Southern California Industrial Real Estate Blog

INCREASE IN IMPORTS AND EXPORTS BRINGS NEW INDUSTRIAL REAL ESTATE DEVELOPMENT

By Jodi Summers

Cargo volume at our neighboring ports of Los Angeles and Long Beach posted a 28% annual increase in the first quarter, inspiring developers to build more warehouse space in Southern California.

Developers Highland Fairview recently broke ground on an industrial hub about 72 miles east of Los Angeles. The initial phase will encompass 2.6 million square feet, most of which has been leased to Skechers USA Inc., which will be is consolidating operations from five facilities.

The project is expected to create 1,100 construction jobs and, once completed, house more than 3,000 employees, observed Iddo Benzeevi, Highland’s chief executive. “You now see a trend in the marketplace where big companies are consolidating their logistics operations,” Benzeevi said. “The diversity of industries we have here is what continues to drive the demand for this kind of space.”

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http://www.knoxnews.com/news/2010/apr/09/industrial-property-market-recovery-seen-2011/

http://www.laalmanac.com/images/Port%20of%20Long%20Beach.JPG

http://graphics8.nytimes.com/images/2007/07/31/automobiles/533-port.jpg

http://www.socalindustrialrealestateblog.com/wp-content/uploads/2008/01/PortofLAlogo.jpg

https://www.cushwake.com/cwglobal/docviewer/AmericasEconomicPulseMAY2010.pdf?id=c33600033p&repositoryKey=CoreRepository&itemDesc=document&cid=c27400005p&crep=Core&cdesc=binaryPubContent&Country=GLOBAL&Language=EN&just_logged_in=1

http://www.skechers.com/

THE SUN IN SHINING BRIGHTLY ON CALIFORNIA SOLAR

By Jodi Summers

Prices on solar panels have dropped considerably in the past 18 months – and this has caused the California solar installation market to boom. According to research by Mark Bachman of Auriga USA, in the first quarter of 2010 there have been applications for the installation of almost as many megawatts of residential, commercial, and government solar power as the entire year in 2009.

2010 applications for the state’s solar subsidy program, the California Solar Initiative, totaled 252 megawatts in the first quarter. At this point last year, only 68 megawatts had been applied for, and the by the year’s end the number sat at 267 megawatts.

A big boom in manufacturing capacity in Asia, the economic slowdown, cheaper raw materials and less generous subsidy programs in Europe have combined to cause the drop in prices. Companies such as Suntech Power (NYSE:STP), Yingli Green Energy (NYSE:YGE), Trina Solar (NYSE:TSL), and Kyocera Solar (NYSE:KYO) are dominating the market.

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http://www.energyboom.com/solar/driven-asian-manufacturers-solar-fire-california?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+energyboom+%28EnergyBoom+Daily+Briefing%29

http://blogs.forbes.com/energysource/2010/05/06/solar-on-fire-in-california/

http://www.rechargenews.com/multimedia/archive/00027/Suntech_solar_panels_27731b.jpg

http://www.maxsolarsystem.com/images-1/suntech-solar-panel.jpg

LOS ANGELES IS A BETTER PLACE THAN PARIS TO BUY INVESTMENT REAL ESTATE

LOS ANGELES IS A BETTER PLACE THAN PARIS TO BUY INVESTMENT REAL ESTATE

by Jodi Summers

Sacre bleu! Los Angeles is a better real estate…according to Forbes.com. In a recent top 10 article called World’s Best Places For Real Estate Buys, Ten cities investors will target in 2009 our beloved Los Angeles was #7 – after San Francisco and before Paris.

Washington D.C. topped the list this year, thanks to the proposed $1 trillion swell of government spending. As Forbes notes, “At present, D.C. has the lowest unemployment rate in the country–4.1%, compared to the 7.2% national average. With President Obama’s stimulus package recommending $1 trillion in new spending, it’s unlikely government jobs–and those they support–will be leaving the District anytime soon.”

Not many investors were looking at L.A. in 2008, as we were hammered by the subprime crisis and a massive volume of foreclosures. As we all know, our perceived property poverty curtailed spending and our whole local economy limped along. We were 19^th on the 2008 Forbes World’s Best Places For Real Estate Buys, so this 12-point rise is a huge boost for real estate morale.

“It’s all about perception,” notes a local investor. “If people perceive Los Angeles is a good value, then it becomes a good value, and prices grow strong.”

Good news for local property owners - sales surged 102%in the residential sector, according to Radar Logic, a derivatives firm, and Forbes notes that this wave “has that market hinting at a bottom.”

The 2009 Top 10 Best Places For Real Estate Buys

1. Washington, D.C.

2. London, U.K.

3. New York, N.Y.

4. Tokyo, Japan

5. Shanghai, China

6. San Francisco, Calif.

7. Los Angeles, Calif.

8. Paris, France

9. Houston, Texas

10. Singapore

Please note Forbes’ rankings come from the Association of Foreign Investors in Real Estate, a research association that tracks where member investors are finding the best opportunities around the world.

Get the whole story @ http.//www.forbes.com/2009/01/21/investment-obama-realestate-forbeslife-cx_mw_0121realestate.html?partner=alerts

http://mightyminnow.files.wordpress.com/2007/11/washington-dc.jpg

http://www.pointernet.pds.hu/touristinfo/free_wallpapers_2/France_Paris_Night.jpeg

4 GREEN BUILDING TRENDS 4U

4 GREEN BUILDING TRENDS 4U

By Jodi Summers

Green building concepts are being embraced with as much wild abandon as kids grasping for the coolest new video game. It started pretty basic – green construction, then evolved into green renovation, and now it’s branching out in all directions. Here are 4 green building trends to watch and invest….

1 - Modular Green Homes – One of the most successful investors in history, Warren Buffett, recently expanded one of his business subsidiaries, Clayton Homes, to produces a line of green modular homes. These 750-square-foot eco homes, dubbed “i-houses,” can be purchased online for less than $75,000. It’s a good bet that if Buffet is invested in it, the area will grow. Our hero is second richest man in the United States with a net worth of $40 billion.

The i-houses are constructed as modules in a factory and then assembled in the field. I-houses are marketed as “affordable luxury in a green, energy-efficient package.”

Beyond Buffett, there are others, such as Zeta Communities and Blu Homes in the green prefabricated market. Modular home construction will be a wise choice for builders going forward because it may allow developers reduce risk, allowing the development of large sites to take place as sales come in rather than building a planned community in larger phases before the units are sold out.

2 – Energy Retrofits – California state measure AB 1103, which requires the tracking of the energy use of all nonresidential buildings for disclosure to prospective buyers and tenants, is a fine example of how critical energy retrofits will be in the future. Much of the country’s real estate is old and wastes energy…eventually these properties will need to be upgraded or replaced. Not to mention, this is a cornerstone of President Obama’s post recession job creation movement.

Energy Star, the government, and local utilities have been offering rebates for property owners on measures like energy audits, insulation and duct sealing. SBI Energy predicts that the U.S. home energy retrofit market will grow about 15 percent per year to $35 billion by 2013, up from $20.7 billion in 2007.

David Leathers, senior vice president of energy services for mechanical contractor Limbach, confides that U.S. commercial building in the U.S. five years or older can likely benefit from a retrofit with payback for most measures taken in less than five years.

3 - Smart Building Materials - Energy-efficient building materials are the frame of green building. Serious Materials recently raised a $60 million third round of venture for the manufacture of energy-saving windows and environmentally friendly substitutes for sheetrock. More good investments - high-efficiency insulation system companies, such as walls with micro-encapsulated phase change materials to stabilize the indoor temperatures in buildings. More…Electrochromic technologies can darken or lighten the tint of a window when in contact with an electrical current, thus managing the amount of sunlight that passes through…Ventilated double-skin facades (already being used in Europe), use inner and outer glass walls with a thin cavity to provide insulation in between for the exterior shell of a building.

4 - More Energy Efficient Energy Codes - The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE ) and the International Energy Conservation Code (IECC) are both developing the latest round of “model codes”— ASHRAE 90.1 and IECC — will likely require a 30 percent increase in energy efficiency.

Congress may soon mandate that all states raise their standards to the newest codes. The American Clean Energy and Security Act passed by the House this year includes a provision that would effectively create a baseline national building energy code by mandating the adoption of a standard set by the Department of Energy, who may very well call on the standards set forth by ASHRAE or IECC.

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http://earth2tech.com/2009/12/23/4-green-building-trends-to-watch-in-2010/

http://www.motherearthnews.com/Green-Homes/Green-Modular-Homes.aspx

http://en.wikipedia.org/wiki/Warren_Buffet

http://www.socalgreenrealestateblog.com/?p=841

http://www.ashrae.org/

http://www.icis.com/blogs/green-chemicals/2009/01/green-building-is-still-recess.html

http://www.newenglandmetalroof.com/construction_directory/green-building.gif

http://www.charlesandhudson.com/archives/eco-friendly-building-materials.jpg

15 NOTEWORTHY CLEAN ENERGY STOCKS

15 NOTEWORTHY CLEAN ENERGY STOCKS

Edited by Jodi Summers

Green Stocks Investing has researched publicly-listed renewable energy stocks including solar power companies, wind energy stocks, geothermal power producers, wave energy, tidal power, green mutual funds, emerging clean energy technology companies, and come up with a list of Top Alternative Energy and Renewable Power stock picks for 2010:

1. ITRI - Itron, Inc. (Itron), provides products and services to utilities for energy and water markets globally, and is a provider of metering, data collection and software.

http://www.itron.com/

2. AMSC - American Superconductor Corporation (AMSC) is an energy technology

solutions company, offering products and services based on programmable power electronic converters and high temperature superconductor (HTS) wires. It serves are the wind energy market and the power transmission and distribution or power grid market. http://www.amsc.com/

3. CSIQ - Canadian Solar Inc. (CSI) designs, develops, manufactures and sells solar cell and module products in China that convert sunlight into electricity. CSIQ mplements solar power development projects, primarily in conjunction with government organizations. http://www.canadian-solar.com/

4. CLNE - Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. CLNE designs, builds, finances and operates fueling stations, and supplies customers with compressed natural gas (CNG) and liquefied natural gas (LNG), and also helps them acquire and finance natural gas vehicles, and access government rebates and incentives. http://www.cleanenergyfuels.com/

5. LON-CWP - Clipper Windpower PLC (Clipper) is engaged in the design, engineering and manufacturing of advanced wind turbines and developing wind energy projects, including engineering, construction, and plant operation. It manufactures the 2.5 megawatts Liberty wind turbine and actively develops wind power generating projects in the Americas and Europe. http://www.clipperwind.com/

6. BOM: 532667 - Suzlon Energy Limited (SEL) is an India-based wind power

company engaged in the manufacture of wind turbine generators (WTGs) of various capacities and its components. http://www.suzlon.com/

7. CVE:WND - Western Wind Energy Corp. (Western Wind) owns two wind energy

electrical generation facilities and is developing wind energy projects in California and Arizona. WND currently owns over 500 wind turbines with 34.5 MW of rated capacity and a further 131MW of expansion power purchase agreements in California and Arizona. http://www.westernwindenergy.com/

8. YGE - Yingli Green Energy Holding Company Limited (Yingli Green Energy) is a vertically integrated photovoltaic (PV) product manufacturer in China. The Company designs, manufactures and sells PV modules and designs, assembles, sells and install PV systems in worldwide markets such as Spain, Germany, the United States and China. http://www.yinglisolar.com

9. TSL - Trina Solar Limited is an integrated solar-power products manufacturer based in China. The Company’s market reach includes Germany, Spain and Italy. http://www.trinasolar.com/

10. ORA - Ormat Technologies, Inc. (Ormat) is engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal recovered energy-based power plants, usually using equipment that it designs and manufactures. http://www.ormat.com/

11. APWR - A-Power Energy Generation Systems, Ltd. (A-Power) is a renewable energy company in China, engaged in providing onsite distributed power generation systems and micro power grids for industrial companies to recapture previously wasted heat and gas from their manufacturing processes to generate electricity.

http://www.apowerenergy.com/

12. AMAT - Applied Materials, Inc. (Applied) provides Nanomanufacturing Technology solutions for the global semiconductor, flat panel display, solar and related industries, with a portfolio of equipment, service and software products. http://www.appliedmaterials.com/

13. JASO - JA Solar Holdings Co., Ltd. (JA Solar) is engaged in the development, production and marketing of photovoltaic (PV) solar cells, which convert sunlight into electricity in China. http://www.jasolar.com/

14. AOS - A. O. Smith Corporation is a manufacturer of water heating equipment and electric motors, serving a diverse mix of residential, commercial and industrial end markets principally in the United States. http://www.aosmith.com

15. OTC: SHCAY (Sharp Corp ADR) - Sharp Corporation is a Japan-based company

engaged in the manufacture and sale of electronic telecommunication devices, electronic machines and components. The Sharp Solar division is a world-leading alternative energy manufacturer. http://sharp-world.com/

http://agreenrealtor.blogspot.com/2010/01/15-clean-energy-technology-groth-stocks.html

Sustainable Industries’ Top 10 Green Building Products of 2009

Sustainable Industries’ Top 10 Green Building Products of 2009

Edited by Jodi Summers

Not to be outdone by other trends, Sustainable Industries magazine
has made their choices for the 2009 Top 10 Green Building Products.
These industry-leading green building products winners were
selected by a panel of expert judges and the Sustainable
Industries editorial team based on their environmental
performance, scalability/market impact, innovation,design
aesthetic, value and compatibility with the U.S. Green Building 
Council’s Leadership in Energy and Environmental Design (LEED)
rating system. 

The 2009 Top 10 Green Building Product winners are:

Acadia Combined Heating and Cooling System

Made by Hallowell International

(www.gotohallowell.com)

The Acadia is not just another heating and cooling system. It maintains 200 percent efficiency even when outdoor temperatures drop well below zero..should global climate change ever affect us that severely. Acadia users can save up to 70 percent of their home heating energy costs.

ec-H20

Made by Tennant Co.

(www.tennantco.com)

Requiring no chemicals, ec-H2O uses tap water to clean most any surface of most any substance. Each machine reduces water usage by 70 to 80 percent, and the potential of 245 million gallons of water each year if it were installed in all new floor-cleaning machines.

InSpire Wall

Made by ATAS International

(www.atas.com)

This simple technology uses the power of the sun to heat outdoor air before sending it indoors, thereby slashing energy use while boosting indoor air quality. Depending on what kind of heating fuel is being replaced, this product can reduce heating costs by up to $5 for each square foot of InSpire Wall installed.

kama EEBS Structural Systems

Made by kama Energy Efficient Building Systems Inc.

(www.kama-eebs.com)

kama EEBS Structural Systems integrate light gauge metal stud framing system with expanded polystyrene insulation in a proprietary design that eliminates thermal bridging and helps to create a tight, energy-efficient building envelope.

PlybooPure Bamboo Plywood

Made by Smith & Fong Co.

(www.plyboo.com)

Because it’s technically a grass, bamboo had not previously been eligible for FSC certification. But in January 2008, after two years of lobbying, Smith & Fong achieved this first that propelled it to recognition on this year’s Top 10 list.

RainTube

Made by GLI Systems Inc.

(www.raintube.com)

This product received more Top 10 nominations than any other product this year. RainTube is a rain gutter filter made of 100 percent post-consumer high-density polyethylene – old milk jugs, in other words. This product is also Cradle to Cradle-certified, meaning that GLI Systems Inc had to develop a Post-Use Recovery Plan that goes out with every product.

Separett Villa

Made by Separett

(www.ecovita.net/villa)

This urine-diverting composting toilet – which is 100 percent PVC fee –uses no water and keeps solids separate from liquids, reducing odor and making it possible to reuse waste and urine for composting and fertilizing. The Separett Villa can be deployed where no plumbing exists, allowing for a greater reach of the technology.

Serious Windows

Made by Serious Materials

(www.seriouswindows.com)

Serious Windows are so efficient they have the potential to allow for the elimination of a building’s heating system, allowing waste heat from building appliances to serve as the main heat source in some applications. The windows have a full-frame R value of at least five and up to 11, which can cut a building’s energy bills by up to 50 percent per month.

Solatube Daylighting Systems

Made by Solatube International

(www.solatube.com)

This patented technology catches direct sunlight and redirects it down an adjustable-length tube, bringing daylight to parts of buildings that would not otherwise have access to natural light. The Vista, Calif.-based company recently launched a product specifically designed for commercial applications, making it ideal for large-roofed warehouses and manufacturing facilities, as well as retail stores and schools – allplaces that have been shown to benefit from increased daylight, as daylight is linked to higher worker productivity, decreased absenteeism and better retail sales.

Your Old Light Fixture

Made by Eleek

(www.eleekinc.com)

Eleek is the only business to make the Top 10 Green Building Products list all four years. Though not a product, Eleek’s lighting restoration service speaks to the important concept of the re-use of existing goods. When Eleek restores a light fixture, every piece of a fixture is taken apart, repaired and restored to its original splendor. Its wiring is updated to comply with modern codes and standards and a new lamp base is installed so it works with energy-efficient lamps such as CFLs and LEDs.

Original article @ http://www.sustainableindustries.com/greenbuilding/49012336.html

BIG WAREHOUSES ARE FARING BETTER THAN SMALLER UNITS

BIG WAREHOUSES ARE FARING BETTER THAN SMALLER UNITS

By Jodi Summers

A new study from Torto Wheaton Research has discovered that larger
US warehouses are currently outperforming smaller assets. Research
shows that warehouse buildings of less than 250,000 square feet
make up a greater percentage of the national warehouse stock, but
warehouses of 400,000 square feet and up are faring better in terms
of both demand and supply fundamentals. 

“The difference in performance of smaller versus larger warehouse
buildings could be due to the mere fact that larger buildings take
longer to build and are harder to abandon once in the start phase,
or that many are owner-occupied, single-tenant,” observes TWR
senior economist Laura Stone Mortimer. 

Data from TWR/Dodge shows new industrial space construction will
hit historically low levels this year and next…roughly equivalent
to the slowdown of the early ’90s. The previous minimum for
industrial development occurred in ‘93, when stock grew by just
0.7%. 

The study shows the number of deferred warehouse projects has
increased nationwide over the past two years. In ‘07, there were
a total of 358 deferred warehouse projects. The number jumped to
nearly 700 in ‘08, and this year there were more than 300
projects deferred in Q1 alone. The markets with the greatest
number of deferrals are primarily those that disproportionately
affected by the housing crisis, such as Phoenix, Las Vegas,
Riverside, CA and Orlando and Jacksonville, FL. Detroit, which
is experiencing unprecedented hardship with the failure of GM and
Chrysler, also has a high number of projects on hold. 

Bigger is better in the current environment.There are fewer
deferrals for larger projects. Of the approximately 66 million
square feet under construction and slated to come online through
next year, nearly half involves projects of 400,000 square feet
or larger. 

“Demand for the larger buildings just turned negative in the
first quarter of 2009, with three million square feet of negative
net absorption, compared to 49 million square feet (of negative
absorption) for smaller warehouses,” observes Stone Mortimer. 
“Since the onset of the financial crisis, demand has fallen off
precipitously for smaller warehouse buildings, which have
experienced negative net absorption since the second quarter
of 2008.”

The world is changing. Demand for larger US warehouse and
distribution buildings has grown substantially since China joined
the World Trade Organization in 2001, opening the door to greater
US-China trade. 

http://covenantrealty.net/IMAGES/TORTO_WEATON.gif

REAL ESTATE PRICES ARE STILL UP THIS MILLENIIUM IN LOS ANGELES

REAL ESTATE PRICES ARE STILL UP THIS MILLENIIUM IN LOS ANGELES

by Jodi Summers

A recent report on Forbes.com citing the 10 Best and 10 Worst U.S. Housing Markets noted that in Los Angeles, if you bought in 2000, paid your mortgage on time and are still in your home, you’ve seen a 71.5% price appreciation.

Up north, San Francisco’s prices are up 30.12% from 2000. It still has the potential for a further fall, given the 31% drop for 2008.

Forbes analyzed monthly declines and year-over-year declines in home prices to determine where prices were falling fastest and where those drops were picking up momentum. They noted, “It’s not a good thing for San Diego that prices from November 2008 to December 2008 fell 2.13%, but as prices declined by 2.29% from October to November, and 2.44% from September to October, the speed with which prices are falling is slowing.”

The information is based on an S&P/Case-Shiller home price index, which measured metro home prices in 20 cities through December 2008.

Info courtesy of:

http://www.forbes.com/2009/02/24/housing-cities-ten-lifestyle-real-Estate_home_prices.html?partner=alerts

THINK GREEN - REAL ESTATE IS STRONGER NEAR METROPOLITAN AREAS

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.

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.

http://www.ulisf.org/imgManager/1000000877/Cover%20-%20EmergingTrends2009.jpg

http://www.ulisf.org/imgManager/1000000025/maps.png

http://4.bp.blogspot.com/_ERJ3VTs4Tho/STMgbiE4PcI/AAAAAAAADOE/Os15Z_s-TBI/s400/iStock_000002504258XSmall.jpg

http://exitrealestate540.com/files/2008/12/thefutureroadsign.jpg

INDUSTRIAL PROPERTY SUPPLY IS UP, DEMAND IS WAY DOWN

by Jodi Summers

Would you like to see some fascinating statistics? Check out this two-year market snapshot showing the evolution of Supply vs. Demand chart for Industrial Properties in Los Angeles county.

Industrial sales are at a 10 year low. Is this due to the lack of capital in the commercial marketplace? The decline of purchasing power? Both? Neither?

Has your real estate market stablilized? Email jodi@jodisummers.com to receive a free market report for your LA county neighborhood.