Welcome to Insight, formerly named Kathleen's Korner. I changed the name of my newsletter to reflect the changes in my company and the changes in our economy. Why Insight? Insight has several meanings, such as:
- a piece of information;
- the act or result of apprehending the inner nature of things or of seeing intuitively;
- the power of acute observation and deduction, penetration, discernment, perception;
- introspection;
Insight is also known as an "epiphany."
Thank you and enjoy Insight. |
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Why Asset Management? |
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 By: Kathleen Leppert
In light of recent economic events, the real estate investment market is changing daily. At this time, no one is predicting any sort of short term recovery, which means property managers will be dealing with troubled properties during these volatile economic times. The public is rightly demanding financial accountability; safeguards from waste, fraud, and mismanagement; and collection and maintenance of reliable and timely data for decision making. These challenges have spawned a requirement for improved real property asset management to demonstrate a uniformly high level of performance across all sectors in the integration of financial and mission performance objectives. This new emphasis on real property is understandable because, for most people, real property assets represent their largest investment. By examining your personal and investment goals, creating auditable cost and investment management strategies, and optimizing the return on your investment portfolio, any individual or investment group can realize sustainable success in real property asset management. Most investors that undertake such analysis see gains in the following areas:
1. Real property operations, in reduced and fully auditable operating costs;
2. Real property use optimization, in reduced vacancy rates and improved fulfillment lead time;
3. Portfolio management, in managed value, auditable benefits, and costs; and
4. Demography, in better balance, reduced turn-over, and lower move costs.
These benefits, in turn, enable investors to make better informed decisions related to their investment and mission strategies. Sharing market data across functional business areas ensures that the disclosure of financial data is complete, verifiable, and authenticated. Taken together, those benefits are what will be required for any investment venture in the future.
Please feel free to contact me anytime with questions or assistance with your investment portfolio. |
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Real Estate Statistics |
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We continue to provide the latest real estate statistics of what is going on in the sales market. As always you will be able to find statistics for:
We also continue to add new statistics and reports that relate to the Central Oregon market as they become available. Be sure to check our website often to view reports as they are added.
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Mountain Oasis Properties Incorporated |
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As part of our mission goals and business model, we made the decision to position our company to become the community leader in real estate property and asset management. In order to achieve this position, we actively seek out and employ only the most knowledgeable and highly regarded professionals in their respective fields. It has appeared to us that for the majority of the last dozen or so years, property management has been treated by many as an afterthought to real estate sales as so many people were earning an extraordinarily high return on their investment in buying and selling real property. However, at Mountain Oasis Properties, we believe your investment portfolio deserves the highest levels of attention and professionalism and should never be treated as an afterthought to real estate sales. This is why we take a "whole picture" approach to managing your investment property. This includes assessing market value, return on investment and the highest levels of fiduciary responsibility and accountability in managing your portfolio. Please feel free to contact us directly to ask more about how best to manage your real estate investments in today's market. |
TRENDS
As the real estate sales market has declined, many property owners have decided to hold their assets and manage their property. With the tremendous increase in rental inventory, we have seen a significant increase in vacancy rates in our local market. While we do not have a regular monthly residential vacancy rate reporting from any singular reporting agency at this time, I decided to survey a few of my fellow residential property managers. In Bend, we are seeing between a 9% and 18% residential vacancy rate dependent upon the location and style of the property. The higher-end is particularly hard-hit due to the inflow of newly constructed homes and condominiums that have not sold at this time. In Redmond, we have seen a disheartening 20% to 31% residential vacancy rate. Redmond has been hardest hit due to so many layoffs in the region and lack of work in the construction industry. We have seen an increase in the number of 30-day notices to move due to relocation out of the area as well as an increase in late-payments and NSF payments.
For a few statistics that effect the rental market, please take a look at the following:
Bratton Report
In the commercial market, the vacancy rate for office space has increase to 17.1%, for industrial space we are at 12%, and in retail space we are at 9.7%.
For more information on what is going on in the market, please visit our website at www.kathleenleppert.com. |
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