Life at Sentry Commercial

Happy Holidays From Sentry Commercial!

Happy holidays from your team at Sentry Commercial! Stay warm, safe, and enjoy the valuable time with your loved ones during this holiday season.

SIOR’s Leadership to Extend Into 2021

The Sentry Commercial team would like to personally congratulate our President, Mark Duclos, SIOR, CRE, FRICS, on an extended Presidency at the Society of Industrial and Office Realtors (SIOR).

Due to the world’s current situation, SIOR has proactively decided to extend all current leadership roles by one year.

Duclos will remain President of SIOR into 2021, and we are confident (and proud) that with this leadership, SIOR will be well-positioned to succeed, guide our community, and emerge stronger than ever before.

Read more and view the full list of SIOR’s Board of Directors, Regional Directors, Committee Chairs, and Vice-Chairs: https://www.sior.com/education-and-insights/insights/latest-news-article/2020/05/26/sior-elects-2020officers

Sentry Commercial is now on YouTube!

Our team is proud to announce that Sentry Commercial is now on YouTube!

If you haven’t checked out our new channel yet, head on over to: https://www.youtube.com/channel/UCfmFGKNSrnMgKdrIrMXrBFw

Be sure to subscribe and check back regularly for the latest news, updates, tours, and more from our team!

SIOR’s Mark Duclos on Serving as a Resource for Members and Communities During COVID-19

Our President, Mark Duclos, SIOR, CRE, FRICS was recently interviewed by SIOR about the pandemic and its effect on the industrial category. We couldn’t be more proud of him for offering his time and tools through SIOR to spread the word and assist our friends and community! Read the full article and Q&A below.

This article is from Connect Media and has been republished with permission from Connect Media.

April 7, 2020

By Paul Bubny

If any property sector seems better positioned than others during the coronavirus pandemic, it’s industrial, at least from the standpoint of a casual observer. The boom in e-commerce has gotten a turbo boost from consumers who are living under government-mandated shelter-in-place orders. However, SIOR President Mark Duclos, an industrial broker himself as president of Sentry Commercial, notes that many other industries that drive demand for industrial space have been hit hard by the shutdown. In this interview with Connect Media, Duclos discusses the impact that COVID-19 has had on industrial and the ways that SIOR has surmounted its temporary inability to hold conferences and become a resource for both its own membership and the communities in which they operate.

Q: What impact has the economic shutdown from COVID-19 had on industrial, or is it too soon to tell?

A: It’s still early in the game. As long as we’ve been in this already, it’s still early in terms of understanding how this is going to affect the market long-term. Short-term, it has absolutely affected the market. The $2-trillion stimulus package is certainly going to be a big help. But you also have supply chains that were affected by the original events in China, and now with the coronavirus happening here, there has been further disruption. However, it seems that supply chains in areas like grocery have stabilized. You’re seeing a better flow of product into grocery stores. On the e-commerce side, Walmart and Amazon have said that they’re hiring and are likely to continue hiring through May. There are certain winners here that are continuing to do what they were doing before the coronavirus, and then some. And there are losers, certainly: the airline industry, retail, the oil and gas industry. Short-term, these companies are in a lot of pain. How long it will take them to get out of it, which affects the long-term prospects for industrial—we don’t know yet.

Q: This is different from something like the 2008 financial crisis, in terms of predicting how it will unfold.

A: Absolutely. In the 2008 financial crisis, you had a meltdown of the financial markets. Here, the financial markets were very healthy. One of the beauties of being in an organization like SIOR is that we have online forums, and our members, some of whom are landlords as well as brokers, have a view into the open market in terms of advising our clients how to proceed. We’re seeing the issue of rent forgiveness coming up, and the other thing we’re seeing on the lending side is three months or six months of interest-only payments, and tag that onto the back of an existing loan. But this is happening very much on a case-by-case basis. Some companies are doing well and don’t need the relief, while others won’t be back in the swing of things for a while.

Q: How is belonging to an organization like SIOR especially valuable at a time like this? And how are members networking in the absence of face-to-face contact?

A: It’s not that you don’t have emergency plans in place, but nobody had a plan for the country being suddenly locked down. So, we’ve been looking at what we can best do as an organization to provide our members with some resources they can use to run their business. Physical networking is gone for a while. We had to cancel our TransACT 360 conference that was scheduled to take place at the end of April, and we’re not holding SIOR chapter meetings. In addition to the open forum, we set up an online town hall where we can discuss specific topics, and share initiatives that we’ve been working on with the members. We’re replacing the lost opportunities from the live events. Forty percent of our membership is independent brokers, and they use SIOR predominantly for information like this.

Q: Talk about SIOR CARE and the impetus behind launching this initiative.

A: When you’re in a situation like this as a group, the first thing you do is to look inward and say, “What do I need to do to survive this crisis?” Then you take a deep breath and say, “How can we help others survive a crisis like this? How can we use our skillsets as brokers and advisors in the real estate industry to help others?” Therefore, we launched the SIOR CARE [Community Assistance and Relief in Emergencies] program in order to reach out to communities—nonprofits, but also for-profits as well—on anything we can do to help them with their real estate resources. It might be a food bank that’s looking for additional warehouse space. It might be the Red Cross that needs more temporary facilities for blood drives. We’re excited to see how this develops.

We’re Still Here For You!

Today’s crisis is certainly creating challenges for all of us, personally and professionally.

Sentry Commercial wants you to know we are here to help you. Our Brokerage & Advisory, Construction Management, Property Management and Residential Services Group were built to operate remotely.

While our physical offices are closed, we are very much providing our clients the service and advice you have come to expect over the last 30 years.

Through it all, please stay safe and healthy.

Sentry Commercial’s Duclos Joins Industry Experts on New COVID Safety Measures

Recently, Sentry Commercial’s Mark Duclos, SIOR, CRE, FRICS, and fellow CRE experts spoke with Connect Commercial Real Estate via webinar to discuss the safety measures taken amid recent events.

Read the article and watch the webinar below!

View on connect.media

March 20, 2020

“When are office buildings going to be locked down or asked to close? And if that happens, what are tenants going to be requesting of an owner?”

Questions such as this one, posed by Madison Marquette’s Drew Genova, normally wouldn’t be part of the conversation for commercial real estate executives. But, for the moment, they’re reflective of the new normal of social distancing and sheltering in place that has been brought about by the coronavirus pandemic and the efforts by both public and private sectors to contain the spread.

Earlier this month, Connect Commercial Real Estate gathered experts representing each of the major property types for a 40-minute webinar on the impact of COVID-19. Their focus: the measures each is taking to promote a safer environment within their properties, for tenants and visitors alike. Daniel Ceniceros, CEO of Connect Commercial Real Estate, moderated the discussion.

The panelists have been reconvened for a follow-up webinar on property operations during this unprecedented time, in which questions and considerations such as the ones posed by Genova need to be weighed and acted on.

The panelists included:
• Julianne B. Goodfellow, senior director, government affairs, National Multifamily Housing Council
• Mark Duclos, president and co-founder, Sentry Commercial & SIOR President
• Brian Nelson, president and founder, NB Private Capital
• Anjee Solanki, national director retail services | USA, Colliers International
• Drew Genova, chief asset services officer, Madison Marquette
• Michael Oddo, founder and CEO, Metro Services Group
• Peter Hosford, program director, senior industrial hygienist, EBI Consulting
• Jeff Herrera, senior general manager, Rising Realty Partners

Upward Labs’ Demo Day VIRTUAL Event – April 2nd

Upward Labs Demo Day is still on!

Don’t miss this VIRTUAL event on April 2nd! Upward Labs offers critical solutions within real estate and healthcare industries that can help organizations cope with crisis’ – leaving us feeling strongly about continuing Demo Day remotely.

The Lab offers #AgeTech solutions that allow remote monitoring of patients within assisted living communities and home healthcare agencies. Upward’s #PropTech Lab include advanced air purification and security solutions for home, workspaces, and facilities.

This is a can’t miss – and our team at Sentry Commercial is very fortunate for our relationship with Greg Flynn and Shana Schlossberg at Upward Hartford and Upward Labs.

To register for Demo Day, click here: https://www.moveupward.city/demo-day

A Time of Giving: Curt Gemme Makes National Headlines

Over the weekend, on March 21st, Sentry Commercial’s Curt Gemme stumbled upon a store in the Northwest Hills that had plenty of toilet paper in stock. During this growing COVID-19 pandemic, people have been panic-buying toilet paper in excess amounts, making it difficult to find it.

Instead of hoarding it for himself, Gemme went around the area giving it out to people who were in need and couldn’t find it! In fact, he actually made the national news for giving a package to some newlyweds!

“Never could I have imagined the joy in giving something to someone that they so desperately desired,” Gemme said.

It’s acts of kindness like this that we admire – and we’re beyond proud of our teammate Curt! Little efforts go a long way! Thank you, Curt!

Here are some pictures of his experience:

Start with Someone Who Cares™!

Sentry Scoop: Don’t Miss Upward Labs’ Demo Day Event!

Our team has been fortunate over the past several months to develop a great relationship with Greg Flynn and Shana Schlossberg at Upward Hartford and Upward Labs. Meeting with company CEO’s on partner day proved rewarding and gave us insight as to where technology is going in the medical and commercial real estate property space.

We look forward to the showcase of companies and products at this upcoming event, Upward Labs Demo Day on April 2nd.

At this exciting event, participants will have the opportunity to attend one-on-one sessions with leading startups as they demonstrate their innovations in air quality, building security, IoT, water quality, tenant experience, and more!

These products were finetuned through the Upward Labs program and are piloting their solutions with a marquee list of Fortune 500 companies including Travelers, The Hartford, Carrier, Hartford Steam Boiler, UBS, AXA, XL and more.

This is truly a can’t-miss event, especially if you’re in the area. It will run from 12:00 PM to 4:00 PM on April 2nd.

It’s very rewarding to contribute to providing more opportunities in our home, Hartford, Connecticut (and beyond) with organizations that are bringing more business and startups to the mix.

To register for Demo Day, click here: https://www.moveupward.city/demo-day

More about Upward Labs:
Upward Labs is a leading Connecticut based venture fund that helps fast-track PropTech and AgeTech startups, creates an opportunity to network, demo products, and showcase their applications to various areas of commercial real estate.

Mark Duclos, SIOR, CRE, FRICS on NAI Global’s Diving Into CRE

Sentry Commercial’s President Mark Duclos, SIOR, CRE, FRICS, had a conversation with NAI Global SVP, Simon Hartzell about the difference SIOR can make in your CRE career! Tune into Episode 13 of Step Up Your Marketing Game by watching below!

LISTEN ON ITUNES

Sentry Commercial’s Curt Gemme on Hartford’s Upstart Ecosystem

Twenty years ago I would describe the vibe in Hartford as non existent. Nobody lived downtown to speak of and at the end of the day it was like a ghost town.

Now getting back involved in Hartford over the past 5 months has been an amazing experience. I was excited to dig in and see just what was going on in Hartford today. I had dozens of lunches with Hartford’s business leaders and participated in a multitude of networking events through the BOMA and REFA organizations. I was asked by Devra Sisitsky, Executive Director, MakerspaceCT to be part of their Legacy Committee.

I attended some the best Christmas parties and talked with hundreds of people. The result I can tell you is that there is an ecosystem which exists. It’s about culture, community, collaboration and innovation. Businesses partnering with each other to effect change in how their industries, including Insurance, Healthcare, Commercial Real Estate, etc will work in the future.

What’s even more amazing is Hartford is culturally rich with companies and entrepreneurs coming into the city from over 50 countries. In fact, Hartford, for many of these entrepreneurs it is their first ever entry point into the United States. Grey Flynn, Director of Upward Hartford Labs and I were at an event at the Stanley Innovation Center in downtown and we were trying to determine just how many startups are coming through Hartford each year. We think it could now be close to 100 startups a year. Wow!

Hartford has become one of the top 10 markets for technology jobs and one of the top markets for college grads looking to find a job. University of Connecticut’s downtown campus is at maximum capacity with 1650 undergrads and 1650 graduate students. There are now over 2,500 downtown residents, with more coming to work in our City from all over the place. Not to mention new renovation apartment construction on Pearl Street, 101 units all leased in under 6 months.

So what is Hartford’s upstart ecosystem? Digital Health CT, Rainmaking, Startubootcamp, Nassau-Re, Re-set, Stanley Innovation Center, InsurTec, Medtec, Launch Hartford, MakerspaceCT. All organizations driving innovation through programs, mentoring, funding and leadership to give these entrepreneurs a better chance of success.

Just this week Digital Health CT held its Velocity Demo Day 2020 at the Bushnell and we had the opportunity to hear from 10 different medtec companies. With close to 600 people in attendance, this was an amazing event. Also, this week we’re humbled to be part of Upward Hartford Labs partner week where we meet with 5 CEO’s of PropTec companies that are looking to launch their businesses over the next year. So yes, Hartford has created a vibe and it’s unique and culturally diverse. Very exciting times for Hartford today and ahead…

Sentry Commercial’s Mark Duclos, SIOR, CRE Becomes a RICS Fellow

Sentry Commercial’s Mark Duclos recently became a RICS Fellow, making his title now Mark Duclos, SIOR, CRE, FRICS. This professional achievement entitles Duclos to influence policy and instill the standards of highly qualified trainees and professionals from significant financial markets.

RICS, or The Royal Institution of Chartered Surveyors, is globally recognized for promoting their set of principles in the development and management of real estate, land, construction, and infrastructure. Governments, investors, consumers, and other stakeholders are impacted by the responsibility and commitment of this fellowship. With the use of trusted data and insight, the 134,000 qualified members aim to provide solutions to present challenges while making innovations for future generations.

Sentry Commercial’s team is honored to be part of an organization whose leadership represents positive change in the built and natural environments.

SIOR Inducts Sentry Commercial’s Duclos To 2020 Board of Directors

Sentry Commercial’s Mark Duclos, SIOR, CRE is Inducted as President of SIOR

On Thursday, October 17th, Sentry Commercial’s President, Mark Duclos, SIOR, CRE was inducted as the President of the Society of Industrial and Office REALTORS® (SIOR) at the 2019 SIOR Fall World Conference.

Nearly 1,000 of the world’s most knowledgeable commercial real estate professionals met to discuss the trends, opportunities, and challenges in the CRE industry and were able to listen to Duclos’ vision for his new role. 

The team at Sentry Commercial was proud to have attended this significant event! We would like to congratulate our President Mark on his induction and continued success for SIOR as well as send a special thank you to Robert Thornburgh, SIOR, CCIM, for his recent leadership of SIOR and continued support.

Duclos Discusses Making the Most of an SIOR Conference

Tips From Your President

SIOR Sits Down with Mark Duclos, SIOR, CRE

This article originally appeared in SIOR Pulse

Interviewed by Alexis Fermanis – October 16, 2019

You’ve brought your business cards, you’ve scheduled your networking events, and you’re ready to mix, mingle, and learn. We’re ready to help you succeed and enjoy a fantastic event. We sat down with incoming SIOR Global President Mark Duclos, SIOR, CRE for some insider tips on how to make the most of an SIOR conference.

SIOR: You’ve been to 32 conferences, and quite a few now as a member of the SIOR Board of Directors. How does it feel to now be leading the conference as the next SIOR President?

Duclos: It’s awesome! I remember coming to my first conference and I was scared to death. The content was great…the people were great…but I didn’t know anyone! But once I got out of my comfort zone and began meeting people, it became incredibly fulfilling. I stuck with it!!! Now 16 years later I am the President of SIOR and the rest is history! I am the President of THE organization that has made THE most significant impact on my professional career (and in many ways my company and my life)! President of an organization whose members humble me daily. Many members who I aspire to be like.

SIOR: What’s the one thing you never forget to pack for an SIOR event?

Duclos: It’s actually three items…my cards, my SIOR pin (wear it!) and ibuprofen (lots of great, long nights!). SIOR is about a lot of things, but first and foremost it’s about connections. Meeting people! Great people! And that can mean a late night or two…or three! Of course my business cards and my pin say EVERYTHING about WHO I AM!

SIOR: What’s the first thing you do when you arrive?

Duclos: My conference prep actually starts before I step on the plane. I review the schedule and the attendee list and make a plan for who I want to meet or reach out to while here. I try to schedule meetings in advance to carve out some time to meet.

SIOR: What advice would you give to a first-time conference attendee?

Duclos: Dive In! Everyone is likely here for the same reason…to meet people! The good news here is the people you meet are also here to help you! It’s here that we exchange meaningful discussions and build lasting relationships. It’s ALL about relationships!!! You get what you give. Don’t bury yourself in your room and don’t be afraid to start a conversation or join in and introduce yourself. Even let them know you are new! You’ll be amazed (or maybe you won’t) at how welcoming everyone is!

SIOR: What’s the biggest takeaway from any conference you’ve been to?

Duclos: People want it to happen now. But what you really are doing is investing in yourself — taking the time to learn something new; getting out of your comfort zone; making new connections and expanding your world. If I gave up on my first couple of experiences…I would not be here today and I certainly wouldn’t have close to the success I have had in my career. SIOR is first and foremost about PEOPLE. People who understand the BIG picture and people who are willing to invest in their future. And what’s really different…People who are willing to help YOU! My biggest takeaway from a conference? Invest in your future. Get out of your comfort zone!!

 SIOR: What are you most excited for here in Portland? Is there a single session you are really looking forward to?

Duclos: I am so excited and totally honored to be the President of SIOR. So, Portland to me is a very different experience than any other conference. All our educational sessions always give me take-home value. It’s amazing to me how I will get home from these conferences and educational sessions and almost immediately help a client with something I learned at the SIOR conference. SIOR education gives you immediate street-cred with your clients…even here in little ole Hartford CT!

SIOR: Can you tell us three of your best tips for ensuring a successful event?

Duclos: 1. Be yourself. BUT, get out of your comfort zone. 2. Understand you get what you give. This is not an immediate return (although I did do a 580,000 SF lease, 3 years after being an SIOR). Don’t make it more complicated than it is…Go meet people!!! 3. When you meet someone new or catch up with someone, make some notes of some personal or professionally important details that you can follow up with later (I scribble notes on the back of the business cards I receive). Those extra personal touches go a long way in building lasting relationships.

SIOR: What are the biggest questions you expect to be asked at the conference? Or – what are the hottest topics you expect to be discussed at the conference?

Duclos: I expect a lot of chatter around the demise of WeWork (Is this the end of shared workspace?)! Also: What are the biggest challenges to CRE brokerage in today’s world?…E-Commerce! The “R” word! Technology…prop tech…CoStar and data!

READ THE FULL ARTICLE HERE

Sentry Commercial’s Curt Gemme Joins the BOMA Greater Hartford Chapter

We’re proud to announce that Sentry Commercial’s Curt Gemme, Director of Business Development, will be joining The Greater Hartford BOMA Chapter!

The Greater Hartford BOMA Chapter is one of the most highly respected real estate organizations in the Greater Hartford Region and it attracts numerous real estate professionals, property managers, facility managers, brokers, building contractors, and vendors. Members include building owners, developers, property management companies, and a handful of major corporations and fortune 500 companies.

“I am excited the be joining this organization. I have been a big fan of BOMA throughout my real estate career and now look forward to getting Sentry Commercial and myself involved at the member and volunteer level.” – Curt Gemme, Director of Business Development.

Sharing Gemme’s excitement is Jeannie, Executive Director, “we are excited to welcome Sentry Commercial as the newest member of Greater Hartford BOMA. BOMA is an association whose mission is to advance a vibrant commercial real estate industry through advocacy, influence, and knowledge by representing the owners and managers of all commercial property types. We believe Sentry will be a great fit in helping us uphold this mission. We’re looking forward to Curt becoming an active and valuable member, and thank Sentry for their support of BOMA. Greater Hartford BOMA is managed by S&S Management Services, a company that specializes in the management and administration of professional and trade associations.”

Mark Duclos, SIOR, CRE to Speak at REFA Hartford Event

Sentry Commercial’s Mark Duclos, SIOR, CRE will be speaking at the REFA’s Hartford Chapter Event on Thursday, October 24th, 2019.

The event will be held at the Hartford Hilton, 315 Trumbull Street and will include fireside chats featuring leaders in National CRE Associations: Mark Duclos, SIOR, CRE, Brad Hutensky, ICSC, and Holly Neber, CREW.

Sentry Commercial is proudly a Hartford Chapter 2019 Sponsor!

Schedule as follows:
5:00 pm Registration
5:30 pm Program
6:30 pm Reception

Register online at www.refact.org!

The Importance of Cleaning Your Commercial Property’s Gutters

Colder weather is upon us, are your property’s gutters prepared?

Clean your gutters! Without regular cleaning, the drainage system will become clogged and/or compromised.

This can result in:

• Sanitary hazards
• Electrical damage
• Structural damage to the building
• Leakage
• Unsightly building stains
• Damage to exterior appearances such as sidewalks and foundations
• Dangerous falling ice

Ignoring your gutters before the winter may cause the standing water within the gutters to freeze. This means more build-up and more freezes. The weight can eventually cause the gutters to shift, resulting in malfunction.

Commercial properties require different types of attention, but the most opportune time to prepare your gutters is in the fall and spring seasons when leaves, twigs, and other debris collect. A professional can assess your gutters efficiently and safely, making any repairs.

A property manager can help prevent your commercial property from experiencing a costly disaster. Understanding the value of your property and the utmost importance of maintaining and improving upon that value is vital.

Sentry Commercial’s Growth Continues – Curt Gemme Hired to Business Development Position

September 23, 2019 – Hartford, Connecticut – Sentry Commercial has experienced steady and continued growth across the Southern New England region in Commercial Real Estate markets. The company focuses on industrial, office and land availabilities, and has been a leading firm in the region since 1990.

The company announced today that it has added to its roster Curt Gemme, an experienced veteran of not only Commercial Real Estate but the Southern New England area. From approximately 1990 to 2001 Gemme worked at Sentry Commercial as the Director of Office Leasing and Investment Sales. During that time, he completed over 150 transactions with a total volume of over $250,000,000.

This tenure was followed by a founding partner and CEO position at Keller Williams of Greater Hartford from 2006-2010. Gemme built an executive team and recruited over 100 agents opening two franchises in Avon and West Hartford. Today, with 5 offices and 450 agents it has become one of the largest real estate companies in Connecticut.

From there, Gemme served as Vice President and Partner of the McLadden Restaurant Group. The new venture met with great success between 2010 and 2016, as McLadden’s became one of the most popular and recognizable establishments in the greater Hartford area, eventually expanding into Northampton, MA and Simsbury, CT. During that time, Gemme led the physical aspects of the enterprise, including construction management, plant operations, and equipment purchasing. Also, of note, Gemme managed human resources including recruiting, staffing, training, and investor relations.

Gemme now brings three decades of experience to the team at Sentry Commercial. His expertise and savvy in areas of marketing, technology, and leadership will build upon Sentry Commercial’s future-focused operation.

“Curt has the entrepreneurial spirit and leadership experience that we look for in our players,” explains Mark Duclos, SIOR, President of Sentry Commercial. “We have our eyes on the big picture for our clients, our partners and our community, and his vision will be a welcome complement to our team.”

Sentry Commercial’s core values revolve around concepts like camaraderie, collaboration, and teamwork. Gemme’s team-building experience will be a strong asset in this realm. Additionally, the firm’s focus on building partnerships around the region and across the country have enabled them to stay competitive amid worldwide players in the space.

Outside of work, Gemme spends time with his three children, renovating property, music, cooking, and staying healthy through personal training and indoor cycling. His energy and enthusiasm will be a positive addition to Sentry Commercial.

Sentry Commercial is a leading independent real estate firm in Hartford, CT focusing on brokerage and advisory, property management, and construction management services. The firm was established in 1991 and served Western Connecticut and all of Southern New England. Their unique partnership approach allows them to serve clients across the country. For more information, visit https://sentrycommercial.com/.

“IT’S ALL ABOUT THE SUPPLY CHAIN”- REBusiness Interview with Mark Duclos, SIOR, CRE

Proximity to transit hubs will remain a key driver of industrial real estate activity, says SIOR president-elect Mark Duclos, SIOR, CRE

Interview by John Nelson

This article originally appeared in RE Business.

A month after terminating its agreement to carry Amazon’s air deliveries, FedEx has opted to not renew its contract with the eCommerce giant that ended Aug. 31 for ground deliveries. In recent years, Amazon has invested in its own delivery services such as fleets and cargo planes and now will have to recalibrate ahead of the 2019 holiday shopping season without support from FedEx.

Mark Duclos, SIOR, CRE, President-Elect of the Society of Industrial and Office Realtors (SIOR), says the FedEx-Amazon fallout is the latest example of how e-commerce firms and their supporting companies are still figuring out how to best optimize their logistics networks. “It’s all about squeezing costs out of the supply chain,” says Duclos, who also serves as president of Sentry Commercial, a commercial real estate brokerage firm covering Southern New England. “Transportation is still the No. 1 cost for e-commerce companies, and they continue to try to squeeze dollars out of those costs.”

E-commerce companies are cutting down on transportation costs by strategically locating their facilities both closer to their customers and also near transportation hubs such as seaports and airports. For example, Boston-based e-commerce giant Wayfair is investing heavily in port submarkets, including a new 1.1 million-square-foot facility near Port of Savannah that will create 1,000 jobs. “Where is the product coming from and how do you get it to the end-user?” says Duclos. “Obviously air and sea are two significant links in the supply chain, so airports and ports will continue to be busy areas for industrial development.”

REBusinessOnline.com recently caught up with Duclos, who will take over as SIOR president at the organization’s 2019 Fall World Conference in October. Duclos will serve his one-year term immediately as he replaces outgoing president Robert Thornburgh of Kidder Matthews. What follows is an edited transcript of the Q&A with Duclos:

REBO: In our 2018 interview with SIOR past president Del Markward, he said the biggest emerging trend was developers taking older urban warehouses and multi-story properties and converting them into last-mile fulfillment and storage facilities. A year-and-a-half later, is that an established trend?

Mark Duclos, SIOR, CRE: It’s still a trend as e-commerce companies are trying to get closer to the consumer. In populated cities, there’s not an awful lot of available real estate so companies are looking at alternative options, which includes an existing single-story product or brand new multi-story properties. We’re absolutely seeing that driving up the cost for a product that was obsolete but has now become relevant. As far as multi-story development, we’re not seeing that in tertiary markets. It’s more in the major markets where there is a massive population that these companies are trying to reach. That type of development is not running rampant across the country.

REBO: What are some of the pros and cons of industrial real estate perhaps “going vertical” in bigger markets?

Mark Duclos, SIOR, CRE: The cost to develop a multi-story project is much more expensive than a single-story project. The positive is that companies are getting closer to the consumer base so they’re not giving up the preference geographically. The cons are functionality. Companies have learned how to make multi-story work, but that’s not the preferred method of distribution. The preference is still to distribute out of single-story facilities. The capital markets are still questioning the viability of multi-story distribution and warehouses. That’s something they’ll get more comfortable with over time, but they’re worried that if that user transitions and goes to another facility, what are they left with?

REBO: Talk for a minute about how Amazon and other e-commerce companies are continuing to push the need for warehouses, distribution centers and fulfillment centers around the country.

Mark Duclos, SIOR, CRE: It’s more of the same, it’s not a recent phenomenon. Here in Connecticut, Amazon just opened another 1 million-square-foot distribution center in the southern part of the state. The company has a couple lastmile facilities and another 1.5 million square feet in northern Connecticut. Amazon also has a 200,000-square-foot sortation center in central Connecticut. Those facilities have all come on line in the past three or four years. The pressure on warehouse and distribution product in just about every market that’s populated will continue to see the same from the Amazons and Wayfairs of the world. The requirements might change, but there’s going to be a continual need for those facilities moving forward.

REBO: Outside of e-commerce, what other industries or drivers are spurring demand for industrial real estate?

Mark Duclos, SIOR, CRE: E-commerce is a universal driver, but outside of that a lot of the other industries driving demand are pretty market-specific. For instance, in Connecticut, our top drivers are arguably aerospace and healthcare/bioscience. But that may not be the same for Cincinnati. Industrial is a very local business.

REBO: How have automation and robotics impacted industrial real estate on the ground level? Have there been any fundamental design changes to accommodate new technology?

Mark Duclos, SIOR, CRE: Robotics and automation have changed the internal processes for these users and it has changed the way e-commerce users are utilizing their warehouses and manufacturing facilities. There is no question that the design of the distribution center three years ago is different than the design of that same company’s distribution center today. Accounting for robotics and automation is not as much of a challenge for the build-to-suit market because they’re designing these warehouse facilities based on those new specs. The real challenge is for developers that are building speculative buildings coming on line in 12 to 18 months. They might be building a spec project that may not be suitable for these companies because of the changes in robotics and what that process is changing in the design of the building. We’ve had national meetings with a lot of knowledgeable people, and there will be discussions on topics such as the ideal clear height for a warehouse or the ideal column spacing. If there are 10 people in that room, you’ll probably get five different answers. The other major question is truck parking. About five or six years ago it was not a big deal, but now truck parking is one of the largest components of a spec development. There is a need for excess truck parking, whether directly at the facility or on a separate site near the facility. We get calls sometimes from sellers that want to convert their building downtown to a warehouse but they have zero parking, so it’s not going to work.

REBO: Is there a growing demand for cold storage facilities as grocery delivery becomes more prominent in the United States?

Mark Duclos, SIOR, CRE: Yes, absolutely. But it’s still such a small part of the overall industrial market. The Food Marketing Institute and research firm Nielsen are projecting 100 million square feet of cold storage will be built in the next five years. That’s pretty significant, especially since I haven’t seen any new cold storage development for most of my career. Online grocery is driving that growth in demand. The largest percentage of cold storage demand will be in gateway cities like Los Angeles and New York. In Connecticut, we have two cold storage requirements that my firm is handling, but we have zero product available to put the users in. So if we do place them, it’ll have to be new product.

REBO: How is the legalization of marijuana for medicinal and recreational use in many states affecting demand for industrial space?

Mark Duclos, SIOR, CRE: Generally, legalization of medical and recreational cannabis has had a positive effect on industrial real estate. However, the significance of that impact varies from state to state depending on when they changed their marijuana policies. SIOR held its Fall World Conference in Denver in the fall of 2018, and some of the attendees were treated to a tour of the Denver industrial market. The effect on industrial real estate in that market was significant. In comparison, the State of Massachusetts legalized marijuana in December 2016, but the effect on the real estate market, while positive, has not yet been significant.

REBO: Since the passing of the Tax Cuts and Jobs Act, are industrial owners and developers taking advantage of the opportunity zone program?

Mark Duclos, SIOR, CRE: I haven’t seen much talk about opportunity zone transactions taking place yet nationally. In Connecticut, we’re seeing a lot of interest in opportunity zones, but we’re not seeing any transactions that were specifically driven by the federal program. People are still trying to completely understand the benefits of opportunity zones. There is more information coming out about the program and how investors can utilize it to generate deals, but I don’t see those transactions happening yet. However, we are seeing marketing from brokers, landlords and developers that are incorporating opportunity zones into their advertising for sites.

SIOR is a global professional office and industrial real estate association based in Washington, D.C. The organization has more than 3,300 members in 686 cities and 36 countries. Learn more about membership at go.sior.com/results.

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