Commercial Property

Commercial property prices in the U.S. are mostly holding steady, analysts said, though some apartment buildings and shopping centers are appreciating. Prices for such buildings as warehouses and offices have been relatively steady since last summer after a sharp two-year rally saw them rebound to within 10% of their all-time highs, according to Green Street Advisors Inc. of Newport Beach    “With the exception of apartments and high-end malls, we haven't really seen values go anywhere in almost a year now,” analyst Peter Rothemund said.

Commercial property prices in the U.S. are mostly holding steady, analysts said, though some apartment buildings and shopping centers are appreciating. Prices for such buildings as warehouses and offices have been relatively steady since last summer after a sharp two-year rally saw them rebound to within 10% of their all-time highs, according to Green Street Advisors Inc. of Newport Beach    “With the exception of apartments and high-end malls, we haven't really seen values go anywhere in almost a year now,” analyst Peter Rothemund said.

Smart shoppers always keep an eye out for bargains. That holds true whether they're shopping for clothing or for investments. Right now, some experts contend that there are real bargains in the real estate market--apartment buildings, small shopping centers and industrial complexes that are selling cheap. But as every true bargain hunter knows, low prices don't always signal a good deal. Sometimes prices are low because the product isn't worth much.

With the economy apparently stabilizing, commercial real estate investors have jumped into several markets in the West, brokers said. “There is a lot of capital that needs to get out,” said broker Kevin Shannon of CBRE Group Inc. “People have fresh allocations for both debt and equity and … want to put it to work.” The hottest markets for buyers in search of Class A office buildings are Seattle and San Francisco, he said, but...

Taking a page from the residential real estate industry, Alhambra-based PropertyFirst.com will create a multiple-listing service for commercial properties that combines data from competitors. The company plans a fall launch of its universal listing system, through which commercial property owners and their agents can share information with prospective buyers and tenants over the Internet in a standardized format.

After spending more than a year in suspended animation, the commercial real estate industry is expected to hit bottom in 2010 with a wrenching thud. Owners of business properties such as office buildings, warehouses and malls will suffer a surge of painful defaults, write-downs and workouts with their lenders as the market finally faces up to the reality of its diminished conditions, according to a report set for release today. The long-awaited blood bath, however, will benefit investors who are able to swoop in to take advantage of record bargains.

Real estate investment trusts gobbled up $47 billion in commercial property in 1997, nearly twice as much as the year before, with buildings in Chicago, Los Angeles and Orange County being the most popular targets, a study reports.

McKellar Development has purchased 310 acres of residential land in the Sun City area in Riverside County. Timothy J. McGowan and Joe Williams of the North San Diego County District office of Grubb & Ellis represented both the buyer and the seller, Bennett/Magstadt, in the transaction. The project, located at the southwest corner of Interstate 215 and Newport Road, will be renamed Countryside. The master-planned community will have 1,154 residential units and 81 acres of commercial property.

Re your July 31 editorial on Proposition 13: Your article was well taken except, in my opinion, it should have also focused on the larger tax benefits accruing to the owners of business and commercial property. As I recall, this segment of the taxpaying community received from Proposition 13 a greater rollback of assessments, and it experiences a much slower turnover rate. Your readers ought to be reminded of this situation as well. ALAN P. FRASER Placentia

Kennedy-Wilson Inc. said it acquired Los Angeles-based R&B Commercial Real Estate Services, which manages a portfolio of investment properties in Arizona, California and Texas. The purchase price was not disclosed. Kennedy-Wilson, also headquartered in Los Angeles, said the acquisition is part of its plan to lease and manage 100 million square feet of commercial property by the end of 2000.

Los Angeles developer and landlord CIM Group spent $47.8 million for two Beverly Hills office buildings that were once part of the former William Morris Agency headquarters. CIM Group, which is the largest commercial property owner in Hollywood, bought 150 and 151 S. El Camino Drive. The three-story buildings with a combined total of more than 116,000 square feet of office space occupy two blocks just south of Wilshire Boulevard and the so-called Golden Triangle heart of downtown Beverly Hills, said broker Bob Safai of Madison Partners.

Prominent Los Angeles property brokerage Ramsey-Shilling Commercial Real Estate Services Inc. has been bought by Avison Young, Canada's largest independent commercial real estate services company. Avison Young plans to acquire more Southern California brokerages and other real estate companies in the U.S. in the months ahead, Managing Director Neil Resnick said. Resnick, a broker formerly with Grubb & Ellis, opened Avison Young's first Los Angeles office in August. The acquisition of Ramsey-Shilling for an undisclosed amount added 23 employees, including 18 brokers, to Avison Young.

CBRE Group Inc., the world's largest commercial real estate brokerage, reported a strong third quarter propelled by robust growth in property sales and leasing in the U.S. and abroad. The Los Angeles firm, formerly CB Richard Ellis Group Inc., said Thursday that income from arranging transactions to buy or rent space in offices, warehouses and other commercial properties grew at a double-digit pace from the same period last year. Sales were particularly strong in the Americas; Asia and Europe recorded big increases in leases.

Commercial real estate players say they expect a grindingly slow recovery of their business next year as economic conditions marginally improve. Investors are lowering their expectations for financial returns on office towers and other commercial properties but are still chasing after choice properties in the busiest cities, according to a report by accounting firm PwC and think tank Urban Land Institute. Los Angeles is among the top markets in the country for apartment and industrial property purchases.

A sampling of what some communities do about recycling from multifamily and commercial properties: Beverly Hills The city contracts its pickups from commercial and multifamily buildings (three units or more). All properties take part in recycling. Burbank The city offers recycling services to multifamily and commercial buildings, but they may choose to contract with private haulers. Glendale The city offers recycling services to multifamily buildings and businesses, but they may choose to contract with private haulers.

Profit and revenue at the world's largest commercial property brokerage grew in the second quarter as sales and leasing activity picked up. Los Angeles-based CB Richard Ellis Group Inc. said the company's revenue from arranging real estate transactions increased globally as investors returned to the property market and businesses hastened to take advantage of reduced rents. "Despite continued uncertainty in the macro environment, revenue rose by double digits in nearly every service line in all three geographic regions," Chief Executive Brett White said.

PropertyFirst.com Inc. raised $44.3 million from a group of investors and will use the funds to boost research efforts, accelerate its market expansion and increase its sales and marketing operations. The Alhambra-based firm said the deal was led by Oak Investment Partners and Amerindo Investment Advisors. PropertyFirst.com operates an online multiple-listing service for commercial property. The firm's listing service includes $6.2 billion worth of property for sale.

Kuttner failed to mention annual rent increases demanded by landlords of residential and commercial property as a major inflationary factor. Today, practically every lease for apartments, offices, and other types of property contains a clause entitled, "Annual Cost of Living Increase." The terms of the agreement give landlords the right to increase rent every year according to the cost-of-living index published by the government that usually ranges between 1 and 7%. A simple exercise in mathematics should convince anyone that businesses, large and small, are compelled to increase their prices of goods and services to compensate for this upward adjustment every 12 months.

Richard C. "Dick" Dunn, leader of a Los Angeles commercial real estate dynasty, has died. He was 84. Dunn, who was widely viewed as the dean of the region's commercial property brokers in his role at the Charles Dunn Co., died April 15 from an inoperable brain hemorrhage at Huntington Hospital in Pasadena, according to his family. He took part in the booming real estate market in Southern California after World War II and continued to work until his death. Dunn helped assemble, sell or lease some of region's best-known commercial properties.

Now I've done it. I made a few idle comments last week about rethinking Proposition 13, and the column ticked off hordes of senior citizens — the most loyal of all newspaper readers. "The question I ask you is, would you have my husband and me homeless in order to balance the state budget?" asked Betty Vanole, 71, of Burbank. No, Betty, there's no need to start packing. "May we get together over a cup of coffee and talk about Proposition 13?" asked Barbara Menendez, 81, of the San Fernando Valley.