Monday, April 19, 2010
Sunday, April 18, 2010
Wednesday, February 10, 2010
More Store Closings in 2010
Store closings could keep piling up in 2010. Find out about Movie Gallery in this article published by Retail Traffic Magazine. Click HERE.
Friday, January 29, 2010
CoStar: In a Surprise, Office Market Posts Unexpetedly Good Results
By Mark Hershmeyer
Whether a Bounce or Rebound, U.S. Markets See Positive Absorption in Fourth Quarter, Set
Stage for Potential Recovery
Even though the overall number of U.S. jobs continued to disappear through December of last year, the
U.S. office market unexpectedly posted positive net absorption for the quarter. The most likely explanation is that jobs in the office sector increased. According to federal government jobs data, office sector employment increased for the fourth consecutive month in December, increasing by 48,000 jobs. Even the financial sector posted its first increase in employment since July 2007 adding 4,000 jobs in December. Since the end of August, office-using employment is up 154,000 jobs. "This is simply the most important news in the office market in the last 18 months and that has set the potential for recovery in the office markets." said Andrew C. Florance, founder, director, president and CEO of CoStar Group Inc. in his surprisingly upbeat quarterly assessment of the U.S. office market this past week.
CoStar data shows a concurrent increase in total leasing activity last year. Gross leasing activity increased from about 60 million square feet of activity in the first quarter of 2009 to what is expected to be more than 90 million square feet in the fourth quarter.
The U.S. office markets posted about 6 million square feet of positive net absorption, Florance reported in CoStar's quarterly State of the U.S. Office Markets webinar. And the return to positive absorption came about two quarters earlier than expected due in part to the better than expected labor numbers, Florance added.
Florance stopped short of calling the results a rebound and referred to it as "a cessation of bad news" and told listeners not to expect a return to big gains in net absorption anytime too soon. In its 2010 Predictions presented this week, CoStar subsidiary PPR (Property and Portfolio Research), echoed that theme and warned that the market could still see negative net absorption.
"While the economy appears to be stabilizing, it will take a while for this to flow through to the office market," Josh Scoville, director of strategic research and editor of the report wrote. "Due to the lag between GDP growth and hiring, this property type has the longest lag between economic improvements and an increase in demand. PPR does not anticipate a resumption of job growth at the national level until the second half of 2010, and the recovery will be tepid at first. Although things should start looking up in the latter half, expect net negative absorption in 2010."
The modest fourth quarter bump in absorption helped the national vacancy to level at about 13.1%, Florance said. However, the total office space availability rate was still increasing and was approaching almost 18%. Florance said this additional supply of under-utilized space is going to mute any dramatic increase in positive absorption in the short-term.
Another downside CoStar reported in its analysis is that office rents will continue to fall even as demand might be stabilizing. This was a rough year for office landlords, PPR reported, as asking rents declined by nearly 10% on average. "While landlords in some markets (such as New York, San Francisco, and Orange County) have been quick to lower rents, most have been holding out on face rents as much as possible and relying more on concessions to get tenants in the door," PPR reported. "But this will not last forever, and as office owners come to terms with reality in 2010, asking rents will be slashed. As distressed assets are scooped up, new owners with lower debt obligations will be able to undercut the competition, pulling down market rents."
While nationally office markets showed positive net absorption, regionally, there were big differences. The Northeast states lead the nation with about 4.8 million square feet of positive net absorption. New York City posted 1.6 million square feet; Philadelphia 900,000 square feet; Northern New Jersey, 600,000 square feet; Long Island, a half of million.
Across the country on the West Coast, though, Orange County California posted negative net absorption of 1 million square feet; and San Francisco, 900,000 square feet. Washington, Oregon and California combined had negative net absorption of about 2.1 million square feet.
Atlanta with negative net absorption of 500,000 square feet brought down the Southeast's numbers. The Southeast states posted about 11,000 square feet of negative net absorption in the fourth quarter; that compares to positive net absorption of more than 5 million square feet in the third quarter.
Minneapolis with 400,000 square feet of positive net absorption carried the Upper Midwest to a net gain of 436,000 square feet; and the Mountain West states showed 778,000 square feet of net absorption, led by Denver with 600,000 square feet of positive net absorption.
Washington, DC, with 900,000 square feet of positive net absorption carried the Mid-Atlantic region and boosted positive net absorption in that region to 1.35 million square feet.
The Midwest states had a net loss in occupancy of 527,000 square feet. Detroit alone posted a negative 1.6 million square feet of net absorption.
Whether a Bounce or Rebound, U.S. Markets See Positive Absorption in Fourth Quarter, Set
Stage for Potential Recovery
Even though the overall number of U.S. jobs continued to disappear through December of last year, the
U.S. office market unexpectedly posted positive net absorption for the quarter. The most likely explanation is that jobs in the office sector increased. According to federal government jobs data, office sector employment increased for the fourth consecutive month in December, increasing by 48,000 jobs. Even the financial sector posted its first increase in employment since July 2007 adding 4,000 jobs in December. Since the end of August, office-using employment is up 154,000 jobs. "This is simply the most important news in the office market in the last 18 months and that has set the potential for recovery in the office markets." said Andrew C. Florance, founder, director, president and CEO of CoStar Group Inc. in his surprisingly upbeat quarterly assessment of the U.S. office market this past week.
CoStar data shows a concurrent increase in total leasing activity last year. Gross leasing activity increased from about 60 million square feet of activity in the first quarter of 2009 to what is expected to be more than 90 million square feet in the fourth quarter.
The U.S. office markets posted about 6 million square feet of positive net absorption, Florance reported in CoStar's quarterly State of the U.S. Office Markets webinar. And the return to positive absorption came about two quarters earlier than expected due in part to the better than expected labor numbers, Florance added.
Florance stopped short of calling the results a rebound and referred to it as "a cessation of bad news" and told listeners not to expect a return to big gains in net absorption anytime too soon. In its 2010 Predictions presented this week, CoStar subsidiary PPR (Property and Portfolio Research), echoed that theme and warned that the market could still see negative net absorption.
"While the economy appears to be stabilizing, it will take a while for this to flow through to the office market," Josh Scoville, director of strategic research and editor of the report wrote. "Due to the lag between GDP growth and hiring, this property type has the longest lag between economic improvements and an increase in demand. PPR does not anticipate a resumption of job growth at the national level until the second half of 2010, and the recovery will be tepid at first. Although things should start looking up in the latter half, expect net negative absorption in 2010."
The modest fourth quarter bump in absorption helped the national vacancy to level at about 13.1%, Florance said. However, the total office space availability rate was still increasing and was approaching almost 18%. Florance said this additional supply of under-utilized space is going to mute any dramatic increase in positive absorption in the short-term.
Another downside CoStar reported in its analysis is that office rents will continue to fall even as demand might be stabilizing. This was a rough year for office landlords, PPR reported, as asking rents declined by nearly 10% on average. "While landlords in some markets (such as New York, San Francisco, and Orange County) have been quick to lower rents, most have been holding out on face rents as much as possible and relying more on concessions to get tenants in the door," PPR reported. "But this will not last forever, and as office owners come to terms with reality in 2010, asking rents will be slashed. As distressed assets are scooped up, new owners with lower debt obligations will be able to undercut the competition, pulling down market rents."
While nationally office markets showed positive net absorption, regionally, there were big differences. The Northeast states lead the nation with about 4.8 million square feet of positive net absorption. New York City posted 1.6 million square feet; Philadelphia 900,000 square feet; Northern New Jersey, 600,000 square feet; Long Island, a half of million.
Across the country on the West Coast, though, Orange County California posted negative net absorption of 1 million square feet; and San Francisco, 900,000 square feet. Washington, Oregon and California combined had negative net absorption of about 2.1 million square feet.
Atlanta with negative net absorption of 500,000 square feet brought down the Southeast's numbers. The Southeast states posted about 11,000 square feet of negative net absorption in the fourth quarter; that compares to positive net absorption of more than 5 million square feet in the third quarter.
Minneapolis with 400,000 square feet of positive net absorption carried the Upper Midwest to a net gain of 436,000 square feet; and the Mountain West states showed 778,000 square feet of net absorption, led by Denver with 600,000 square feet of positive net absorption.
Washington, DC, with 900,000 square feet of positive net absorption carried the Mid-Atlantic region and boosted positive net absorption in that region to 1.35 million square feet.
The Midwest states had a net loss in occupancy of 527,000 square feet. Detroit alone posted a negative 1.6 million square feet of net absorption.
Thursday, January 21, 2010
Smart Focus
If you are like many of us, you've made New Year's goals to get organized and do more investing. For us in the real estate business of selling and/or investing, that means we need to start looking at properties and putting deals together. My father had a good quote when it comes to investing and it goes something like this, "It's not how you get into the game, its when you get into the game." This means that it's not necessarily the size of the deal that is important, it is that time is a precious commodity and is important to take advantage of opportunities as soon as possible.
Whether it is putting more money away for retirement, buying your first rental property or moving your company from a lease situation to an ownership situation, you need to have focus and discipline. Here are a few ways to get organized and maintain your focus over the upcoming year:
Specific: A specific goal has a much greater chance of being reached than a goal that is general.
Measurable: Create specific deadlines and targets to keep track of progress.
Attainable: Set goals that are important to you and develop ways to reach them.
Realistic: Set goals you are willing and able to work towards.
Timely: Create a time-frame within which you wish to reach your goal.
After you have set your goals for the year, create a plan and don't deviate from it. Allowing yourself to get sidetraced or leting checkpoints pass by will prevent you from keeping your resolution. Stick with your goals and your plan of action. Take a moment to think about where you want to be in a year.
"Resolve to perform what you ought; perform without fail what you resolve." -Benjamin Franklin
Whether it is putting more money away for retirement, buying your first rental property or moving your company from a lease situation to an ownership situation, you need to have focus and discipline. Here are a few ways to get organized and maintain your focus over the upcoming year:
Specific: A specific goal has a much greater chance of being reached than a goal that is general.
Measurable: Create specific deadlines and targets to keep track of progress.
Attainable: Set goals that are important to you and develop ways to reach them.
Realistic: Set goals you are willing and able to work towards.
Timely: Create a time-frame within which you wish to reach your goal.
After you have set your goals for the year, create a plan and don't deviate from it. Allowing yourself to get sidetraced or leting checkpoints pass by will prevent you from keeping your resolution. Stick with your goals and your plan of action. Take a moment to think about where you want to be in a year.
"Resolve to perform what you ought; perform without fail what you resolve." -Benjamin Franklin
Thursday, December 31, 2009
Mr. Landlord, What keeps you up at night?
Is it the leases on your building expiring? Is it wondering if your rates are in line with the current market or are you leaving money on the table? How about any governmental actions in the works that could redirect traffic away from your building, make it hard for tenants or customers to get to work? How about the current debt levels that are putting you under water? What expenses could you be writing off that are costing you thousands come April 1? What if you agreed to some lease terms that turned out not to be so favorable and the lease doesn't expire for another couple years?
If any of these concern you, then you are not alone. These questions along with hundreds of other questions are everyday concerns of the commercial property owner and there is a place to start answering those questions.
If you haven't befriended a commercial real estate broker, it should be on your New Year's goal sheet. There are several industries that are effected by the brokers recommendation for the myriad of services that need to be performed to maintain commercial real estate. Industries that benefit from good relationships with brokers are: general contractors, HVAC repairs, handywork, plumbers, alarm companies, lighting and electrical contractors, drywaller and plaster contractors, elevator repairmen, boiler engineers, landscaping companies, property managers, leasing agents, insurance agents, financial consultants, accountants, closing companies, title companies, abstract compancies, etc. to name a few.
The owners of the companies in each of the above named industries know that the broker has the buyer/seller/tenant or landlord's ear when it comes to property advice. The good CRE Broker knows that his or her role should include relationships with each of these industries and be quick with a recommendation that can help the buyer/seller/tenant or landlord. In almost every situation, the expertise and services performed from a good commercial real estate broker will help save thousands.
If you need ideas on how to improve your property situation, feel free to contact Neil Dailey at McGraw Commercial Properties at 918-853-7337.
If any of these concern you, then you are not alone. These questions along with hundreds of other questions are everyday concerns of the commercial property owner and there is a place to start answering those questions.
If you haven't befriended a commercial real estate broker, it should be on your New Year's goal sheet. There are several industries that are effected by the brokers recommendation for the myriad of services that need to be performed to maintain commercial real estate. Industries that benefit from good relationships with brokers are: general contractors, HVAC repairs, handywork, plumbers, alarm companies, lighting and electrical contractors, drywaller and plaster contractors, elevator repairmen, boiler engineers, landscaping companies, property managers, leasing agents, insurance agents, financial consultants, accountants, closing companies, title companies, abstract compancies, etc. to name a few.
The owners of the companies in each of the above named industries know that the broker has the buyer/seller/tenant or landlord's ear when it comes to property advice. The good CRE Broker knows that his or her role should include relationships with each of these industries and be quick with a recommendation that can help the buyer/seller/tenant or landlord. In almost every situation, the expertise and services performed from a good commercial real estate broker will help save thousands.
If you need ideas on how to improve your property situation, feel free to contact Neil Dailey at McGraw Commercial Properties at 918-853-7337.
Wednesday, December 30, 2009
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