Monday, 15 August 2011

Illinois Realtor Group Admits They Overstated Chicago Home Prices


Home Sale
Add caption

The Illinois Association of Realtors, the state's largest real estate trade association, fessed up Monday to grossly overstating the median selling price for homes in Chicago in monthly reports dating as far as three years back.
The errors, they claim, were not intentional, according to the Chicago Sun-Times, but were due instead to a data processing mistake. While they initially admitted they had erred in their May report, they also say their monthly reports over the last three years, since they originally began reporting Chicago-specific data in February 2008, may also be inaccurate.
In a statement released Monday on their website, the association said their reported May 2011 median home sale price -- $299,000, a 10.3 percent increase over the same month the previous year -- was approximately $50,000 too high. After correcting for their data input error, the median sales price in May was said to be $249,000, 23 percent lower than the same month the previous year.
In their report, issued last month, the association had lauded the sales figures -- which they said to be part of a four-month rise in home sale prices statewide -- as "all good signs for a market working to recover amid lackluster job creation and a restrictive lending environment."
The discrepancy reportedly came to light after the Chicago Tribune, acting on a tip, questioned the association's most recent report on median home sale prices.
Despite the Chicago reporting errors, their statement indicates they are standing by their previous assertions of a statewide upswing in home sale prices.

Chelsea Townhouse With Giant Living Room POOL


The Wall Street Journal caught up with Evelyn McMurray Van-Zeller, who lives in a townhouse on West 15th. It's a huge space, sure, and in a fabulous neighborhood, but what makes it unique is the thing that inhabits most of the living room space -- a ginormous swimming pool.
The 30,000-gallon pool was a fixture of the home when Ms. McMurray Van-Zeller's brother, a bachelor, lived there. She inherited the home from her brother after he passed away in 1995.
"This is definitely a trophy, bragging-rights property," admitted the owner.
From the Journal:
The renovated townhouse is split into a triplex with two apartments on the top floors that rent for $4,000 and $5,000, respectively. The entire townhouse has six bedrooms, five bathrooms and a garden with a small pool--this one for the owner's turtles. There are also five fireplaces, including one in each of the rental apartments.
The house is currently on the market for just under $11 million.

Home Ownership Woes Suggest Trouble For The American Dream


Home Ownership
Add caption

Home ownership, long a central pillar of the American dream, seems increasingly unattainable for growing numbers of households.
Yet old views died hard, and nine out of 10 Americans still consider home ownership “an important part of the American dream," according to a June poll by The New York Times/CBS News.
Indeed, there are signs of slight improvement in the housing market. In June, work started on 629,000 new houses, a five-month high that beat economists’ expectations saw an uptick in construction in every region in the country. But that doesn’t necessarily indicate the housing market is in recovery -- because, as real estate analyst Mike Larson recently told The Washington Post, “[p]eople who don’t have jobs don’t buy houses.”
And many, many people don’t have jobs. Unemployment rose to 9.2 percent in June, a figure that would actually be higher than 11 percent if there were still as many people actively looking for work as there were at the start of the recession, according to the Wall Street Journal. Among those who have jobs, wages are falling and many people can only find part-time work rather than full-time.
The grim employment situation is reflected in home ownership statistics. On Wednesday, Morgan Stanley released a report showing that if delinquent borrowers are excluded, the U.S. home ownership rate is only 59.7 percent, which would be an all-time low. Leaving in the country’s roughly 7.5 million delinquent borrowers, home ownership is at 66.4 percent.
Morgan Stanley housing strategist Oliver Chang told Bloomberg that given runaway foreclosures and tight credit for borrowers, America is moving “away from being an ownership society” -- President George W. Bush’s vision of a country with high home ownership -- and “towards becoming a rentership society.”

Former Goebbels Property For Sale In Berlin


Goebbels Property Sale
Add caption

BERLIN — A posh island property on a Berlin lake where Adolf Hitler's propaganda minister, Joseph Goebbels, lived for almost a decade and held lavish parties with Nazi bigwigs is up for sale at auction.
Bids are now being taken for the 70,000-square foot (6,440-square meter) plot on Schwanenwerder island, an exclusive area in western Berlin where Goebbels and his family lived from 1936 to 1943.
There is no minimum bid for the property, which has 272 feet (83 meters) of waterfront around the corner from Berlin's popular Wannsee lake beach, and is dotted with tall oaks, pines and other trees.
"The market will decide what it sells for," Irina Daehne, a spokeswoman for the real estate agency selling the property for the city, said Wednesday.
Berlin reserves the right, however, to decide not to sell if the bids are too low – or to reject the top bidder if it turns out they are somehow interested in glorifying the Goebbels past.
"We want to avoid a Nazi use or anything related," Daehne said. "We can say no and we will say no; nobody wants the right-wing scene there."
Schwanenwerder island was first developed at the end of the 19th century, and quickly became home for some of Berlin's wealthiest families – many of them Jewish.
Shortly after the Nazis came to power in March 1933, the local chapter of the brown-shirted SA stormtroopers raised a swastika flag atop a water tower on the island to intimidate the Jewish residents.

Richard Neutra's Kronish House gets a reprieve


Richard Neutra's Kronish House in Beverly Hills
Add caption

Bowing to community pressure, the owners of Richard Neutra's Kronish House in Beverly Hills have agreed to postpone its demolition until at least Oct. 10 to give preservationists a chance to devise a plan to save the residence.
In a related and groundbreaking action, the Beverly Hills City Council early Wednesday asked the community's Planning Commission to devise a historic-preservation ordinance.

Maine House In Andrew Wyeth Work Now US Landmark


CUSHING, Maine -- A weather-beaten farmhouse in Maine, featured in the backdrop of one of the most famous paintings from the 20th Century, is now a national landmark.
Andrew Wyeth House
Add caption
The Olson House in Cushing where Andrew Wyeth painted "Christina's World" was one of 14 landmarks to receive the designation from U.S. Secretary of the Interior Ken Salazar on Thursday.
"It's now affirmation that it's an American icon," said Christropher Brownawell, executive director of the Farnsworth Art Museum in Rockland, which has owned the farmhouse for the past 20 years.
Wyeth, who lived in Pennsylvania, spent 30 summers in Maine and he used the farm as a backdrop for the 1948 painting of Christina Olson, who suffered from polio and was unable to walk, crawling through a field toward the farm.
The Olson House, which overlooks the St. George River and Muscongus Bay, is where Wyeth, who died in 2009 at age 91, developed a relationship with Christina and Alvaro Olson that spanned 30 years. Wyeth's gravestone is near the property.
The Farnsworth Art Museum is currently displaying a collection of 50 watercolors and drawings depicting the Olsons and the farmhouse. "Christina's World" is displayed at the Museum of Modern Art in New York.

Al Gore's New $8.875 Million Montecito Villa

Add caption
Via Real Estalker, Al and Tipper Gore have picked up a $8.875M luxury getaway in Montecito, CA; a swanky zip code that has attracted big name residents like Oprah Winfrey, Steve Martin, and Kirk Douglas. Records show that the approximately 6,500 sq. foot home boasts 6 bedrooms, 9 bathrooms, a large pool house, 6 fireplaces, wood framed french doors, and carved stone detailing throughout. Check out the slideshow and see what you think: tacky or tasteful.

Price On Epic SF Mansion Drops By More Than $1 Million


San Francisco Real Estate
Add caption

In February 2009, an architectural gem hit the market for $3,350,000, before it was withdrawn the following June. It showed up again in April 2011 for $2,795,000.
On Friday, the house showed up once again. This time it's $2,195,000 — a whopping $1,155,000 less than the original asking price, meaning that if you were even slightly considering it the first time, now would be a good time to buy.
The gorgeous 4,174-square-foot modern home is perfectly located in Clarendon Heights, right between Cole and Noe valleys and the Castro. 18-foot ceilings and floor-to-ceiling windows afford uninterrupted views of SOMA and the Bay, culminating in a cantilevered entertaining deck that lets guests know you mean business. Just check out the slideshow below to see what we're talking about. The nighttime views could make for a perfectly leisurely Saturday night. Thankfully, the wine cellar is just inside.
Four bedrooms and a parking deck with plenty of storage make the home ideal for a family, and the uber-modern exterior and design keep things stylish.

Sunday, 14 August 2011

Burgess Rawson sell $53 million in 48 hours

Add caption
The national retail investment market is gathering pace with Burgess Rawson selling 15 properties through it’s Melbourne and Sydney offices alone in the past 48 hours for a combined $53 million.
Burgess Rawson Sydney Director Mr Darren Beehag said the properties were predominantly sold at bulk auctions in Melbourne and Sydney over the past 2 days – with some selling before and after the auction and others by EOI.
“We sold a wide range of national branded properties at strong yields illustrating just how much demand there is from the private investor market.”

Burgess Rawson Melbourne Director Shaun Venables said national, publically listed tenants on long leases were seen as a safe haven for purchasers.
He said some of the properties attracted strong bidding even though they had short leases, which is testament to the dominant location of some of these assets combined with strength of tenant.
The next Burgess Rawson Portfolio Auctions are scheduled for Sydney on September 13 and Melbourne on September 14, 2011.

Saturday, 30 July 2011

Florida Commercial Real Estate - Many Areas See An Influx Of Overseas Investors


n a recently released report by private real estate analyst Real Capital Analytics', in terms of global property market transactions, the South Florida region ranks 15th worldwide in the level of commercial real estate deals.
The report is among the first to comprehensively track commercial real estate transactions in major metropolitan areas around the world, and has tracked a total of $1.04 trillion in office, industrial, hotel, retail, land and apartment sales globally in 2007. A total of 114 metropolitan areas had more than $1 billion woth of commercial property market transactions.
How Foreign Investment Is Shaping In Some Areas Of Florida
Foreign investment in most of the state, according to analysts, has been cyclical over the years, pointing to the nationwide savings and loan collapse of the early 1990s, in which outside investors, in which some of the were foreign, came in and got great deals in the overbuilt commercial sector. According to state industry observers, the metropolitan Ocala area for example, would probably be look attractive for institutional or foreign investors, not because of any negative consideration, but simply because of the lack of a critical mass, notes some analysts.
It's also less likely that a pension fund is going to invest in a building in Ocala than in Orlando or Tampa, and some note that for smaller communities you're more likely to see smaller groups investing in smaller properties. Market watchers say that there does appear to be an increase in foreign investment in commercial properties in southwestern, central , southern and eastern Florida these days. Most say that weak dollar is a major factor, along with the strong euro, and ongoing political and economic instability in Latin America, where most nations have sizable immigrant populations in the state.
South Florida Region Ranks High Among Overseas Commercial Real Estate Investment
The South Florida region is ranked as the 15th-largest metropolitan area in the world for commercial real estate investment, and is also seen as one of the most desirable markets, wherein a large number of conglomerates have expressed the desire to invest there. South Florida's rising popularity as an international travel, trade and investment haven creates familiarity among foreign investors, the report adds.
The positive notion also helps to considerably lower the notion of the region as an investment risk, since the area' s commercial leasing, sales and consumer markets are not just totally dependent on local economic conditions and demand. The region's emergence in the investment world scene parallels its rise as an international hub of commerce. The Real Capital Analytics' report further adds that the bottom line is that South Florida, with its strategic location, has become more of an attractive destination for international trade and commerce investments.
Of five sectors in the commercial real estate market - apartment, hotel, industrial, office and retail - the recent global commercial property sector report shows the most staggering increase in the retail sector of the Florida commercial market, with foreign investment shooting up from just around $194 million in 2004, to almost $900 million in mid-2007 and early 2008.


 

Bahrain Real Estate - Freehold Properites


When Middle Eastern property markets are mentioned, Dubai is always spoken about and the success of its real estate market is well documented. However, one market that is catching up fast is Bahrain. Of all the Middle Eastern real estate markets, the Bahrain real estate market has possible the greatest potential.
Bahrain is an archipelago of 33 islands. The country was once named by ancients Sumerians, considered an island paradise in which there was no disease, death or suffering, and where gods resided. Although modern Bahrain has not retained such mythical status, many still frolic in its heavenly shoreline, and many still perceive the country as blissful respite from lenient Islamic countries. Bahrain holds a strategic position between East and West, The Kingdom has always been considered a place of unity where east meets west, renowned for its warmth and hospitality. A good balance of traditional values combined with refined modernity, make Bahrain an attractive country to live and work.
Despite its size, Bahrain has a well established real estate market. In recent times changes in Bahraini law, foreign nationals are now allowed freehold ownership of property, have created a huge increase in investor interest in the country. Unlike countries such as Saudi Arabia, Bahrain has worked hard to diversity its economy away from oil by focusing on business areas such as tourism, information technology, telecommunications, education and healthcare. This strategy has attracted a number of multinational firms to establish their headquarters in Bahrain.
About one-third of Bahrain's population is foreign expatriates who seek that ideal blend of stability and prosperity. Perhaps this influence has shaped modern Bahrain, now rapidly modernizing, full of shopping malls and restaurants. Expatriates living in Bahrain generally enjoy an extraordinary standard of living primarily because of substantial tax free income. The types of accommodation expatriates seek has established the style of real estate that is typically available for sale or rent in the Kingdom and financing properties in the Kingdom is fairly easy.
The movement of increasing numbers of expatriate to Bahrain has resulted in a huge boom in the real estate sector. Most of these expatriates are taking advantage of the changes in legislation that allow them to own freehold properties and this is increasing the need for quality accommodation. The surge in demand for accommodation is probably why rental rates have surged over the last few years. However, rental rates are still significantly lower than in Dubai. These factors have made the Bahraini real estate market ripe for investment with realization of capital appreciation fairly easy to achieve due to a market enthusiastic for completed resale property.

 

The Cove - Dubai Real Estate Investment on the Cove


Expert Author Sophia K
Add caption

Extend across 50 beautiful acres; The Cove is basically a beach resort project of AED estimated to cost $221 million featuring 179 exclusive residences. If you are one of those individuals who want to experience sunshine of Dubai while lying on the white sandy beach, then there is good news for you as you can get unlimited and private access to beach in 'The Cove'.
Apart from a five star beach hotel, The Cove also includes one, two and three bedroom chalets. There are separate terraces and private plunge pool in each chalet. You can enjoy breathtaking views overlooking the water from The Cove, as chalets are positioned on the islands. What's more, visitor parking is also available on the plateau level of The Cove.
Location
The Cove is located in north of Dubai in the city of Al Khaimah. It is just 40 minutes drive away from Dubai's International Airport. You can't ask for a much better location, as there are plenty of shopping malls, golf courses, top class colleges and hospitals in the close range.
Completion and Service Charges
The construction of The Cove is expected to complete by 2008. In terms of service charges, a maintenance fee is 12 dhs per square foot will be charged. Point to be noted here is that this charge is incurred for the one months of occupation during the initial three years of the leasing period. Once this period is over, you have to pay the conventional yearly maintenance charges.
Selling of the Property
If you are interested in selling your property to a third party you can easily do that. It is worth mentioning in this regard that property in The Cove is fully transferable to a third party, although there is a 0.5 per cent administration fee involved for ownership transfer in The Cove.
No doubt, The Cove offers a unique investment opportunity for real estate investors who would like to have a holiday home, which they can visit any month of the year and get a guaranteed return of 7 per cent in the remaining 11 months.
Not only The Cove is strategically located but also for the initial three years the seller can lease it. After that, you can sell the property or can renew the leasing contract. If you want to sell the property, you can sell it directly to the developer at the market value. So, there is no need of you searching for a buyer.

 

Commercial Property in South Africa: Investment Opportunities and Benefits


Expert Author Leon J Jordaan
Add caption

Buying commercial property in South Africa for investment purpose is one of the most commendable ways of generating income. Both domestic and foreign buyers appreciate the versatility that the South African property market has shown in the past few years. According to the Economist, the demand for commercial real estate in South Africa has gone up by 400 percent in the past 10 years, which is the highest in the world. The rising demand for offices by new business enterprises and growing number of foreign investors are two key factors driving this appreciation of price of commercial real estate in South Africa.
Investment Opportunities in South Africa
The commercial property investment in South Africa has almost outperformed the European and American markets. According to estimates made by Research Worldwide, commercial real estate investment in the country had given an annual return of 15 percent when the rest of the world was tottering due to recession. The country continues to be a leading manufacturing and export hub for African, Asian, and European markets. The liberalized economic policy and growth in major urban areas, such as Pretoria, Johannesburg, and East London, has created perfect ambience for investment in South African commercial real estate.
Investors have plenty of option to buy or invest in commercial properties of various shapes, sizes, and prices. It includes office blocks, intricate industrial complexes, retail outlets, apartments, and shopping malls. New concepts, such as serviced and instant offices, make the opportunity for investment more attractive. The low-rate of interest offered by the banks also adds to the already huge potential for real estate investment in South Africa for both foreigners and natives.
Benefits of Investing in Real Estate in South Africa
The economic growth in the last decade is the foremost reason for considering the rainbow nation a chosen investment destination. The government patronization to new business ventures has led to influx of many foreign companies and emergence of domestic business ventures in various fields. As a result the demand for commercial places, particularly the offices, have increased giving a new fillip to commercial property prices. The tourism industry and the fast growing internal market also contribute to make real estate investment in South Africa a lucrative option.
Substantial state support is a big advantage for commercial property investment in South Africa. Developers pass a major part of 20-percent tax break given by the government to buyers. In case of renovation projects, investors can also avail of similar tax breaks. Low exchange rate of the local currency Rand against Euro, Pound, and Dollar help investors get more value of their money. Zero stamp duty and minimum levies on property also a big plus to buy and sell commercial property in the country.
Above 95 percent occupancy level illustrates the high demand for commercial property in South Africa. With the economy going strong and European multinational preferring the country as an investment hub, the demand for commercial real estate is set to increase further. The country's proximity to developed countries and trade pacts with developing powers is going to fuel growth in this segment of national economy. Political stability and its role as African financial backbone is sure to benefit the commercial real estate development in the country in the coming days.


Article Source: http://EzineArticles.com/6378434

Starbucks Coffee - What Commercial Real Estate Investors Should Know


Expert Author David V. Tran
Add caption

Company Summary
Starbucks Coffee, sometimes referred to as Fourbucks Coffee is the largest coffeehouse chain in the world. It opened its first store in 1971 in Seattle's waterfront Pike Place Market by three partners: Jerry Baldwin, Zev Siegel, and Gordon Bowker to sell high-quality coffee beans and equipment. In 1982, Howard Schultz, the current Chairman and CEO joined the company as the Director of Marketing. He was impressed by the popularity of the espresso bars in Italy after he traveled to Milan in 1983. Back to the US, he convinced the founders of Starbucks to sell both coffee beans and espresso beverages. However, the idea was rejected so he left the company and founded Il Giornale coffee bar chain in 1985. In 1987 Howard Schultz and Il Giornale bought Starbucks with $3.8M and renamed Il Giornale coffee bars to Starbucks and turned it into the Starbucks you know today. The company went public with the symbol SBUX in June 26, 1992 at $17/share with 140 stores. Since then the stock has split 5 times. As of May 2008, SBUX is traded at about $16, down from the high of $39.43 in November 2006.
Starbucks opened the first overseas store in Tokyo, Japan in 1996. The company currently has about 16,000 stores, employs 172,000 partners, AKA employees as of September 2007 in 44 countries. It has annual sales of over $10B with most recent quarterly revenue being $2.526B. About 85% of Starbucks revenue comes from company-operated stores.
Starbucks does not franchise its operations and has no plans to franchises in foreseeable future. In North America, most stores are company-operated. You may see some Starbucks stores inside Target, major supermarkets, University campuses, Hospitals, and Airports. These stores are operated under licensing agreements to provide access to real estate which would otherwise unavailable. Starbucks receives licensee fees and royalties from these licensed locations. At these licensed retail locations, the workers are considered employees of that specific retailer, not Starbucks. As of 2008 it has 7087 company-operated stores and 4081 licensed stores in the US. Internationally it has 1796 company operated stores and 2792 joint-venture or licensed stores in 43 foreign countries. The pace of expansion is slowing down as the company plans to open 1020 US stores in 2008, less than 400 stores in 2009 down from 1800 stores in2007. In addition, it also plans to close 100 stores in 2008.
Risks to Real Estate Investors
Starbucks coffee buildings remain a popular investment for many investors. When you consider investing in a property occupied by Starbucks, you need to understand the following risks of your investment:
  1. Recession-sensitivity: a hungry man can survive with a Big Mac & fries but can live without a four-buck Frappuccino. This means Starbucks is very sensitive to economy downturn as seen in 2007 and 2008 compared to Burger Kings and McDonald's. This may be the main reason sales at stores in the US open at least a year are expected a mid single-digit percentage decline, the first drop ever. It triggers Howard Schultz to return to the CEO post. The company plans to double its marketing spending to $100M in 2008 to drum up sales. It began an aggressive coupons campaign offering free drinks every Wednesday through May 28, 2008. This may be a sign of desperation. On April 22, 2008 Starbucks cut its outlook for the year citing weak economy.
  2. Calorie & Sugar: Starbucks drinks have more sugar and calorie in which consumers are more and more concerned due to explosion of obesity and diabetes epidemic in the US. For example, its Strawberries & Crème Frappuccino® Blended Crème - whip has 120 grams (over 1/4 lb) of sugar, and 750 calorie on its Venti 24 oz size. If it becomes a trend that consumers decide to cut down on the sugar drinks, or stick to low-carb diets then it will have impact on Starbucks revenue.
  3. Competition: McDonald's, Wendy's and Dunkin Donuts now also offer espresso at lower prices to compete with Starbucks. They will capture some revenue from Starbucks, especially from cost-conscious customers. The current Starbucks prices are already pretty high; it's very hard for Starbucks to increase the prices in the near future without affecting the traffic to its stores.
  4. High-expenses business model: while Starbucks profit margin is high as it pays an average $1.42 per pound for the unroasted coffee, its business is very labor intensive just like any other foods businesses. It takes between 10-20 employees to run one store. All eligible part-time and full-time partners in the US and Canada receive benefit package consisting of stock option plan, 401k with company matching, medical, dental & vision coverage. Starbucks is voted as the 7-th best company to work for in the US in 2008 by the Fortune magazine employee's survey. What is good for employees may not be good for the employers. These benefits are normally only available to key employees or managers in the restaurant industry. Historically, the costs of these health benefits rise faster than the rate of inflation. In the long run, they may have negative impact on Starbucks bottom line. Should Starbucks not perform well, it may be under pressure as a public company to close more stores.
  5. Special-purpose building: Starbucks freestanding building is a special-purpose building designed specifically for Starbucks. Should Starbucks decide not to close or not to renew the lease, it's hard to re-lease the property. There are few tenants out there willing to pay the high rent like Starbucks. It's hard to use it as a fast food restaurant due to a relative small square footage. Besides, it does not have a commercial kitchen. Once vacated by Starbucks, the property value will most likely go down.

Starbucks Real Estate Operation
Starbucks divides the US & Canada into 17 real estate territories, each has its own store development office to develop the market in its territory. The developers constructed freestanding buildings about 1800 SF with drive thru in a location with high visibility, heavy traffic. Once the location is approved by the territory office, Starbucks typically signs a 10 year NNN lease with 2 five year options in which landlords are responsible for roof and structure. All the leases normally have corporate guarantee which means Starbucks will continue paying rent in the event it has to close the store. The lease often has 10% rent increase every 5 years. The rent is between $1.65/SF in a store in Utah to $5.84/SF in New York. This rent survey is based on the rents at just 30 Starbucks properties, 18 of them are free standing, on the market for sale through out the US as of April 2008.
Starbucks Location with Minimal Store Closure Possibilities
During tough times, e.g. in 2008 when sales are declining Starbucks will attempt to cut costs and close underperforming stores. As a real estate investor considers investing in a Starbucks building, you don't want to invest in a property that will be closed in the future.
Location------ 1mile------3miles-------AHI/yr-----Size (SF)----Base rent /yr---Rent/SF/mo --Price-----Cap(%)
Ohio...............296........2609.........$88375....1613.........$58,590........... $3.03..........$868K.......6.75
Florida...........9186......55270......$68595.....1816.........$75,000...........$3.44..........$1.2M.........6.10
Georgia.........5717......57201.....$143936....1750.........$74,000...........$3.52..........$1.091........6.75
Mississippi....188........4923........$77372.....1816.........$112,184.........$5.15..........$1.558M.....7.2
Texas.............5944.....40970.......$75043.....1752.........$92,914...........$4.42..........$1,327M....7.00
Table 1: Rent Comparables for Free-standing Starbucks Buildings
Location------SBUX rent/yr---SBUX Size---SBUX rent/SF/mo---Other tenant Size---Rent/SF/mo---Difference
California.......$30096........1248 SF.....$2.01........................1245 SF.................$2.50.............-19%
Kansas..........$43200........1600 SF....$2.25.........................1600 SF..................$1.33.............68%
Utah...............$38568........1950 SF.....$1.65.........................1200 SF.................$1.86............-11%
New Mexico..$92004.........2000 SF....$3.83.........................2500 SF.................$1.92............100%
New York.......$125004......1785 SF....$5.84.........................2819 SF..................$2.75............112%
Table 2: Rent Difference in Multi-tenant Starbucks Retail Centers
Since Starbucks does not release sales revenue for a particular location, you just need to make an educated guess. Based on annual revenue and numbers of stored operated by Starbucks, the average annual revenue per store is about $1M. In addition, if the annual rent to revenue ratio is less than 10% there is a good chance the location is profitable. For example if the base rent for the Starbucks in Ohio is $58,590 then the annual revenue should be more than $585,590. Besides picking a store at a good location (refer to the article titled "What 'Location' Means in Commercial Real Estate" by this author), and the cap rate you should consider the following:
  1. Densely-populated area: more people mean more customers size and thus more revenue. The Starbucks in FL, GA and TX on Table 1 are more promising. Note: the author tries to be sensitive by not disclosing the exact locations.
  2. Low-rent: the Starbucks in MS pays $112,184 for base rent. To be reasonably profitable it needs to have annual revenue of $1.12M. However, since there are only 188 people within 1 mile and 4923 residents within 3 miles radius from the store, it's less likely the store ever achieves that revenue. Besides Starbucks pays $5.15/SF which is very high compared to just $3.52/SF in a fast growing, high income, densely-populated in GA where there are 57,201 residents within 3 miles radius and Average Household Income (AHI) of over $143K/year. It's hard to understand how the Starbucks in MS could be an irreplaceable location in an area with just 188 people within 1 mile radius from the property! While offering the highest 7.2% cap, this property appears to be a good investment but it actually has the highest risk of underperforming and could be closed down in the future. Alternatively, Starbucks could attempt to renegotiate the lease with lower rent during tough times. While Starbucks has not asked for rent reductions yet, it is not surprised if Starbucks will do so to improve its bottom line in the future. In either case, the property value will go down.
  3. Rent premium: while most Starbucks properties are freestanding in which it occupies 100%, you may see a Starbucks in a small multi-unit strip center with a few other tenants. It normally occupies the end unit with drive thru and thus is expected to pay a premium compared to the adjacent unit. However, most of the time Starbucks pays substantially higher rent. For example, in Table 2 it pays $5.84/SF compared to just $2.75/SF by a tenant in the unit next door in a center in New York or 112% higher. In this strip center should the rent for the unit occupied by Starbucks be reduced (due to closure or lease renegotiation) the value of the center will be reduced substantially. You certainly don't want to invest in this property.

 

The Most Amazing Skyscrapers of the United States


As I was passing through the seventh largest city of United States, I was quite taken away by the city's unique blend of modern and antique architecture. And after paying a visit to the old landmarks such as Alamo, one definitely is amazed by the workers who are busy with coatings and sandblasting of the newly constructed and under construction skyscrapers of the city. Mesmerized by this one city, one wonders about how many skyscrapers this country has in total.
United States has the honor of being the country with world's first skyscraper, the Home Insurance building in Chicago. This building was built in 1884, and was only 10 floors high, tallest of its time. Since than, US has always held multiple positions in the list of world's tallest buildings. There is literally no defined rule as to how high a skyscraper must be but almost all the top skyscrapers of the world are above 700 feet with the tallest one, Burj Khalifa, reaching 2,176 feet high. Let us take a look at some of the United States most iconic skyscrapers so far.
• Willis Tower Chicago: If the name does not ring a bell, then let me remind you that it was formerly known as the Sears Tower. Built in 1973, it was the tallest building of the world and currently is fifth tallest of the world. But in United States, this enormous 108 story high building stands at 1451 feet and is the country's tallest so far.
• Trump International Hotel and Tower: And if you guessed it right, the building is actually named after Donald Trump. The building is a 92 story high condo hotel reaching 1389 feet. This building is currently world's eleventh tallest structure. One interesting fact about this building is that it was supposed to be built as the tallest building of US, but after the terrorist attacks on world Trade Center, the plan was dropped and scaled down.
• Empire State building: and if you are wondering why isn't there anyone who hasn't heard of this building than let us remind you that this building has held the title of world tallest building from 1931 to 1972. An unbelievable 40 years record. The building has a unique and classic architecture and is now the tallest building in New York after the 9/11 crash. 1250 feet tall building is America's third tallest building and world's fifteenth on the list.
• The Bank of America Tower: Besides being the second tallest building in the New York City, it is also the World's most eco friendly building. The eco friendly system includes a complete floor to ceiling insulating glass and the grey water system, which preserves and reuses the rainwater. The tower also incorporates a daylight dimmer system.
• Stratosphere Las Vegas: the tallest structure in Las Vegas is essentially the fifth tallest in United States but there are some arguments as to include it in the list of building or not. This structure is basically an observation tower which is not fully inhabitable up to top floor. The rest of the building serves as a hotel and casino.

 

Why Selling Commercial Real Estate Is Different From Selling A House?


The real estate arena is composed of vast properties. Each considered as an investment but when it comes to its purposes, generates different outcomes. The top two of the most well coveted investment to have these days especially in this unpredictable economy are residential real estate and commercial real estate. Both wise assets to have but are entirely distinct from one another.
A home is a private property wherein you and your family can stay in for as long as you wish. It is a shelter and a necessity for every single individual. It is a real estate investment which can be designed to fit the needs of the home owner. Owning and selling a home is considered as an expense you have to maintain as long as you are the title holder of the property. Meaning, you have to shell out money to keep your home up float and in perfect condition. It is not a source of income unless you decide to sell it. Selling a house also depends on the stability of the real estate market; if demand is low chances are your house will be on the home for sale list for a long time. Also, the market value of your house can either increase or decrease.
Meanwhile, a commercial real estate is a property that is mainly intended for a place for business. It is an investment regarded as an income making asset to which you as its owner will obtain monthly cash inflow. This is where consumers flock for their basic needs as well as for their whims and fancies. But, the downside of this is that there is a big chance for your business to close down when it is not well received by the market. However, having a good commercial property can be more lucrative than the business itself. Great examples of this are shopping malls and condominiums. These establishments generate income and are a sure hit to people. Selling it is also profit worthy since these types of business-related enterprises increases value over time.
The following are some key points that distinguish selling a commercial real estate from a housing property:
The Age of The Building
Selling a building is different from selling a residential asset. Homes that have been around for many years or historical homes tend to generate more home value upping its sale price. But in the case of commercial entities, an office building that is old usually means a lot of renovations needed. This generates a low selling value. Most companies tend to give importance to how old a building is. There are companies who do not mind buying an old one and fixing it up while other firms want a modern building that need not require or needs limited improvements.
In Demand
When you say income generator, it goes to say that whatever the circumstances may be; it still makes money. A commercial real estate investment can be sold to interested buyers in case your family does not want to deal with it any longer or when you wish to move on to another business. Even if a business fails, it can still sell and the new owner can turn it around and make it flourish once again. Also, selling of commercial assets gain a wider scope of audience since selling it to investors or companies who have more money is better than selling to a home buyer.
Continuous Cycle of Income
When a commercial real estate is situated in a very promising location or it is located in the middle of metropolitan life, its real estate assessment as well as its ability to produce money is an unremitting cycle. The flow of income goes on and on because it is very marketable to the people. This alone makes it a desirable target especially when you decide to sell it.
The Bigger The Size, The Higher The Price
When a commercial establishment has square feet that can match the size of five baseball fields, selling it to business clients becomes easier. Most people on the lookout for buying commercial real estate want a place that is big, where they can utilize whatever industry they want to put up.
Selling commercial real estate is in contrast with selling residential assets. Learn to recognize a commercial asset's true value may it be a renowned or undersized property. This way, selling it will help you profitably generate income.

 

Tips For Buying Commercial Real Estate


It is well known that the American housing market is currently suffering. However, in spite of this, not all property markets are in decline. While the commercial real estate market has seen a slowing down, it has stayed healthy overall and now is as good a time as ever to be investing in commercial real estate. But what is commercial real estate for and what should you look for when considering the investment for your business or organization?
Considerations for Choosing Commercial Real Estate
Commercial real estate is property that is defined specially for business use. As opposed to personal or residential property, it is not made to be used for living quarters or other small scale endeavors. Instead, it focuses on housing a business or company. If you are considering starting a new business or if you are planning on expanding your current business, you may want to consider investing in commercial property. The following considerations can help you make the important decision of which property to invest in for the benefit of your organization. 
  • What is your first impression of the location?
  • Does the neighborhood fit your business type?
  • What is the competition and support like near the property?
  • What is the hiring pool like surrounding the property?
  • What is the condition of the building and the property grounds?
  • What is the predicted upkeep needs for the property and the building?
Each of these important considerations can help professionals make the best decision possible when making the choice to invest in commercial properties.

 

Commercial Real Estate Agents - Double Up Your Listing Success and Commissions


Expert Author John Highman
Add caption

 Success in any sale career comes down to one major thing. It is you. Sure you will say the market and the economy have something to do with it, although I will say the most important underlying factor that must be on your side is your own personal focus and diligent action. Commercial real estate is exactly like that.
Now this simple fact is the hardest to get under control. We all have choices in the action we take, however most salespeople do not make the right choices or do not make enough of them. Random and generic action is more common than you would think in the property industry. That is why many agents struggle when the market becomes difficult.
The best and most successful real estate agents working on commercial property make deliberate choices to do the following very well:
  1. Prospect every day within their market. They build a market share and identity that supports continuous personal branding.
  2. Grow their database with qualified prospects and then maintain contact with them for the long term. The database has to know you the person and not particularly the real estate business.
  3. Inspect property with an eye for detail, identifying important issues that help to create the sale.
  4. Be prepared to offer sales and lease solutions that are relevant, special, and timely. Make sure that they tap into the client's property 'pain' and provide a clear solution.
  5. List property at the right price or close to it. This helps the marketing for the client and does not waste the time of the agent.
  6. Market property using the best tools available that reach the target market for the property.
  7. Communicate continually with property owners in ways that keep control of the listing and convey the accurate feedback.
  8. Negotiate with parties with a view to fair and focused outcomes given the conditions of the market.
  9. Remember just who the client is and what they have as the targets in the sale or lease process.
  10. Keep abreast of rents and prices of comparable property activity in the local market so that any listings and negotiation can be supported by third party evidence.
  11. Close the sale or lease and then keep on top of the documentation and settlement procedures for the client.
  12. Look for opportunity for your clients so you can do more 'off market' deals where property circumstances exist.
  13. Market your sale or lease success to the other owners and tenants in the local area with a suitable market update or advice of sale.
These simple and yet precise matters are the foundation of a successful and professional commercial real estate agent. They can be personally developed and shaped as you and your territory grow.
There are lots of agents and realtors chasing property in your real estate market. Only a few of them are really good at what they do. You have a choice here and it is largely driven from your mindset supported by your actions.

 

European Commercial Property Is Booming


Expert Author Yuri BrixenmortarDespite the general downturn in the housing market, commercial property is one area that's holding steady in the major markets, including the US, where commercial values have picked up 30% since the '09 trough, and Europe, where 38.5 billion euros of investment occurred in the month of December 2010 alone. It holds to reason that commercial real estate, especially offices, are continuing to sell even in austere times - while consumers might be able to make do with their existing residential arrangements, and therefore hold back from buying a new house until their financial situation gets better, businesses, on the other hand, always need a place to house staff and receive clients. The corporate world is all about status, and with work playing a larger part in most of the European population's lives as the 21st century progresses, more people are making do with smaller and more cost-efficient homes in exchange for investing in business.
According to a recently published report from European property firm DTZ, investment in the commercial property market across the continent is expected to increase by a huge 28% in 2011. France and Germany are looking particularly strong - French commercial property recorded a 73% increase in investment over 2010. DTZ's global head of forecasting and strategy research, Tony McGough, said "We are starting to see positive signals emerging from the European property market, particularly towards the prime end of the market. Occupiers are taking advantage of market conditions and repositioning themselves for the recovery, particularly upgrading to better quality space whilst rents are at relatively low levels."
With such large numbers in French commercial property investment and with the boom in Eurostar and cross-Channel ferry sales proving unrelenting, now is the time to invest in French hotels and guesthouses. In the wine region hub of Arnay le Duc in Burgundy, a beautiful and historic guesthouseis for sale complete with old-style wine cellar and landscaped gardens. In the beautifully preserved medieval town of Barbezieux, Eurobrix also has a bed and breakfast listed for sale, which comes fully furnished and has its own swimming pool, conservatory and quaint wood stove.
For more commercial property investment ideas, from hotels and guesthouses to offices and industrial space, look no further than Eurobrix's commercial property listings section. We have a huge range of European commercial properties for sale, and now is the time to get into this booming market.

 

Helpful Guidelines When Buying Commercial Real Estate Property


If you are planning to make a long-term investment, Florida commercial real estate property is the best thing to deal with.
There are lots of commercial properties that are available in the market. You can always check out the right property that will be perfect for your investment. But you can never come out with the right investment unless you consider these important things.
The first step that you need to do when investing is to check the city real estate listings. With this situation, internet can be the excellent source of information especially when it comes to Florida commercial real estate property. There are plenty of websites that are available online and you can always visit them and check out what are available.
One of the best things to consider when investing a commercial property is to know your business well. Keep in mind that there is plenty of Florida commercial real estate property that you can choose from and you have to do something in order to narrow down your choices. Commercial properties that you can choose from include retail properties, technological properties, industrial properties, investment properties, office spaces and resort properties. Whatever you may choose from, it is important to plan well your investment before you finally come up with the right decision.
Keep in mind that location is very important when choosing the perfect property. You have to choose the property where there is a great traffic, attracts many people and offers you a lot of benefits. But of course when choosing the perfect location for your commercial properties will totally depend on the type of business you want to enter with.
Location itself is an investment. Before you finally decide the perfect location for your Florida commercial real estate property, you have to decide first the type of business that you are planning to put up. When choosing a specific location for this investment, always consider the one that can generate income for your business. It is also important to consider the lifespan of the location. This is especially true if you are planning to have a long-term investment.
Investing a property in Florida commercial real estate is very expensive that is why it is always important to have the best decision ever. And because of this, it is just right to give your time and effort when searching for the right commercial property.