Retail Property Leasing & Investment Press Room
About This Press Room
CBM's property agents, managers and researchers read extensively every month about market trends, legalities and other concerns that relate to the leasing, sale and development of retail property, particularly retail property in Southern California.
We present in this Press Room items of possible interest to retail property owners, investors and/or tenants.
If you have a question about a particular article, please contact the author or publisher directly; contact information is presented with each synopsis.
If you have an item you would like to CBM to consider posting within this Press Room, please contact CBM.
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Market Trends
"West Coast Sees Strong Demand
The West Coast Retail Market Will Continue to Remain Strong in 2007"
by Larry Bogle, Western Real Estate Business, May, 2007
"The retail real estate market in the western United States remained strong throughout 2006 with low vacancy rates and low cap rates despite high gas prices, a softening residential market and political unrest overseas. But will this trend continue in 2007.
The rise of interest rates has resulted in lessening of pressure pushing down cap rates in nearly all markets. A little bit of steam is being released from the pot but there is still strong demand for well located, quality retail in secondary tertiary markets..."
"Falling Cap Rates Hit the Red Zone
With Cap Rates Having Fallen About as Low as They Can Go, Investors Must Be Prepared To Alter Buying Strategies"
(author and source unknown)
"The spectacular rise in property values that has largely fueled the buying frenzy within commercial real estate over the past three years has resulted in investors flipping properties for big gains, in many cases after buying and holding them for just months instead of years.
At the same time, a new report notes, cap rates for almost all property types have been doing the Limbo, and now they’ve gone about as low as they can go..."
"Trump: The Best Real Estate Advice I Ever Received
100 Top Experts Share Their Strategies"
"Believe in the Market" by Harvey Green, CEO of Marcus and Milichap
"As a young man, just of the army, I began my real estate career almost by accident, or because I lacked other inspiring career choices.
"I entered the business as a striving broker, as a result of great mentoring I received from my brother-in-law, who was a father figure and a person whose business and life experiences I respected. His initial good advise of getting into the industry as a broker quickly overshadowed by what he told me shortly afterward. The best advice he gave me was simply to be in the real estate market as an investor and to believe in the market..."
"Defeasance 101"
by Janell Otis, Real Estate Southern California, September, 2006
"Chances are you’ve been hearing a great deal about defeasance lately. Why? The majority of fixed rate loans securitized in the commercial mortgages-backed securities (CMBS) market originated after 1998 prohibit a cash prepayment and require that the loans be defeased in order for the borrow to sell or refinance.
WHAT IS THE DIFFERENCE?
Put simply, defeasance is just a substitution of collateral..."
"Markets: Real Estate, Stocks Bump Up Net Worth"
from The Los Angeles Times, March 11, 2005, Business; Part C; Business Desk
"The Fed said total assets owned by households were worth $59.2 trillion at the end of the fourth quarter. Subtracting total debt of $10.7 trillion left the net worth figure of $48.5 trillion.
"The gross value of residential real estate was $17.2 trillion at the end of the quarter, up from $15.1 trillion a year earlier, the Fed said. Subtracting mortgage debt of $7.5 trillion..."
"Los Angeles' Race for Space"
by John Battle, Jeffrey Morgan, Laurie Lustig-Bower and Bert Abel, Western Real Estate Business, February, 2005
"The Los Angeles commercial real estate investment market continues to exhibit a great deal of activity, with lots of dollars chasing a limited amount of properties. Low interest rates have produced a condo craze in the multifamily sector, and lifestyle centers are a hit in the retail market. Industrial space is in great demand..."
"Western Finance: Value & Variety
Southern California's a great place to be selling these days."
by David Sonnenblick and Elliot Eichner, Western Real Estate Business, Volume 2, Issue 4, December, 2004
"The retail real estate market in the western United States remained strong throughout 2006 with low vacancy rates and low cap rates despite high gas prices, a softening residential market and political unrest overseas. But will this trend continue in 2007.
The rise of interest rates has resulted in lessening of pressure pushing down cap rates in nearly all markets. A little bit of steam is being released from the pot but there is still strong demand for well located, quality retail in secondary tertiary markets..."
"Real Estate & Rental Advertising
How to get the most response from your classified real estate and rental advertising"
reproduced by Stewart Title of California, Los Angeles Division, 800-821-8685
"Ten Point Guide to Successful Real Estate Ad Writing... Factors Important to Prospective Home Buyers and Tenants... Headline Ideas for Your Real Estate & Rental Advertising... Real Estate Word Selector..."
Legal + Tax News
"Significant Tax Legislation"
from Green, Hasson & Janks LLP-Business Advisors, 2007
"The 'Tax Relief and Health Care Act of 2006' (dubbed 'Extenders Package') was passed by the Congress during the last month of the 2006 tax year. President Bush has signed the legislation at an estimated cost of $45 billion with over 200 changes to the tax code. The following are the most important provisions of the Extenders Package, presenting problems and opportunities for year end tax planning and the 2007 tax season..."
"Items to Negotiate in the AIR Standard Lease Form"
from the Los Angeles Lawyer, January, 2007
"THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION provides some of the most widely used real estate lease forms in California. Many landlords and tenants – and more importantly, their brokers – favor using these forms because they help get the deal done fast and cheap – concepts that deal makers may perceive to be anathema to attorneys. Often, the parties simply fill in the blanks on the front cover..."
"The Credit Score You Pay May Not Be a FICO"
by Liz Pulliam, Los Angeles Times, Liz Pulliam Advice Column, 2007
"Dear Liz: I’m confused about FICO scores. I’ve been paying for a service from one of the credit bureaus, Experian that tracks my credit score.
Two of my credit cards provide updates on my credit scores from the two other bureaus, TransUnion and Equifax. I have thought, based on the information provided from these three sources, that I had improved my scores enough to get a mortgage.
Wrong..."
"Bankruptcy Bill May Help Retail Landlords"
by Ryan Chittum, Staff Reporter of The Wall Street Journal, June 9, 2005
"The recently passed bankruptcy-reform bill may turn out to be a plus for landlords who own retail property while making it harder for struggling retailers to emerge from bankruptcy protection.
"The bill... will take effect in October and strengthens landlord rights in a number of ways, including forcing retailers to make decisions on leases much more quickly and moving landlords into a preferred class of creditors..."
