New Site Launches in San Diego

A new site targeting businesses in the San Diego office space market launched on Monday. Sandiegoofficespace.org covers 14 submarkets and includes detailed market information, executive suite info and featured properties. The site was produced by Synergy Real Estate Group.

 

News Article on Sacramento Office Space

From Sacramentopress.com

New article talks about current rates for office space and some of the savings businesses have seen by renegotiating their leases.

 

Commercial Real Estate Market Might be Close to Bottoming Out

Source: http://www.bizjournals.com/boston/stories/2009/08/03/daily12.html

Commercial real estate prices fell 18 percent year over year which set the record for the biggest decline in a quarter since MIT began publishing their index to track prices. This puts the total drop at 39 percent since the peak in mid-2007 (as a point of comparison, housing prices are off 30 percent compared to their peak). However things may be close to bottoming out as transaction volume increased in spite of the decline which could indicate some stabilizing in the market.

 

Inland Empire Warehouse Space Site now Live

Businesses looking for Inland Empire warehouse space now have a site which features detailed market information and reports.

The site covers 18 submarkets in the area of eastern California known as the Inland Empire. The term “Inland Empire” was used to describe the location and the large agricultural areas. This is not to be confused with the David Lynch film of the same name and takes place in Poland.

Cities covered include:

- Temecula

- Riverside

- Chino

- Industry

and 14 others.

Check it out: Inlandempirewarehousespace.net

 

CMBS Delinquency Quadruples in Just Over a Year

CMBS delinquencies have now quadrupled in just over a year to nearly 2.2%. At this rate, delinqueincies could approach 5 to 6 percent later this year. It is obvious that commercial real estate is in for a tough time but unlike homeowners who are a complete loss, many of these companies are viable but just can’t get refinancing.

Full post at BusinessInsider

 

Fourth Consecutive Quarter of Falling Commercial Values: MIT Report

Commercial real estate prices dropped another 6 percent in the first quarter which marks the fourth consecutive quarter of declines. Overall values are down 26 percent since mid-2007 and sales have dropped to levels seen during recessions in the early 1980s and 1990s. There is some silver lining as analysts believe that the first quarter of 2009 may be signaling a bottom in the market as sales volume is down to “almost nothing.”

Full Article: Here

 

Sacramento Market Rates Begin to Fall

Just read an article on Sacramentopress.com about market rates in Sacramento. The city, which has experienced the pain of the recession first-hand has price declines of up to 13 percent in some sub-markets.

Also now that Obama can fire anyone … how about the entire 2008 Opening Day lineup of the Seattle Mariners? $117 million payroll for 101 losses is a track record worse than that of AIG.

 

TALF Expansion Helps Commercial Real Estate

The United States Treasury has announced that the Term Asset-Backed Loan Facility (TALF) will begin accepting commercial mortgage-backed securities (CMBS) as eligible collateral. This move should encourage investment in commercial real estate by adding liquidity to the market.

Full story: http://www.msnbc.msn.com/id/29160835/

 

Commercial Developers Seek Bailout

As a follow up to my previous post …

Last month about a dozen real estate developers asked the federal government for assistance from a new $200 billion program called the Term Asset-Backed Securities Loan Facility. 

Developers have asked for assistance because current financing is coming due and getting new financing has been difficult given current market conditions. 

To give you an idea of the difference between home mortgages and commercial mortgages … home mortgages are often repaid on a 30 year schedule whereas commercial loan are repaid between 5 to 10 years often with a large balloon payment at the end of the term. 

Last year it was easy for companies to get refinancing through the commercial mortgage backed securities market (CMBS) but now many don’t know how they can get financing … that is creating a scary situation considering that up to $400 billion in commercial loans will mature in 2009. 

The fed has indicated it is willing to add commercial real estate to the program but they have not made any firm commitments.

 

$100 billion in distressed commercial property

A new report by New York based Real Capital Analytics has found $100 billion in distressed commercial property in the United States. The commercial real estate market is already expecting a bleak 2009 but the latest report shows that the coming year may be worse than anticipated.

The new report of distressed and potentially distressed property has New York and Los Angeles as the top markets at risk. New York has $12 billion while Los Angeles has just over $11 billion.  They are followed by Las Vegas, South Florida and the DC metro area.

In addition Fitch Inc. has recently warned that commercial loan delinquencies will double in 2009 which doesn’t bode well for the nearly 4,000 troubled commercial real estate deals. Stay tuned.