Southern California Industrial Real Estate Blog

U2 CAN BUY COMMERCIAL PROPERTIES @ AUCTION

U2 CAN BUY COMMERCIAL PROPERTIES @ AUCTION

By Jodi Summers

Going, going, gone…with the commercial loan market in such a pathetic state, auctions are the fastest way for banks to unload undesired commercial property assets. If you’re interested in getting involved, there is a July 30 live auction by Sperry Van Ness/Guardian at the Hyatt Regency in Los Angeles includes more than $100 million in real-estate owned (REO), bank-ordered and developer close-out assets in six Western states. If you just want to know more about it read on…

“Sellers are coming to the realization that the price point they had in mind is not a reality. That’s where auctions are so useful in determining value — bringing people together through competitive bidding,“ observed National Auctioneer Association spokesman Chris Longly. “Our membership is seeing more energy and movement this year on the commercial real estate side.“

The National Association of Auctioneers estimates that $58.6 billion in real estate was sold in private live-auction bidding in the U.S. in 2008, up 38.5% from five years ago. Auctions in residential real estate have risen 47.7%, raw land (including agriculture) 36.8%. Commercial real estate is up 31.3%, to $15.5 billion in gross auction sales for 2008. Last year, banks were dealing with residential real estate issues, now, banks are confronting commercial property asset issues.

While the foreclosure moratorium was on in residential, banks were able to reassess their commercial assets. You’ll note that auction activity growing in the 2^nd half of 2009, with major online commercial auction events. In the second half of July, NAI Global offered 75 investment properties in 21 states valued at more than $250 million. The timed online auction will include 58 properties — including the historic State Theatre in South Bend, IN, which still bears bullet holes from the nearby shootout following John Dillinger’s final bank robbery on June 30, 1934 — and 14 other properties. In late July, Sperry Van Ness/Guardian held an auction at the Hyatt Regency in Los Angeles includes more than $100 million in real-estate owned (REO), bank-ordered and developer close-out assets in six Western states.

Among the high profile properties going up for sale is the historic Watergate Hotel made infamous during President Nixon’s wiretapping antics. (http://www.socalofficerealestateblog.com/?p=669). Other noteworthy pieces of real estate hitting the auction market include development sites in the metro Washington, DC area, retail sites in Highland Park, IL, and Spokane, WA, the historic theater redevelopment in South Bend, IN, and an infill site in Flint, MI; an upscale hotel/golf resort in Beecher, WI, and a fully entitled multifamily development tract in Navarre Beach, FL, plus lots of excess and partially developed inventory.

Even the government is getting into it. As you know, the state has been selling off their legacy assets - http://www.santamonicapropertyblog.com/?p=1188, and take a cursory glance @ what the U.S. government might be auctioning off in California, and we find industrial properties in Laguna Nigel, Morro Bay and Red Bluff.

“We’re probably seeing a 30 to 40% increase this year” in office, retail, industrial, multifamily and land auction inquiries, remarked Paul Rogers, senior vice president @ Inland Real Estate Auctions, Inc. “With bank activity in particular, we’re going to be busy for the rest of this year — and probably well into next year.”

This trend echoes the real estate slump of the 1990s and early 2000s, with commercial properties following residential foreclosure auctions after they have been mainstays in the downturn. Companies auctioning properties note that it is an opportunity to sell assets quickly, reduce holding costs, and secure true market value under unpredictable market conditions.

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Sources:

http://www.costar.com/News/Article.aspx?id=F9243DEB83153259F95525F184C9EEE8&ref=100&iid=140&cid=383F14EEE265B182474DA2442BACBBBF

http://fasrp.sc.egov.usda.gov/fasrp/mainAction.do;jsessionid=804CCE54F02BBCC115D4B0BA22A910FF?pageAction=GetCounties&state=CA&stateName=California

http://www.philly.com/inquirer/world_us/20090720_Watergate_auction_drawing_interest.html

http://www.socalofficerealestateblog.com/?p=669

http://media.commercialappeal.com/mca/content/img/photos/2009/04/16/b17auction.jpeg

http://ethicalforeclosurefortunes.com/wp-content/themes/thesis/rotator/govt_auctions_sm.jpg

http://i.ehow.com/images/GlobalPhoto/Articles/5117276/237446-main_Full.jpg

http://www.unitedcountry.com/picturesx/10086-10099-1576957.jpg

http://www.ritholtz.com/blog/wp-content/uploads/2009/06/foreclosures-may-o9.png

http://www.mccallauctions.com/auctions/photos/1074/p12368596779029.jpg

THE GEOGRAPHY OF JOBS

By Jodi Summers

According to this exploding Geography of Jobs map - http://tipstrategies.com/archive/geography-of-jobs/-

Southern California reached its peak in 2^nd quarter 2005, hit parity 3^rd quarter 2007 and then began our great economic slide…

Check it out:

October 2007

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April 2005

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March 2009

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Let’s hope we go green in more ways than one.

CLEANTECH L.A. AIMS TO LEAD THE GREEN DEVELOPMENT EVOLUTION

By Jodi Summers

As we move toward a more efficient world, collaborative alliances are the next wave of evolution. In the last administration, we saw the auto companies begin to share ideas. In leaner, greener times the Department of Energy created the Commercial Building Energy Alliance. Locally, our universities are pooling their knowledge through CleanTech Los Angeles, with goal of making L.A. THE city spearheading the green evolution.

“Los Angeles is leading the world with its commitment to reducing its environmental footprint and this collaboration will undoubtedly stimulate innovation in our region and provide opportunities to create and attract clean tech companies who wish to capitalize on the region’s enormous public demand for their innovative solutions,” said Bill Allen, CEO of the Los Angeles County Economic Development Corporation.

CleanTech Los Angeles, it is an alliance featuring prominent leaders from the City’s premier academic institutions, business community and local government. The big picture is to establish Los Angeles as a global capital of clean technology by leveraging the City’s strongest assets.

Publicly, the CleanTech L.A. Memorandum of Understanding was signed by Mayor Antonio Villaraigosa, California Institute of Technology President Jean-Lou Chameau, University of California Los Angeles Chancellor Gene Block, University of Southern California President Steven Sample, Los Angeles County Economic Development President Bill Allen, Los Angeles Business Council President Mary Leslie, and Los Angeles Area Chamber of Commerce President Gary Toebben.

“Broader recognition of Los Angeles as a global regional center of science and engineering research and clean technology development bodes well for its economic competitiveness in a rapidly changing world,” added Dr. Jean-Lou Chameau, President of the California Institute of Technology.

CleanTech LA will focus on four key areas: Testing, R&D, and Commercialization; Advocacy for Funds; Education and Outreach; and Economic Development Strategy. The partnership is currently working together on initiatives such as www.cleantechla.org, the California Climate Change Institute, the CleanTech Manufacturing Center, and theClean Technology Research Center. Planned future programs include the CleanTech Corridor, advocacy for federal and state funding, and greater collaborations and partnerships.

PARTNERS:

* City of Los Angeles

* University of California, Los Angeles

* University of Southern California

* California Institute of Technology

* Los Angeles Business Council

* Los Angeles Economic Development Corporation

* Los Angeles Area Chamber of Commerce

“Clean technology is one of the bright spots in our future economy,” said Gary Toebben, President & CEO, Los Angeles Area Chamber of Commerce. “The L.A. Area Chamber is pleased to work with the City of Los Angeles and other partners to help make Southern California the hub of the emerging clean tech sector and the jobs and economic growth associated with it.”

For more information visit www.CleantechLA.org.

http://www.ioe.ucla.edu/news/article.asp?parentid=3347

http://www.today.ucla.edu/portal/ut/la-to-become-the-capital-of-green-88893.aspx

http://cleantechlosangeles.org/

http://preaprez.files.wordpress.com/2009/04/villaraigosa-latimes-blog.jpg

http://valuecarpetonline.com/ucla-ar.jpg

http://blog.ingamenow.com/wp-content/uploads/2008/09/hot-usc-cheerleaderspcc3.jpg

FINANCAL IMPACT OF WIND AND SOLAR ON YOUR BUILDINGS

FINANCAL IMPACT OF WIND AND SOLAR ON YOUR BUILDINGS

 By Ernst Diener

People are asking for hard numbers on how wind or solar energy can impact building

and business values.

Financial Impact of Wind or Solar on your Building

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Increase Earnings with Wind Power

For Industrial Buildings:

Each dollar invested in energy performance improvements in commercial real estate

at a 20 to 30% savings rate, is equivalent to increasing Net Operating Income by

 3 to 4% and increasing Asset Value by $2.50 to $3.75. So consider the impact if

 you produce $250,000 per year for your building, with wind power.

For Supermarkets:

A 10% reduction in energy costs for the average supermarket is equivalent to increasing net profit margins by 15%, increasing Earnings Per Share by $.06, and increasing  sales per square foot by $71. Consider what it means if you produce $250,000 per year for your super-market in power savings.

For Churches:

If your church can create $48,000 in electricity savings through wind power or renewable energy it is equal to increasing your church membership by almost 50 members. If  your church can create $250,000 in renewable energy it is equal to increasing your membership by 228 members.

For Convenience Stores:

A 10% reduction in energy costs for your store, is equal to your increasing your

 net profits by at least 15%, plus the wind turbine will drive in additional traffic,

and increase your gross sales within a range of 11% to 19%.

For Schools and Universities:

2 80 kwh wind turbines that can produce a total of $120,000 per year in energy savings

can allow you to hire additional teachers, buy books, increase educational potential.

(note: None of the above take into consideration tax credits, incentives, grants,

or carbon credits, all of which increase your financial gain with renewable energy)

For Hospitals:

Each dollar saved in energy costs is equivalent to generating new revenues of $20

for hospitals, or $10 for medical offices and nursing homes. So if you produce $250,000 per year with a wind turbine it is equal to generating $5,000,000 in new annual revenues for hospitals or $2,500,000 for medical offices and nursing homes.

For Hotels:

A 10% reduction in energy costs for the average full service hotel is equivalent

 to increasing Average Daily Rate by 2.6% and increasing Occupancy Rate by 4.3%.

 For the average limited service hotel, a 10% reduction in energy costs is equivalent

to increasing Average Daily Rate by 1% and increasing Occupancy Rate by 2.4%. Now consider, what this means to your hotel if you can produce$250,000 per year of electricity per year with a wind turbine.

http://rs6.net/tn.jsp?et=1102603433038&s=4010&e=001owYh6s8MtLYbHlWEH7PlMKyKTQNgLqQKM-prqSpVCzJ14ef9r0z2UqjmCYn4KNlVeF-xSliDg5HNEaKWT8ttcAcTf_sus-uXpTw72aCyMjgga9J6Otk2YA==

http://www.ecofriend.org/entry/mixerejector-wind-turbine-to-produce-50-more-power/

http://whenhistoryattacks.wordpress.com/

http://www.ecofriend.org/entry/eco-architecture-solar-powered-laboratory-in-california-makes-the-forensics-green/

http://global.kyocera.com/news/2009/0502_iuoi.html

http://oc-aerial.com/small-aerials/saddleback-church-solar-electric-panels-1-large.jpg

http://www.americanprogress.org/issues/2009/04/img/solar_church_onpage.jpg

CALIFORNIA’S GREENEST CITIES

CALIFORNIA’S GREENEST CITIES

MEASURINGWORTH LETS YOU CALCULATE VALUE OVER TIME

MEASURINGWORTH LETS YOU CALCULATE VALUE OVER TIME

by Jodi Summers

http://www.measuringworth.com/

MeasuringWorth is a service for calculating relative worth over time.

Measuring Worth Is a Complicated Question

Intrinsic things are priceless. The love of your life or a beautiful sunset. There is no objective way to measure these, nor should there be.

The worth of monetary transactions is also difficult to measure. While there is a price, wage, or other kind of transaction that can be recorded at a precise price, the worth of the amount must be interpreted.

The price of a hamburger is probably worth more to a starving homeless person than to a very wealthy one. An allowance of five pennies a week was worth more to a child in 1902 than it is to a child today.

It can be more difficult when the question is to determine the “historical” worth of something. The price, even deflated for inflation, is not enough. Was Andrew Carnegie richer than Bill Gates? Did Babe Ruth make more than David Beckham? Was the cost of a loaf of bread more then than now? These questions all depend on the context and the calculators on this web site enable users to make their own comparisons.

Users of these calculators often come back to us and ask how they are to decide which indicator to use. As a guide to users of our calculators, we present here Measures of Worth. This essay provides a methodology for deciding which measure of worth is appropriate for the subject at hand.

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http://www.measuringworth.com/

http://www.negotiationlawblog.com/currency%20exchange%20rates.jpg