Commercial Real Estate Fundamentals Healthy
Top
Story
| With last evening’s AIR’s gala Annual “Market Review and Forecast” set for extensive submarket-by-submarket coverage in the next issue of AIRWaves, your editor felt it would be instructional to complement that with a national perspective up front in keeping with widespread interest in the market’s near-term prospects. So we’re highlighting a year-end COMMERCIAL REAL ESTATE OUTLOOK from NAR.
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According to the report, the fundamentals in commercial real estate remain healthy with only slight increases in vacancy rates expected for the office and industrial sectors during ’08, although NAR notes that credit restrictions have slowed overall investment activity. |
The OUTLOOK states that with jobs still being created, the demand for office space remains positive and is helping to absorb the more than 30 million square feet of new space becoming available in the current quarter. Investment grade office properties with solid income streams will be the most in demand by institutional investors, equity funds and foreign investors. Since not all of the vacated space is being back-filled or leased, office vacancies are forecast to rise to 13.2 percent by the fourth quarter of 2008 from an estimated 12.9 percent in the current quarter. Projections for the fourth quarter of ’07 showed Los Angeles among areas with the lowest office vacancies. |
Vacancy rates in the industrial sector projected to average 9.4 percent during the fourth quarter of last year will rise to 9.5 percent by the end of 2008, NAR reports. Annual rent growth more than doubled to 3.3 percent at the end of 2007 and is seen at 1.3 percent a year from now, compared with a 1.4 percent annual gain at the end of 2007. Los Angeles was shown as having among the lowest industrial vacancies in the nation based on a rate of 6.1 percent or less. |
AIR Now Offering Free In-House Training
Member
Benefit
| AIR training is now available right in your office! The AIR offers training for e-MULTIPLE, CDX 6.5, WinAIR Forms 2.0, and AIRMail. If a group of brokers or staff from your office would like to have the AIR bring training to you in-house, contact Martin Vartanian at (213) 687-8777 or via e-mail at mvartanian@airea.com. A number of firms have already taken advantage of this great service and been very pleased with the results. |
You’ll expand your use of e-MULTIPLE by learning how to run varied searches, generate reports that set you apart, save queries, e-mail reports, and enter listings. |
You’ll learn how to get full use out of AIRMail, AIR’s unique member-only e-mail system that allows members to instantly exchange information with fellow members based on specific data sets. |
You’ll learn about the newest features and enhancements of WinAIR Forms 2.0, AIR’s totally modifiable real estate contract forms software. |
And you’ll experience the latest enhancements to CDX 6.5, including easier ways to gather data, create and e-mail reports, save search criteria, receive e-mail notifications of new listings, research tenant information and much more. |
| Attesting to the value of the training sessions, recent attendee John Kolich of The Kolich Company said: “Great seminar. He (Martin) made sure that we understood everything before moving on. Will definitely attend again when needed.” |
TRAINING. AIR BELIEVES IT’S A NEVER-ENDING DISCIPLINE. |
AIR
Member Deals
Southeast Region
•
Hess Hones in On Hardwood
Paul Hesse of Penta Pacific Properties reports his representation of American Hardwood Floor, Inc. of Bellflower in its acquisition of a 12,970 square foot concrete tilt-up industrial building at 7200 Coral Lane in Paramount. The buyers, manufacturers of hardwood flooring products, paid $1.5 million. George Franzen of Hunt Industrial Properties represented Coral Chemcial Co. of Zion, IL, the seller.
Orange County
• Migliori Does it With Kindness
Chris Migliori of DAUM Commercial Real Estate Services’ Anaheim office, along with Dan Berkenfield of Voit Commercial Brokers Orange office represented seller Kindness Capital Management, LLC in its sale of a 9948 square foot industrial building in Anaheim for $1.8 million. The property is located at 2851 White Star Ave. and features 1800 square feet of office space. Migliori also represented the buyer, S. K. Investment Group.
South Bay
•
Aloha Says It All
Lee & Associates negotiated a $10.75 million sale of an 83,527 square foot industrial building on a 4.6-acre site at 1800 S. Anderson St. in Compton. Don Smith, along with Craig Poropat of Lee & Associates’ South Bay office represented Atlanta-based Oakmont Industrial Group in its sale to Aloha Freight Forwarders. Aloha operates between Hawaii and California. Dean Haney and Jeff Morgan of CB Richard Ellis represented the buyers.
Northwest Region
• Hollywood Lighting Firm Relocates to Valley
Paskal Lighting, a national lighting and grip company servicing the motion picture and television industry, plans to relocate its West Coast facility from Hollywood to a modern warehouse/distribution structure in Pacoima, reports NAI Capital’s Encino office. Paskal signed a 10-year lease to occupy the 95,467 square foot building located at 12685 Van Nuys Blvd. Bob Scullin, SIOR, Chad Gahr and David Young, SIOR of NAI represented the lessor, Pacoima Partnership Phase II, in the long-term lease valued at over $7.8 million. Paskal Lighting was represented by Greg Barsamian of Coldwell Banker Commercial North County.
Ventura County
•
Lee Trio Inks $3.6 Million Newbury Park Sale
Grant Fulkerson, Robert Flink and Robert Shafer of Lee & Associates-LA North/Ventura, Inc. represented the buyer and seller of a 23,919 square foot industrial building located at 3615 Old Conejo Rd. in Newbury Park. Conejo Valley Properties LLC, represented by Fulkerson, purchased the property for $3.68 million. Flink and Shafer represented the seller, BM Properties.
Friends, Relationships Vital to Collins
Member
Profile
When Michael Collins tells you his style of commercial real estate brokerage is based on building friendships and relationships, it’s no sales pitch. |
“Friendships, cooperation, relationships and ethics are crucial in our business. Some of my best friends, in fact, are my competitors, industry leaders like Dave Hasbrouck, Bram White and the late George Fox,” said Collins, the primary stockholder of Newport Beach-based Collins Commercial. |
| Collins broke into real estate in the 1970s with what was then W. H. Daum & Staff in downtown Los Angeles, joining AIR shortly thereafter. With Daum for 10 years, he opened and managed their South Bay branch and rose to become a company stockholder and director. |
With his father, Jim, and brother-in-law, Rick Fuller, Collins co-founded Collins Commercial, a firm poised to celebrate its 25th Anniversary in September. Collins Commercial is a full service commercial brokerage with a strong regional office in Ontario skillfully managed by Rick John, the firm’s top producing broker for the last several years. |
Collins has special praise for Executive Vice President Steve Peloso, his operating partner for the past six years. “Steve and I are extremely compatible and complementary; we have a great business and personal relationship,” says Collins. |
This kind of kinship doesn’t end there for Collins and his firm. “I’m proud of the tenure of our sales team; 50 percent of our people have been with us a dozen years, and 25 percent for over 20 years, notably Biff Smith, who has been with the firm since its inception, often earning top sales status. I think this demonstrates that our people are happy, respectful team players.” |
In the end, Collins’ emphasis on relationships translates into increased productivity. Among his recent transactions is the leasing of a 120,000 square foot corporate headquarters/distribution facility to Logomark in Tustin for a consideration of $10 million. Collins has also been developing and investing in property for some 10 years, and presently has eight industrial buildings under construction Riverside. |
A graduate of USC with a Bachelor of Science degree in Business, Collins enjoys “taking care of my fantastic children”, 10-year-old twins Cole and McKenna, and their older sister, Andrea. He also gets a bang out of mountain biking, tennis and golf. Collins resides in Newport Beach. |
Quick
Bursts And Coming Events
In-House Training (see Member Benefit)
Member Deals and Profiles - As soon as you
close a substantial deal, make sure you give Art Ansoorian
a call. Your deal will be featured in the next issue
of AIRWaves. Also be sure to get your personal bio over
to Art and be a featured member in the newsletter; it's
a great way for everyone to meet fellow members! Call
Art at (805) 653-1648, or email him at artpr@earthlink.net.
We Need Your Photos and Bios –
AIR is in the process of building its database of member
photos and bios. If you would like your photo and bio
to appear on the AIR website at www.airea.com,
please send them via mail or e-mail to Martin,
or if you have questions, call him at (213) 687-8777.
Tech
Tip
e-MULTIPLE - How
can I save a report and email it to a client?
Once you have selected Create Report, on the
next screen you have the option to left click or right click on the pdf report output.
If you right click, one of the options you have is Save
Target As; select the option and a Save Dialog Box
will appear asking you to save the file on your hard
drive. Once you have the file saved you can attach the
file to your email.
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