Real Estate

The U.S. office vacancy rate in the second quarter fell to its lowest level in nearly six years, reflecting a paucity of property, real estate research firm Reis Inc. said. Despite an additional 11.9 million square feet of office space added to the market, the second-quarter U.S. vacancy rate fell to 12.7% from 13.1% in the first quarter, Reis said.

A Chula Vista city councilman pleaded not guilty Thursday to charges of lying to a county grand jury investigating his real estate dealings. Steve Castaneda entered the plea in San Diego Superior Court to an indictment alleging 13 felony counts of perjury and two misdemeanor counts of failing to disclose income on a public form. Castaneda, 47, a councilman since 2004 who lost a race for mayor last year, was under investigation by the grand jury over an apartment rental deal.

First American Corp. agreed to a $5-million settlement to resolve a Florida investigation into whether it made improper payments to real estate agents and mortgage brokers to win business. The accord also calls for a monitor to review Santa Ana-based First American's business practices for one year, according to a statement from Florida's insurance commissioner.

Commercial real estate broker Grubb & Ellis Co. completed a merger with NNN Realty Advisors Inc., adding to its property management and investment operations. Grubb & Ellis will keep its name and continue to be listed on the New York Stock Exchange. Grubb & Ellis' headquarters has been moved to Santa Ana from Chicago. Tony Thompson, founder of NNN, is chairman of the combined company, taking over for C. Michael Kojaian, who remains on the board.

If you're a renter looking to join the homeowner club, the cost of admission keeps getting lower. Home sale prices in six Southland counties tumbled 10% last month compared with November 2006 -- the sharpest year-to-year decline in at least 20 years, a real estate information service reported Tuesday. Sales volume dropped even more sharply, plummeting 43% from a year earlier, according to DataQuick Information Systems. For homeowners, falling values mean less equity.

Investors can still make money -- good money -- in a contracting market, but it requires that you not simply follow the herd. I think it is safe to say that in the coming year, a few basic principles for real estate investment will hold true: Know your market. The more you know, the less likely you are to get caught up in someone else's fervor -- or someone else's panic. The market won't rescue you from a bad investment.

Clearly, someone who isn't particularly nervous about the economy -- and certainly not real estate -- is hedge-fund manager Louis Moore Bacon, who recently shelled out $175 million to purchase Trinchera Ranch in Colorado. In the world of residential property, it easily tops the $103 million spent this year for an estate in the Hamptons area of Long Island, N.Y. The ranch, part of the estate of Malcolm Forbes, is the largest in Colorado with more than 171,000 acres and five residences.

A Rancho Santa Fe, Calif., mortgage broker and appraiser was convicted Tuesday in federal court in Santa Ana of operating a real estate flipping scheme that defrauded mortgage lenders of $6 million. James Davis Bennett, 52, convicted on 11 counts, faces a possible life sentence for financial crimes that include bank and wire fraud, Assistant U.S. Atty. Brett Sagel said.