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CALIFORNIA ASSEMBLY BILL 2640: PROPOSED REPEAL OF SECTION 1031 AND OF OTHER NONRECOGNITION PROVISIONS OF THE INTERNAL REVENUE CODE EFFECTIVE JANUARY 1, 2010 California taxpayers who engage in tax-deferred transactions under Section 1031 and other provisions of the Internal Revenue Code should take note of Assembly Bill 2640 (“AB 2640”), introduced last Friday, February 19, 2010. If enacted, AB 2640 would repeal many nonrecognition provisions of the Internal Revenue Code, including Section 1031, for California income tax purposes. The repeal would be effective for taxable years beginning...

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Link: U.S. Industrial Property Review: Sector outperforms other property types U.S. Industrial Property Review: Sector outperforms other property types It may not be considered the sexiest or most exciting property type, but industrial real estate’s stability and growth opportunities in 2010 put the sector head and shoulders above other types of commercial property. “There was less overbuilding in the industrial sector and overall vacancy is below that of retail and office properties, so fundamentals are better and perhaps more appealing,” says Micheal Palmer, senior managing...

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The National Industrial Vacancy Rate Is Declining! The Bottom Line: There was 31 million square feet of net absorption nationally during Q2.1 The Inland Empire was the most dominant market in Q2. It had a net absorption of 7.5 million square feet. This was equal to 25% of the U.S. net absorption figure.1 The national industrial vacancy rate declined 30 basis points. It is now at 9.8%.2 The national industrial vacancy rate has not been in single digits since 2009. 2 Nationwide industrial properties experienced a slight increase in asking rents.1 Los...

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Great Buying Opportunities Ahead. Over $2 Trillion of commercial real estate (CRE) debt will mature by 2020. Here are the facts: On average, $275 Billion of CRE debt coming due every year for the next six years.1 Currently, approximately $685 billion in CMBS loans are maturing between now and 2018.1 Banks have $1.1 trillion in core commercial real estate loans on their books according to the FDIC, another $590 billion in construction loans, $205 billion in multifamily loans and $63 billion in farm loans.2 The period of 2011- 2017 will be one of unprecedented stress...

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Article Posted By CoStar Falling Vacancy, Tight Supply Starting to Move Rents Up, But Meaningful Levels of New Construction Not Expected Anytime Soon. The U.S. industrial real estate market continued to improve during the second quarter of this year even as the economic recovery lost momentum. The industrial market posted strong leasing activity, declining vacancies and diminished supply, which CoStar analysts said should set the stage for an acceleration in net absorption and rising rents in upcoming quarters. The U.S industrial vacancy rate fell to a two-year low of 9.8%, down...

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  The top 10 in demand jobs in 2010 did not exist in 2004. The U.S. Department of Labor estimates that today’s learner will have 10-14 jobs by the age of 38. 1 in 4 workers has been with their current employer for less than a year. 1 in 2 have been there less than 5 years. We are living in exponential times; there are 31 Billion searches on Google every month. In 2006, this number was 2.7 Billion. The first commercial text message was sent in December of 1992. Today the number of text messages sent and received everyday exceeds the total population of the planet. ...

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The latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey provides clues to current commercial real estate asset prices and a turn around in the market.  Over the past 18 months Class A commercial real estate values have increased to near peak levels. The increase is not supported by the current rental and occupancy rates. This rise in asset prices is either an indicator of investor expectations of improving fundamentals over the next three to four years or the beginning of a new asset bubble.  

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In preparation for our upcoming trip to China, we came across these amazing statistics: 80% of the goods imported to the U.S. from China are consumer products.*1 45% of the U.S. imports come from Asia.*2 6 of the world’s top 10 busiest ports(ranked by TEU) are located in China*5 If you’re one in a million in China, there are 1,300 people just like you. *3 China will soon be the number one English speaking country in the world. *2 One-fifth of the world’s population lives in China. *5 Despite its size, all of China is in one time zone(CST).*3 During...

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By Rene Circ at Grubb and Ellis. During the first week of a new quarter, when the previous quarter’s statistics are old news and new numbers are not yet available, the newly released statistics by the Intermodal Association of North America might provide some insight into the industrial real estate market. In April, traffic of domestic containers rose 7.9 percent year-over-year, while international container traffic increased by 7.4 percent. April was the first month of the year showing a decline in the rate of growth for domestic containers, and also an acceleration of growth for international...

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Nobody knows the market for industrial buildings better than the industrial brokers.  Therefore, in order to ascertain the future of rental rates, we decided to go straight to the source. The majority of nationwide brokers project industrial rents to increase 3-5% within the next 12 months. “Respondents in 28 markets expect positive rent growth. In addition, market statistics are starting to show rent growth for industrial properties and net effective rents will most likely outperform expectations.” (Grubb & Ellis Industrial Broker Sentiment Survey) In closing, we at The O’Donnell...

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