Expect retail rents to begin rising toward the end of 2012 due to absorption of available store space in shopping centers and malls, and the dearth of new supply.  Secondary markets and smaller shopping centers typically occupied by non-credit tenants also show signs of improved market fundamentals. According to Co-Star, while asking rents continued to decline in the fourth quarter of 2011, the pace of decline slowed to 1% or less in most markets, as concessions also ... Read more

America’s Finest City and County enjoy a slightly better economy than most other places in the United States. San Diego’s economy remains fairly stable, having gained approximately 15,000-20,000 jobs in 2011. The population continues to grow by more than 30,000 people per year, adding about 10,000 new households annually. Thus, San Diego has a growing base of consumers and real estate occupants. San Diego did not overbuild in the last ten years like some other ... Read more

Apartment buildings continue to be the commercial real estate investment darlings in 2011, causing the multi-family sales volume to leap nearly 80% in Q-2, over the same period last year. The average per-unit price reached $88,500 -- the highest since the third quarter of 2008, according to CoStar. Strong renter demand generated by former homeowners and a growing number of young households continues to push down vacancy rates and drive up rents. As cap rates ... Read more

Consider these 5 factors in deciding whether to pay off a mortgage early: Do you have at least 18-24 months of living expenses in liquid assets?  In the event you lose your job, incur a substantial and unforeseen expense, or become temporarily disabled, you will need liquidity; and given the current economy and jobs market, it would be wise to be conservative. Do you owe more on your mortgage than your property is worth? If yes, then consider the ... Read more

The Milky Way Galaxy, the home galaxy of Earth and its solar system with a single star, contains 100-400 billion stars and is estimated to have at least 50 billion planets, 500 million of which could be located in the habitable zone of their parent star. If that doesn’t blow your mind, the Milky Way is only one of about 200 billion galaxies in the observable universe.  Kinda puts it all in perspective, eh? Read more

Congress recently overhauled the Americans with Disabilities Act for the first time in two decades, and commercial real estate owners and tenants would be prudent to verify compliance with the appropriate 1991 or 2010 Standards to avoid costly litigation and sanctions. The ADA establishes requirements for businesses that provide goods or services to the public (“public accommodations”), which include stores, restaurants, bars, service establishments, theaters, hotels, recreational facilities, private museums and schools, doctors' and dentists' ... Read more

In the first study to document the full size and scope of the commercial real estate market, using direct measurement of commercial property, the CoStar Group recently valued all commercial real estate in the U.S. at $11 trillion ( 1,000,000,000,000,000,000,  or one million million million or 10 to the 18th power).  At 11 trillion dollars, U.S. commercial real estate approaches the size of the 16 trillion dollar U.S. stock market. In addition to benchmarking commercial real ... Read more

The eagerly anticipated and long-awaited sequel for the commercial mortgage backed securities (CMBS) lending saga is a sure blockbuster in a commercial real estate industry starved for debt capital.  As the banks and Wall Street prepare for another romance, investors should expect fewer thrills.  This plot will have less to do with the supply of capital and more to do with the supply of property that can conform to more conservative underwriting criteria.  In ... Read more

Triple Net leased retail properties such as restaurants, drug stores, dollar stores, auto part stores and banks, remain one of the healthier sectors of commercial real estate due to continued strong demand by private investors seeking 1031 exchanges, and by various funds.  Investment sales volumes increased in 2010 over 2009, compressing cap rates 50-100 basis points, particularly for Class A product.  Causes of this boost in demand included the impending expiration of the Bush-era ... Read more

Effective January 1, 2011, California’s newest anti-deficiency statute applies to short sales. Newly enacted Code of Civil Procedure section 580e prohibits a deficiency judgment where: (1) the obligation is a note secured by a first deed of trust; (2) the property is a dwelling of not more than four units; (3) the short sale is made with the written consent of the note holder; and (4) the borrower/trustor is not a corporation or a political subdivision ... Read more