Adner Realty Group Inc.
Los Angeles Investment Property Newsletter
2nd Quarter 2010
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From the Front Desk
Jamie Adner
Deflation? Inflation?  Buying opportunity or false bottom?  There are so many conflicting indicators, it's difficult to separate the signal from the noise. In spite of the cryptic economic messages, a few facts set the tone for the commercial property market. Over the last 12 months, the price per square foot for multifamily is down 2%, office is down 14%, industrial is down 36% and retail is down 40%. Multifamily fundamentals are shining brighter than other sectors, revealing that, even with obscure market indicators, all properties types are not alike. 

Jamie
Los Angeles Times: "Commercial Property Rebounding" -- Sidelined Capital Seeks Deals
LA Industrial Mkt
Commercial real estate pundits and investment property soothsayers take heed: the commercial real estate market may be in the course of bottoming out, and the long-predicted commercial real estate crash may never come to pass. According to the Los Angeles Times, with prices down and the forecasted wave of foreclosures failing to materialize, investor interest is rising. Rafts of cash that has been earmarked for better days is now coming into the market, driving up prices. More...
 
Multifamily Only Commercial Real Estate Sector on Upswing -- Nationwide Vacancy Down 1%
Apt Vacancy
The multifamily sector is the light of hope in the commercial real estate sector according to a recent report by the National Association of Realtors. "The multifamily sector can expect increased demand as the economy creates jobs and new households are formed, likely in the second half of this year," says Lawrence Yun, NAR chief economist. Nationwide, vacancy rates are predicted to fall to 6.4% by Q3 2010, from 7.3% in Q3 2009.  More...
 
Los Angeles Apartment Vacancy Rate 5.4%, up .4% in 1 Year.   Anyone Surprised?
LA Apt Vacancy
Considering the recent economic turmoil and its impact on consumers' pocketbooks, the apartment vacancy data for the City of Los Angeles looks surprisingly robust. From 2006 - 2010, vacancies have risen steadily from a baseline of 3.5% to the current 5.4%. Not great news for the average apartment owner, but certainly no reason to hit the panic button. Vacancies were the highest in Venice (9.1%), and lowest in Palms-Mar Vista-Marina Del Rey (4.8%).   More...
 
Westside Income 2nd Quarter 2010: Santa Monica, Palms, Mar Vista Rack Up Modest Sales
Santa Monica Apt
The Westside income property market during the 2nd Quarter 2010 was characterized by modest trades. The buildings we analyzed in Santa Monica sold between 11.2 and 13.1 GRM. This compares to 11.7 - 14.2 GRM during the 1st Quarter 2010. Although the GRM appears to be declining, because of the diverse range of building type and neighborhood, we fail to draw any conclusion about prices dropping.   In Palms-Mar Vista, sales during the Quarter had GRMs between 10.7 to 12.0.  More...
 
Hollywood Multifamily 2nd Q 2010: Same Old Song And Dance, GRMs in 8.4 - 10.9 Range
920 Wilcox
Hollywood is credited as being the hottest sub-market in the five county Southern California region. Given its rising star, it should come as no surprise that Hollywood racked up some impressive sales during the 2nd Quarter of 2010. The largest sale was 920 Wilcox Avenue, a 26-unit building that sold for $7,250,000 and a GRM of 10.9. 6228-6234-6238 De Longpre Avenue, comprising 62 units, was sold as one package for $5,875,000 or an 8.4 GRM. More...
 
Development Watch: Century Plaza Hotel Gets Stay and Two 46-Floor Mega Towers
Century Plaza Hotel
Conservationists have successfully prevented developer Michael Rosenfeld from razing Century City's historic Century Plaza Hotel, the 1966 mid-century masterpiece designed by Minoru Yamasaki. Now the public can debate the new plan for the site, which encompasses construction of two 46-floor towers, and will be one of the Westside's largest developments in decades.  More...
 
We are closely monitoring the commercial real estate market.  If you are thinking of buying, selling or exchanging commercial property, please give us a call.  We would like to share our research with you. 

We look forward to keeping you updated with latest news, and have a great end of your summer.

Sincerely Yours,
 
Jamie Adner, President
Adner Realty Group at
Keller Williams Realty
8560 West Sunset Blvd, 3rd Floor
West Hollywood, CA  90069

tel (310) 845-6810
DRE License #01716093
www.adnergroup.com