Market Awareness Front and Center
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Story
As the capacity throng of brokers, affiliates and guests departed AIR’s “Market Review & Forecast” event late last month, most were left with a keen desire to stay abreast of industry trends as never before. |
And while the comments of the nine excellent panelists headlining the event attracted notable media attention, being featured on the current GlobeSt.com and RENTV to name a few, AIRWaves believes it might be helpful to brokers to advance this process. Accordingly, we will periodically pass relevant market observations along from diverse sources during this challenging year. The following snapshot views are offered from the sources indicated. |
National Association of Realtors Commercial Real Estate Outlook: “Although access to residential mortgages has improved, the opposite is true for commercial loans,” said Lawrence Yun, NAR chief economists. “We need liquidity for commercial mortgage-backed securities not only to free the market, but also to rollover existing debt. At the same time, the loss of jobs has had a significant impact on the demand for commercial space.” The industrial sector has been holding up fairly well based on the strength of exports, but the global economic slowdown will take a toll. Nationally, vacancy rates in the industrial sector are forecast to rise to 12.1 percent in the third quarter of 2009 from 10.7 percent in the third quarter of 2008. Los Angeles is among the industrial markets with the tightest vacancy rates of 6.8 percent or less (SoCal Industrial Real Estate Blog). |
Torto Sheatson Reason Report: Industrial properties continue to be one of the bright spots in the current real estate market. The long-term outlook is extremely positive, While acknowledging that weak demand has temporarily damaged the market, the report observes that benefits of globalization and a more open economy will bring sustained growth over time. “The US economy is becoming more open and globally integrated,” observed report author Laura Stone Mortimer. “As a consequence, trade measured by the sum of imports and exports of goods will continue to account for a increasing share of GDP (SoCal Industrial Real Estate Blog).” |
AllenMatkins/University of California, Los Angeles, Anderson Forecast Commercial Real Estate Survey and Index Research Project: Economists are concerned with the credit freeze in commercial real estate markets for office space development and the steep drop in retail sales, causing them to make drastic changes to their outlook for new office projects. The survey included Los Angeles, the East Bay, Silicon Valley, Orange County, San Francisco and San Diego office markets. The Los Angeles and Silicon Valley markets are projected to see a turning point by the end of 2010, while the rest of the markets will have a longer adjustment period. |
National Real Estate Investor Magazine (2/11/09): Starved for good news, the lending community earned a major victory this week in the effort to revive the commercial mortgage-backed securities market and restore investor confidence. The Treasury Department unveiled its Financial Stability Plan to unlock the credit markets and strengthen the financial system. A major component of the financial rescue package calls for an expansion to $1 trillion of the government’s Term Asset-Backed Securities Loan Facility (TALF), and allocates part of the program to purchase AAA-rated commercial mortgage-backed securities. |
AIR SuperSheets
Member Benefit
AIR members are reminded that “SuperSheets” are posted on a a daily basis on AIR’s updated web site. “This is a password protected service designed for members only. Your current AIRMail password will allow you to access this information,” said Martin Vartanian, director of information systems for AIR. If you need assistance with your user name and password, please call AIR’s technical support department at (213) 687-8777. “SuperSheets” are daily updates of all major new listings throughout the AIR service area reported on a region-by-region basis. “SuperSheets are e-mailed to members daily showing the most interesting listings in each region. |
Strategic Guidance Defines McCrary
Member Profile
When Mike McCrary says he strives to provide clients with “honest, strategically up-to-date guidance”, he not only affords a glimpse into the success he’s enjoyed during an 18-year commercial real estate career, but provides telling insights into today’s challenging market. |
“I’ve focused on becoming a trusted confidant to my clients, presenting them with timely information to help them make sound decisions, even if it doesn’t meet my immediate needs as a broker. You’ve got to look past the commission,” said McCrary, who is senior vice president in the Inland Empire office of Colliers International. |
McCrary, who in 1990 joined what was formerly known as The Seeley Company in the City of Industry, now focuses on the entire Inland Empire market, but frequently extends beyond the region to meet client-driven requirements throughout Southern California and nationally. |
McCrary emphasized that today’s market presents unprecedented opportunities. “The opportunities today for buyers are the best in recent years for the transfer of wealth. Tenants with strong balance sheets are in a terrific position to meet their long-term real estate needs at historically low prices. This also applies to institutional and high wealth buyers, ” he said. |
It’s just this kind of market savvy that has helped McCrary complete numerous impressive deals of late. This includes his representation of both buyer and seller involving a 200,000 square foot industrial investment in Mira Loma. Seller was ASB, a pension fund advisor; buyer was DCT. McCrary also leased 575,000 and 279,000 square foot industrial facilities in Fontana, representing landlord TIAA-CREF in the former, and tenant LVLA Express in the latter. |
McCrary is a graduate of Menlo College where he earned a Bachelor of Science degree in Business Administration. He and his wife, Alison, reside in San Marino with their three daughters, Kelly, 12, Cameron, 9, and Alexandra, 7. Asked to describe his leisure activities, McCrary quips, “Just call me coach Mike, depending on the which sport is in season.” |
Leonard & Ohren Rebrands as SCO Strategic Advisory and Brokerage
AIRQuality
| Commercial real estate advisory firm Leonard & Ohren has changed its name to SCO Advisors. Named after the company’s partners, AIR Board member Britten Shuford, Andy Carpiac and the late Steve Ohren, SCO Strategic Advisory and Brokerage will continue to serve as one of the premier boutique brokerage firms in Southern California. |
| “The launch of SCO Advisors marks a new chapter in the company’s 27-year history,” said Shuford, president of SCO Advisors who has led the firm since 2003. “We will continue to provide strategic advisory services with a specific focus on industrial and office leasing and investment transactions, but with the new brand comes a fresh perspective and offerings that can help our clients thrive in this challenging economy. We are excited about our firm’s future, the new brand and the continued successes of our clients.” |
| SCO represents many of the largest and most successful landlords in Southern California. Since 2000, the firm has focused on representing institutional clients and boasts an impressive client list, including Travelers, AMB, First Industrial, and Blackrock. |
Founder Steven Ohren, who passed away in July 2008 after a battle with kidney cancer, will maintain the title of Chairman-Emeritus. A legendary investor and former broker, Ohren co-founded the firm in 1982. Shuford and Ohren had been partners in the firm. “Steve Ohren’s vision and unwavering dedication to integrity will always serve as the guiding principles of SCO,” Shuford said. “Steve was an incredible mentor and honoring his important legacy will always be a very high priority of the firm.” |
Shuford said SCO Advisors is also reactivating its bank advisory division, which provides strategic counsel to lending institutions regarding project management and strategic dispositions for their special assets groups. SCO is partnering with its related company, Pacifica Capital Group, to help institutions maximize value from assets. SCO will be led by Shuford and Carpaic, who have both been with the firm since 1997. Craig Johnson will remain senior vice president and run the firm’s West Los Angeles group. Steve Leonard and Kip Lord remain active partners of Pacifica Capital Group. |
AIR
Member Deals
South Bay
•
NAI Reports $2.67 Million Renewal
NAI Capital’s South Bay office reports that Warren Noack, Kimberly Noack and Craig Summers represented The Kong Family Trust and YWK Corp., the lessor, in the lease renewal of a 117,000 square foot industrial building located at 14400 S. Figueroa St., Gardena, to A. M. Castle & Co.(NYSE;CAS) dba Castle Metals Aerospace. Ron Rader of The Klabin Company’s Los Angeles office represented Castle Metals. The 48-month lease is valued at $2.67 million.
Orange County
• CBRE’s Desper, Wright Spark New Mitsubishi Headquarters Facility
CB Richard Ellis announced that Mitsubishi Materials U.S.A. was expected to break ground this week (Feb. 17) on a new 52,840 square foot headquarters facility to be located in Fountain Valley’s Southpark Business Park. The company, whose current headquarters is located at 17401 Eastman St. in Irvine, signed a 10-year lease with Southpark Business Center, marking an expansion and relocation in Orange County. Mitsubishi Materials is a leading global manufacturer and supplier of cutting tools, innovative materials and solutions for the metalworking industry. CBRE’s Dave Desper and Chip Wright represented Mitsubishi in the lease.
Southeast Region
•
Voit’s Driscoll, McDaniel Close 210,300 Square Foot Industrial Lease
Faro Services has signed a five-year lease on a 210,300 square foot industrial building in La Mirada for $5.9 million, report Cameron Driscoll and Luke McDaniel of Voit Commercial Brokerage’s Anaheim Metro office, who represented the lessee. The lessor, Warehouse Investment Partners, represented itself on property located at 15910 Valley View Ave.
Inland Empire
• Colliers Inks ‘Big Box’ Deal in Ontario
Colliers International has directed the lease of a 102,878 square foot industrial building to Aspen Distribution for $3.5 million. The property, located at 5505 Concours in Ontario, is within Crossroads Business Park, a “big-box” industrial park that also houses distribution facilities for New Balance, Oakley, Long’s Drugs and Carl’s Jr. Aspen Distribution is a third-party logistics company that does contract warehousing for the medical, grocery, industrial and retail paper industries. Clyde Stauff, senior vice president at Colliers' Irvine office, and Michael McCrary, senior vice president in the firm’s Inland Empire office, represented the landlord, The Caldwell Company. Don Kazanjian of Lee & Associates-Ontario represented the tenant.
AIR Quick
Bursts And Coming Events
CDX Training – February 24, 9 a.m.- 11 a.m.; AIR Corporate Office, 800 W. 6th St., S. 800, Los Angeles. Open to everyone. FREE. Contact Martin Vartanian, (213) 687-8777.
In-House Training - The AIR offers
training for e-MULTIPLE, WinAIR Forms, 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. A number
of firms have already taken advantage of this great
service and been very pleased with the results.
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
WinAIR Forms 2 - Online Demo is available on the AIR Website.
AIR has provided an Online demo featuring some of the major functionality benefits of the WinAIR Forms 2 program. Please click here to view the online demo.
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