The San Diego Daily Transcript is San Diego’s only information company offering business news, data and resources daily and hourly. We report on San Diego business, finance and the San Diego economy, real estate, construction, the U.S. military in San Diego, and San Diego government construction bids. |
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Stories Posted on Jan. 20, 2004
2004: A year of change, or more of the same ...
Last year saw our region's investment real estate continue to have low cap rates, relatively high vacancy levels and a dearth of "quality" properties available for sale. Institutional buyers continued to put upward pressure on prices while REITs, which normally are long-term holders, became net sellers feeling that it is their responsibility to shareholders to sell at these high prices; and 1,031 buyers were forced to look out of state or invest in tenant in common interests (TICs).
Burnham projects improved job and real estate outlooks for San Diego
Recent good news on the national front shows the first real job creation in years. This spells good news for the job and real estate markets in San Diego, a region that has consistently outperformed the state and U.S. during the recent economic downturn.
San Diego expected to enjoy another positive year in 2004
Toward the end of 2003, after experiencing three years of slow growth, the national economy has positioned itself for an outstanding year in 2004. Some forecasters believe that during the next year, the national economy could produce one of the strongest growth periods in the last two decades. Analysts predict that recent tax cuts, low interest rates and increased federal spending will spur a sustained upturn in the economic landscape.
CCIM Institute Education Foundation offers university scholarships
The Education Foundation of the CCIM Institute is a nonprofit entity that works to advance knowledge and professionalism in the field of commercial real estate. The mission of the foundation is to create and administer an endowment to support various educational scholarship programs and provide the vehicles to ensure the development of the highest quality commercial/investment real estate education.
San Diego CCIM Chapter to offer five courses in 2004
The San Diego Chapter of Certified Commercial Investor Member (CCIM) will be presenting the four core courses required by the CCIM Institute to obtain the CCIM designation, along with a planEASe software analysis class. San Diego is one of the few cities in the world that offers the complete curriculum, creating an outstanding opportunity for Southern California real estate professionals to earn the prestigious CCIM designation.
San Diego apartment market strong in 2004
Colliers International forecasts the apartment market in San Diego will continue its positive performance.
Sunny days continue for San Diego retail market
San Diego is quickly becoming a Mecca of opportunity for retailers and retail property investors. The county's growing population base, well-diversified economy and increasing economic prosperity have placed it among the elite target markets in the retail industry. A number of retailers are expanding their presence in the market and a new wave of construction is occurring in high-growth markets such as Chula Vista and North County. Vacancy rates below 4 percent and solid demographic trends are combining to attract both retailers and investors.
Negotiating disputes with a defaulting tenant
When a tenant defaults on its lease obligations, the landlord has options, including the ability to file an unlawful detainer action or other litigation). Landlords in today's softer commercial real estate market should consider attempting to resolve problems with struggling tenants without having to resort to litigation. When the real estate market is strong, a landlord may want to declare a tenant in default so that it can lawfully evict the tenant and replace it with a more credit worthy tenant or a tenant willing to pay higher rent. In a weak real estate market, with higher vacancy and lower rental rates, it may be in the landlord's interest to attempt to retain its struggling tenant as opposed to letting the premises sit vacant for a prolonged period of time.
Commercial and investment property marketing expos scheduled for 2004
A key program for San Diego CCIM members and the local investment real estate community is the CCIM/SDCCAR Commercial and Investment Property Marketing Expo.
New trend emerging as companies buy their own buildings
With the real estate industry continuing to show positive growth, businesses are jumping on the bandwagon and a new trend in commercial real estate investing is emerging. Companies that used to lease space are now opting to buy their buildings, claiming a stake in their location and future.
Leases from a title insurance point of view
Leases play an important role in the business world and can be a misunderstood aspect of title insurance. A leasehold estate involves rights of use and ownership in property for a defined period of time with conditions. Policies of title insurance can be obtained for this type of estate. These rights have priority as defined in the legal statutes, whether leases are placed of public record or not. The type of policy the insured requests dictates what an insurer requires. A California Land Title Association (CTLA) policy provides the customer primarily with information regarding matters that are of public record. An extended coverage American Land Title Association (ALTA) policy covers the same and other information that is considered to be "off-record," such as mechanic lien rights, rights of parties in possession of the property, i.e., lessees, and more. Title insurers may deal with a lease as either the insured estate or as an encumbrance within the chain of title.
NAIOP -- A resource for commercial real estate businesses
The National Association of Industrial & Office Properties (NAIOP) was founded in 1967 to support professionals in the commercial and industrial real estate industry. Nationally, the organization has over 11,000 members and the San Diego chapter is 265 members strong.
AVRP creates a new paradigm with Cymer Inc.
With the economy in its current state, companies are putting increased pressure on architects and designers to complete projects on an accelerated timeline. The need for uninhibited production is essential to the survival of many manufacturing businesses as they feel the pressure to respond to expected economic conditions that require its shipping and manufacturing process to stay on schedule.
Commercial brokers join forces to raise money for Monarch School
Professionally, they're fierce competitors, but more than 200 commercial real estate professionals teamed up on the athletic field recently to raise money for homeless and at-risk youth in downtown San Diego.
Biotech update: The recovery begins
There has been substantial improvement in biotech activity in recent months. Startups are showing signs of growth and some established companies are beginning major expansions. This good news for the San Diego biotech market is drawing renewed interest from Big Pharma, as well as major venture capital and investment banking firms.
ECP Commercial expands to include lending services
When ECP Commercial decided to expand its real estate services to include commercial lending, they didn't have to go far to find the perfect person to run the new company. Marie Rivera, owner of Golden State Capital, was already subleasing an office in ECP's La Mesa headquarters. The new company will be called ECP Commercial Mortgage.
Seiber named top broker by Flocke & Avoyer
Flocke & Avoyer Commercial Real Estate has named their senior vice president Michael J. Seiber as its Top Broker for 2003.
Leading real estate finance company expands efforts in San Diego
Pacific Coast Capital Partners LLC (PCCP), one of the West Coast's leading real estate capital sources, has expanded its lending and investing in San Diego and neighboring communities. The firm expects to consummate over $150 million in transactions in the San Diego area through the end of 2004.
CCIM serves as valuable resource in real estate industry
The Certified Commercial Investment Member (CCIM) is recognized as the best in the business -- an expert in the disciplines of commercial real estate brokerage, financial analysis, market analysis, user decision analysis, investment analysis and property development. The CCIM is an invaluable resource for the real estate investor and the commercial user, and is among an elite corps of 7,500 professionals around the world who hold the CCIM designation -- the "Ph.D. of commercial real estate."
Building owners boost income through sound property management tactics
Rising real estate prices have sent building owners hunting for ways to trim costs. On the same front, owners of aging buildings are faced with stiff competition for tenants in hot markets.
Local alliances equal affordable housing progress
While making a dent in the overwhelming need for affordable rental housing remains a daunting task, there are recent success stories. The Mariposa Apartments in the city of Carlsbad and the Rancho Vista Apartments in the city of Chula Vista are not only additions of future very affordable housing, but also models for continued success.
When is a non-binding letter of intent really binding?
Recent case law may add an unexpected twist to "non-binding" letters of intent. Landlords, tenants and brokers are well advised to consider the pitfalls created by Copeland v. Baskin Robbins, U.S.A., (96 Cal.App.4th 1251 (2002)) and to re-examine their use of letters of intent in light of such new law.
What trends will drive San Diego's apartment market in 2004?
As 2004 unfolds, San Diego County remains a very attractive market for apartment investors, as a limited supply of affordable housing has created record demand for rental units. Add to that, a national economic recovery and an improving local economy seem to be increasing buyer confidence in the apartment market.
TICs can yield significant benefits to 1031 exchanges
If you are like most property owners/investors trying to increase your return on equity and cash flow, then you should be aware of the recent Internal Revenue Service approval of TIC ownership. In the year ahead, a significant number of commercial real estate transactions in San Diego will be Tenant in Common (TIC) 1031 exchanges.
Tips for selecting and utilizing the right construction software
In today's construction software arena, many experts talk about the trends for computers in the construction industry, the future of technology and how it will be used at the jobsite and office, the integrated use of handheld computers in the field, electronically integrated purchasing, fully integrated project management systems, and the list goes on and on. But, before you go off with checkbook in hand ready to buy PDAs for your entire field, let's review a few fundamental rules to keep in mind:
Top 5 myths that can hinder your TI project and your wallet
When approaching a tenant improvement or remodeling project, what sometimes is assumed to be the best method of handling a project challenge or incorporating a "money-saving idea" can actually hinder the project's success. Even the best planned and budgeted project can risk failure if it's based on misinformation or a poorly guided assumption. And misassumptions can be very costly, especially for the project owner.
Cavignac & Associates continues to thrive by keeping focus on real estate community
Without a doubt, the last few years have been tumultuous for the insurance industry. Underwriting losses, weak financial returns and the continuing effects of the Sept. 11, 2001, terrorist attacks have taken their collective toll on the delicate "supply and demand" nature of the industry. This in turn has taken its toll on the pocketbooks of San Diego businesses.
Planned office developments continue as profitable construction trend
More and more businesses in San Diego and Riverside counties are looking to purchase their own buildings as investment opportunities versus leasing office suites as tenants. However, the challenge and expense of either finding a building to purchase or constructing a new building has prevented many companies from doing so.
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