TRANSPORTATION, OFFICE ASSETS, AND COVID-19: PROPERTY MANAGEMENT SURVEY RESULTS - THOUGHT LEADERSHIP SERIES JULY 2020
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THOUGHT LEADERSHIP SERIES TRANSPORTATION, OFFICE ASSETS, AND COVID-19: PROPERTY MANAGEMENT SURVEY RESULTS JULY 2020
TRANSPORTATION, OFFICE ASSETS, AND COVID-19: PROPERTY MANAGEMENT SURVEY RESULTS Commercial real estate and the transportation sector have both been greatly impacted by COVID-19 and the related stay-at-home orders that were implemented around the country. Virtually overnight, many office properties were temporarily closed or mostly vacated, with tenants transitioning to teleworking. The COVID-19 pandemic has many tenants rethinking the nature of work, with competing considerations creating tension: the need to allow for more space for each worker in the office (to better accommodate social distancing) and the possibility of incorporating more remote work into a long-term occupancy strategy. Concerns about maintaining corporate culture and the isolation of the work-from-home environment also play a role in decision making around office space needs and preferences. Transportation considerations, including near-term health concerns regarding mass transit ridership, are a key factor in ensuring office space can be safely reoccupied. Shared mobility has been dramatically affected, with subway ridership in major cities declining by as much as 95 percent in mid-March, shortly after the pandemic was recognized as a national emergency in the U.S. The rate of infections has varied around the country, and some states experienced an increase in coronavirus cases as summer began. However, as others are ending stay-at-home orders and tenants contemplate a return to the office, property managers must be prepared for shifts in how people travel. To that end, Newmark Knight Frank, in partnership with transportation consulting firm Wells + Associates, surveyed NKF office property management professionals to assess their priorities as they prepare to serve tenants in the period ahead. Property management professionals at NKF have a keen understanding of the needs not only of their tenants but of their owner-investor clients as well; the survey results reflect this collaboration as they work to meet the evolving challenges presented by the COVID-19 pandemic. 2 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020
TABLE OF CONTENTS
KEY FINDINGS 04
SURVEY RESULTS 05
CONCLUSIONS AND RECOMMENDATIONS 10
METHODOLOGY 11
APPENDIX 12
THIS STUDY WAS PREPARED BY NEWMARK
KNIGHT FRANK IN PARTNERSHIP WITH
WELLS + ASSOCIATES
THOUGHT LEADERSHIP SERIES | 3
KEY FINDINGS
1 Managers of urban office properties are concerned that over the coming year their assets
will be subject to a variety of transportation challenges, such as decreased accessibility from
public transit, increased demand for on-site parking, increased demand for on-site bicycle-
related amenities, and increased traffic around their sites in urban areas.
2 Managers of office properties in suburban and exurban locations are not as concerned as
their urban counterparts about transportation challenges over the coming year.
3 Managers of urban properties are concerned about both an increase in telework as well as
reduced occupancy and rental rates, suggesting they believe an increase in telework will
place downward pressure on asset performance.
4 Managers of properties in suburban and exurban locations generally do not expect occupancy
or rental rates to decrease over the coming year, but they are more concerned about the
possibility of decreased occupancy than decreased rental rates.
5 Most property managers are uncertain about how commute patterns may change in the
coming year and are currently maintaining their transportation amenities until tenants’ future
needs are clearer. However, an emerging trend to watch is an increase in bicycle storage
among urban properties, likely a response to concerns about the safety of mass transit.
6 Opportunities exist for asset owners to better inform their tenants about transportation
options through expanded individualized marketing and communication efforts.
TOC
SURVEY RESULTS
Transportation Concerns potential long-term increase in the number of teleworkers.
Breaking down the level of concern by WalkScore category reveals
To gauge property managers’ concerns about office tenants
that the levels of concern about each scenario vary greatly among
returning to work and their transportation needs, the survey
properties depending on location. Please see the Methodology
presented seven different potential scenarios that could take
section in the appendix for a full explanation of how WalkScore
place as a consequence of the COVID-19 pandemic and asked
categories were calculated.
them to rate their level of concern. Respondents were asked
to categorize each scenario as something about which they Managers of properties in Car-Dependent locations are the least
are extremely concerned, moderately concerned, somewhat concerned about the provided scenarios: 62% of such properties
concerned, slightly concerned, or not concerned at all. are not at all concerned about increasing numbers of teleworkers,
compared to 55% of all properties (see the exhibit below as well
Below are the scenarios ranked by level of concern:
as Figure 4 in the appendix). It is logical that managers of Car-
1. Increased number of teleworkers (45%)
Dependent locations, generally suburban properties, would be
2. Increased parking demand (25%)
less concerned about teleworking, since suburban office assets
3. Increased traffic (23%)
have seen an uptick in interest due to commuter wariness of
4. Decreased accessibility from public transit due to changing
mass transit until a coronavirus vaccine is created—their lack of
schedules or routes (21%)
concern may not be tied to the properties’ ability to accommodate
5. Increased demand for bicycle-related infrastructure (17%)
change but rather because they anticipate their space will be in
6. Increased usage of ride-hailing (8%)
greater demand. More than a third (38%) of respondents were
7. Decreased usage of shuttles (5%)
concerned about increased teleworking, making it the scenario
Overall, the managers of properties surveyed responded that with the highest level of concern for properties in Car-Dependent
they are not acutely concerned about the seven scenarios; each locations. The other scenarios, including increased parking
scenario was rated “not at all concerned” by at least 55% of demand, all rank much lower in level of concern, probably
properties surveyed (see Figure 3 in the appendix). However, because these Car-Dependent locations are already designed with
among all properties, the area of most concern was about a a high number of drivers in mind.
MANAGERS OF CAR-DEPENDENT PROPERTIES ARE LESS CONCERNED THAN
AVERAGE ABOUT THE POSSIBILITY OF INCREASED TELEWORKING
All Properties 2% 16% 16% 11% 55%
Car-dependent
3% 9% 15% 11% 62%
Properties
Extremely Concerned Moderately Concerned Somewhat Concerned Slightly Concerned Not At All Concerned
THOUGHT LEADERSHIP SERIES | 5
Properties in the most walkable category, Extremely Walkable, More than a third (38%) of all properties surveyed offer some sort of
were more likely to be concerned about the proposed scenarios transportation amenity that supports commuting by a method other
(see Figure 5). More than half (61%) of properties in Extremely than driving alone (see Figure 6). The three most common amenities
Walkable locations were at least slightly concerned about an support biking to work: showers/locker rooms, bike storage rooms
increase in the number of teleworkers, compared to 45% among and bikeshare stations. While less common, properties also reported
all properties. More than a third (39%) were also concerned about providing shuttles to rail stations, reserved parking for carpool
decreased accessibility from public transit, compared to 21% of vehicles, as well as nine other amenities.
properties overall. Additionally, properties in the most walkable The availability of transportation amenities varies depending on the
places are more concerned about an increase in parking demand WalkScore category of buildings’ locations (see Figure 7). Nearly a
compared to those in Car-Dependent locations: 32% of properties third (32%) of properties in Car-Dependent locations offer amenities,
in Extremely Walkable locations were concerned about an uptick whereas 43% of properties in Somewhat Walkable locations, 50%
in parking demand compared to only 18% in Car-Dependent of properties in Very Walkable locations, and 42% of properties
locations. Walkable properties are likely accustomed to a larger in Extremely Walkable locations offer transportation amenities.
percentage of tenants arriving by non-driving modes and may Properties in Car-Dependent locations may be less likely to offer
not be prepared for an increased share of tenants commuting by amenities to encourage non-driving commutes because their
single-occupancy vehicles, a possibility as commuters seek to individual efforts may not be impactful in a community that lacks
better protect themselves from possible COVID-19 transmission. multimodal transportation infrastructure. More walkable locations
usually offer this type of infrastructure, which can support and
Transportation Amenities and Information augment individual buildings’ transportation amenities.
Transportation demand management (TDM) is an approach that
many commercial properties deploy to handle traffic and parking Last-Mile Connections
challenges, some of which survey respondents believe could Interestingly, 8% more properties in Very Walkable locations offer
occur due to the COVID-19 pandemic. TDM reduces travel demand amenities than properties in Extremely Walkable locations. This
at specific sites by developing strategies for commuter behavior may be because these properties are positioned slightly farther
change, as well as educating and encouraging commuters to from transit connections and suffer from what is known as “last-
explore and utilize all of their transportation options in a safe mile” connection problems. Many office buildings struggle with
and/or socially distant way. Reducing car trips by promoting last-mile connections when they are situated too far from public
carpool, biking, walking, and using public transportation can transportation for their tenants to comfortably walk to the site from
relieve pressure on a property’s parking infrastructure and transit stops. Numerous NKF properties employ transportation
improve the quality of life for tenants by reducing traffic- services, like shuttles to rail service, to help bridge this last-mile
related stress. In many cases, TDM strategies are positioned gap. For instance, a majority of surveyed properties with shuttle
by properties as transportation amenities designed to promote programs are greater than one mile from a rail station.
multimodality to the site.
6 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020
TOC
Bike Amenities Anticipated Changes to Transportation Amenities
Bike storage rooms are most popular in locations within a The survey also asked about intentions to change the level of
quarter-mile of a rail station, perhaps because this amenity is service for any existing transportation amenities due to the
most useful in locations that are more urban in design, have COVID-19 pandemic, or whether properties planned on adding
more bike-friendly infrastructure, and a higher rate of biking. any amenities that they do not currently offer. Overwhelmingly,
However, bikeshare stations are split between areas closest properties that offer amenities plan to keep offering those
to a rail station and areas with no rail service; the popularity amenities for the foreseeable future and at current levels of
of bikeshare stations near properties with no rail service may service—without decreasing or increasing availability.
be due to the increase in smaller cities which lack rail service Only seven properties said they were planning on adding new
implementing bikeshare systems. For example, NKF properties transportation amenities. These properties were all located in
in Riverside, California, and Ann Arbor, Michigan, reported Extremely Walkable locations except for one, which was located
having bikeshare stations on the premises. in a Somewhat Walkable location, and all seven said they planned
on increasing support for bike storage rooms.
Transportation Communication
Eleven properties reported that they planned on reducing or
Nearly half (46%) of properties surveyed reported eliminating transportation amenities. One property in a Car-
communicating with tenants about their transportation options Dependent location is going to reduce ride-hailing support to
(see Figure 9), notably higher than the number of properties train stations. Carshare is losing support from two properties;
offering amenities (38%) (although this is not surprising since one property in a Car-Dependent area is planning to stop offering
properties can promote transportation options in their area carshare parking altogether and one property in a Somewhat
without providing services on-site). Among all properties Walkable area plans to reduce support for carshare parking.
surveyed, the most common method of communication was Finally, eight properties plan on reducing their support for on-site
Email, with 35% of properties reporting that they send out showers and/or locker rooms; four properties in Car-Dependent
transportation updates to their tenants. Website and Tenant areas plan to reduce support for showers and/or locker rooms,
Portals are used to share this information by 10% of properties two properties in more walkable areas (Somewhat and Very
surveyed. Only 35% of Car-Dependent locations actively Walkable) are reducing support for showers and/or locker rooms,
communicate to their tenants about transportation whereas 57% and two properties plan to stop offering showers and/or locker
of properties in the other, more walkable, WalkScore categories rooms altogether. Interestingly, one property eliminating this
communicate about transportation. These more walkable amenity is in a Car-Dependent location while the other is in an
locations may have more to communicate about, given that they Extremely Walkable location.
tend to provide more transportation amenities and are situated
On the whole, properties did not report that they were planning
in locations with more transportation options than their Car-
on adding new transportation amenities. Due to the economic
Dependent counterparts.
conditions and uncertainties associated with the COVID-19
THOUGHT LEADERSHIP SERIES | 7pandemic, property managers may be hesitant to budget for surveyed (24%) are not sure how their occupancy rates will
capital improvements, and some may need to reduce costs. This change. More than half (54%) of properties surveyed also
finding may reflect that property managers are uncertain about reported they anticipate their rent rates will not change in the
when they will reopen or what commute mode changes may next 12 months (see Figure 11), although 11% anticipate their
take place in the coming months—they do not want to overreact rent rates will decrease. Almost a third (30%) of properties are
and spend capital unnecessarily, nor do they want to underreact not sure how their rent rates will change. The relative lack of
and potentially lose tenancy due to insufficient amenities. The anticipated change in both occupancy and rental rates could be
most common change reported is a reduction in transportation because many tenants are signed to multi-year leases, which
amenities: carshare parking, ride-hailing, and showers/locker will not be impacted within the next year. Another factor may
rooms are being reduced or closed in properties of all different be the lack of clarity about how office tenants will react to the
WalkScore categories. However, one amenity stands out as pandemic, with some seeking to maintain or even add space to
garnering additional interest; bike storage is the only amenity accommodate social distancing for those in the office, while
receiving increased support in some Very and Extremely Walkable others consider reducing their space requirements or placing
locations, perhaps reflecting the increase in biking during the space on the sublease market as more employees telework.
pandemic which has been reported anecdotally. Biking enables Properties in Car-Dependent locations are the least likely
people to socially distance and may be perceived as a safe form to anticipate occupancy or rent rate decreases: only 12% of
of transportation during the pandemic. properties in Car-Dependent locations anticipate a decrease in
occupancy rates and only 5% anticipate a decrease in their rent
Anticipated Changes to Occupancy and rates. This is consistent with the market’s current emphasis
Rental Rates on suburban locations, or hub-and-spoke office models, as
Finally, the survey asked property management professionals more functional during a pandemic (see the adjacent exhibit
about their properties’ occupancy and rent rates, and what as well as Figure 11 in the appendix). Properties in more
changes, if any, they anticipate over the next 12 months. More walkable locations anticipate decreases in occupancy and rent
than half (54%) of properties surveyed reported that they at higher rates, with a fifth of properties in Somewhat Walkable
anticipate their occupancy rates will not change in the next 12 and Extremely Walkable locations anticipating a decrease in
months (see Figure 11), although 17% are concerned that their occupancy rates. For Very Walkable locations, this increases to
occupancy rates will decrease. Nearly a quarter of properties a full third of properties. While properties in walkable locations
8 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020TOC
expect decreases in rent to a lower degree than they expect nearly three quarters (74%) of property managers who said
decreases in occupancy, there is still a significant concern about they anticipate occupancy will decrease are at least somewhat
rent: 11% of properties in Somewhat Walkable locations, 19% of concerned about an increase in telework, while only a third (34%)
properties in Very Walkable locations, and 20% of properties in of managers at properties that anticipate no change in occupancy
Extremely Walkable locations anticipate a decrease in rent over are concerned about an increase in telework. Similarly, nearly a
the next 12 months. third (30%) of managers at properties that anticipate a decrease
in occupancy are at least somewhat concerned about increased
Managers who anticipate a decrease in occupancy or rent rates
parking demand, while only 18% of managers at properties that
at their properties are also more likely to be very concerned
anticipate no change in occupancy are concerned about increased
about an increase in telework (see Figure 12) and transportation
parking demand.
issues, such as increased parking demand, increased demand for
bicycle-related infrastructure, and increased traffic. For example,
EXPECTED OCCUPANCY CHANGE ACROSS WALKSCORE CATEGORY
WalkScore Category # of Properties
Car-Dependent 164 21% 64% 3% 12%
Somewhat Walkable 44 29% 46% 6% 20%
Very Walkable 28 30% 37% 33%
Extremely Walkable 64 27% 45% 9% 20%
Not Sure of Impact No Change Increase Rate Decrease Rate
THOUGHT LEADERSHIP SERIES | 9CONCLUSIONS AND RECOMMENDATIONS
Based on survey results, properties in urban markets appear more likely to experience transportation-
related impacts from the COVID-19 pandemic than similar properties in less urban contexts. Strategies
currently being deployed in both urban and suburban contexts are informative for how properties can
prepare for changing conditions related to the ongoing COVID-19 pandemic. Possible strategies include
the following:
For all properties, asset owners and their property managers may wish to:
• Develop a communications plan to educate tenants about their transportation options during
COVID-19 (regardless of whether the property provides transportation amenities) to encourage safe
use of multimodal transportation during and after the pandemic.
• Consider increasing bike storage to improve connectivity and support multimodal transportation.
For urban properties, asset owners and their property managers may wish to:
• Consider expanding transportation amenities such as on-site bicycle storage and bikeshare/
scooter-share stations to enhance connectivity and remain competitive with more suburban
properties, which are less likely to face parking shortages and other transportation concerns.
• Develop a communications plan about how to safely commute to work with social distancing via
transit, shuttles and carpools. They may also wish to review with tenants the COVID-19 safety
precautions being taken by the building, such as the cleaning protocols of transportation amenities
or local bike/scooter share stations.
• Increase transportation amenities that solve last-mile challenges, such as shuttle or ridehailing
services to nearby public transit stops, particularly for those assets with a WalkScore between
50 and 89 or located between a half-mile and 1.5 miles from a transit station.
• Incentivize tenants to carpool by creating reserved carpool spaces closer to building entrances
and/or providing these spaces at free or reduced rates.
• Re-examine meeting and collaboration spaces; larger and more flexible meeting spaces can confer
a competitive advantage in the current environment.
10 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020TOC
METHODOLOGY
To gauge the concerns of property managers related to COVID-19 NKF manages properties in markets around the country, including
and transportation, Newmark Knight Frank partnered with Wells urban, suburban, and exurban locations. WalkScores were
+ Associates to distribute a survey to managers of NKF’s office considered as part of the analysis. (WalkScore assigns a score
portfolio. These management professionals are attuned to both from 0–100 to measure the degree of walkability in an area.
the needs of their tenants and their investor-owner clients, giving The methodology analyzes walkability of an area; the higher
their opinions a unique and insightful position in the commercial the WalkScore for an address, the more amenities an individual
real estate industry. The survey was completed in May and can walk to in a shorter amount of time.) Using ratings from
June 2020 by managers representing 300 properties across the WalkScore, the properties surveyed were broken into categories
country, approximately 67% of the NKF office portfolio. The survey based on degree of walkability to approximate each site’s level
asked property managers at NKF properties about: of urbanity. Using the individual scores, surveyed properties were
organized into four categories: Extremely Walkable (90–100),
• The types of transportation amenities the building provides
Very Walkable (70–89), Somewhat Walkable (50–69), and Car-
to tenants and if they plan to make any changes over the
Dependent (0–49). Extremely Walkable locations do not require
next 12 months;
a car for daily errands, Very Walkable locations do not typically
• Whether they actively communicate with tenants about require a car, Somewhat Walkable locations require a car for some
transportation; errands, and Car-Dependent locations require a car for most or
• What transportation-related concerns they may have at their all errands. Survey results were analyzed using these WalkScore
property; and categories to gain deeper insight into the ways in which buildings
in different types of locations are being differentially impacted by
• How they see the pandemic impacting their rents and
COVID-19 and its associated transportation challenges.
occupancy rates over the next 12 months.
SOURCES:
ASSOCIATION FOR COMMUTER TRANSPORTATION, CENTERS FOR DISEASE CONTROL AND PREVENTION, THE GUARDIAN,
NKF RESEARCH, WALKSCORE, WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY, WELLS + ASSOCIATES
LEADERSHIP OF SURVEY PROJECT:
NEWMARK KNIGHT FRANK WELLS + ASSOCIATES
Dan Orcutt Camille Galdes
Director, Management Services Research Associate
Alexander (Sandy) Paul Matthew Holden
Senior Managing Director of National Research Data Scientist
Chris Prather Nick Kosar
National Director of Operations Digital Marketing Strategist
Sam Willger Justin Schor
Senior Graphic Designer Principal, Planning + Market Research
THOUGHT LEADERSHIP SERIES | 11Key exhibits are cited in the preceding narrative; others are included here for additional context on the
APPENDIX sample of properties surveyed and property managers’ reactions to the current office market environment.
FIGURE 1: GEOGRAPHIC DISTRIBUTION AND NUMBER OF RESPONSES
OF NKF PROPERTIES SURVEYED
San Francisco 31
Northern NJ 23
Philadelphia 19
Denver 17
Washington DC 14
NY Metro 14
Wisconsin 13
Detroit 13
Salt Lake City 11
Los Angeles 10
Florida 10
SW Texas 8
Dallas 8
Ohio 7
Pittsburgh 6
Phoenix 6
Columbus 6
Portland 4
Chicago 4
Minneapolis 3
Memphis 3
Connecticut 3
Las Vegas 2
Boston 1
Atlanta 1
12 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020TOC
FIGURE 2: ALL SURVEYED PROPERTIES CATEGORIZED BY WALKSCORE
57%
20%
13%
11%
Car-Dependent Somewhat Walkable Very Walkable Extremely Walkable
0–50 51–69 70–89 90–100
THOUGHT LEADERSHIP SERIES | 13FIGURE 3: LEVEL OF CONCERN ABOUT POTENTIAL SCENARIOS,
AMONG ALL PROPERTY MANAGERS
Decreased Usage
3% 95%
of Shuttles
Increased Usage of
6% 92%
Ride-Hailing
Increased Demand for
Bicycle Related 4% 12% 83%
Infrastructure
Decreased Accessibility
7% 12% 79%
from Public Transit
Increased Traffic 7% 13% 77%
Increased Parking 3% 7% 13% 75%
Demand
Increased Number 16% 16% 11% 55%
of Teleworkers
Extremely Concerned Moderately Concerned Somewhat Concerned Slightly Concerned Not At All Concerned
14 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020TOC
FIGURE 4: LEVEL OF CONCERN ABOUT POTENTIAL SCENARIOS,
AMONG MANAGERS OF CAR-DEPENDENT PROPERTIES
Decreased Usage
98%
of Shuttles
Increased Usage of
97%
Ride-Hailing
Increased Demand for
Bicycle Related 7% 91%
Infrastructure
Decreased Accessibility
4% 6% 89%
from Public Transit
Increased Traffic 6% 8% 84%
Increased Parking
4% 11% 82%
Demand
Increased Number
3% 9% 15% 11% 62%
of Teleworkers
Extremely Concerned Moderately Concerned Somewhat Concerned Slightly Concerned Not At All Concerned
THOUGHT LEADERSHIP SERIES | 15FIGURE 5: LEVEL OF CONCERN ABOUT POTENTIAL SCENARIOS,
AMONG MANAGERS OF EXTREMELY WALKABLE PROPERTIES
Decreased Usage
7% 93%
of Shuttles
Increased Usage of
4% 14% 82%
Ride-Hailing
Increased Demand for
Bicycle Related 12% 14% 72%
Infrastructure
Decreased Accessibility
4% 14% 21% 61%
from Public Transit
Increased Traffic 11% 18% 68%
Increased Parking 5% 11% 14% 68%
Demand
Increased Number 28% 18% 14% 39%
of Teleworkers
Extremely Concerned Moderately Concerned Somewhat Concerned Slightly Concerned Not At All Concerned
16 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020TOC
FIGURE 6: TRANSPORTATION AMENITIES OFFERED
ACROSS ALL PROPERTIES
Shower Locker Rooms 23% 77%
Bike Storage Room 15% 85%
Bikeshare Station 6% 94%
Shuttle to Rail 4% 96%
Carpool Reserved Parking 97%
62%
Bikeshare Dockless 98%
Designated Ride-Hailing
99%
Pickup Dropoff
Real-Time Transit
Information Screen 99%
Shuttle to Lunch 99%
Carshare Parking 99%
E-scooter Dockless 99%
38% Property Paid Ride-Hailing
99%
Between Rail Station
E-scooter Charging Hub 100%
Property Paid Ride-Hailing
Between Site and Lunch 100%
Destinations
Property Offers an Amenity Property Does Not Offer an Amenity
THOUGHT LEADERSHIP SERIES | 17FIGURE 7: TRANSPORTATION AMENITIES OFFERED AT
PROPERTIES BY WALKSCORE CATEGORY
54% 50%
58%
68%
46% 50%
42%
32%
Car-Dependent Somewhat Walkable Very Walkable Extremely Walkable
Property Offers no Transportation Amenities Property Offers at least One Transportation Amenity
FIGURE 8: PROPERTIES BY WALKSCORE CATEGORY AND
DISTANCE TO RAIL TRANSIT
6%
29%
44%
36%
62%
32%
39%
58%
31%
39%
17%
7%
Car-Dependent Somewhat Walkable Very Walkable Extremely Walkable
No Rail Transit in the Area Greater than 1/4 Mile Within 1/4 Mile
18 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020TOC
FIGURE 9: RATES AND TYPE OF TRANSPORTATION COMMUNICATIONS,
AMONG MANAGERS OF ALL PROPERTIES
54%
65%
90% 91%
96% 96%
99% 99%
35%
46%
10% 9%
4% 4%
Email Website/Tenant Other (Leasing Display Flyers Social Text
Portal Guide/App) Screens Media Messages
Property Does Not Communicate About Transportation Property Communicates to Tenants About Transportation
THOUGHT LEADERSHIP SERIES | 19FIGURE 10: ANTICIPATED CHANGES IN TRANSPORTATION AMENITIES,
AMONG MANAGERS OF ALL PROPERTIES
Shuttle to Rail 1.2%
Carpool Parking 2.4%
Ride-Hail to Station 1.2%
Real-Time Display 2.4%
Carshare Parking 1.2%
Shuttle to Lunch 4.9%
Designated
9.8%
Ride-Hailing Spot
Bikeshare Station 13.4%
Bike Storage Room 41.5% 8.5%
Shower Locker Rooms 7.3% 63.4%
Stop Offering Decrease Support/Availability Keep Offering at Same Level Increase Support
20 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020TOC
FIGURE 11: ANTICIPATED CHANGES IN OCCUPANCY AND RENT RATES
WITHIN THE NEXT 12 MONTHS BY WALKSCORE CATEGORY
11%
17%
24% 5%
30%
Occupancy Rent
4% Rate Rate
54% 54%
WalkScore Category # of Properties
Car-Dependent 164 12% 64% 21% 59% 7% 29%
Extremely Walkable 64 20% 45% 9% 27% 20% 48% 4% 29%
Somewhat Walkable 44 20% 46% 29% 11% 51% 3% 34%
Very Walkable 28 33% 37% 30% 19% 48% 33%
Decrease Rate No Change Increase Rate Not Sure of Impact
THOUGHT LEADERSHIP SERIES | 21FIGURE 12: RATES OF CONCERN ABOUT POTENTIAL SCENARIOS
BY EXPECTATION ABOUT OCCUPANCY RATES
Anticipates Decreased Usage of Shuttles 7% 5% 86%
Occupancy
will Decrease
Increased Usage of Ride-Hailing 7% 88%
Increased Demand for Bicycle
Related Infrastructure 14% 14% 70%
Decreased Accessibility from
5% 5% 14% 74%
Public Transit
Increased Traffic 7% 9% 12% 72%
Increased Parking Demand 9% 14% 7% 70%
Increased Number of Teleworkers 40% 26% 9% 26%
Anticipates Decreased Usage of Shuttles 98%
Occupancy
Will Stay the
Same
Increased Usage of Ride-Hailing 5% 93%
Increased Demand for Bicycle
Related Infrastructure 8% 90%
Decreased Accessibility from
8% 89%
Public Transit
Increased Traffic 12% 84%
Increased Parking Demand 14% 82%
Increased Number of Teleworkers 12% 10% 11% 66%
Extremely Concerned Moderately Concerned Somewhat Concerned Slightly Concerned Not At All Concerned
22 | © NEWMARK KNIGHT FRANK | RESEARCH | JULY 2020TOC
FIGURE 13: RATES OF CONCERN ABOUT POTENTIAL SCENARIOS
BY EXPECTATION ABOUT RENT RATES
Anticipates Decreased Usage of Shuttles 4% 4% 4% 88%
Rent will
Decrease
Increased Usage of Ride-Hailing 4% 4% 4% 88%
Increased Demand for Bicycle
Related Infrastructure 4% 12% 19% 65%
Decreased Accessibility from
Public Transit 4% 4% 12% 15% 65%
Increased Traffic 8% 8% 15% 69%
Increased Parking Demand 8% 4% 12% 12% 65%
Increased Number of Teleworkers 42% 12% 23% 23%
Anticipates Decreased Usage of Shuttles 97%
Rent will
Stay the
Same
Increased Usage of Ride-Hailing 7% 92%
Increased Demand for Bicycle
Related Infrastructure 11% 86%
Decreased Accessibility from
Public Transit 6% 11% 83%
Increased Traffic 4% 12% 84%
Increased Parking Demand 4% 11% 83%
Increased Number of Teleworkers 14% 11% 7% 67%
Extremely Concerned Moderately Concerned Somewhat Concerned Slightly Concerned Not At All Concerned
THOUGHT LEADERSHIP SERIES | 23New York, NY NATIONAL RESEARCH CONTACTS
125 Park Avenue
New York, NY 10017 Alexander (Sandy) Paul, CRE, LAI Jonathan Mazur
212.372.2000 Senior Managing Director, Senior Managing Director,
National Research National Research
Washington, DC apaul@ngkf.com jmazur@ngkf.com
1899 Pennsylvania Avenue NW
Suite 300 Stephanie Jennings Bethany Schneider
Washington, DC 20006 Managing Director, Director, Research
202.331.7000 National Research bschneider@ngkf.com
stjennings@ngkf.com
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