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Current Course
 The drama continues. The commercial real estate world became a full fledged participant in the Great Recession during Q4 2008. The national investment market has declined somewhere between 70-80% in volume from 2006-2007. Credit is the key and it is a scarce commodity. Wall Street financing is a thing of the past, probably for years to come. Banks and insurance companies have filled some of the void but are skittish, to say the least. Non-recourse financing is almost non-existent and even with recourse; lenders are looking at 50-60% loan to value ratios, with strict underwriting. As a result of the radical declines in residential values and this credit scenario, buyers are looking for discounts in commercial investments. Generally, while commercial values have fallen, we have yet to see the level of distress seen in the residential markets. Some speculate that the continuation of the credit crunch will result in more distress and therefore, more buying opportunities in commercial real estate. Leasing activity is limited as tenants hunker down and landlords realize it's time to pull out all stops to keep a tenant. It is definitely a tenant market. It is a market of opportunities: as a property owner or landlord, make sure you are operating your property efficiently and paying attention to your tenants. Most importantly, make an assessment of your financing needs now and in the future. As a tenant, it might be the perfect time to reassess your real estate needs and take advantage of dropping lease rates. As an investor, the residential dislocation has created buying opportunities and more will be created in the commercial sector. Those who are diligent in this market will not only survive but will thrive. |
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Real Estate Outlook:
Rates and Applications Improve
We've all learned not to get too far out ahead of occasional spurts of good economic news, and not to assume too early that the long-awaited real estate turnaround has arrived.
But for the past few weeks the positives have been significant and sustained. You really can't ignore them.
Take mortgage rates and new loan applications. Rates hit their low point in decades last week, and it looks like they're going lower in the wake of the Federal Reserve's announcement that it plans to pump hundreds of billions more into mortgage securities. Read more... |
 Property Sales Volume Ticks Up, But Unsold Offerings Increase
Commercial property sales activity has increased since the start of the year, but the ratio of newly-listed properties to closed sales has increased even more.
The investment sales data from Real Capital Analytics clearly quantifies the general sense that it has become more of a buyer's market and the trend shows no sign of reversing itself. Read more...
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Recovery ETA: 2010
By Joseph Dobrian & Maria Wood, Real Estate Forum How are current economic conditions impacting commercial real estate nationwide, and what can we expect in eac h of those sectors this year? According to a panel of insiders recently contracted by Real Estate Forum, the news is generally bad - but we knew that. Less certain is the question of when the overall market will recover, although most agree that an upturn is about a year away. On the upside, quite a few healthy assets are likely to come onto the market this year, due to foreclosures or the owner's need to liquidate - and investors who can commit equity to these deals will hold the advantage. Read more... |
 Latitude, Inc. Current Featured Opportunities
Latitude is pleased to announce
some beautiful new listings!
1227 De La Vina Office Space for Lease more info
5750 Dawson Avenue - Vacant Commercial Lot for Sale more info 325 Chapala Street - 1,300+ sf office downtown for Sublease more info
1811 State Street - 300-1,300 sf OFFICE available more info |
 2009 National Office Report
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Recovery Hopes Begin to Blossom
-Chris Isidore, CNNMoney.com A growing number of economists say they see signs that the battered U.S. economy could start to recover as soon as this summer.
NEW YORK (CNNMoney.com) -- Unemployment at a 25-year high. Housing prices continuing to fall. Corporate titans such as General Motors on the brink of bankruptcy. There's no lack of bad economic news.
And yet, amid the gloom, there are a growing number of economists that see a recovery on the horizon -- perhaps even a strong rebound.
They say that a number of indicators appear to have bottomed out in recent months. Job losses may have peaked in January. Home sales are starting to pick up. Stocks are enjoying a strong rally. Read more... | |
'The' Time to Invest in Real Estate is Now
[Note: To follow is an excerpt of an interview with Marc Stephan Garrison, founder of the National Association of Real Estate Investors, and author of several books on real estate investing including "Unlimited Real Estate Profit." To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/021809 ]
Mosca: What is happening in America today as it relates to real estate and real estate investing from both a residential and a commercial side?
Garrison: All real estate exists in one of four-cycle stages and that would be Expansion, Equilibrium, Decline, and Absorption. I invest, and take investor clients, into absorption markets. On Saturday, I will be flying to an absorption market where there are new jobs that justify construction, and will provide a positive cash flow from day one. Every single listener right now can get involved in these absorption markets. There are dozens of them in the United States. The key is due diligence. Read more... |
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Latitude, inc. is a full service commercial real estate company, headquartered in Santa Barbara, on California's Central Coast. While its brokerage and development services are focused on California's Central Coast, Latitude's management and investment expertise have expanded its geographical reach with experience throughout the Western United States.
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