Category : Commercial Real Estate

Commercial Real Estate

Big Changes In The Real Estate Professionals Market In Orange County

There have been some very interesting appointments and promotions within commercial real estate firms in Orange County over the past few weeks. Firstly, the new Southern California-Hawaii division of the CBRE Group has appointed Lewis C. Horne as their president. This means he will now focus on Orange County, the Greater Los Angeles area, Hawaii, and San Diego. One of the offices he will head is that of Newport Beach.

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Commercial Real Estate

Is Owning Commercial Real Estate Bad For Business?

The question for businesses on whether to buy or lease commercial real estate is one that seems a long way from being answered. It is a known fact that both buying and leasing have their own pros and cons, and that they tend to be most suited to different situations and business set ups. Where an investor, for instance, will always purchase commercial real estate, a startup business will almost always lease it. But what about for those in between? What is the better option for them?

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Commercial Real Estate

5 Things To Do With Your Commercial Real Estate In The First Quarter Of 2017

The year 2017, just like every year before it, has the potential to be a fantastic year, regardless of what industry you are in. If you are involved with commercial real estate, be that as an owner, investor, or lessee, there are five key things that you must do to make sure that real estate continues to work in your favor. Let’s review these five items.

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Commercial Real Estate

Predictions For The 2017 Housing and Income Property Market In Orange County

Economic indicators are used regularly to make predictions about future developments. Following those, it would logical to say that the housing market in Orange County will see its fifth year of increases, which is significant for those who are interested in the income property market. However, 2017 is the year of the wildcard, in the form of Donald Trump. There are very positive trends, but because it is not clear what the Trump policies are going to be, it is hard to make an accurate prediction. If you invest in income properties, then the developments, or possible developments, are very important to keep abreast of. Financial experts have come up with the following six probable developments.

1. A Rise in House Prices

CoreLogic has recently released its latest data.

Every business has a specific set of data challenges, which is why we offer configurable real estate data reports to meet your unique requirements.

They project a 2% home price rise in 2017, which would be the 54th consecutive month. Highest recorded prices were in May and June, which was due to new homes being built, and this increased the overall median price. Projected price rises vary depending on who makes the projections, but they range from 2% to 6%. This could potentially lead to a lower return on investment for income properties.

2. More Home Sales

According to the Chapman forecast, home sales will continue to increase due to the continuation of the economic recovery.

California home prices will continue falling this year and into next, but there’s an upside in that it will allow more people to buy homes.

While they forecast a drop in home prices, this is for the state of California as a whole, not for Orange County. Home sales are predicted to be up across the board. In October 2016, 31,641 properties in Orange County were sold, a 2.3% rise from 2015. Many of these properties were income properties, because there is often a significant rise in house prices in the county. While an increase, this is still lower than the 29 year average.

3. Home Builders Will See an Increase in Work

It is believed that, for the seventh year in a row, there will be a rise in new construction. That this should also increase the number of available construction jobs, thereby further improving the economy.

4. There Will Be a Rise in Mortgage Rates

This is an important factor for those looking at income properties, as they will have higher monthly expenses. The forecast has been revised by California Realtors, who initially estimated a 4% interest rate, but now believe this to be between 4.5% and 5%.

5. There Will Be a Drop in Affordability

It is estimated that the median family income of the average family in Orange County will only cover 60% of what is needed to purchase the median home. This is a particular issue of concern, and one that can affect both residential and commercial property buyers and investors.

Two other reports on Thursday showed that housing affordability could become an even bigger issue in 2017. The Home Price Index from the Federal Housing Finance Agency showed that year-over-year, home prices rose by 6.2% in the third quarter, a record high. And home values rose 6.5% in the year through November, the fastest pace since 2006, according to Zillow.

This could make income properties more interesting, as it would suggest a greater demand for rentals.

6. Rent Hikes Will Drop

This is of particular concern for property investors, including those who invest in family units. With rising interest rates and lower affordability, the fact that there will likely only be 2.7% increase in rent in 2017 may lead to a significant cut in their overall income.

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Commercial Real Estate

Is A Shared Lease A Good Idea, Or Should You Opt For Exclusive Use?

You may have started a small business in your own home or garage, and it’s took off faster than you expected, so that your current premises are no longer sufficient. As a result, you have arrived at that point when  it is time to look into finding commercial property that is fit for the purpose of your business. Unfortunately, commercial real estate, as you will soon find out, is expensive, whether you want to buy or lease. Not just that, there are also intricate complexities involved in actually finding a property.

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Commercial Real Estate

Latest Developments In The Commercial Real Estate Market Of Orange County

The commercial real estate market in Orange County, CA, continues to boom and expand, so much so in fact, that some experts are becoming concerned about whether or not this growth is sustainable. However, reports have shown that people in the field of business and commercial real estate are very optimistic, in part due to the new presidency of Donald Trump, who has promised more jobs and more business. Hence, Orange County continues to grow, and so is the economy.

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Commercial Real Estate

2016 Is A Year Of Records For Orange County Commercial Real Estate

The year 2016 has been a year of records for Orange County with regards to real estate. Prices for residential homes reached heights never seen before, in part due to the large number of new homes being built. The landscape of Orange County has changed dramatically, not in the least thanks to the approval of the Platinum Triangle in Anaheim.

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Commercial Real Estate

Donald Bren Named Most Influential Commercial Real Estate Investor Of 2016

Donald Bren, who is the owner of Irvine Co. as well as the chairman of the company’s board of directors, has been named by the Orange County Register as one of the most influential in Orange County in 2016. He is a Newport Beach native and currently owns the largest private real estate empire in the country. In fact, the value of Irvine Co. is believed to be around $15 billion.

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Commercial Real Estate

Latest Commercial Real Estate Deals In Orange County, Including Business Park Deal And Oregon Center

The Tri-Freeway Business Park, which is a multi-tenant industrial unit in Anaheim, Orange County, CA, has been sold for $29.45 million. This deal was brokered by the CBRE group, and the buyer, a private individual, has been kept private. The seller, Greenlaw Partners, was represented by Doug Mack, Anthony DeLorenzo, and Gary Stache of CBRE.

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Commercial Real Estate

QR Codes And How They Can Benefit Orange County Commercial Real Estate

QR codes, some say, are the best invention of the 21st century. They offer a unique and interactive communication method, and they can be used anywhere. However, they are still poorly understood, particularly by businesses who could use them to their advantage. This is particularly true in the commercial real estate market in Orange County. This is potentially a huge missed opportunity, particularly when you consider how easy it is to use QR codes (also known as MS tags).

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