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Considering renting retail or office space? Which is the best bet for 2014?

(Financial News) New data out could help your business pick the winner between office and retail space, as both are posting gains, but not at the same pace.

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New data is out, time to make a decision

Whether you’re considering a new type of office or retail space, or considering your renewal, new data out today from the National Association of Realtors indicates that despite a sluggish economy, commercial real estate is making gains in all sectors.

According to NAR, Office vacancy rates should decline from an expected 15.8 percent in the second quarter of this year to 15.6 percent in the second quarter of 2015.

Further, office rents are projected to increase 2.5 percent in 2014 and 3.2 percent next year. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is likely to total 39.7 million square feet this year and 49.8 million in 2015.

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When it comes to retail space, vacancy rates are expected to decline from 10.0 percent currently to 9.8 percent in the second quarter of 2015.

Average retail rents are forecast to rise 2.0 percent in 2014 and 2.3 percent next year. Net absorption of retail space is likely to total 11.5 million square feet this year and 19.6 million in 2015.

The verdict: office or retail?

While both office and retail space looks like they will see declines in vacancy rates, retail rents are projected to rise at a much slower rate than office rents, so retail space might not be a bad bet after all, if you’re considering both.

But as with any real estate, everything is local. Hyper-local even. For example, the markets with the lowest office vacancy rates in the second quarter are New York City and Washington, D.C. at 9.4 percent; Little Rock, Ark., 11.5 percent; San Francisco, 12.6 percent; and New Orleans, at 12.8 percent. Markets with the lowest retail vacancy rates include San Francisco, at 3.2 percent; Fairfield County, Conn., 3.8 percent; and San Jose, Calif., at 4.7 percent. Northern New Jersey; Long Island, N.Y.; and Orange County, Calif., all have a vacancy rate of 5.3 percent.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you’d like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Business Finance

Blockchain has a competitor that could already obsolete the tech

(TECH NEWS) Just as people are learning what the word “blockchain” means, technology is already advancing beyond this groundbreaking innovation.

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Blockchain’s new competitor may one day render the popular database service obsolete. Hashgraph pitches itself as a “superior consensus mechanism/data structure alternative to blockchain,” featuring a decentralized platform for micropayments, live collaboration apps, distributed MMOs, auctions, and distributed capital markets.

The distributed ledger technology system notes it’s faster, fairer, and more secure than blockchain. However, Hashgraph has very diplomatically stated, “The pitching of Hashgraph against Blockchain is a sensationalist angle that we do not endorse.”

They go on to say, “We consider Blockchain to be like a capable older brother who graciously paved the way by bringing the power of Distributed Ledger Technology to the light of day, for which we are very grateful.”

Very Miss America of them. Unlike Bitcoin, Hashgraph doesn’t need massive amounts of computation or energy consumption. This is in part due to how the system handles transactions, particularly mining.

Bitcoin mining is the process of adding records of transactions to Bitcoin’s public ledger. These records are a blockchain, which serves as a confirmation of past transactions. With standard bitcoin mining, each transaction is put into a container, forming a long single chain.

If two miners happen to make two blocks at the same time, one will be discarded eventually, especially if one arrives too quickly. Instead, Hashgraph uses every container, and any member can create transactions at any point without threat of deletion.

Currently, Bitcoin uses proof-of-work (POW), requiring costly custom hardware. PoW artificially slows down the mining process, which is why miners need special hardware to gain anything close to efficiency. However, Hashgraph offers faster transactions, too.

Right now, Bitcoin on standard blockchain are limited to seven transactions per second, but Hashgraph could be up to 50,000 times faster with 250,000 transactions per second (pre-sharding). The transactions would only be limited by bandwidth availability.

Further, Hashgraph brings fairness into play with consensus time stamping, meaning no one can alter the order in which transactions are processed. Basically, there’s no line cutting or fast passes like in blockchain, where miners can choose what order transactions occur in a block, even delaying or stopping future blocks.

Unlike blockchain, Hashgraph uses asynchronous Byzantine fault tolerance to achieve consensus within the community using virtual voting. Members cannot change the consensus once reached, nor can they prevent any community from reaching a consensus.

Plus, Hashgraph uses bank-grade consensus algorithms for added security, and is resilient to DDoS, Sybil, firewall, and virus attacks, as well as network partitions.

The amount of storage is reduced as well by only keeping the effects of the transaction, shrinking the amount of storage from its current 60GB for bitcoin to 1GB. So what does that mean? Your smartphone could act as a node.

Yes, you can start geeking out now.

At this time, Hashgraph isn’t available on public networks or ledgers, so no associated cryptocurrency is currently available. However, you can apply for an an enterprise or commercial license use on a private network by contacting Swirlds, the company that handles Hashgraphs licensing.

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Business Finance

Like it or not, Millennials prefer Bitcoin over Stocks

(FINANCE NEWS) A new survey shows that the investment pendulum has swung to favor blockchain backed cryptocurrency over stocks when it comes to millennials.

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Informed or not, Millennials prefer bitcoin over stocks. Could it be because “bitcoin” sounds cool and futuristic while “stock” sounds super boring? Studies haven’t officially evaluated my hypothesis, but let’s go with a maybe for now.

Venture capital firm Blockchain Capital’s survey of 2,000 people found that around 30 percent of the participants in the 18-34 age range would rather own $1000 of Bitcoin than $1000 of government stocks or bonds.

Additionally, of those surveyed, 42 percent of millennials were at least marginally familiar with bitcoin, while only 15 percent over age 65 knew of the concept.

On Wednesday bitcoin rose more than six percent to as high as $7,545, pushing the value of the cryptocurrency market over $200 billion for the first time ever. This time last year, bitcoin was worth around $700.

In the past year, cyrptocurrency has risen 600 percent. This is compared to measly gains of 15 percent for the S&P 500 Index. Despite the rise in value, only 2 percent of Americans currently own or have ever owned bitcoin according to Blockchain Capital’s survey.

However, as millennials become more involved in the investment force, this number is sure to increase. If U.S. regulators allow bitcoin ETFs, it may be even easier for new bitcoin buyers to enter the market.

According to Google Trends, more people are searching online for how to buy bitcoin that gold. Can you dive Scrooge McDuck style into a ludicrous pile of bitcoins? Well, no. But you also can’t have the Dothraki give you a melted bitcoin crown, so there’s that safety factor working in bitcoin’s favor.

What else is so appealing about bitcoin? Unlike traditional banks, the bitcoin network isn’t run by a centralized agency and has no physical backing. Instead, it’s run by a network of computers worldwide digitally keeping track of all transactions by storing records in a blockchain.

Since anyone can make an anonymous account, bitcoin gained notoriety a preferred method for drug dealers and ransom payment aficionados. However, the cryptocurrency is also accepted by many major businesses, including Overstock.com and eBay, for legal transactions.

Since there are no transaction or currency conversion fees, people in countries with high inflation can use bitcoin to avoid losing money. Plus, bitcoin makes international money transfers significantly faster than traditional methods.

While bitcoin certainly has proven fruitful for shady transactions, the rising popularity of cryptocurrency for legitimate uses indicates a market shift.

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Business Finance

Venezuela cash crunch means workers won’t see money for months

(FINANCE NEWS) Venezuela is currently in a cash crunch due to a weakening oil market which means that Venezuelans won’t see pay for at least 5 months.

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If you ever ran out of money as a broke 20-something, you know how nervewracking it can be to go without cash. Now, imagine you ran a country and ran out of money. Sweating yet?

Be glad you’re not Venezuela, who is extremely cash poor at the moment. According to coverage from Bloomberg, “more than $1.2 billion of the company’s debt is coming due in the next few days, and investors are showing less confidence that funds will be transferred.”

The country is already two weeks late to pay off several other bonds. Additionally, cargo ships full of crude oil have idled for months because Venezuela can’t pay for their supply of oil.

The biggest culprit for the cash shortage is the shrinking market for crude oil. PDVSA controls one of the large crude supplies in the world, and it’s been a lucrative export for the country. However, in three years, the price of oil has dropped by 50 percent.

The biggest demand for crude used to come from America, who would pay cash for the barrels; however, shipments are down 35 percent since August.

Part of that demand shortage is due to political sanctions, imposed on the country by the United States. In response to Maduro’s aggressive political maneuvering, which sought to arrest opposition leaders, “rewrite the constitution and strip power from Congress,” President Trump punished this behavior through sanctions on imports from Venezuela.

Because oil was such a lucrative export, PDVSA was targeted heavily by the sanctions. Oil importers don’t want to run afoul of these sanctions by buying crude from the country. That problem will get even worse if the sanctions increase, which Bloomberg predicts is likely to happen within the year.

There is a risk that PDVSA could default on its debt, which could have a huge impact on the oil economy. According to Bloomberg, if oil could be seized as an asset to cover for debts, oil traders will expect a significant discount to cover for that risk. That discount will sink overall oil revenue. This same problem came up when Ecuador, another large exporter of oil, defaulted on its debt in 2008.

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