12 October 2021 – This webinar is open for anyone who has an interest in the strategic importance of the creative industry and would like to explore more about its innovative and IP value and become familiar with EIT´s new Knowledge and Innovation Community “Culture and Creativity”.
Background
The Importance of Intellectual Property in the Creative World – Cultural and Creative Sectors and Industries (CCSIs) are key drivers of sustainable growth and job creation across Europe and the world. CCSIs contributed to around 3% of global GDP and created employment opportunities for 29.5 million people in 2013[1]. The World Intellectual Property Organization (WIPO) estimates suggest that copyright industries, intrinsically linked with creative industries, contributed over 5% to global GDP and generated 4-7% of national employment. But CCSIs have been hit hard by the COVID-19 pandemic and ensuing crisis. With a loss of 31% of its turnover, the cultural and creative economy is one of the most affected in Europe. Supporting these sectors on their way to recovery and growth is more critical than it has ever been.
The webinar
Ultimately, ideas and knowledge are everything in the cultural and creative industries, a sector that includes a range of activities from architecture to fashion, to the production of films and video games and many more. It is all about intellectual property, i.e. about brands, designs, and ideas and as such one of the most valuable assets of that industry that requires protection so that it can generate the appropriate revenues. Intellectual property (IP) rights play an important role in supporting a thriving creative economy as they protect creativity and control the commercial exploitation of the products of scientific, technological and cultural creation. The ability to develop and use such products is indeed a key driver of economic growth and for international competition, especially for the production and trade of technology-intensive goods and services.
To support CCSIs, the European Institute of Innovation and Technology (EIT) will launch a new Knowledge and Innovation Community (KIC). The KIC will create new opportunities for innovation, education, business creation and acceleration and most important power the next generation of innovators and creatives across Europe. The Call for Proposals will be launched in October 2021. An important aspect during the evaluation will be the future KIC’s plan for the management and exploitation of intellectual property supporting the KIC’s business model as well as plans to generate other type of revenues aiming at financial sustainability.
The EIT´s plans for supporting innovation in the CCSIs via a new KIC: EIT Culture & Creativity.
What is IP? What role does it play in the creative sectors and industries? What are the main IP rights and how do they empower SMEs in the creative industry? Which are EUIPO´s culture-related activities and initiatives and how do they serve SMEs?
After the webinar you will have discovered:
How can I participate in the EIT´s Call for Proposals for the new KIC EIT Culture & Creativity?
How do I protect my ideas during the creation and pitch process?
How do IP rights support generating revenues in the creative and cultural industry?
How to protect my brand and designs from infringers (copycats) and competitors?
How can EUIPO´s Ideas Powered initiative and other culture related activities support my business in setting up my IP strategy?
Agenda:
10h00-10h05 Introduction to the webinar and welcome (EUIPO moderator)
10h05-10h15 Introduction to EIT and the Call for Proposals for a new KIC in the cultural and creative sectors and industries (Sylvia Jahn, Strategy Officer, EIT)
10h15-10h50 Protecting creativity through IPRs (EUIPO speakers)
Introduction to the EUIPO and its culture-related initiatives and activities – Claire Castel, Head of Service, IP in the Digital World and Awareness, Observatory Department
The main IPRs and its benefits for SMEs in the creative industry – Maria Baldares, Enforcement&SME Service, Observatory Department
What Is Intellectual Property, and What Are Some Types? – Intellectual property is a broad categorical description for the set of intangible assets owned and legally protected by a company or individual from outside use or implementation without consent. An intangible asset is a non-physical asset that a company or person owns.
The concept of intellectual property relates to the fact that certain products of human intellect should be afforded the same protective rights that apply to physical property, which are called tangible assets. Most developed economies have legal measures in place to protect both forms of property.
Understanding Intellectual Property
Companies are diligent when it comes to identifying and protecting intellectual property because it holds such high value in today’s increasingly knowledge-based economy. Also, producing value intellectual property requires heavy investments in brainpower and time of skilled labor. This translates into heavy investments by organizations and individuals that should not be accessed with no rights by others.
Extracting value from intellectual property and preventing others from deriving value from it is an important responsibility for any company. Intellectual property can take many forms. Although it’s an intangible asset, intellectual property can be far more valuable than a company’s physical assets. Intellectual property can represent a competitive advantage and as a result, is fiercely guarded and protected by the companies that own the property.
Types of Intellectual Property
Intellectual property can consist of many types of intangibles, and some of the most common are listed below.
Patents
A patent is a property right for an investor that’s typically granted by a government agency, such as the U.S. Patent and Trademark Office.1 The patent allows the inventor exclusive rights to the invention, which could be a design, process, an improvement, or physical invention such as a machine. Technology and software companies often have patents for their designs. For example, the patent for the personal computer was filed in 1980 by Steve Jobs and three other colleagues at Apple Inc.2
Copyrights
Copyrights provide authors and creators of original material the exclusive right to use, copy, or duplicate their material. Authors of books have their works copyrighted as do musical artists. A copyright also states that the original creators can grant anyone authorization through a licensing agreement to use the work.3
Trademarks
A trademark is a symbol, phrase, or insignia that is recognizable and represents a product that legally separates it from other products. A trademark is exclusively assigned to a company, meaning the company owns the trademark so that no others may use or copy it. A trademark is often associated with a company’s brand. For example, the logo and brand name of “Coca-Cola,” is owned by the Coca-Cola Company (KO).4
Franchises
A franchise is a license that a company, individual, or party–called the franchisee–purchases allowing them to use a company’s–the franchisor–name, trademark, proprietary knowledge, and processes.
The franchisee is typically a small business owner or entrepreneur who operates the store or franchise. The license allows the franchisee to sell a product or provide a service under the company’s name. In return, the franchisor is paid a start-up fee and ongoing licensing fees by the franchisee. Examples of companies that use the franchise business model include United Parcel Service (UPS) and McDonald’s Corporation (MCD).
Trade Secrets
A trade secret is a company’s process or practice that is not public information, which provides an economic benefit or advantage to the company or holder of the trade secret. Trade secrets must be actively protected by the company and are typically the result of a company’s research and development (which is why some employers require the signing of non-disclosure agreements, or NDAs).
Examples of trade secrets could be a design, pattern, recipe, formula, or proprietary process. Trade secrets are used to create a business model that differentiates the company’s offerings to its customers by providing a competitive advantage.
Digital Assets
Digital assets are also increasingly recognized as IP. These would include proprietary software code or algorithms, and online digital content.
Type of IP
IP
Protection
Duration (in the U.S)
Patents
Inventions, industrial designs, computer code
20 years
Trademarks
Unique identifiers for a business or its products or services (e.g., logos, brand names)
As long as the trademarked material remains active
Copyrights
Works of authorship, including books, poems, films, music, photographs, online content
Attached to intellectual property are certain rights, known as Intellectual Property Rights (IPR), that cannot be infringed upon by those without authorization to use them.6 IPRs give owners the ability to bar others from recreating, mimicking, and exploiting their work.
Patents infringement occurs when a legally-protected patent is used by another person or company without permission. Patents filed before June 8, 1995, are valid for 17 years, whereas patents filed after this date are valid for 20 years.7 After the expiration date, the details of the patent are made public.
Copyright violations occur when an unauthorized party recreates all or a portion of an original work, such as a work of art, music, or a novel. The duplicated content need not be an exact replica of the original to qualify as an infringement.
Similarly, trademark infringement occurs when an unauthorized party uses a licensed trademark or a mark resembling the licensed trademark. For example, a competitor might use a mark similar to its rival’s to disrupt business and attract their customer base. Also, businesses in unrelated industries may use identical or similar marks in an effort to capitalize on other companies’ strong brand images.
Trade secrets are often protected by non-disclosure agreements (NDA). When a party to the agreement discloses all or parts of a trade secret to uninterested parties, they have violated the agreement and infringed upon the trade secret. It is possible to be guilty of trade secret infringement when an NDA is not present.
Penalties for intellectual property infringement range from fines to prison sentences.
Tips to Avoid IP Infringement
Many times, infringement is done unwittingly. To avoid being sued for infringement on intellectual property, make sure that your business is not using copyrighted or trademarked material, and be sure your brand or logo is not too similar to that of others that it could reasonably mislead somebody to think it was the other brand. Also, do a patent search to ensure that any ideas are your own, and if not that you are able to license them through the proper channels. There are IP lawyers that specialize in this process to make sure that you are not using anybody else’s protected IP.
If you hire somebody to do creative work for you or your company, make sure the contract explicitly states that any creative works generated would become the property of the company and not the person you hired.
Special Considerations
Many forms of intellectual property cannot be listed on the balance sheet as assets since there aren’t specific accounting principles to value each asset. However, the value of the property tends to be reflected in the price of the stock since market participants are aware of the existence of the intellectual property.
Some intangible assets are recorded as property, such as patents because they have an expiration date. These assets are recognized by a numerical value through the process of amortization. Amortization is an accounting method that decreases the value of an intangible asset over a set period of time. This process helps the company to reduce its income by expensing a set amount each year for tax purposes as the useful life of the intangible asset winds down.
For example, a patent might only have 20 years before it’s registered as public domain. A company would assign a total value to the patent. Each year for 20 years, the patent would be expensed or amortized by the same amount by dividing the total value by 20 years. Each year the amortized asset amount would reduce the company’s net income or profit for tax purposes. However, intellectual property that is considered to have a perpetual life, such as a trademark, is not amortized since it doesn’t expire.
Real-World Example
In 2017, there was a widely publicized intellectual property case in which a company called Waymo sued Uber over alleged stealing and implementation of technology relating to Waymo’s self-driving car program. The plans for the technology, although not yet completely viable, constituted significant intellectual property for Waymo. When they alleged that Uber had obtained their intellectual property, they were able to take action through the court system to attempt to keep Uber from utilizing the information to enhance their own self-driving car program.
What Are the 4 Main Types of Intellectual Property?
The four main types of intellectual property are patents, trademarks, copyrights, and trade secrets.
Who Owns Intellectual Property?
Generally, the creator of a work is deemed its owner. However, intellectual property ownership can be determined differently for different types of property and under varying circumstances. For example, if work is created for an employer, the employer is the owner of that intellectual property. Also, ownership rights can also be transferred to other parties.
What Is Intellectual Property Used for?
Intellectual property can be used for various reasons, such as branding and marketing, as well as to protect assets that give a competitive advantage.
What are intellectual property rights? – Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.
Intellectual property rights are customarily divided into two main areas:(i) Copyright and rights related to copyright.
The rights of authors of literary and artistic works (such as books and other writings, musical compositions, paintings, sculpture, computer programs and films) are protected by copyright, for a minimum period of 50 years after the death of the author.
Also protected through copyright and related (sometimes referred to as “neighbouring”) rights are the rights of performers (e.g. actors, singers and musicians), producers of phonograms (sound recordings) and broadcasting organizations. The main social purpose of protection of copyright and related rights is to encourage and reward creative work.
(ii) Industrial property
Industrial property can usefully be divided into two main areas:
One area can be characterized as the protection of distinctive signs, in particular trademarks (which distinguish the goods or services of one undertaking from those of other undertakings) and geographical indications (which identify a good as originating in a place where a given characteristic of the good is essentially attributable to its geographical origin).
The protection of such distinctive signs aims to stimulate and ensure fair competition and to protect consumers, by enabling them to make informed choices between various goods and services. The protection may last indefinitely, provided the sign in question continues to be distinctive.
Other types of industrial property are protected primarily to stimulate innovation, design and the creation of technology. In this category fall inventions (protected by patents), industrial designs and trade secrets.
The social purpose is to provide protection for the results of investment in the development of new technology, thus giving the incentive and means to finance research and development activities.
A functioning intellectual property regime should also facilitate the transfer of technology in the form of foreign direct investment, joint ventures and licensing.
The protection is usually given for a finite term (typically 20 years in the case of patents).
While the basic social objectives of intellectual property protection are as outlined above, it should also be noted that the exclusive rights given are generally subject to a number of limitations and exceptions, aimed at fine-tuning the balance that has to be found between the legitimate interests of right holders and of users.
Protect Your Intellectual Property – Intellectual property (IP) refers to creations of the mind: inventions; literary and artistic works; and symbols, images, names and logos used in commerce. Businesses are often unaware that their business assets include IP rights.
Your intellectual property is a valuable intangible asset that should be protected to enhance your competitive advantage in the marketplace.
Stopfakes.gov is a one-stop shop for U.S. government tools and resources on intellectual property rights (IPR). You will find business guides, country toolkits, upcoming training events, and more on the site.
How to Protect your IP
Copyrights, which cover works of authorship, such as books, logos and software, is part of intellectual property protection, as are patents, which protect inventions. Other types of IP include trademarks, designs and trade secrets.
The first thing you need to do to safeguard your intellectual property is to file for protection in the United States. Your state’s bar association can recommend experienced lawyers who can help you with that.
Then you must be the first inventor to file for protection in the countries in which you currently do business, or are certain to do business in the future. You should also consider filing for protection in countries that are well-known for counterfeit markets.
If you do business in nations that have free trade agreements with the U.S., IP protections are built into those agreements, but you’ll still need to file in each country to get those protections.
Conversely, if you do business in any country in the European Union, you only need to file for protection with the EU – not every individual nation.
If you have a registered IP right in the United States, these protections are territorial and do not extend to foreign countries. Additionally, most countries are a “first to file” country for trademark registration and “first inventor to file” for patent registration and therefore grant registration to the first filer regardless of first use in the market.
What are intellectual property rights? – Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.
Intellectual property rights are customarily divided into two main areas:(i) Copyright and rights related to copyright.
The rights of authors of literary and artistic works (such as books and other writings, musical compositions, paintings, sculpture, computer programs and films) are protected by copyright, for a minimum period of 50 years after the death of the author.
Also protected through copyright and related (sometimes referred to as “neighbouring”) rights are the rights of performers (e.g. actors, singers and musicians), producers of phonograms (sound recordings) and broadcasting organizations. The main social purpose of protection of copyright and related rights is to encourage and reward creative work.
(ii) Industrial property.
Industrial property can usefully be divided into two main areas:
One area can be characterized as the protection of distinctive signs, in particular trademarks (which distinguish the goods or services of one undertaking from those of other undertakings) and geographical indications (which identify a good as originating in a place where a given characteristic of the good is essentially attributable to its geographical origin).
The protection of such distinctive signs aims to stimulate and ensure fair competition and to protect consumers, by enabling them to make informed choices between various goods and services. The protection may last indefinitely, provided the sign in question continues to be distinctive.
Other types of industrial property are protected primarily to stimulate innovation, design and the creation of technology. In this category fall inventions (protected by patents), industrial designs and trade secrets.
The social purpose is to provide protection for the results of investment in the development of new technology, thus giving the incentive and means to finance research and development activities.
A functioning intellectual property regime should also facilitate the transfer of technology in the form of foreign direct investment, joint ventures and licensing.
The protection is usually given for a finite term (typically 20 years in the case of patents).
While the basic social objectives of intellectual property protection are as outlined above, it should also be noted that the exclusive rights given are generally subject to a number of limitations and exceptions, aimed at fine-tuning the balance that has to be found between the legitimate interests of right holders and of users.
Protect Your Intellectual Property – Intellectual property (IP) refers to creations of the mind: inventions; literary and artistic works; and symbols, images, names and logos used in commerce. Businesses are often unaware that their business assets include IP rights.
Your intellectual property is a valuable intangible asset that should be protected to enhance your competitive advantage in the marketplace.
Stopfakes.gov is a one-stop shop for U.S. government tools and resources on intellectual property rights (IPR). You will find business guides, country toolkits, upcoming training events, and more on the site.
How to Protect your IP
Copyrights, which cover works of authorship, such as books, logos and software, is part of intellectual property protection, as are patents, which protect inventions. Other types of IP include trademarks, designs and trade secrets.
The first thing you need to do to safeguard your intellectual property is to file for protection in the United States. Your state’s bar association can recommend experienced lawyers who can help you with that.
Then you must be the first inventor to file for protection in the countries in which you currently do business, or are certain to do business in the future. You should also consider filing for protection in countries that are well-known for counterfeit markets.
If you do business in nations that have free trade agreements with the U.S., IP protections are built into those agreements, but you’ll still need to file in each country to get those protections.
Conversely, if you do business in any country in the European Union, you only need to file for protection with the EU – not every individual nation.
If you have a registered IP right in the United States, these protections are territorial and do not extend to foreign countries. Additionally, most countries are a “first to file” country for trademark registration and “first inventor to file” for patent registration and therefore grant registration to the first filer regardless of first use in the market.
8 Innovative Approaches to Converting Offices – As office space utilization declined throughout the pandemic, the prospect of converting office buildings to accommodate other uses has been widely discussed. But this type of opportunistic investment is complex, risky and time consuming, and the current CRE credit crunch, along with municipal restrictions, mean that few construction-starts are taking place.
Despite these challenging conditions, office conversions (also known as adaptive reuse) are indeed occurring, albeit slowly, and every day there are more examples of completed projects.
To provide inspiration and information for investors who are exploring the possibility of, or are actively involved in, an office conversion project, LoopNet compiled eight articles that consider office adaptations from a variety of perspectives. Some profile completed projects, while others discuss regulatory changes and strategies that investors, municipalities and others are employing to make these conversions financially feasible.
The articles cover conversion of two former office buildings in Chicago, vertical farming in Calgary, innovative zoning in Arlington, Virginia and a premium conversion in the United Kingdom. The benefits of a den over a bedroom are explored, as is key criteria that makes an office building a good candidate for a residential conversion.
1. Underutilized Office Properties Could Represent Residential Conversion Opportunities
In this article, two prominent architects recount the history of office to residential conversions in New York City and outline the attributes that make an office property a compelling candidate for conversion to multifamily use. These aspects include smaller floor plates, courtyards and setbacks that enable the addition of terraces and balconies, as well as large windows and ample ceiling heights for natural light. Buildings with unique facades or eccentricities are also great candidates because they can result in distinctive spaces that add to the appeal of the building.
2. Inside the $500M+ Renovation That Transformed an Iconic Skyscraper into a Mixed-Use Destination
The user experience inside the former Sears Tower, renamed Willis Tower in 2009, did not meet the needs of its 15,000 office workers or 1.6 million annual visitors to the Skydeck. It also failed to attract the 170,000 Chicagoans who work within a five-minute walk of the skyscraper. With a focus on ways to improve the experience of these three major user groups, the redesign centered on retail, food and beverage offerings. These offerings were missing from Willis Tower itself, but also from that part of the Loop neighborhood.
3. Empty Offices Could Become Breweries, Labs and Distro Hubs in Arlington Zoning Change
In Arlington, Virginia, the municipality has taken an aggressive approach to alleviate its office vacancy problem. New use categories are being proposed, and some have been approved, to allow for a rich variety of activities including micro-fulfillment centers, higher education, animal boarding, artisan beverage making, artisan workshops, urban agriculture, digital gaming, indoor recreation, audio-visual production, wet labs, medical and dental practices, food delivery services and ghost kitchens. Zoning ordinances are being modified to include these uses “by right” so building and business owners can avoid lengthy rezoning processes.
4. How One Company Became a Leader in the Life Science Conversion Process
To help meet exceptional demand for life sciences facilities, one of the largest lab space owners in Quebec developed expertise in the conversion of industrial and office buildings into life sciences spaces. In some cases, the base building represents just 20% to 30% of the total project cost. This means that key to the company’s success is its ability to manage project complexities, delivery times, equipment availability, intricate ventilation systems, etc.
5. Is Vertical Farming a Green Solution to Office Vacancy?
A Canadian-based company has developed equipment and technology that allows vacant office space to be used to profitably grow up to 150 different crops of fresh produce for local markets. Characterized as “elevated urban farming,” a showcase facility in Calgary occupies 65,000 square feet of former office space. The firm is now licensing its technology internationally and is set to launch an updated version of its AI-powered vertical growing system, which uses only about 750 watts of power per 4-by-8-foot module, roughly the same energy burden as a personal computer.
6. Overcoming the Challenges (and Stigma) in an Office to Residential Conversion Scheme
One example of a high-quality office to residential conversion is Prospect Quarter, a UK project characterized by a blend of Art Deco and Midcentury Modern design. The finished product features 24 flats that include studio, one- and two-bedroom units, parking spaces and an outdoor garden. Such projects can be simpler to undertake in the UK than in other parts of the world, because of permitted development rights that enable office building owners to convert office structures to residences without undergoing a full planning review and approval process.
7. How One of Chicago’s Most Iconic Office Towers Became Luxury Condos
Built in 1925 and formerly the home of the Chicago Tribune newspaper, this 35-story tower took roughly 10 years to convert into luxury condominiums. While the limestone tower was designated a historic structure, neighboring buildings on the site lacked historic protective status and could have been demolished. But the development team opted to mostly preserve the entire site, which sits in a prized location on Michigan Avenue near the Chicago River and features 56 different floor plans for its 162 units.
8. Office to Residential Conversions: A Den May Help the Numbers Work
Units with two bedrooms and two full baths — totaling approximately 1,200 square feet — are the bread and butter of the multifamily housing industry, whether projects are intended to be sold or rented. But while working on an adaptive reuse project that involved converting a downtown D.C. office building into condominiums, this developer swapped one of those bedrooms for a den. Never having tried this before, the owners were relieved when this design sold briskly, mostly to single women.
The Hottest NYC Property Sectors To Invest in This Summer – New York City is often at the vanguard of trends that ripple out to the rest of the country; it’s also typically one of the most active property investment markets in the world. And while first quarter investment sales volume in New York City dropped by 53% from the fourth quarter of 2022, according to data provided by brokerage firm Avison Young, $2.2 billion in sales were still completed in the first three months of this year.
Moreover, even a novice investor understands that down markets often represent opportunity. That’s why LoopNet spoke with Cushman & Wakefield managing director Jonathan Squires about which sectors represent the best opportunities in New York City commercial real estate right now.
Of course, according to Squires, whether or not this moment in time actually is an opportunity depends largely on the perspective of the investor.
“If you’re looking long-term and you’re planning on holding it forever, or at least as part of your family legacy, I think right now is a great time to be buying. If you’re [looking to hold a property for] a year or two, or maybe even five years … I think that’s much riskier,” Squires said.
For those investors that are on the hunt right now, Squires highlighted subsidized housing, outdoor parking/storage facilities and neighborhood retail as three of the most currently compelling opportunities in New York City.
Subsidized Housing
“The rise in interest rates has driven the price down way below replacement costs, which means that you can buy multifamily properties for less than it would cost to build them, even if you got the land for free.””
Jonathan Squires, managing director, C&W Capital Markets
Squires was bullish on multifamily in general. “You have a housing crisis in New York City and in the whole country,” he said. “The rise in interest rates has driven the price [of multifamily properties] down in New York City, and in much of the country, way below replacement costs, which means that you can buy multifamily properties for less than it would cost to build them, even if you got the land for free.”
The expiration of the 421-a tax exemption is putting additional pressure on the New York City housing supply. This regulation exempted developers of new multifamily properties totaling 300 units or more in New York State from paying any local taxes for up to three years during the construction period and up to 25 years once the building was completed, provided they set aside a portion of the development for affordable units. The expiration of this exemption last year has significantly constrained the multifamily development pipeline in New York City, leading to rising rents in non-stabilized apartments and sending many New Yorkers scrambling to secure a rent-stabilized unit.
In rent-stabilized New York properties in particular, Squires said that there is a “double whammy,” of rising interest rates and regulations introduced via the New York Housing Stability & Tenant Protection Act of 2019. The result is that “certain multifamily properties can be [purchased] in New York City now for less than $100 per square foot, which is something I thought I’d never see,” Squires said.
The 2019 law restricted the extent to which owners of rent-stabilized units could increase the rent once an apartment became vacant. Prior to the Housing Stability & Tenant Protection Act, owners could increase the rent on a stabilized unit by up to 20% upon vacancy, but they are now limited to an increase that typically represents little to no additional rental revenue. Further, rental increases based on major capital improvements at subsidized properties are now limited to just 2%, a decrease from the previous allowable limit of 6%-15%, depending on the specific county.
Despite these restrictions, or perhaps because of them, rent-stabilized properties now represent a compelling investment opportunity, according to Squires. As an example of the kinds of discounts he’s observed in the market, Squires relayed some details about a transaction he recently completed that involved a fully rent-stabilized property along the Grand Concourse in the Bronx.
“The property was purchased five years ago for $100 million,” Squires said. “The owners put $20 million into the property. We sold the property five years later [in the first quarter of 2023] for $60 million.”
Squires estimated that, on average, he’s seeing discounts of 25%-30% on rent-stabilized multifamily properties compared to just a year ago, while cap rates have expanded during the same time period from 4% to as much as 7.5%.
Outdoor Parking/Storage Facilities
Infill industrial properties — which are still excellent investments generally, according to Squires — are also driving demand for outdoor parking/storage facilities.
Over the past decade, many outdoor storage/parking facilities — which often house construction vehicles and materials, buses or other municipal vehicle fleets — were eliminated to make way for last-mile distribution centers or other industrial uses.
Because of this trend, not many of these industrial parking/storage facilities remain in New York City, and Squires said that it’s one of the few, if not the only, asset types where he’s seen sales prices increase over the past 12 months. The constraints have become so severe that Squires said some investors have been musing about “knocking down buildings” because “you can get more [rent] for outdoor storage than you can for some of these older industrial properties,” Squires said.
Squires indicated that investors interested in outdoor parking/storage facilities need to be crafty and quick in order to secure a property. “There’s really no supply, and anything that does come up gets snapped up pretty quickly.”
Neighborhood Retail
“I’m seeing prices that are so low, it’s hard to imagine that they can get much lower.”
Jonathan Squires, managing director, C&W
The final property type that Squires referenced was something he termed “neighborhood retail.”
The term refers to retailers providing “certain services and goods that you are not able to order from Amazon and have delivered two days later.” In a New York City context, this means anything from a local clothing boutique to a casual bistro to the neighborhood dry cleaner.
The primary types of retailers that Squires said investors should focus on are “services, restaurants and experiential retailers.”
While Squires said that retail brokers have told him that rental rates are rising for well-located properties, he estimated that cap rates for prime retail in New York City have grown to 6.5%-7% compared to 4.5%-5% a year ago. Of course, he acknowledged that those cap rates can compress notably if the property has a high-credit tenant with a long-term lease in place.
In such instances, the higher sales price is based “much more on [the tenant’s] credit than the actual real estate.”
While Squires admitted that prices could still drop further over the course of the year, he said that interested investors should be wary of waiting too long before capturing opportunities.
“I see tremendous value now,” Squires said. “I’ve seen a number of these cycles where investors decided to stay on the sidelines, and they never knew when the bottom was. And if you’re six or 12 months late on that, you can miss a lot of the upside. I mean, I’m seeing prices that are so low, it’s hard to imagine that they can get much lower.”
Distributive Property: Definition, Formula, Examples – The distributive property is a well-known property related to numbers and algebra in mathematics. As the name suggests, this property focuses on distributing or dividing a quantity through proper conditions. The distributive property or distributive law is only operated in the multiplication of numbers and algebra. This is why it is also called the distributive law of multiplication.
Note: Distributive property can never be applied in the addition or subtraction of numbers. Even if you apply, the result will be void or produce errors in the solution.
Before diving deep into multiplication’s distributive property, let us have a quick look at other important properties in mathematics. They are listed below:
Commutative Property: This property states that the numbers or terms can commute or move their places in the expression without altering the result. This is true for addition and multiplication. For instance, (1 + 4) = (4 + 1) and (2 * 4) = (4 * 2). Subtraction doesn’t follow this property, for example, (1 – 4) = -3 is not equal to (4 – 1) = 3.
Associative Property: This property states that the number of terms in an expression can associate themselves or groups with each other without altering the result. This is true for addition and multiplication. For instance (1 + 4) + 3 = 1 + (4 + 3).
Let us now discuss what distributive property means and examples.
Distributive Property Definition
Let us first understand a simple concept. If you have to distribute something, let’s say chocolate, with your friends, you divide the chocolate bar into pieces to ease the distribution, right! Mathematics follows the same concepts. When we have to simplify a hard problem, the distributive property helps to break down the expression into a sum or a difference of 2 numbers.
Mathematically the distributive property states that any expression provided in the form K × (L + M) can be easily resolved as K × (L + M) = KL + KM. This is known as the distributive law of multiplication’s application in addition. Likewise, the distributive law also stands true for expression containing subtraction. This is expressed as K × (L – M) = KL – KM.
As you all can witness, K is being distributed to both the terms in addition or subtraction. Here K is known as an operand, and the terms inside the expression are known as addends.
Let us learn some important terms we have learned so far:
Operand: The term being distributed is known as the operand.
Addends: The terms inside the bracket which are either added or subtracted are known as addends.
Distributive property of addition: K × (L + M) = KL + KM
Distributive property of subtraction: K × (L – M) = KL – KM
We can visualize now it states that when the operand is multiplied by the sum or difference to the addends, it is equal to the sum or difference of the individual product of operand and addend terms.
Distributive Property Formula
The formula for a given value’s distributive property can be stated as
c * ( a + b ) = ca + cb
This concludes all the theoretical aspects of the distributive property of multiplication. Next, let us look at the distributive law of multiplication over addition and subtraction in-depth with proper instances.
Distributive Property of Addition
When multiplying a number (operand) by the summation of two integers (addend), we use the distributive property of addition. Multiplying three by the sum of 10 + 8 is a good example. 3 x (10 + 8) is the mathematical expression for this.
Example: The distributive principle of addition may solve the formula 3 x (10 + 8).
Solution: Using this, we multiply each addend by three using the distributive property before solving the formula 3 x (10 + 8). After that, we may add the products by dividing the number 3 between the two addends. This signifies that the addition will take place before the multiplication of 3 (18) and 3 x (10) + 3 x (8) = 30 + 24 = 54 is the result of the distribution property of addition.
Distributive Property of Subtraction
Similarly, when multiplying a number (operand) by the difference between two integers (addend), we use the distributive property of subtraction. Multiplying three by the difference of 10 – 8 is a good example of subtraction’s distributive property. The mathematical expression for this equation is 3 x (10 – 8).
Example: The distributive principle of subtraction may be used to solve the formula 3 x (10 – 8).
Solution: Using this, we multiply each addend by three before solving the formula 3 x (10 – 8). After that, we may subtract the products by dividing the number 3 between the two addends. This signifies that the subtraction will take place before the multiplication of 3 x (18) and 3 x (10) – 3 x (8) = 30 – 24 = 6 is the result of the distributive property of subtraction.
We have talked so much about the distributive property, but how does it stand true in mathematics? Is there a way to verify this property? Indeed there is verification. Continue reading the article to know why.
Verification of Distributive Property
Let’s look at how it works for various operations. We’ll use the distributive law to apply the two basic operations of addition and subtraction separately.
Distributive Property of Addition: We already know that the addition’s distributive property is given as k × (l + m) = kl + lm. Now it is time to verify this property by taking an example.
Example: Let us take an Expression, say, 10 x ( 3 + 6).
Solution: We will normally solve this expression by using the rules of BODMAS as standard.
In the first step, we will always solve the expressions inside the bracket. In this case (3 + 6 ) = 9. In the second step, we will multiply 10 by the number obtained, i.e. 9. This will give us the result as 10 x 9 = 90.
Now solve this using the distributive property of addition:
10 x ( 3 + 6 ) = (10 x 3) + (10 x 6)
= 30 + 60
= 90
As we can see both the methods yield the same result.
Distributive Property of Subtraction: Now, let us verify the same for the distributive property of subtraction. We all already know that the distributive property of addition is given as k × (l – m) = kl – lm. Now it is time to verify this property by taking an example.
Example: Let us take an expression, say, 10 x (6 – 3).
Solution: We will normally solve this expression by using the rules of BODMAS as standard.
In the first step, we will always solve the expressions inside the bracket. In this case ( 6 – 3 ) = 3. In the second step, we will multiply 10 by the number obtained, i.e. 3. This will give us the result as 10 x 3 = 30.
As we can see both the methods yield the same result again.
Hence, we have verified that the property of both addition and subtraction distribution is true.
Distributive Property of Division
The distributive property of division is the same as the distributive law of multiplication, with only the multiplication sign changing to division along with the operation. The larger term is divided into smaller factors (addend), and the divisor acts as the operand. You will understand this better with the example given below.
Example: Using the Distributive Property of Division, solve 36 ÷ 12.
Solution: 36 can be written as 24 + 12
Therefore we can write 36 ÷ 12 = (24 + 12) ÷ 12
Now, let us distribute 12 inside the bracket
⇒ (24 ÷ 12) + (12 ÷ 12)
⇒ 2 + 1
This gives us the answer as 3.
Distributive Property Examples
Example 1: Solve the Expression 2 (11 + 7) using the Distributive Property.
Solution:
Using the distributive property formula,
k × (l + m) = (k × l) + (k × m)
= (2 × 11) + (2 × 7)
= 22 + 14
= 36
Therefore, the value of 2 (11 + 7) = 36
Example 2: Prove that 5 x (3 – 12) has a Negative Result using the Distributive Property of Multiplication.
Solution:
Using the distributive property formula,
k × (l – m) = (k × l) – (k × m)
= (5 × 3) – (5 × 12)
= 15 – 60
= -45
Therefore, the value of 5 x (3 – 12) = – 45, which is a negative integer.
Now you must be 100 percent confident in what distributive property means and how to solve problems concerning this property. If you are not completely sure and have missed any of the concepts in the article, you can revisit this page again for theory and solutions. Moreover, start preparing for your upcoming exam now and outshine others by learning and practicing.
Frequently Asked Question
1. What is distributive property examples?
Distributive property is a rule that states that you can distribute the terms of an expression. It’s used when you have one term that’s being multiplied by another term but you want to distribute the term being multiplied by another number.
For example:
5(x+y) = 5x + 5y
In this case, x and y are multiplied by 5, which means we can distribute the 5 over them. So we would rewrite this as 50x + 50y.
Let’s look at another example:
(6x+2)(x-1) = 6×2 – 2x – 1
2. What property is distributive property?
It is a property that allows you to divide the whole by its parts. It is usually used in mathematics and algebra. For example, if you have the sum of two numbers and want to find the sum of their parts, you would use the distributive property.
3. What is the distributive property of 3?
The distributive property of 3 is a mathematical rule that allows you to distribute one number to each term in a sum.
For example, if you want to add 2+3+4, you can’t just say “add 6” because 2+3=5 and 4+3=7. You need to find a way to split up the 6 among those two terms.
The distributive property of 3 tells us how to do this: we’ll multiply each term by 3 before adding them together. So our answer is 9+12=21.
4. How do you do the distributive method?
The distributive method is a way to solve an equation by multiplying the parentheses on either side of the equality sign. The distributive law states that when multiplying or dividing by a sum or difference of terms, one must multiply or divide each term in the expression by each term in the sum or difference.
For example, if you have:
(a + 4)(a – 2) = 4a^2 – 8a + 8 – 8a
You would distribute the 4 from the first term to each term in the second term:
The distributive property turns a multiplication problem into an addition problem. For example, if you have x * y, where x and y are positive numbers and x is greater than 1, then you can rewrite this as (x – 1) * y + x * y.
It is also useful when solving equations with exponents. For example, if you have 5(x+1) = 10(x), then you can rewrite this as 5x + 5 = 10x.
Distributive Property – The distributive property is also known as the distributive law of multiplication over addition and subtraction. The name itself signifies that the operation includes dividing or distributing something. The distributive law is applicable to addition and subtraction. Let us learn more about the distributive property of multiplication along with some distributive property examples, how to use the distrivutive property on this page.
What is the Distributive Property?
The distributive property states that an expression which is given in form of A (B + C) can be solved as A × (B + C) = AB + AC. This distributive law is also applicable to subtraction and is expressed as, A (B – C) = AB – AC. This means operand A is distributed between the other two operands.
Distributive Property Definition
According to the distributive property definition, the distributive property allows us to take a factor and distribute it to each member (term) of the group of things that have been added or subtracted. Instead of multiplying the factor by the group as a whole, we can distribute it to be multiplied by each member (term) of the group individually.
Distributive Property Formula
The distributive property formula of a given value is expressed as,
Let us discuss the distributive property of multiplication over addition and subtraction in detail with examples.
Distributive Property of Multiplication Over Addition
The distributive property of multiplication over addition is applied when we need to multiply a number by the sum of two numbers. For example, let us multiply 7 by the sum of 20 + 3. Mathematically we can represent this as 7(20 + 3).
Example: Solve the expression 7(20 + 3) using the distributive property of multiplication over addition.
Solution: When we solve the expression 7(20 + 3) using the distributive property, we first multiply every addend by 7. This is known as distributing the number 7 amongst the two addends and then we can add the products. This means that the multiplication of 7(20) and 7(3) will be performed before the addition. This leads to 7(20) + 7(3) = 140 + 21 = 161.
Distributive Property of Multiplication Over Subtraction
The distributive property of multiplication over subtraction is similar to the distributive property of multiplication over addition except for the operation of addition and subtraction. Let us consider an example of the distributive property of multiplication over subtraction.
Example: Solve the expression 7(20 – 3) using the distributive property of multiplication over subtraction.
Solution: Using the distributive property of multiplication, we can solve the expression as follows: 7 × (20 – 3) = (7 × 20) – (7 × 3) = 140 – 21 = 119
Verification of Distributive Property
Let us try to justify how distributive property works for different operations. We will apply the distributive law individually on the two basic operations, i.e., addition and subtraction.
Distributive Property of Addition: The distributive property of multiplication over addition is expressed as A × (B + C) = AB + AC. Let us verify this property with the help of an example.
Example: Solve the expression 2(1 + 4) using the distributive law of multiplication over addition.
Solution: 2(1 + 4) = (2 × 1) + (2 × 4)
⇒ 2 + 8 = 10
Now, if we try to solve the expression using the law of BODMAS, we will solve it as follows. First, we will add the numbers given in brackets, and then we will multiply this sum with the number given outside the brackets. This means, 2(1 + 4) ⇒ 2 × 5 = 10. Therefore, both the methods result in the same answer.
Distributive Property of Subtraction: The distributive law of multiplication over subtraction is expressed as A × (B – C) = AB – AC. Let us verify this with the help of an example.
Example: Solve the expression 2(4 – 1) using the distributive law of multiplication over subtraction.
Solution: 2(4 – 1) = (2 × 4) – (2 × 1)
⇒ 8 – 2 = 6
Now, if we try to solve the expression using the order of operations, we will solve it as follows. First, we will subtract the numbers given in brackets, and then we will multiply this difference with the number given outside the brackets. This means 2(4 – 1) ⇒ 2 × 3 = 6. Since both the methods result in the same answer, this distributive law of subtraction is verified.
Distributive Property of Division
We can show the division of larger numbers using the distributive property by breaking the larger number into two or more smaller factors. Let us understand this with an example.
Example: Divide 24 ÷ 6 using the distributive property of division.
Solution: We can write 24 as 18 + 6
24 ÷ 6 = (18 + 6) ÷ 6
Now, let us distribute the division operation for each factor (18 and 6) in the bracket.
⇒ (18 ÷ 6) + (6 ÷ 6)
⇒ 3 + 1
Therefore, the answer is 4.
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