Southern California Office Real Estate Blog

THINK GREEN - REAL ESTATE IS STRONGER NEAR METROPOLITAN AREAS

July 6, 2009 on 12:03 am | In Bravo, Fascinating Information, Investment Opportunities, New Developments, Solutions, Statistics, Trends, all |

By Jodi Summers

The statistics are in – properties closer to cities with thriving economies and mass transit will outperform outer-ring suburbs and “exurban areas,” where high gas prices are making long car commutes prohibitively expensive and rising energy costs mean higher utility bills. We’re thinking and spending green.

This information comes courtesy of a report released by the Urban Land Institute and PricewaterhouseCoopers LLP. The study interviewed more than 600 real estate experts, including investors, developers, lenders and real estate brokers.

The report, Emerging Trends in Real Estate 2009, projects that the worst of the national housing downturn may be over, with the bottom of the market being confirmed by the end of this year.

The report is focused on commercial real estate such as commercial, office, industrial and apartment properties, but includes an overview of housing markets and how they may be affected by macroeconomic trends and changing regional conditions. Some interesting observations:

· Seattle, San Francisco, Washington, D.C., New York and Los Angeles are expected to be the top five markets for investment in commercial property in 2009.

· Wall Street layoffs and office vacancies will help Seattle and San Francisco to reclaim top rankings for commercial investment from New York.

· The thriving energy industry is expected to boost commercial investment prospects for “long-forlorn” Texas markets, but Midwest factory towns are expected to lose even more ground,

· “24 hour cities” like New York, Boston, Chicago, San Francisco, and Washington, D.C., should also benefit from mass transit systems that can free residents from car dependence.

But, gains in the attractiveness of 24-hour cities could be “squandered” if cutbacks in police, fire and sanitation result in less safe and appealing environments. Falling property values and the economic slowdown are expected to cut into tax revenues, forcing cities to reduce services.

“Nothing would undermine 24-hour dynamics more quickly than rising crime rates,” the report warned.

· “24 hour cities” like New York, Boston, Chicago, San Francisco, and Washington, D.C., should also benefit from mass transit systems that can free residents from car dependence.

“Nothing would undermine 24-hour dynamics more quickly than rising crime rates,” the report warned.

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Obama Administration Awards More than $154 Million for State Energy Programs in Four States

U.S. Department of Energy (DOE) Secretary Steven Chu announced more than $154 million in Recovery Act funding to support energy efficiency and renewable energy projects in California, Missouri, New Hampshire and North Carolina. Under DOE’s State Energy Program (SEP), states have proposed statewide plans that prioritize energy savings, create or retain jobs, increase the use of renewable energy, and reduce greenhouse gas emissions. This initiative is part of the Obama Administration’s national strategy to support job growth, while making a historic down payment on clean energy and conservation.

Comment by EERE — July 6, 2009 #
THE FACTS

Los Angeles traffic congestion costs the region more than $10 billion per year

The health impacts from air pollution exceed $20 billion in healthcare expenses, lost work and school days, and premature deaths

More than two-thirds of the region’s air pollution come from mobile sources such as cars, trucks, locomotives and ships

The state of California is pursuing robust greenhouse gas reduction through AB 32 and SB 375

Comment by VISION LOS ANGELES — July 6, 2009 #
Check out the Huffington Post’s entertaining – but might I add somewhat discouraging – slideshow of New York’s greenest buildings. Note that of the ten buildings, only one existing structure – the Empire State Building — is offered as an example. This reinforces what we’ve understood for awhile now. There is the widespread perception that to be truly green, a building has to be new.

You can vote for the greenest building in NYC. Right now the Empire State Building is No. 8… let’s go for No. 1.

http://blogs.nationaltrust.org/preservationnation/?p=5227

Comment by Patrice Frey — July 14, 2009 #
Small-Cap Properties See Continued Rent Drops, But Less Than Before

Rents at small-capitalization properties continued to fall last month, but the rate of decline has tapered off somewhat, which might indicate that the worst could be over for the sector.

According to Boxwood Means Inc., a Stamford, Conn., research company that focuses on small-cap properties, all sectors continued to see rental drops, with industrial and certain retail buildings seeing the biggest drops. But those declines are nowhere near as large as they had been during the market’s freefall during the middle of last year, when monthly drops in some subsectors were greater than 100 basis points.

Another reason for optimism: Boxwood has found a strong correlation between the performance of the residential housing market and small-cap commercial properties. And the residential market has seen an uptick in sales and potential stabilization of pricing, which could portend a period of stabilization for many small-cap properties, particularly retail.

Comment by CRE News — August 15, 2009 #
Saving energy in buildings and other non-transportation initiatives could reduce the nation’s energy consumption by 23 percent by 2020, generating 900,000 jobs, saving the U.S. economy $1.2 trillion and reducing greenhouse gas emissions by 1.1 gigatons a year, according to a new study.

The savings could be done with existing methods and technologies and spending of $50 billion a year over a decade, according to the McKinsey & Co. report, which was sponsored by the U.S. Green Building Council and 11 other public and private organizations.

Comment by Seattle Pi — September 12, 2009 #
The Port Authority of New York and New Jersey said Monday afternoon that it had met 21 of 24 quarterly World Trade Center rebuilding milestones during the third quarter. The PANYNJ’s quarterly progress report says one upcoming goal is to build One World Trade Center to the equivalent of the 20th floor in the first quarter of 2010.

According to the report, Q3 milestones include: the completion of installing jumbo perimeter columns for One World Trade Center; the start of work to install 694 pieces of steel to fill in the last major section of the National September 11 Memorial & Museum; and the award of a major construction management contract to Tishman/Turner Construction for the World Trade Center Transportation Hub.

Comment by Paul Bubny — November 10, 2009 #
short sale info…

Southern California Office Real Estate Blog ” THINK GREEN … is an excellent post on Short Sale Uptick I just read….

Trackback by short sale info — August 13, 2010 #