA) National Awards Program acknowledges members of the National Association of REALTORS® and its Institute Affiliates who received an award from their state or local REALTOR® commercial group for their professional excellence. Congratulations to Wyatt Aiken who was chosen as a recipient!
For more information on the Program and it's recipients, click here.
For more information on the Program and it's recipients, click here.
Monday, October 19, 2009
Step Up for Down Syndrome!
Commercial Advisors' employees April Bauchmoyer, Cheri Benoit, Lisa Patton and Melissa Alexander participated in the Step Up for Down Syndrome walk Sunday, October 18th at the Memphis Botanic Gardens. Their team, "Christy's Caribbean Cruisers," walked with more than 4,200 people to raise awareness for Down Syndrome!
Christy's Caribbean Cruisers!! Pictured from left to right: Cheri Benoit, Christy Bates, Melissa Alexander, Lisa Patton and April (and Jacob) Bauchmoyer.
Look who we ran into!
Pictured above: Commercial Advisors employees chat with Memphis Mayor A.C. Wharton.
Christy's Caribbean Cruisers!! Pictured from left to right: Cheri Benoit, Christy Bates, Melissa Alexander, Lisa Patton and April (and Jacob) Bauchmoyer.
Look who we ran into!
Pictured above: Commercial Advisors employees chat with Memphis Mayor A.C. Wharton.
Tuesday, October 13, 2009
Railways and Expansions:
Sometime when you're not in a hurry pull off of Poplar by the railroad tracks and count the double-stacked, truck trailers on a Norfolk Southern train. You will get results of 200-225 truck trailers. So what?
Well, that means that 200-225 long-haul trucks and drivers are not driving and beating up the US highways plus the per mile costs for freight are dramatically lower and more 'green'. More than 80 percent of Norfolk Southern trains east bound out of Memphis are going to Harrisburg, PA where short- haul distribution occurs into the East Coast. When Norfolk Southern completes its planned Memphis expansion, more than 1.0 million trucks per year will be on rail rather than on Interstate 40 and Interstate 81 into the northeast.
In a recent editorial in the Memphis Business Journal entitled 'Major investments by railroads bode well for city's future', http://memphis.bizjournals.com/memphis/stories/2009/10/05/editorial1.html, there is a description of the current investments being made in Memphis today by the major US and Canadian railroads.
The attached map shows the Class 1 railroad system in the United States which indicates the robust position Memphis has in the intermodal freight network. As the federal government pushes to transform the trucking industry into a short-haul industry, more and more long-haul trucks will be off the road and on trains. Intermodal nodes like Memphis will greatly benefit from freight and value-added processes in our market.
Well, that means that 200-225 long-haul trucks and drivers are not driving and beating up the US highways plus the per mile costs for freight are dramatically lower and more 'green'. More than 80 percent of Norfolk Southern trains east bound out of Memphis are going to Harrisburg, PA where short- haul distribution occurs into the East Coast. When Norfolk Southern completes its planned Memphis expansion, more than 1.0 million trucks per year will be on rail rather than on Interstate 40 and Interstate 81 into the northeast.
In a recent editorial in the Memphis Business Journal entitled 'Major investments by railroads bode well for city's future', http://memphis.bizjournals.com/memphis/stories/2009/10/05/editorial1.html, there is a description of the current investments being made in Memphis today by the major US and Canadian railroads.
The attached map shows the Class 1 railroad system in the United States which indicates the robust position Memphis has in the intermodal freight network. As the federal government pushes to transform the trucking industry into a short-haul industry, more and more long-haul trucks will be off the road and on trains. Intermodal nodes like Memphis will greatly benefit from freight and value-added processes in our market.
Friday, September 25, 2009
Larry Jensen Recognized in Business Tennessee
Congratulations to Larry Jensen for his recent recognition as Commercial Real Estate's 101 most influential people. Click here http://businesstn.com/content/200909/2009-cre-101 to read the full list.
Monday, September 21, 2009
More Colleague Achievements
Congratulations to Commercial Alliance President Kemp Conrad! Kemp just received his Society for Industrial and Office Realtors (SIOR) designation.
Tuesday, September 15, 2009
Community Assets
Downtown Memphis
Take a challenge....show me about another Central Business District (CBD) in the southeastern United States which can boast a resident population of 28,000 with growth plans for 50,000 persons, an entertainment district which is the most visited tourist attraction in Tennessee with more than 5,000,000 visitors each year, two state-of-the-art sports and entertainment venues, and a business environment which includes headquarters for AutoZone, Regions Morgan Keegan, St. Jude Childrens' Research Hospital, First Horizon Corporation, and Guardsmark.
When people consider a community for relocation or investment, they often look at the CBD for an indication of the health and vitality of a region. No doubt, the Memphis CBD cup is more than half full and projected plans suggest continued growth and success.
Take a challenge....show me about another Central Business District (CBD) in the southeastern United States which can boast a resident population of 28,000 with growth plans for 50,000 persons, an entertainment district which is the most visited tourist attraction in Tennessee with more than 5,000,000 visitors each year, two state-of-the-art sports and entertainment venues, and a business environment which includes headquarters for AutoZone, Regions Morgan Keegan, St. Jude Childrens' Research Hospital, First Horizon Corporation, and Guardsmark.
When people consider a community for relocation or investment, they often look at the CBD for an indication of the health and vitality of a region. No doubt, the Memphis CBD cup is more than half full and projected plans suggest continued growth and success.
Thursday, September 10, 2009
Aerotropolis
Aero-What?
For the past couple of years, the buzzword around Memphis has been Aerotropolis. There have been committees formed, articles written, logos drawn, and meetings held, all because of this one idea. So what does the term “Aerotropolis” mean exactly and what does it have to do with Memphis?
An Aerotropolis is a city that has centered its economy around its airport. Airport cities serve as, “regional multimodal surface transportation nodes and magnets for
business location, commercial transactions, information exchange and leisure activities.” (Kasarda, 2008) Dallas Fort Worth, Detroit and Dubai are cities attempting to recast the local and regional economy and claim the designation. However, Dr. Jack Kasarda holds the Kennan Chair at University of North Carolina Chapel Hill insists only one regional economy is currently an Aerotropolis………you guessed it - Memphis!
The number one reason why Memphis meets this criteria is the FedEx World Hub and the demand it creates for businesses desiring to locate around it. (should we go on? # of packages, shipping times etc.)
New Age of Trade
Cushman & Wakefield has recently designated four cities in the United States as global inland ports where the combination of transportation modes creates a robust global access node.
Along with the Chicago, Atlanta, and Dallas regions, Memphis ranks among the top four ports in the origination of, termination of, and value of freight.
Memphis, in particular, has a quadramodal transportation network and global access system with the availability of the four R's of transportation:
River
Rail
Roads
Runways
Memphis has worked to expand and enhance the Quadramodal transportation infrastructure giving Memphis a decided competitive advantage in a global marketplace driven by efficiencies in time to market.
Memphis International/Top Cargo Airports
Memphis International Airport is the closest America has to an aerotropolis.
With a $28.5 billion economic impact on Memphis it has a higher per-capita impact of any airport in the nation. For example - Atlanta Hartsfield has a $19.8 billion economic impact.
“This century will be characterized by the ‘survival of the fastest.’ That is what you have here: Speed, agility and connectivity."
For the seventeenth consecutive year, Memphis has remained the world's leading airport for air cargo volume. Hong Kong continues to pursue with a strong second place and Los Angeles is the closest domestic airport for air cargo. With FedEx focusing its global market access through Memphis, Paris, and Guang Jo in China, the Memphis airport continues to grow in its leadership role in the Aerotropolis initiative and will soon finish its 20-year strategic planning process.
In addition to FedEx operations UPS operates a Memphis hub and the Department of Defense has just opened a C5A Galaxy base on the airport grounds.
Delta/Northwest merger-Richard Anderson, CEO of the new Delta, proclaimed the Memphis airport as an 'integral' part of the first truly global airline. With low costs of daily operations and landing fees, the airport expects to grow in the next few years including the possibility of additional international non-stops. Average runway taxi times in Atlanta, for example, are approximately 27 minutes while the runway taxi times in Memphis are less than seven minutes.
Check out this article about Memphis' Aerotropolis from the MemphisDaily News http://www.memphisdailynews.com/editorial/Article.aspx?id=45350
For the past couple of years, the buzzword around Memphis has been Aerotropolis. There have been committees formed, articles written, logos drawn, and meetings held, all because of this one idea. So what does the term “Aerotropolis” mean exactly and what does it have to do with Memphis?
An Aerotropolis is a city that has centered its economy around its airport. Airport cities serve as, “regional multimodal surface transportation nodes and magnets for
business location, commercial transactions, information exchange and leisure activities.” (Kasarda, 2008) Dallas Fort Worth, Detroit and Dubai are cities attempting to recast the local and regional economy and claim the designation. However, Dr. Jack Kasarda holds the Kennan Chair at University of North Carolina Chapel Hill insists only one regional economy is currently an Aerotropolis………you guessed it - Memphis!
The number one reason why Memphis meets this criteria is the FedEx World Hub and the demand it creates for businesses desiring to locate around it. (should we go on? # of packages, shipping times etc.)
New Age of Trade
Cushman & Wakefield has recently designated four cities in the United States as global inland ports where the combination of transportation modes creates a robust global access node.
Along with the Chicago, Atlanta, and Dallas regions, Memphis ranks among the top four ports in the origination of, termination of, and value of freight.
Memphis, in particular, has a quadramodal transportation network and global access system with the availability of the four R's of transportation:
River
Rail
Roads
Runways
Memphis has worked to expand and enhance the Quadramodal transportation infrastructure giving Memphis a decided competitive advantage in a global marketplace driven by efficiencies in time to market.
Memphis International/Top Cargo Airports
Memphis International Airport is the closest America has to an aerotropolis.
With a $28.5 billion economic impact on Memphis it has a higher per-capita impact of any airport in the nation. For example - Atlanta Hartsfield has a $19.8 billion economic impact.
“This century will be characterized by the ‘survival of the fastest.’ That is what you have here: Speed, agility and connectivity."
For the seventeenth consecutive year, Memphis has remained the world's leading airport for air cargo volume. Hong Kong continues to pursue with a strong second place and Los Angeles is the closest domestic airport for air cargo. With FedEx focusing its global market access through Memphis, Paris, and Guang Jo in China, the Memphis airport continues to grow in its leadership role in the Aerotropolis initiative and will soon finish its 20-year strategic planning process.
In addition to FedEx operations UPS operates a Memphis hub and the Department of Defense has just opened a C5A Galaxy base on the airport grounds.
Delta/Northwest merger-Richard Anderson, CEO of the new Delta, proclaimed the Memphis airport as an 'integral' part of the first truly global airline. With low costs of daily operations and landing fees, the airport expects to grow in the next few years including the possibility of additional international non-stops. Average runway taxi times in Atlanta, for example, are approximately 27 minutes while the runway taxi times in Memphis are less than seven minutes.
Check out this article about Memphis' Aerotropolis from the MemphisDaily News http://www.memphisdailynews.com/editorial/Article.aspx?id=45350
Friday, September 4, 2009
The Memphis Region
The Memphis Region is larger than you think. When you look at this graphic, you see an outer ring at 80 miles from downtown Memphis with Tupelo, Jackson, Jonesboro and other cities at that edge. Inside the circle is a geographic area comprising the Memphis competitive economic unit which competes on the national and global marketplace. From the outside looking in that is Memphis! This is the globally competitive three state, citi-state similar to the Nashville, Atlanta or Indianapolis regions. Within that ring, more than 2.5 million live, work, and play. How do you define and determine the borders and boundaries of an economic region? Consider the answers to these questions:1) Air travel-where do you go?
2) Medical care, especially trauma or specialties-where do you go?
3) Television-what stations do you watch?
4) Newspaper-what is the major circulation daily?
5) Pro sports, live entertainment, Broadway shows-where do you go?
6) Shopping – where is the concentration of stores?
For political leaders, this a very difficult concept to grasp and encourage, especially across city and state lines that go well beyond their particular political jurisdictions. However, for business decision makers looking to relocate and create new jobs, this is an every day reality. Decision makers expect to find collaborative leadership in regional context working together to create a competitive, progressive and business friendly citi-state. Therefore, we must encourage our political leaders to work together and weigh their own individual agendas against the opportunities for the region as a whole.
The Memphis Metropolitan Statistical AreaWithin the larger competitive economic citi-state there is a federal government defined metropolitan statistical area (MSA). In the case of 'Memphis' MSA that area includes eight counties (Shelby, Tipton, Fayette, DeSoto, Marshall, Tate, Tunica and Crittenden) in three states (Tennessee, Mississippi and Arkansas) with a population of approximately 1.3 million people. Interestingly in both the larger competitive economic unit and the MSA, six United States Senators, three Governors and six Congressmen have a vested interested in the well-being of the area. To date, minimal effort to coalesce those leaders to adopt a commission for the greater good of the region has been attempted. Political jurisdictions are an impedence to a common vision for jobs’ creation. When Nissan relocated its US headquarters to Nashville, they actually chose Cool Springs (located in Franklin, just south of Nashville in Williamson County), which would be equivalent to Nissan choosing Hernando, MS. Yet, in the Nashville mindset, Nissan chose Nashville. When will we have the maturity to understand that on both sides of the Tennessee-Mississippi line?
A Comparison to Atlanta
You are looking at a map of the cit-state known as Atlanta. At the center of the picture below is a yellow area. If you divide the yellow area in half, the top half is the political jurisdiction called the City of Atlanta. Atlanta Mayor Shirley Franklin is elected by the 450,000 voters that live in that small area in the center of a mega-region called Atlanta, which covers 28 counties. The population of Atlanta is ten times (4.5 million people) that of the City of Atlanta. Yet, Mayor Franklin, instead of simply being concerned with her own political boundaries, leads that citi-state region as mayor - especially for economic development. For instance in a 2006 letter to her constituents, Mayor Franklin committed to bring in 60,000 new jobs by 2009. Her designated role as leader of economic development for Atlanta far exceeds her political jurisdictional authority and boundaries and catapults her to a globally important leadership position. This leadership reality is repeated over and over across the US. Leaders that grasp these truths can guide their geographic area to become competitive in a national and global economy. To think and act otherwise is immature, parochial, and counter-productive.
Tuesday, September 1, 2009
Colleague Achievements
Recently two of our colleagues were recognized for their expertise in commercial real estate.
Congratulations to both Matt and Wyatt for their outstanding accomplishments!
- Associate Broker Matt Weathersby was designated a Certified Commercial Investment Member (CCIM). To learn more about the CCIM Institute, click here.
- The Memphis Area Association of Realtors' Commercial Council named CA Senior Vice President Wyatt Aiken president for 2010. Click here to read more.
Congratulations to both Matt and Wyatt for their outstanding accomplishments!
Friday, August 28, 2009
Mid-Year 2009 Memphis Market Reports
Our highly anticipated mid-year office and industrial market reports are now available for download. Learn about the trends we are currently seeing in the Memphis commercial real estate market as well as an outlook for future market growth.
You can visit our website at www.commadv.com/marketknowledge.htm or download them by clicking the following links:
CA Joins the Blogosphere!
Welcome colleagues, clients, community organizations, associates and friends to the new Commercial Advisors’ blog! We decided to create this blog in response to continuing requests for information from the “Roadshow”, our signature presentation about the economic engine for the growth of the Memphis region, the infrastructure to support that economic growth, and the challenges and opportunities in the community. Our first and foremost intention for this blog will be to better share and distribute the Roadshow which is comprised of public information we have gathered, analyzed, reformatted and presented across the region to groups, clubs, companies, and many others over the last 15 years. However, on this blog you will also gain immediate access and insight into the results of our on-going research on commercial real estate facts and trends in the Memphis area as well as recent news about our company, employees, and accomplishments.
In addition to the blog, we will continue to present the Roadshow as requested across the community and the region. If you are interested in learning more about the Roadshow or booking the presentation for your company or organization, please do not hesitate to contact us. Please call Melissa Alexander at 901-366-6070 or email malexander@commadv.com.
We hope you find the information provided here most interesting and helpful. Please feel free post your feedback and comments or send them our way (malexander@commadv.com) and check back often for updates!
Sincerely,
Larry Jensen
President/CEO
In addition to the blog, we will continue to present the Roadshow as requested across the community and the region. If you are interested in learning more about the Roadshow or booking the presentation for your company or organization, please do not hesitate to contact us. Please call Melissa Alexander at 901-366-6070 or email malexander@commadv.com.
We hope you find the information provided here most interesting and helpful. Please feel free post your feedback and comments or send them our way (malexander@commadv.com) and check back often for updates!
Sincerely,
Larry Jensen
President/CEO
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