Southern California Office Real Estate Blog

NAR PREDICTS THE COMMERCIAL REAL ESTATE MARKET

September 28, 2008 on 11:01 pm | In Fascinating Information, Fascinating Office Real Estate Information, Statistics, Trends, Uncategorized | 8 Comments

Investment Sales Plodding 61 Percent Behind Last Year’s Pace

September 26, 2008 on 11:46 pm | In Fascinating Information, Fascinating Office Real Estate Information, Office Fodder, Statistics, Uncategorized | 7 Comments

The commercial property investment-sales market is on a pace that’s 61 percent behind last year. Office sales are running 62 percent behind last year’s clip, while apartment sales are behind by 51 percent. Hotel sales are running 78 percent behind last year’s rate.

http://www.crenews.com/

THE GOVERNMENT WANTS TO MOTIVATE COMMERCIAL PROPERTY OWNERS TO REDUCE GREENHOUSE GAS EMMISSIONS

September 22, 2008 on 11:09 pm | In Bravo, Fascinating Office Real Estate Information, Government, Green, Historic Properties, New Developments, PROPERTY MAINTENANCE, Statistics, Uncategorized | 12 Comments

THE GOVERNMENT WANTS TO MOTIVATE COMMERCIAL PROPERTY OWNERS TO REDUCE GREENHOUSE GAS EMMISSIONS

Fascinating government statistics for you to ponder – in 2005, commercial buildings used 18% of the energy nationwide and generated 15% of greenhouse gas emissions. The Department of Energy reports that in a typical office building, energy use accounts for 30% of operating costs - the largest single category of controllable costs.

Statistics in hand, the federal government is encouraging developers to capitalize on new technologies to reduce energy consumption. So enthusiastic is the government (prior to the Demise of Lehman Bros. + the buyout of AIG), that the US Department of Energy launched the latest in a series of initiatives - Zero-Net Energy Commercial Building Initiative (CBI) and established the National Laboratory Collaborative on Building Technologies (NLCBT) in the hope of developing zero-net energy commercial buildings by 2025.

This movement stems from this year’s DOE Energy Saving Assessment of the nation’s largest industrial facilities. It was the 500^th of such assessment – and 10,000 points of light most have clicked on in somebody’s head. These assessments reportedly have helped companies identify opportunities to save more than 80 trillion British Thermal Units (BTUs) of natural gas–roughly equivalent to the natural gas used in about one million American homes. If all of the recommendations from the assessments are implemented, the DOE estimates the properties would reduce carbon dioxide emissions by seven million metric tons and save their owners more than $800 million in energy costs annually.

The DOE is also spearheading the creation of Commercial Building Energy Alliances (CBEAs), which are designed to minimize the energy and environmental impact of commercial buildings and help property owners reduce energy costs. Dru Crawley, team leader, Commercial Buildings R&D for the DOE’s Building Technology Programs, says the goal is to showcase best practice technology demonstrations, set standards and encourage support for mass production of promising processes and products.

Info from:
http://www.globest.com/news/1238_1238/insider/173731-1.html

A NATIONAL LANDMARK IN HOLLYWOOD GOES UP FOR SALE - YOU CAN OWN THE EL CAPITAN THEATER

September 18, 2008 on 10:31 pm | In Fascinating Information, Fascinating Office Real Estate Information, Historic Properties, Investment Opportunities, Uncategorized, Winning Properties | 9 Comments

A NATIONAL LANDMARK IN HOLLYWOOD GOES UP FOR SALE - YOU CAN OWN THE EL CAPITAN THEATER

Get your sealed bid offer in. A National Historic Landmark, the El Capitan Theater complex, located along the Hollywood Walk of Fame at 6834-6838 Hollywood Blvd. is now on sale for an undisclosed price. The property features a six-story 85,000-sf class A office building, as well as the landmark theater and retail store.

The theater has been restored to its original Spanish Colonial exterior, as originally designed by Stiles O. Clements, and its East Indian interior, as originally designed by G. Albert Landsberg. is directly across from the Kodak Theater, where the Academy Awards are presented. It is close to some of the best-known tourist attractions in Hollywood, including Grauman’s Chinese Theatre, the Hollywood and Highland retail entertainment center, and a new Madame Tussauds that is soon to be completed.

Between 1926 and 1936, more than 120 live plays were produced at the El Capitan, which included stars such as Clark Gable, Buster Keaton, Will Rogers, Douglas Fairbanks, Jr., Henry Fonda, Lon Chaney, Jr., and Jason Robards. The theater was also the site of the world premiere for Orson Welles’ Academy Award-winning “Citizen Kane.”

A tempting tidbit about our subject property - the El Capitan’s theater is reportedly the highest grossing single screen theater in America, with more than 1,000 seats, state-of-the-art digital projection and sound systems, a refurbished 1928 Wurlitzer pipe organ and a movie screen that rises to reveal a 50-foot stage for live performances. Adjacent to the theater is Disney?s Soda Fountain and Studio Store, where patrons can purchase ice cream themed to the film currently playing in the cinema next door.

The building is 100% occupied by entertainment industry tenants and was renovated by CUNA Mutual, which installed state-of-the-art mechanical systems and other upgrades.

For more information please contact jodi@jodisummers.com.

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Info source:

http://www.globest.com/news/1247_1247/losangeles/173870-1.html

INVESTORS STILL FEEL RENTS WILL RISE

September 16, 2008 on 7:02 am | In Fascinating Information, Funny...Money, Investment Opportunities, Statistics, Trends | 6 Comments

INVESTORS STILL FEEL RENTS WILL RISE

 

Rents will rise on investment properties, suggests a recent survey of more than 1,000 private and institutional real estate investors. The survey, which is packaged as the 2008 Real Estate Investor Outlook, was conducted jointly by National Real Estate Investor, Marcus & Millichap and Countrywide Commercial, revealed that 61% feel returns are artificially low, with 38% predicting that returns will rise back to long-term averages as conditions change and 23% percent feel that returns will rise as conditions change but will not reach long-term average levels.

OFFICE PROPERTY MARKET BELIEVED TO BE REACHING THE BOTTOM

September 9, 2008 on 12:08 am | In Bravo, Fascinating Information, Trends, Uncategorized | 12 Comments

OFFICE PROPERTY MARKET BELIEVED TO BE REACHING THE BOTTOM

Real Capital Analytics has calculated that July was one of the worst months for investment-property sales during the credit crisis. with year-to-date sales volume down 70% from the same period a year ago. At the end of June, volume was down just 62% from the year-ago period.

The office, industrial, multifamily and retail sectors all reported their lowest July volumes since 2002 and 2003 when real estate markets were rebounding from the last down cycle.

The New York research firm attributed much of the sales decline to wide gaps between bid and ask prices, noting. “The key unanswered question is whether sellers are ready to recognize changed market conditions and accept pricing that will bring investors back into the market.”

It further noted that the next few weeks should be particularly critical in determining this year’s final tallies because September is traditionally one of the strongest periods for new offerings. “If sellers unveil a new round of offerings, that could add to an already backlogged inventory,” Real Capital warned.

There was optimism in the industrial sector, which had $1.1 billion in closed sales during July, had $1.38 billion worth of deals go to contract. Real Capital said that could set the stage for the sector’s third-quarter results to include its first quarterly gain in closed sales since the credit crunch began impacting commercial-property sales.

The office sector sustained the biggest decline in completed sales from the year-ago period, with a 79% drop to $34 billion. Multifamily, benefiting from financing available from Fannie Mae and Freddie Mac, has been the best-performing sector through most of the credit-markets turmoil. Its $3.2 billion worth of July sales was up 20% from its average monthly volume of closings from March through May.

Reports show that all sectors are grappling with a shortage of large buyers compared to a year ago. In the industrial sector, five investors had acquired $200 million of assets each during the first half of 2008 compared to 16 that had acquired $300 million or more apiece a year earlier. In the office sector, only six investors acquired at least $1 billion of assets apiece this year, versus 18 that had acquired $2 billion worth or more a year ago.

(Three of this year’s $1 billion-plus office investors were partners in Boston Properties-led ventures that in June acquired a Manhattan office portfolio for $3.95 billion from Macklowe Properties.)

Story influenced by:
http://www.loopnet.com/xnet/mainsite/news/news.aspx?DocID=4157

 

INVEST IN LATIN AMERICAN REAL ESTATE – GET A GOOD RETURN

September 5, 2008 on 2:24 pm | In Funny...Money, Investment Opportunities, Trends, Uncategorized, Winning Properties | 17 Comments

INVEST IN LATIN AMERICAN REAL ESTATE – GET A GOOD RETURN

The Latin American real market is looking especially ripe as governments implement programs to attract foreign investment and improve their economic growth potential.

NuWire has selected its favorite four Latin American real estate markets, all of which offer spectacular landscapes and appealing lifestyles at affordable prices.

1. Chile
Boasting the most stable and advanced economy in South America, Chile enjoys a high standard of living. Chile ranked eleventh—one spot behind Canada—in terms of the country’s degree of economic freedom, according to the 2007 Index of Economic Freedom put forth by The Heritage Foundation and the Wall Street Journal. Chile’s capital, Santiago, is a booming metropolitan center with first-class infrastructure. More than a third of Chile’s population resides in the metro area of Santiago. The capital is a business hub for Latin America and welcomes an abundance of business travelers. However, the bustle of activity in the manufacturing and mining businesses has created a considerable amount of air pollution, particularly in the Santiago area.2. Brazil

The largest country in South America, Brazil is only slightly smaller than the entire U.S., according to the CIA World Factbook. Brazil offers a wide variety of investment opportunities; from cities such as the modern, urban Sao Paulo and the beach resort city of Rio de Janeiro to vast areas of farmland and timberland. Brazil still struggles with social problems such as income inequality and poverty, the country’s outlook remains positive, as indicated by the country’s impressive economic strides during the past few years. The growing success of its economy is reflected in the government’s efforts to attract foreign investment, especially in development of the Northeast coastal areas of Brazil.

Brazil’s two major cities, Sao Paulo and Rio de Janeiro, have already been discovered by investors and tourists, and the demand has driven up property prices. However, there are still millions of acres of terrain for investors to purchase and capitalize upon.As an added bonus, Brazil accounts for 14.9 percent of total freshwater resources in the world, outranking all other countries, according to AQUASTAT. Brazil is also the largest producer and exporter of ethanol in the world, according to the Economic Research Service of the U.S. Department of Agriculture, placing the country in an excellent position for future economic growth. 3. Uruguay

Uruguay’s real estate market offers special advantages in terms of the country’s social and economic structure. “Uruguay is the safest country, has the least economic disparity, and the most highly educated population in Latin America,” David Hammond, realtor for ParadiseUruguay.com, said. “It is the second least corrupt country in Latin America, behind Chile; [it also] has good health care, and is one of the most affordable places in the world to live.”
Uruguay is the fifth wealthiest country in Latin America, with a per capita GDP of $10,900, according to the CIA World Factbook. The average per capita GDP for all Latin American countries, in contrast, is $7,200. The country has seen healthy economic growth over the past few years, with 12 percent growth in 2004 followed by 7 percent growth in 2005 and 2006.The capital city of Montevideo is a major hub for investment and home to approximately half the country’s population. It is a relatively modern city where investors can find a variety of residential facilities to choose from, from elegant apartments to old colonial homes. Montevideo is only a three-hour ferry ride from Buenos Aires. The city of Punta del Este, on Uruguay’s southern border, has also attracted a large amount of foreign investment. The city is considered by some to be a playground for the rich.

4. Peru

Peru has been generally overlooked as a place for major investment; consequently, property prices have remained low. Peru made headlines in 2006 when it had the best stock market performance in the world, with a staggering gain of 182 percent, according to the annual review of world stock market performance by Thomson Financial. Investments in Peru present low risk and chances of good return, Doron Weisbarth of Lima Real Estate, said.

“A severe housing shortage and short construction cycles ensure strong prices, easy sales and quick returns,” Weisbarth said. In addition, “local, Peruvian banks provide 70 to 75 percent of the financing and close scrutiny of the builders, [so] investors enjoy smaller risk yet.”

Peru has successfully attracted foreign capital with investment-friendly policies

In addition, Peru’s government has extended investment-friendly policies to attract foreign capital.

Get the whole story info@ http://www.nuwireinvestor.com/articles/top-five-latin-american-real-estate-markets-51342.aspx