Commercial Real Estate: Values Rise Slowly As Recovery Spreads

Commercial Real Estate:
Values Rise Slowly As Recovery Spreads

Commercial Real Estate | Costa Real Estate Digest

Information Source: National Council of Real Estate investment Fiduciaries
(http://nreionline.com/)

Price Increases In Most Desireable Markets Have Slowed While The Recovery Spreads To Wider Commercial Real Estate Market

Commercial real estate values continue to rise, but not as quickly as they did in 2010 and 2011. Investors are taking a "wait and see" attitude right now … a phenomenon that occurs with every election year regardless of the political situation. Elections always mess up the markets.

The commercial real estate market is no exception. It experienced a fairly quick rebound in '10 and '11. Prices are still rising, but at a slower rate. At the same time we notice the slowing is in the quicker rising most preferred markets, while the slower, less preferable markets are keeping relatively the same pace. This actually means the recovery is spreading to the wider commercial real estate market as a whole, and is good news.

Here's a report from Bendix Anderson in the National Real Estate Investor:

Commercial Real Estate Values Rise Slowly, Steadily

"Numerous price indices show that commercial real estate (CRE) values are on the rise, although now more slowly than in the past. Experts say investors are playing a wait-and-see game that has limited the greatest amount of growth to the most sought …" National Real Estate Investor
http://nreionline.com/news/several_price_indices_show_cre_values_rising_07252012/

 

Recovery Spreading To General Commercial Real Estate Market

The CoStar index shows us that the "Investment Quality" portion of the commercial real estate market has led the recovery, but that now the "General" commercial market is beginning to follow. This is good news for the commercial real estate market as a whole.

Commercial Real Estate
 

Real Estate News: Big Banks Face Foreclosure Themselves

Real Estate News:
Big Banks Face Foreclosure Themselves

Real Estate News | Costa Real Estate Digest

A Sign of the Times: Foreclosure (Photo credit: Tobyotter)

Some Of The Strangest Real Estate News Comes In The Form OF Major Banks Facing Foreclosure By Homeowner's Associations

Well, we've heard it all now, and this bit of real estate news is an eye-popper. It seems that a lot of the major banks are foreclosing on homes and condos that fall under the jurisdiction of Homeowner's Associations. Many of these associations have requirments that may include dues paid by the homeowner and maintenance that is the responsibility of the homeowner. Apparently, many of the banks are not paying the dues or doing the maintenance, and are now facing foreclosure by the Homeowner's Associations!

Read about it here in this real estate news report from Morgan Brennan in Forbes:

Real Estate's Latest Mess: Big Banks Now Face Foreclosure

Morgan Brennan – “There are no big banks that aren’t wrapped up in this trend,” adds Solomon. Cases have been leveled against Citibank, Bank of New York, Wells Fargo, Deutsche Bank, Bank of America, U.S. Bank, Countrywide, GMAC, HSBC, Washington Mutual, Penny Mac, and Aurora." … FORBES
http://www.forbes.com/sites/morganbrennan/2012/07/28/real-estates-latest-mess-big-banks-facing-foreclosure/

Real Estate News Of The Weird

It seems that up to 40% of the residences in Florida that fall under the control of Homeowner's Associations are currently in default on dues. Much of this is due to bank owned properties not keeping them up to date. I suppose nothing is really surprising anymore when we talk about the major banks. Apparently they are still overwhelmed by the sheer size of the problem … and this is just another result.

Real Estate News
 

Southern California Commercial Real Estate: Office Market May Be Rebounding

Southern California Commercial Real Estate:
Office Market May Be Rebounding

Southern California Commercial Real Estate | Costa Real Estate Digest

John Barganski, Vice President of leasing for Brookfield Office Properties, is photographed in front of the Earnst & Young Plaza in Downtown Los Angeles on July 18, 2012. (Mel Melcon/Los Angeles Times)

Good News For Southern California Commercial Real Estate As L.A. County Vacancy Rates Drop and Average Rents Climb

Good news for Southern California commercial real estate as 2nd quarter figures show office vacancy rates moved down a bit. Now this doesn't mean that landlords are home free … most markets are still considered to have the tenants in the driver's seat. However, it is movement in the right direction for a change.

Read about it in this LA Times article by Roger Vincent:

Southern California office market may be rebounding – Los Angeles …

Roger Vincent – "Southern California's long-languishing office market finally managed to utter a convincing peep in the … COMMERCIAL REAL ESTATE QUARTERLY REPORT…" Los Angeles Times
http://articles.latimes.com/2012/jul/22/business/la-fi-commre-overview-20120722

Southern California Commercial Real Estate Has A Long Way To Go

As we've been seeing for a long time now, the majority of transactions are lease renewals, and not new space being rented. As with everything else, Southern California commercial real estate is tied to the jobs market. Until we see improvement there … and significant improvement … all good news must be taken with a grain of salt.

Southern California Commercial Real Estate
 

Southern California Real Estate: Southland Home Prices Rise

Southern California Real Estate:
Southland Home Prices Rise

Southern California Real Estate | Costa Real Estate Digest | Brion Costa

A single family home is offered for sale in the Southern California real estate market. (AP Photo/Damian Dovarganes)

Rise In Home Prices First Seen In Southern California Real Estate Market In 6 Years

Zillow has reported that the residential sector of the Southern California real estate market has seen some appreciation for the first time in 6 years. They also state they are expecting more appreciation in the near future … small, but appreciation none the less.

Here's a report from Tiffany Hsu of the Los Angeles Times:

Home prices rise in Los Angeles after 6 years of depreciation

Tiffany Hsu – "Los Angeles homes are headed for a price spike – albeit a small one – according to new data from real estate website Zillow. After six years of depreciation, values in the metropolitan area rose 0.2% this quarter, and are expected to increase 0.5% over the next 12 months. Zillow forecasts that nationwide prices will tick up 1.1%." … Los Angeles Times
http://www.latimes.com/business/money/la-fi-mo-home-prices-los-angeles-zillow-20120724,0,5231348.story

Has The Southern California Real Estate Market Bottomed Out?

This is the question everyone is asking these days. There is no doubt that the Southern California real estate market is seeing some positive signals recently, and we've been reporting on them in these pages. These reports are coming from a wide variety of sources, and cannot be ignored. However, can they be interpreted in a completely positive way, or is there a darker lining to the silver cloud?

We'll need to keep a sharp eye on things until they become clearer.

Southern California Real Estate.
 

California Real Estate: Number Of Homes Entering Foreclosure Drops

California Real Estate:
Number Of Homes Entering Foreclosure Drops

California Real Estate | Costa Real Estate Digest | Brion costa

5 Year Low In Foreclosure Entries Is Good News For California Real Estate Market

Data quick is reporting some good news for the California Real Estate market. the number of homes entering foreclosure has dropped precipitously to a 5 year low. The number fell 2.9% from the first quarter and 3.6% from last year.

Now, before we get too enthused about this it is wise to remember that this drop in foreclosure entries could have two meanings: 1) There are fewer owners in trouble; or 2) Distressed properties could simply be proccessing at a slower rate. There is debate on exactly which of these viewpoints is the one actually occurring in the California real estate market at present.

Number of California homes entering foreclosure is at five-year low

"By Alejandro Lazo, Los Angeles Times. July 24, 2012. – California's foreclosure crisis … The latest evidence of improvement came Monday when real estate firm DataQuick reported that the number of California homes entering the foreclosure process slipped to the lowest level since 2007." …Los Angeles Times
http://www.latimes.com/business/realestate/la-fi-foreclosures-20120724,0,6507755.story

Has The Foreclosure Wave In California Real Estate Bottomed Out?

This is the question everyone's asking these days and, of course, we have experts split just about evenly. Some say buying in this market is crazy and we should expect another downwards wave in values. Others are positive the California real estate market has hit bottom and is now on an upward trend.

Our experience has been that the California real estate market … and usually all real estate markets … resist extremes. The "glass 1/2 full" crowd and the "glass 1/2 empty" crowd are usually proven to be equally incorrect, and the truth always lies somewhere in the "Middle Way". With that in mind, we're cautiously optimistic … but we'll keep our options open.

Remember: picking the exact bottom or top of the California real estate market … or any market for that matter … is a dangerous endeavor. It's our belief that the type of market action we're seeing now could mean we're in an uptrend, but even in an uptrend there is going to be some downwards action. Buying now could very well be a good move. However, if you do so you should be equipped to withstand some possible further downwards movement in values in the short term. The market WILL rise again over the next few years, but in the short run there might still be a slightly lower level it must first fulfill.

California Real Estate.

Real Estate Values: Home Values Rise For First Time In 5 Years

Real Estate Values:
Home Values Rise For First Time
In 5 Years

Real Estate Values | Costa Real Estate Digest | Brion Costa

Photo: Justin Sullivan

Zillow Reports Real Estate Values Up As Home Values Rose 0.2% During 2nd Quarter

Although we need to keep a clear perspective when talking of real estate values these days, Zillow's report is good news today. They are reporting that home values nationwide have risen on the average over last year at this time.

Here's a report from Les Christie at CNNMoney: 

Home Values Rise For First Time In 5 Years

LES CHRISTIE – "It seems clear that the country has hit a bottom in home values," said Zillow's chief economist Stan Humphries. "The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own." … CNNMoney
http://money.cnn.com/2012/07/24/real_estate/home-values/index.htm

 

Real Estate Values: Home Values Rose
Despite Lackluster Jobs Market

This is a good indication. Real estate values can be hugely effected by the job market, and the fact that home values have risen IN SPITE of the lackluster jobs market and figures indicates that the real estate sector growth has some legs of its own.

Real Estate Values.
 

Commercial Real Estate: Small Shopping Centers Are Good Investments Right Now

Commercial Real Estate:
Small Shopping Centers Are Good Investments Right Now

Commercial Real Estate | Costa Real Estate Digest | Orange County

Town Center Plaza Was Recently Sold To An Investor
(Photo: OC Register)

>

Orange County Commercial Real Estate Broker Outlines Good Area Investments

With lending rates low for qualified buyers, and property values down because of the sluggish market, G. Joseph Lising, an Orange County broker with Marcus & Millichap sees great potential in commercial real estate as an investment.

In this interview from the Orange County Register he outlines which segments of the commercial real estate market are viable investments right now, and why.

Read the interview here:

Broker: Shopping centers a hot investment

Jon Lansner – "Commercial real estate is shaking off its recession-era doldrums and investors are beginning to notice. G. Joseph Lising, broker with Marcus & Millichap in Newport Beach, offer us some insight into how the move is shaping up for investments in retail sites." … Orange County Register
http://www.ocregister.com/articles/real-364904-estate-joseph.html

Orange county Commercial Real Estate As An Investment

It's obvious that commercial real estate in Southern California has seen the bottom of the market and is looking at better days ahead. Orange County is certainly no exception to that. It's a well-known fact that smart investors are buying right now if they can. If you're among that number, a look at commercial real estate in Orange County might be wise.

Commercial Real Estate.

Commercial Real Estate: Southland Office Space Market May Be Bouncing Back

Commercial Real Estate:
Southland Office Space Market May Be Bouncing Back

Commercial Real Estate | Costa Real Estate Digest | Brion Costa

Area Office Space Leasing May Have Bottomed Out Showing Good Signs For Commercial Real Estate

The figures don't lie and they are encouraging for the first time in years. Office space leasing figures have risen just a tad over the last few months. That's completely different than the last few years, and may be signaling bottoming action in the commercial real estate market.

Here's the low-down from Roger Vincent in the LA Times:

Southland office market may be starting to bounce back

ROGER VINCENT – "It's times like this when people who have to make leasing commitments say, 'I may not find this in the next cycle,' so they take advantage," said John Barganski, Brookfield's head of leasing in Southern California. "We have achieved the bottom of the market." …Los Angeles Times
http://www.latimes.com/business/la-fi-commre-overview-20120722,0,6976766.story

Commercial Real Estate Still Depends On The Job Market

Although the news here is good, it's still true that the commercial real estate market … including commercial office space leasing … really depends on the job market. We may be seeing some bottoming action here, but we're a long way from steady growth. Until the job market improves, that's something we're not likely to see.

Commercial Real Estate.
 

Commercial Real Estate: Culver City Is Not The Same Quiet Place It Used to Be

Commercial Real Estate:
Culver City Is Not The Same
Quiet Place It Used to Be

Commercial Real Estate | Costa Real Estate Digest | Culver City

Street scene on Culver Blvd. in front of UGO Italian Bar, in Historic Culver City, July 19, 2012. Culver City, a long-time working-class annex to Los Angeles, is emerging as an urban center with its own personality and rising rents paid by upscale restaurants and merchants.
(PHOTO: Ricardo DeAratanha/Los Angeles Times)

Commercial Real Estate In The Area Is Doing Well And Rail Connections Bode Well For The Future

There was a time not so long ago when Culver City was a rather boring little community where the commercial real estate was old fashioned and outdated. That's not the case anymore. This bedroom community has morphed into an urban center with its own personality.

In the 1960's when the Santa Monica Freeway became the mode of travel in the area, Culver City became rather isolated. Commercial real estate in the area suffered as the city was bypassed by commuters. With the recent opening of light rail connections in the area, the future bodes well for this newly energized enclave.

Here's an interesting article from Roger Vincent of the LA Times.

Culver City evolves from sleepy community to urban center

Roger Vincent – "The commercial real estate market changed direction around 2000 with the creation of daring, sometimes outlandish office buildings designed by Eric Owen Moss in the formerly industrial Hayden Tract, on the eastern edge of town." …Los Angeles Times
http://www.latimes.com/business/la-fi-0722-commre-culver-city-20120722,0,4385123.story

 

The Next Few Years Will Tell The Tale Regarding
Commercial Real Estate In The Area

 As the Expo Line is completed all the way to Santa Monica, Culver City has a uniques situation on its hands. If commercial real estate development proceeds well, the area could attract folks from both the east and west. If the opportunity is allowed to pass, Culver City could simply become "another parking lot along the line". 

Let's hope those involved in development in the area do this the "smart" way and commercial real estate develops in a way that encourages the unique character Culver City is already showing.

Commercial Real Estate.
 

Los Angeles Commercial Real Estate: Venture Capital Jumps In LA County

Los Angeles Commercial Real Estate:
Venture Capital Jumps In LA County

Los Angeles Commercial Real Estate | Costa Real Estate Digest

Venture Capital Investment Indicate Possibility Of Coming Growth In Los Angeles Commercial Real Estate Market

The outlook for the Los Angeles commercial real estate market benefits today from this report from the LA Times. The amount of venture capital that savvy investors place in any area is usually a pretty good indicator of the health of the commercial market there. Well, it seems that venture capital investment in LA County has jumped recently, and that bodes well for the future of the Los Angeles commercial real estate market.

Here's the report from Ronald D. White of the LA Times:

Venture capital jumps in LA County, sags nationwide

RONALD D. WHITE – "Los Angeles stole a bit of the Bay Area's usual thunder in venture capital funding, with increases in both the number of deals and the amount of money invested during the second quarter. Los Angeles County companies attracted 44 deals totaling $545 …" … Los Angeles Times
http://www.latimes.com/business/la-fi-venture-capital-20120720,0,7173353.story


Los Angeles Commercial Real Estate Market Showing Many Good Indicators Recently

The jump in venture capital invested in LA County bodes well for the Los Angeles commercial real estate market. In these pages recently we've seen several such signs. That's not to say that Los Angeles commercial real estate is booming yet … but things are not as bad as they were just last year. That's good news.

Los Angeles Commercial Real Estate.