OUR ECOMONY IS LOOKING GOOD

April 1, 2014 on 4:46 pm | In Bravo, Fascinating Information, Government, Market Snapshot, Trends, Uncategorized | 1 Comment

edited by Jodi Summers

Optimism is the result of January’s coincident indexes for the 50 states. The coincident index, compiled by the Federal Reserve Bank of Philadelphia, combines four state-level indicators to summarize current economic conditions in a single statistic.

The four state-level variables in each coincident index are:

  1. nonfarm payroll employment,
  2. average hours worked in manufacturing,
  3. the unemployment rate,
  4. and wage and salary disbursements deflated by the consumer price index (U.S. city average).

The trend for each state’s index is set to the trend of its gross domestic product (GDP), so long-term growth in the state’s index matches long-term growth in its GDP.

In January, 49 states had increasing activity(including minor increases). This measure has been and up down over the last few years …

This map was all red during the worst of the recession. Fortunately, it is all green again.

**

http://www.calculatedriskblog.com/2014/03/philly-fed-state-coincident-indexes.html#863cuOCPU41o2Hd6.99

http://www.socalindustrialrealestateblog.com/?p=2127

http://www.socalofficerealestateblog.com/?p=2526

SOCAL OFFICE REAL ESTATE SNAPSHOT MARCH 2014 ~ CHEERS!

March 1, 2014 on 8:37 pm | In Bravo, Fascinating Information, Lease Rates, Market Snapshot, New Developments, Office Fodder, Statistics, Trends, Uncategorized | 1 Comment

By Jodi Summers

There is increased optimism in the Los Angeles office real estate market, especially along the coast, where jobs are being generated at a rate faster than the national average. Experts at the Urban Land Institute expect the current expansion of employment to continue into 2016.

Here’s our good news: the seasonally adjusted unemployment rate in Los Angeles County decreased to 9.2% in December 2013 from the rate of 10.3% one year ago, notes the Employment Development Department. As a point of reference, the California seasonally adjusted unemployment rate was 8.3% in December 2013, down 9.8% from December 2012. Nationally the numbers were 6.7% in December 2013 and 7.8% the year prior.

Increased employment is benefiting the office market. Current Los Angeles market data from Loopnet indicates that the current median price is $315 per sq ft for office properties in Los Angeles. This is an increase of +2.2% compared to the prior 3 months, and an increase of +18.1% compared to last year’s prices.

Developer sentiment in the office space market is optimistic in Southern California due to the increased rate of job growth in the region and a tightening supply of office space.

In January, according to Loopnet, the average asking rental rate per sq ft/year for Office properties in Los Angeles was $24.90, representing an increase of +3.1% year-over-year. County-wide, average rental rates in Los Angeles are +0.8% higher at $23.99 per sq ft/year for Office properties currently for lease.

Nationally, the growing demand for office space, combined with an extended period which has seen little to no new office construction, resulted in the average U.S. office rent to grow 3.1% in 2013 – the first time rents have cracked the 3% annual growth mark since 2007, the peak of the market cycle.

Finally, office investors are cheering the gains in asset values seen in 2013 from a strengthening recovery in the U.S. office market, and looking forward to an even brighter 2014 as virtually all the important metrics that drive rent growth and property income are expected to continue to improve over the next 12 months.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

**

http://www.uclaforecast.com

http://www.facebook.com/uclaanderson

http://uclaforecast.com/contents/archive/2014/media_012914_1.asp

http://www.socalofficerealestateblog.com/?p=2502

http://www.youtube.com/watch?v=aVxIecBl7wI&feature=youtu.be

http://www.costar.com/News/Article/For-US-Office-Market-It-Was-a-Very-Good-Year/156702?ref=100&iid=372&cid=383F14EEE265B182474DA2442BACBBBF

http://www.loopnet.com/Los%20Angeles_California_Market-Trends?Trends=AskingPricesFS,SalePricesFS,TotalAvailableForSaleFS,NumberOfListingsFS,ProfileViewsFS,TotalNumOfUnitsFS,TotalSFAvailableFS,DaysOnMarketFS,AskingRentsFL,NumberOfListingsFL,ProfileViewsFL,TotalSFAvailableFL,DaysOnMarketFL&PropertyTypes=Office

http://blog.hellodesign.com/wp-content/uploads/2011/08/IMG_2776.jpg

http://www.loopnet.com/Los%20Angeles_California_Market-Trends?Trends=AskingPricesFS,SalePricesFS,TotalAvailableForSaleFS,NumberOfListingsFS,ProfileViewsFS,TotalNumOfUnitsFS,TotalSFAvailableFS,DaysOnMarketFS,AskingRentsFL,NumberOfListingsFL,ProfileViewsFL,TotalSFAvailableFL,DaysOnMarketFL&PropertyTypes=Office

NEW GREEN IDEAS SO YOU CAN MAKE MORE GREEN

February 15, 2014 on 11:14 pm | In Bravo, Fascinating Information, Green, Investment Opportunities, Trends, Uncategorized | 1 Comment

by Jodi Summers

You are the green businessman. You’re in solar stocks, net zero options. You are on top of the green world. Now, be on top of the next wave of green trends…

* Global spending on smart energy management services is projected to grow from $291M in 2012 to $1.1 billion by 2020. (Source: Pike Research)

* Solar projects established as a solid asset class attracting traditional Wall Street financiers, crowd-funding to fund small- to medium-sized solar projects, and institutionally-led residential solar lease facilities. REITs will emerge as a potential funding source with the prospect of opening the REIT structure to solar projects.

* Micro-hybrid battery technology that stops a vehicles motor during idling, then starts it again with a battery – not gas – when needed, is coming to the U.S. in a big way with more than eight million vehicles, not including hybrids, to be equipped with this stop-start technology in North America by 2017 (Source: Lux Research). An estimated 35 million vehicles to be produced with this stop-start technology worldwide (Source: Johnson Controls).

* Biomimicry – using designs found in nature as the template for creating modern industrial products and processes – begins to make its mark on clean technology, especially in clean technologies that generate energy from natural sources like the sun and the wind, as well as on the energy-efficiency front, such as energy-saving (and more reliable) screen technologies for devices and the creation of new tougher, lighter and stronger materials.

* U.S. Geothermal industry comes of age in the U.S., with installed cumulative capacity growing to 3,187 MW, which represents more than a quarter of the worldwide total of 11,244 MW.

**

http://laedc.org/cleantech/

http://www.socalgreenrealestateblog.com/?p=2913

http://www.savantsystems.com/mypictures/images_03_01_2012/00__Res_Smart_Energy_ipadWhite.jpg

http://www.socalofficerealestateblog.com/?p=2417

http://www.blogcdn.com/green.autoblog.com/media/2009/05/car_commit_e2.jpg

http://www.sunedison.com/wps/wcm/connect/5d85e020-50be-4431-903c-d4f9807207ca/2.4.0b+no+logos+reit.png?MOD=AJPERES&CACHEID=5d85e020-50be-4431-903c-d4f9807207ca

http://media.treehugger.com/assets/images/2011/10/Biomimicry-header-image.jpg

http://www.schumachercollege.org.uk/images/188.jpg

http://www.docstoc.com/docs/106094127/Biomimicry—Nature-as-Model-Measure-and-Mentor—Peaks-to-Prairies

SOCAL OFFICE REAL ESTATE SNAPHOT ~ JANUARY 2014 ~ PROFITS IN 2014

December 31, 2013 on 10:51 pm | In Bravo, Investment Opportunities, Market Snapshot, Office Fodder, Statistics, Trends, Uncategorized | 3 Comments

by Jodi Summers

2014 brings big news! Los Angeles County is expected to exceed 10 million residents in 2014, taking the prize for the most populous county in the nation. L.A. County population is larger than that of 42 states. If it were a country, it would have the 21st largest economy in the world, just ahead of Iran, and just behind Switzerland. The L.A. business motor continues to power forward.

Los Angeles County carried momentum from a strong second half of last year into this year, with year-to-year percentage job gains that outpaced the nation and the state. In 2013, the unemployment rate dropped into single-digit territory for the first time since late 2008 – ending the year under 9.5%.

As you all know, only a smattering of office markets are performing strongly, the last three years have been an arduous ride for the office sector. But, the payoff is coming. In 2014, the experts say we are firmly into recovery. Leading submarkets remain clustered in global gateway metros and locations with tech- and energy-rich economies. Yeah L.A.!

Although the office recovery is not yet widespread, recovering markets feature strong technology, energy, education and healthcare components. Investment capital has been focused on primary central business districts in key suburban and secondary markets. Los Angeles, Orange County and San Diego are sited as promising investment areas, as our SoCal metros currently have vacancies higher than the national average, with occupancy gains predicted to climb faster than the U.S. average through 2017.

Also expected to thrive are mixed-use environments that are well-served by public transport. Experts point to West Los Angeles, and the corridor from Miracle Mile to Santa Monica in Los Angeles; North Cities like University Town Center, in San Diego; and Irvine/Newport Beach in Orange County.

A local investor describes the office climate by stating, “Out in Los Angeles, things are going very well; we are seeing the housing market rebound and the office sector is coming along—not great, but steady; we haven’t seen a lot of new construction. Rental rates in L.A. haven’t moved much, so we likely won’t see too much new supply here.”

Those in the know agree that success and profits in 2014 will come to those with real estate operating and management skills.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

**

www.uli.org/capitalmarketscenter

http://articles.latimes.com/2013/dec/16/business/la-fi-economic-outlook-20131216

http://www.socalofficerealestateblog.com/?p=2495

http://www.rreef.com

http://www.uli.org/wp-content/uploads/ULI-Documents/Emerging-Trends-in-Real-Estate-Americas-2014.pdf

SANTA’S ELVS

December 23, 2013 on 9:37 pm | In Bravo, Funny...Money, Uncategorized | 1 Comment

LOS ANGELES IS AN EXAMPLE FOR THE ADAPTIVE REUSE OF OFFICE BUILDINGS

November 15, 2013 on 2:10 pm | In Bravo, Fascinating Information, Green, Historic Properties, Investment Opportunities, New Developments, Property Maintenance, Solutions, Trends, Uncategorized, Winning Properties | 3 Comments

Edited by Jodi Summers

Bravo to the City of Los Angeles. Through innovative public policy and creative private development, L.A.is demonstrating how older buildings can be repurposed and repositioned for the new economy while reducing carbon emissions.

Believe it or not, Downtown Los Angeles contains one of the nation’s finest collections of early 20th century architecture. Most of these buildings sat vacant for decades, until a carefully targeted Adaptive Use Ordinance (ARO) removed regulatory barriers, provided incentives, and helped make it possible to repurpose more than 60 historic buildings over the past 14 years as new apartments, lofts, and hotels.

But many more buildings remain empty or underused in the downtown area and nearby commercial districts.

A recent report from the Urban Land Institute and the National Trust for Historic Preservation’s Green Lab concludes that more than 10 million square feet of space in the city’s urban core is currently vacant. The report, Learning from Los Angeles, was presented to Mayor Eric Garcetti this morning, at an event organized by the ULI Los Angeles District Council. It describes strategies that build on the success of the ARO to unlock the economic and community development potential of underused older buildings. The report documents demolition, building, and vacancy trends throughout the city and recommends strategies for removing regulatory barriers, streamlining approvals, and providing incentives to make building reuse easier to accomplish.

Conversations organized by the Preservation Green and ULI Los Angeles identified key barriers to building reuse and recommend solutions to overcome these obstacles. The Los Angeles Conservancy, a key partner in this effort, served on the project Advisory Committee along with practitioners in real estate development, planning, design, construction, community revitalization, and local government.

Learning from Los Angeles is the first in a new series of research and policy reports being developed by the Preservation Green Lab through the Partnership for Building Reuse, a joint effort of the National Trust and ULI. Launched in Los Angeles in 2012, the Partnership for Building Reuse is designed to foster market-driven building reuse in major U.S. cities through dialogues with community stakeholders about building reuse challenges and opportunities.

**

http://blog.preservationleadershipforum.org/2013/10/10/learning-from-los-angeles/#comments

http://www.socalofficerealestateblog.com/?p=2458

http://www.socalgreenrealestateblog.com/?p=3018

http://www.socalmultiunitrealestateblog.com/?p=2592

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