Southern California Office Real Estate Blog

GREEN REAL ESTATE – GOOD FOR CALIFORNIA, GOOD FOR THE COUNTRY?

June 27, 2010 on 12:39 am | In Government, Green, Solutions, Trends, Uncategorized, all | 5 Comments

By Jodi Summers

Once again, when it comes to green, what’s good for California tends to become good for the country. The US Environmental Protection Agency and the Department of Energy have formed an action group to help states achieve the maximum cost-effective energy efficiency improvements possible in offices, buildings, industries and homes by 2020. Dubbed the State Energy Efficiency (SEE) Action Network, they are seeking to create a national version our statewide CALGREEN building code.

The CALGREEN Code was devised California Building Standards Commission is setting minimum green-building criterion that may, at the discretion of any local government entity, be applied.

“You will have a whole bunch of cities that never would have included this in their building doing it, and doing it in a way that won’t kill the economy,” observes Matthew Hargrove, a vice president with the California Business Properties Association. “Outside the coastal areas it will be helpful - like in West Sacramento, where they looked into creating a green building code but balked because it’s cumbersome to develop and they didn’t have the resources.”

Take the whole bunch of cities concept and spread it across a bunch of states. The DOE and EPA noted that 32 state public utility commissions requested help from the agencies last year regarding energy efficiency programs. SEE will be working with states to provide technical assistance and policy and program issues to advance energy efficiency efforts. Those state efforts may include financing solutions, residential efficiency programs and improving availability of energy usage information.

No doubt SEE’s goals will be similar to what we set forth in California. The purpose of CALGREEN’s codes is to improve public health, safety and general welfare by enhancing the design and construction of buildings through the use of building concepts that have a positive environmental impact, and by encouraging sustainable construction practices in the following categories:

• Planning and design

• Energy efficiency

• Water efficiency and conservation

• Material conservation and resource efficiency

• Environmental air quality

As California did with CALGREEN, now SEE and other DOE programs will help states develop strategies and action plans to improve the energy efficiency of existing building and reduce costs and emissions.

One small step for man, one giant leap for mankind.

http://www.businessgreen.com/business-green/news/2257243/agencies-action-buildings

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THE GREENEST CITIES IN THE WORLD

June 20, 2010 on 12:11 am | In Bravo, Fascinating Information, Green, Uncategorized, all | 3 Comments

THE GREENEST CITIES IN THE WORLD

 Edited by Jodi Summers

 We like lists, it means a lot of research has been done. Today’s dynamic list is from Reader’s Digest;
 they have come up with a list of world's greenest, most livable cities. To compile this list, they have an
alyzed data from two top sources covering 141 nations. We’ll give you the top 26greenest cities
(as 26 happens to be San Francisco), the rest you can find @
http://www.rd.com/your-america-inspiring-people-and-stories/best-places-to-live-green/article45734.html

1. Stockholm, Sweden

2. Oslo, Norway

3. Munich, Germany

4. Paris, France

5. Frankfurt, Germany

6. Stuttgart, Germany

7. Lyon, France

8. Dusseldorf, Germany

9. Nantes, France

10. Copenhagen, Denmark

11. Geneva, Switzerland

12. Zurich, Switzerland

13. Glasgow, United Kingdom

14. Barcelona, Spain

15. New York, United States

16. Brussels, Belgium

17. Hamburg, Germany

18. Hong Kong, PR China

19. Newcastle, United Kingdom

20. Tokyo, Japan

21. Helsinki, Finland

22. Washington, D.C., United States

23. Chicago, United States

24. Vancouver, Canada

25. Dortmund, Germany

26. San Francisco, United States

Sources:

http://images.businessweek.com/ss/07/04/0406_liveable_cities/image/7_frankfurt.jpg

http://www.rd.com/your-america-inspiring-people-and-stories/best-places-to-live-green/article45734.html

http://www.primetravels.com/PackageImages/699/Stockholm-Sweden_03-360a032607.jpg

http://highendfood.files.wordpress.com/2009/01/frankfurt_skyline.jpg

http://mamofrizzi.files.wordpress.com/2009/06/tb_copenhagen_denmark.jpg

http://www.bertgulick.com/images/05/copenhagen-denmark.jpg

http://www.iho-ohi.org/wp-content/brussels-belgium.jpg

http://library.thinkquest.org/06aug/01253/Hotspots%20in%20Europe/BrusselsCityImage.jpg

http://wallpapers.free-review.net/63__Shibuya_Tokyo_Japan.htm

http://img61.imageshack.us/img61/3771/eiffeltower2cparis2cfrawo0.jpg

http://www.spa.ucla.edu/up/webfiles/tokyo-shinjuku-45_4.jpg

http://paaia.org/galleries/default-image/san-francisco.jpg

http://www.namss.org/images/AC2008/SanFrancisco.jpg

COMMERCIAL REAL ESTATE LENDING SNAPSHOT

June 15, 2010 on 12:40 am | In Finance, Funny...Money, Loans, Uncategorized, lenders | 3 Comments

edited by Jodi Summers

Allow us to present a really interesting synopsis of current commercial loan trends from a variety of banks, from an article on CoStar.com. The information is from first quarter, but it gives an idea of the ebb and flow of the commercial loan marketplace. Banks are presented in alphabetical order…

* Citigroup — In March, new commercial real estate loan commitments increased more than tenfold to $1.4 billion, compared with $132.4 million in the previous month. Loan renewals increased to $112.1 million, from $25.8 million in February. Average total CRE loan and lease balances rose to $23.8 billion, up from $23.3 billion in February.

* Comerica Inc. — Commercial real estate renewals increased in March from February 2010. The increase was concentrated in the Western states and Texas markets, partially offset by a decrease in the Florida market. Commercial real estate new commitments decreased.

* Fifth Third Bancorp — Average CRE balances decreased by approximately 0.7% in March 2010 compared to February 2010. New CRE commitments originated in March 2010 were $288 million, compared to $102 million in February 2010. Renewal levels for existing accounts increased in March 2010 to $964 million versus February 2010 at $392 million. Payments and dispositions of troubled CRE outpaced the volume of renewals and new originations in March causing the overall balances to continue to decline. As commercial vacancy rates continue to increase, Fifth Third continues to monitor the CRE portfolios and continues to suspend lending on new non-owner occupied properties and on new homebuilder and developer projects in order to manage existing portfolio positions.

* KeyCorp — There was no change in loan demand trends in the CRE segment during March. The CRE market outlook continues to be weak. KeyCorp continued to extend and modify existing credits given the lack of liquidity and refinancing options available in the CRE market. Renewal volume doubled from the February level to $560 million and is comparable to levels experienced in April and May 2009. Three-fourths of the renewal volume, totaling $420 million, was related to performing development projects for which refinancing options remain constrained. For CRE development projects, KeyCorp created a fixed-rate 3-5 year loan program to modify and extend qualifying loans for existing customers.

* Marshall & Ilsley Corp. — Construction and development concentrations continued to decline in-line with its goal of reducing credit exposure in this sector. Average CRE balances are expected to continue contracting due to portfolio amortization.

* Regions Financial Corp. — The focus in commercial real estate lending continued to be on renewing and restructuring real estate loans with existing clients versus active pursuit of new real estate loans. Renewal activity includes loan restructuring, remargining and repricing, based on the current credit quality of the sponsor, the performance of the project and the current market.

* SunTrust Banks Inc. — Average Commercial Real Estate loans decreased $192 million, or 0.9%, compared to the February average. Total CRE renewals and originations in March increased $252 million, or 77.5%, compared to seasonally low February activity. The majority of originations were associated with large commercial or corporate businesses.

Thank you, http://www.costar.com/News/Article.aspx?id=359D8A406145159176A40807B924DC84

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LOS ANGELES WINS THE ENERGY STAR GRAND PRIZE…AGAIN

June 8, 2010 on 12:14 am | In Bravo, Government, Green, PROPERTY MAINTENANCE, Solutions, Trends, Uncategorized, Winning Properties, all | 4 Comments

By Jodi Summers

Bravo to all of you greening your properties. According to our friends at the environmental protection agency, approximately 3,900 commercial buildings earned the Energy Star rating in 2009, representing annual savings of more than $900 million in utility bills and more than 4.7 million metric tons of carbon dioxide emissions. Impressively, nearly 9,000 buildings across the nation have earned the Energy Star for superior energy efficiency during the past 11 years.

A standing ovation for our beloved Los Angeles. The EPA ranked us as first on its annual list of metro areas with the most energy-efficient buildings. We led the field with 293 buildings labeled Energy Star in 2009, up from the 262 that qualified the city as No. 1 in 2008.

Kudos also go to our nation’s capitol. Washington, DC, ranked fourth place in 2008, is now in second, with 204 Energy Star buildings, up from 136 the previous year.

Energy Star is a voluntary labeling program run by the EPA and U.S. Department of Energy. In order to qualify, a building or manufacturing plant must score in the top 25 percent based , on the agency’s National Energy Performance Rating System and use less energy, reduce operating expenses and cause fewer greenhouse gas emissions.

Roll the credits - the top 25 cities with the most energy star labeled buildings in 2009 are:

1. Los Angeles, CA

2. Washington, DC

3. San Francisco, CA

4. Denver, CO

5. Chicago, IL

6. Houston, TX

7. Lakeland, FL

8. Dallas-Fort Worth, TX

9. Atlanta, GA

10. New York, NY

11. Minneapolis-St. Paul, MN

12. Portland, OR

13. Boston, MA

14. Seattle, WA

15. Detroit, MI

16. Sacramento, CA

17. San Diego, CA

18. Austin, TX

19. Miami, FL

20. Phoenix, AZ

21. Ogden, UT

22. Charlotte, NC

23. Indianapolis, IN

24. Des Moines, IA/Fort Collins, CO/Philadelphia, PA

25. Louisville, KY

http://www.greenbiz.com/news/2010/03/23/la-takes-top-spot-epa-green-building-rankings

http://www.costar.com/News/Article.aspx?id=624F645516667EF93A09A56906607F8E&ref=100&iid=174&cid=383F14EEE265B182474DA2442BACBBBF

http://gateway.costar.com/imageviewer/GetImage.aspx?webimage=EPA+Energy+Star.JPG

http://lakelandflforeclosures.com/images/lakelandatnight.jpg

http://www.staronetickets.com/images/Seattle.jpg

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SOCAL OFFICE REAL ESTATE SNAPSHOT – JUNE 2010

June 2, 2010 on 12:07 am | In Fascinating Office Real Estate Information, Statistics, Trends, Uncategorized, all | 4 Comments

By Jodi Summers

The experts have few kind words for the Southern California office real estate market this month…

“After plunging by 2.4% during 2009…we project that the U.S. economy will grow by 2.6% in 2010 and by 3.1% in 2011,” proclaimed Nancy D. Sidhu, Ph.D., the chief economist for the Los Angeles Economic Development Corporation. “However, unemployment rates in the U.S. will remain uncomfortably high, averaging 9.9% in 2010 and 9.4% in 2011.

“California’s economy is also on the recovery track, but the state will still lose 121,800 jobs in 2010,” continued Sidhu. “However, this will be a huge improvement from the 668,200 jobs lost in 2009.”

“Southern California’s five metropolitan areas will also be in recovery mode during 2010,” noted Jack Kyser, Founding Economist of the Kyser Center for Economic Research. “Like the nation and state, it will be a measured recovery, with more job losses and high unemployment rates in 2010.”

According to 2007 statistics, the leading employers in Los Angeles County are: 1.) tourism and hospitality with 456,000 workers; 2.) professional and business services with 288,000 workers; 3.) direct international trade with 281,000 workers; 4.) entertainment (motion picture/TV production) with 244,000 workers; and 5.) wholesale trade and logistics with 199,000 workers.

In Los Angeles County at the end of 1Q 2010, year over year employment losses were evident in nearly all of the major employment sectors, with the exception of health services. On an optimistic note, container traffic at both the Port of Los Angeles and the Port of Long Beach has increased, and the demand for construction permits for single family housing surged by +78.7%, while year-over-year and permits for multi-family housing rose by +24.4%. Median Home values in Los Angeles County are up 9.7%; prices are now similar to April 2003 price levels. Travel is up, with passenger traffic at the combined L.A.-area airports increasing by +3.4%. And total film production days in Los Angeles County increased 14.7% from a year earlier.

“Nonresidential real estate activity will remain in the doldrums during 2010,” observed Kyser. “Office vacancy rates are at lofty levels around Southern California, with the Riverside-San Bernardino area highest at 23.6% at year-end 2009, and Los Angeles County low at 16.0 percent.”

Lawrence Yun, chief economist for the National Association of Realtors confirmed Kyser’s remarks, nothing that vacancy rates will continue to rise in most types of commercial real estate such as office and industrial buildings until the end of this year or early 2011.

“The office, warehouse and retail sectors continue to experience the delayed effects of the recession,” Yun stated. “These sectors should see gradual improvement after jobs pick up and create additional demand for space, meaning a broader improvement in commercial real estate is likely in 2011.”

Commercial rents will continue to dip in 2010, Yun concluded, though apartment and industrial rents are close to stabilizing.