On The Way Up

On The Way Up


(click through to enlarge diagram)

This diagram from RREEF shows we are in a classic upswing on the real estate cycle. Lots of money in play, rising property values, and local business is improving. It looks like we have a long way to go excepting some huge policy mistake and that’s unlikely.

Real Estate Deals in the GIS and Data Universe

Real Estate Deals in the GIS and Data Universe

Good technology can improve real estate deal making. This article describes my experience with Geographical Information Systems (GIS) and how it has become a fundamental tool for my business. At its simplest, GIS programs are a visual adjunct to database and contact management programs. However, if used to its fullest, GIS can crystalize multiple property relationships to monetize real estate information by traditional forms of deal making, solve complicated problems and create new business models.

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Commercial Mortgages Are On The Way Up

Commercial Mortgages Are On The Way Up

Many have already seen charts like this one showing a big drop at the end of 2007. It explains the past four years of weak sales. The small uptick demonstrates the recent increase of deals. Since this is 2011 Q3 data, (but released earlier this month), I expect to see more improvements. The same indicators are alive in the market. A long way from peak conditions but in the right direction.

Questions About The End of California Redevelopment

Questions About The End of California Redevelopment

We are starting an extremely interesting and confusing period as redevelopment agencies (RDAs) come to an end. Firstly, RDAs were a powerful force in every city’s arsenal. They employed large staffs and had enormous budgets. A lot of the built commercial world is attributable to redevelopment through direct land contribution, infrastructure, subsidies, guarantees, loans or other physical or financial contributions. RDAs created a lot of very good development that would not have otherwise been built. High quality, low income housing units were developed. Many private and capable developers profited.

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BUYING SIGNALS ARE ON

BUYING SIGNALS ARE ON

Date

1 Mo

3 Mo

6 Mo

1 Yr

2 Yr

3 Yr

5 Yr

7 Yr

10 Yr

20 Yr

30 Yr

09/01/11

0.02

0.02

0.05

0.10

0.19

0.31

0.90

1.49

2.15

3.10

3.51

09/02/11

0.02

0.02

0.05

0.10

0.20

0.33

0.88

1.41

2.02

2.92

3.32

09/06/11

0.02

0.02

0.07

0.13

0.21

0.33

0.88

1.40

1.98

2.86

3.26

09/07/11

0.00

0.02

0.06

0.11

0.21

0.34

0.92

1.45

2.05

2.96

3.36

09/08/11

0.01

0.02

0.07

0.12

0.19

0.33

0.88

1.41

2.00

2.92

3.32

09/09/11

0.00

0.01

0.05

0.11

0.17

0.31

0.81

1.34

1.93

2.86

3.26

09/12/11

0.01

0.01

0.05

0.11

0.21

0.35

0.87

1.38

1.94

2.84

3.24

09/13/11

0.00

0.01

0.05

0.10

0.21

0.35

0.89

1.42

2.00

2.92

3.32

(Daily Treasury Yield Curve Rates)

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HOW ARE THINGS LOOKING?

HOW ARE THINGS LOOKING?

Customers always ask me, “How do things look?” Here’s one way to answer. In this roughly one square mile grid of Broadway/Rosecrans, there are about 120 buildings of decent size. I count 25 that have availability. Perhaps not the entire buildings are on the market, but enough to depict this picture. That’s about 20% of the buildings with significant availability. I’m working on a lease in Chatsworth and there is even more yellow. This is a pretty consistent picture throughout Los Angeles. In contrast, there have been times when there is no yellow.

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Winter 2011 – Positives, Negatives, Quality and Change

Winter 2011 – Positives, Negatives, Quality and Change

A few years into the Los Angeles commercial real estate recession and some things are clear. Good deals are limited. Distress never hit the street. There’s an evident turn around but most people aren’t recovered. And the smart money is still cautious – for instance, no vacancy risk.

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KLEIN NEWS FALL 2010

KLEIN NEWS FALL 2010

Activity Is Up, But Far From Celebratory

With the year of fear behind us and summer doldrums over, should we expect an increase of activity? Compared to the past two years of bad news, yes, activity is up. Many businesses that were paralyzed with fear are now investigating opportunities in the property market. Private companies are looking for space just in time to replace the waning influence of government stimulus. For instance, businesses that can access low interest rates are in a particularly enviable position. The evidence is demonstrated by a few stellar deals that were purchased by a few brave souls who struck when no one else could. Now that the great fear has receded, we are left with a bad market instead of a catastrophic one. Buyers and Tenants are coming out of their shell to see if they can find bargains and re-launch business plans.
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INTRODUCING MAPP 1.0

INTRODUCING MAPP 1.0

 
Over the summer we created a commercial real estate mapping application that combines the important commercial real estate information  for Los Angeles County in one place. It is designed to help buyers, tenants, developers, and investors get a spatial view of the real estate commitment they are about to make. We call this map application MAPP 1.0.
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