Posted by: BayAreaComRE | April 30, 2010

Our 100th Post…Is in the Hands of our Readers!

To celebrate our 100th post we thought we’d reach out to our readers and ask you about the economy, since it is your economy. Whether you are experts or novices, real estate professionals, finance professionals or gardeners, we want your input. From the Big Apple, to Fort Lauderdale, to the corn fields of Nebraska, and the Sin City itself, all the way to Los Angeles and up to San Francisco, we want to hear from you. Don’t be shy if you are around the globe as well!  We developed a poll to gauge the market, from you, the reader’s perspective. You can also answer “Other” if you’ve got an alternate opinion. Thanks for all the support with the blog so far, we’re absolutely blown away with how far we’ve come in just 6 months.

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Responses

  1. Here in the Great Central Valley of Northern California we are still suffering near depression-level unemployment, rising costs of living and a State that continues to dig the rabbit hole deeper. As a commercial real estate advisor we are seeing many bank-owned property transactions that depress values and create the perfect storm of declining value, loss of equity, loss of refinancing options, lower occupancy and more uncollectable rents. The impacts of shawdow space and zero-value residental lots will have impacts for at least 5 years yet some lucky investors with cash are getting rich in this sector of the cycle.

    It seems that over the last 4 years the entire system both federal and state has developed so many overlapping and complex issues that the decision makers are only reactive and cannot see a pathway to the fix.

    After almost 4 decades in this business I am starting to question my faith and wonder if we can every return to the days of forward planning, reliable projections and a government that understands the big picture with guts to hear but ignore the minor interests for the good of the whole.

    Do you think Goldman Sachs will be hiring soon. Please forward the application.

    Wayne Craig, President
    Craig Realt Advisors, Inc.

    • Wayne, good luck out there in the Valley, the positive sign is the sale-leasback of the Cal State buildings was oversubscribed!

      https://bayareacomre.wordpress.com/2010/04/26/state-receives-offers-in-excess-of-2-billion-for-office-properties/

      • Wayne:
        A lot has happened since Moss & Craig. We need the banks to step-up if the commercial market will survive. The squeeze on all small business is overwhelming. The “domino effect” in now running its course. The secondary market is gone and institutional lenders are not transparent (an unwillingness to invest in a real estate market that is deflating). Equity is not a qualifier today, so pressure is now on “cash flow” and credit. If the flow of capital is stopped at the supply side (banks and loans) or from retained earnings (new contracts or development), then the survival of historically and traditionally profitable businesses will eventually dissolve into the “rabbit hole”. Scary!

  2. What do you think about the possibility of a double dip situation hitting the realestate market. Sure we’ve seen economic growth in the last 3 quarters, increased consumer spending patterns, and a bullish market, but the unemployment rate and foreclosures are still high. What are your thoughts?

    • We’re of the thought that there will be no double dip recession. There’s too much growth nationally and abroad and too many safeguards in the system to allow for another major meltdown, in the NEAR TERM. The question is, are we in a long term bear market and experiencing a short term bull, or is this beginning of long term cyclical bear correction?

      In San Francisco, fundamentals never got that bad to allow for a major meltdown i.e. Dot Com Bust, there were only a few shake-ups as far as large asset foreclosures and give-backs and the rest have experienced work-outs…so we feel that the stage is set for another growth period. Especially since there is such a strong diversity and tenant base in the city, especially tech and health-care.

      As an anecdote, it seems that there are a ton of small start-ups coming back into the market these days in search for office space. If you’re a small venture back funded start-up looking for space in SoMa, you’re going to find that market a lot more tight than the thought conjured up by the negative headlines that the market is soft. These little green-shoots have balanced out the ebbs in the market place giving us some positive movement in the first quarter.

  3. […] That’s just what we think. Tell us what you think. We are publishing a poll on our blog to gauge the opinions of you, our reader. https://bayareacomre.wordpress.com/2010/04/30/our-100th-post-is-in-the-hands-of-our-readers/. […]

  4. […] We also had some awesome commentary from our readers, which can be found here. […]


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