I was perusing the internet and came across the article below, written by Christine Hancock, about lofts and the craze that is permeating major cities across the US. Since I live in this type of dwelling, I had to stop to read the article and found that, what I have is actually in high-demand and hard to find in Tampa!
I always think of the movie, Ghost', and how beautiful the loft was in that movie. That is what I feel is a REAL loft, characterized by big windows, high ceilings and lots of urban charm! I guess my passion for this type of dwelling is gaining popularity around the country!
The space I own is unique. Featured on HGTV's Re-Zoned on August 1, 2007, it is probably the most famous loft in Channelside and maybe all of Tampa Bay! The loft was also featured in Tampa Bay Illustrated Magazine in Oct 2004.
I have actually put this home on the market. It is big and absolutely beautiful and even has a garage, which is totally uncharacteristic of the 'loft' condos available in Channelside. The home has the best of everything but the best of it is that I own the dirt underneath as a Fee Simple residence. That means a LOT when property values for a building lot in Channelside are running about $3.5M. The footprint for my loft currently represents about a $14.3M development potential to the wise investor.
If you are interested in this property or any other exciting loft, townhome or condominium in Channelside, please feel free to call me. The Urban living lifestyle is really my passion and I love to take people around and show them what is available and what their investment at this time will mean for them in years to come. Channelside is definitely one of the best places in Tampa Bay to buy, as reflected in the ever-increasing cost to live here. This market has gone almost unscathed with the real estate lull we have been in. Homes here are still closing and property values are still increasing. This is definitely one of the most exciting places in Tampa to live!
Here is the article that prompted me to write - enjoy!
The Loft Craze
by: Christine Hancock
Proximity to transportation corridors, urban centers, and local attractions draw land-loving young professionals to high-density loft-style condominiums. If your looking for a Condo with a twist, a loft may be just the home to You.
Lofts vary in price depending on what city you are in, units in the Chicago area start around A $200, 800 square feet and top $1 million for 2,500 square feet.
A true loft, for most, is a conversion of a vintage factory or warehouse, having a harder edge of either concrete construction, or "mill" construction of exposed brick and original wood posts, beams and floors. Ceilings should be over ten feet high at least. This is increasingly very important for loft purchasers, as developers are now building condos with slightly higher ceilings than in the past. It is the height that helps give a loft the feeling of air and space. Larger windows and open concept layouts also help. Ceilings are unfinished and pipes and heating ducts are exposed. Do not expect to find a 1,000 square foot loft divided up into two bedrooms and a den. It will much more likely have a kitchen and a bathroom with the rest of the space left as one large open room, which you can work with and use according to your own functions and needs. Some people think a loft means you have a second mezzanine level overlooking the floor below, but this is simply one style of loft.
Beware of another type of loft -- the newly constructed loft (or "soft lofts"), which are for the most part "Condos With High Ceilings", and are examples of Chicago condo developers trying to cash in on the popularity of lofts. They are still great units, just not "true" lofts.
Less traditional lofts have a kitchen and living room on the lower floor and an open second floor for bedrooms.
Chicago, Houston, New York, San Francisco, and Tampa have strong loft markets. The public cannot get enough of them. “Atlanta’s loft supply and demand has increased so much that there’s a separate listing for lofts in the newspaper.”
Tuesday, November 20, 2007
Thursday, October 25, 2007
Solid Fundamentals Support Commercial Real Estate
WASHINGTON, September 18, 2007 -
Most commercial real estate markets are enjoying relatively low vacancy rates and healthy rent growth from a fundamentally sound economy, according to the latest COMMERCIAL REAL ESTATE OUTLOOK of the National Association of Realtors®.
NAR Senior Economist Lawrence Yun said, “Commercial real estate responds to economic growth and job creation, which have been fairly strong over the past two years and have created the need for additional commercial space,” he said. “These fundamentals will continue to support commercial real estate markets in 2008. There has not been much overbuilding in the commercial sectors, and investors are more diverse.”
Yun said pricing for some commercial real estate has been at a record high, and capitalization rates have been at historic lows. “Normalization of prices may be occurring, but it isn’t clear what the definition of normal might be in the current market given the repricing of risk in the capital market. In short, the difference between the cash flow on a typical property and its price is close to a maximum, indicating prices may even out.”
A record $257.0 billion was invested in commercial real estate in the first seven months of 2007, up from $146.7 billion in same period in 2006; that total does not include transactions valued at less than $5 million, or of investments in the hospitality sector.
Cindy Chandler of Charlotte, N.C., chair of the Realtors® Commercial Alliance, said there have been some problems recently regarding the availability of capital. “Over-reaction to credit concerns in the financial markets could limit the availability of capital needed by private investors, but overall the situation does not appear to have significantly impacted institutional-grade commercial properties,” she said. “We're returning to the fundamentals and deal structuring of the mid 90s, and may see some dampening in investment activity, but there is a lot of momentum in commercial real estate.
“We see the commercial sectors holding at a healthy level of activity in most of the country, although there could be some slowing as a result of postponed transactions and delays in decision making.”
The NAR forecast in four major commercial sectors analyses quarterly data for various tracked metro areas. The sectors are the office, industrial, retail and multifamily markets. Metro data were provided by Torto Wheaton Research and Real Capital Analytics.
Office MarketThe office sector is the most favored by investors, with strong rent growth this year. The cost of steel and other factors have helped minimize speculative construction in most markets. The demand for space is expected to remain strong into 2008, and areas with strong job growth are benefiting the most. Older vacated space is lagging on the market in some cities.
Office vacancies are projected to edge up to an average of 12.9 percent in the fourth quarter from 12.5 percent in the fourth quarter of 2006, and then dip to 12.4 percent by the end of 2008. Annual rent growth in the office sector is forecast at 6.1 percent in 2007 and 3.1 percent next year, after rising 5.2 percent in 2006.
Projections for the third quarter show areas with the lowest office vacancies include New York City; Ventura County, Calif.; Seattle; Los Angeles; Honolulu; and Long Island, N.Y., all with vacancy rates of 9.4 percent or less.
Net absorption of office space in 57 markets tracked, which includes the leasing of new space coming on the market as well as space in existing properties, should total 53.8 million square feet this year and 65.1 million in 2008, compared with 78.0 million last year.
Office building transaction volume in the first seven months of this year totaled $147.0 billion, a record for the period, which is 53 percent higher than the same period in 2006. Equity funds accounted for 43 percent of office building purchases, followed by private investors at 21 percent.
Industrial Market Although the main driver for the industrial market continues to be the need for warehouse and distribution space, particularly in ports and distribution hubs, the rebirth of the technology sector is fueling demand for flex space, with a marked increase in markets such as San Jose, Calif.; Portland, Ore.; Seattle and Phoenix.
Much of the new industrial supply has been on a build-to-suit basis, and building obsolescence remains a factor for distribution facilities. With tightening availability in many primary markets, users are starting to show greater interest in secondary markets.
Vacancy rates in the industrial sector are likely to average 9.6 percent in the fourth quarter and 9.4 percent by the end of 2008, compared with 9.4 percent in the fourth quarter of 2006. Annual rent growth will more than double to 3.9 percent by the end of this year, and is estimated at 3.7 percent in the fourth quarter of 2008, up from a 1.4 percent annual rise at the end of last year.
The areas with the lowest industrial vacancies include Los Angeles; Albuquerque; Tucson; Orange County, Calif.; Portland, Ore.; and San Francisco, all with vacancy rates of 5.4 percent or less.
Net absorption of industrial space in 58 markets tracked will probably total 125.0 million square feet in 2007 and 165.6 million next year, down from 202.8 million in 2006.
Industrial transaction volume in the first seven months of 2007 was $26.8 billion, up 13 percent from the same period in 2006. Private investors accounted for 36 percent of industrial purchases, followed by equity funds at 25 percent.
Retail MarketRecovery in the retail market has been held back by high levels of new supply, but developers appear to have gotten the message. The majority of new space on the market today is in non-regional malls, but new available space should see marked declines in 2008. Credit problems have not yet impacted retail sales, but will be watched closely.
Vacancy rates in the retail sector are expected to rise to 9.3 percent in the fourth quarter from 8.1 percent at the end of 2006; vacancies are forecast at 8.9 percent by the end of next year. Average retail rent is projected to rise 2.9 percent in 2007 and 1.0 percent next year, following a 3.9 percent increase in 2006.
Retail markets with the lowest vacancies include San Francisco; Orange County, Calif.; San Jose, Calif.; Ventura County, Calif.; Washington, D.C.; and Las Vegas, all with vacancy rates of 5.1 percent or less.
Net absorption of retail space in 53 tracked markets should be 12.1 million square feet this year and 19.0 million in 2008, up from 10.7 million last year.
Retail transaction volume in the first seven months of this year totaled $37.4 billion, up from $22.3 billion in same period in 2006. Private investors accounted for 35 percent of transaction volume, followed by institutional investors at 22 percent and foreign investors, 18 percent.
Multifamily MarketThe apartment rental market – multifamily housing – anecdotally appears to be impacted by an influx of single-family homes being offered for rent, cutting into the demand for apartment rentals. In addition, condos are being converted into rental units, particularly in markets such as Washington, D.C., and several areas of Florida.
At the same time, potential first-time home buyers are hesitant and staying in the rental market, supporting multifamily fundamentals until the lure of homeownership returns, the housing cycle changes and more buyers enter the housing market.
Multifamily vacancy rates are likely to average 5.9 percent in the fourth quarter, the same as the fourth quarter of 2006, and then ease to 5.6 percent by the end of next year. Average rent is expected increase 2.9 percent this year and 3.8 percent in 2008, after a 4.1 percent rise last year.
Multifamily net absorption will probably total 209,200 units in 59 tracked metro areas this year, down from 229,400 in 2006, but increase to 234,400 in 2008.
The areas with the lowest apartment vacancies include Northern New Jersey, Salt Lake City, Philadelphia, Pittsburgh, Los Angeles, Minneapolis and Nashville, all with vacancy rates of 2.7 percent or less.
Multifamily transactions in the first seven months of this year totaled $46.3 billion, compared with $41.5 billion in the same period in 2006. Half of the purchases were by private investors, while condo converters accounted for only three percent of acquisitions.
The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the Realtors® Commercial Alliance. The RCA, formed by NAR in 1999, serves the needs of the commercial market and the commercial constituency within NAR, including commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and NAR affiliate organizations.
Organizations in the RCA include the CCIM Institute, the Institute of Real Estate Management, the Realtors® Land Institute, the Society of Industrial and Office Realtors®, and the Counselors of Real Estate. The RCA also provides commercial products and services.
Nearly 140,000 NAR members offer commercial services, and 73,000 of those are currently members of the RCA.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
http://www.realtor.org/press_room/news_releases/2007/solid_fundamentals_support_commercial_market.html?&WT.mc_t=LS102407&WT.mc_n=Comm
Most commercial real estate markets are enjoying relatively low vacancy rates and healthy rent growth from a fundamentally sound economy, according to the latest COMMERCIAL REAL ESTATE OUTLOOK of the National Association of Realtors®.
NAR Senior Economist Lawrence Yun said, “Commercial real estate responds to economic growth and job creation, which have been fairly strong over the past two years and have created the need for additional commercial space,” he said. “These fundamentals will continue to support commercial real estate markets in 2008. There has not been much overbuilding in the commercial sectors, and investors are more diverse.”
Yun said pricing for some commercial real estate has been at a record high, and capitalization rates have been at historic lows. “Normalization of prices may be occurring, but it isn’t clear what the definition of normal might be in the current market given the repricing of risk in the capital market. In short, the difference between the cash flow on a typical property and its price is close to a maximum, indicating prices may even out.”
A record $257.0 billion was invested in commercial real estate in the first seven months of 2007, up from $146.7 billion in same period in 2006; that total does not include transactions valued at less than $5 million, or of investments in the hospitality sector.
Cindy Chandler of Charlotte, N.C., chair of the Realtors® Commercial Alliance, said there have been some problems recently regarding the availability of capital. “Over-reaction to credit concerns in the financial markets could limit the availability of capital needed by private investors, but overall the situation does not appear to have significantly impacted institutional-grade commercial properties,” she said. “We're returning to the fundamentals and deal structuring of the mid 90s, and may see some dampening in investment activity, but there is a lot of momentum in commercial real estate.
“We see the commercial sectors holding at a healthy level of activity in most of the country, although there could be some slowing as a result of postponed transactions and delays in decision making.”
The NAR forecast in four major commercial sectors analyses quarterly data for various tracked metro areas. The sectors are the office, industrial, retail and multifamily markets. Metro data were provided by Torto Wheaton Research and Real Capital Analytics.
Office MarketThe office sector is the most favored by investors, with strong rent growth this year. The cost of steel and other factors have helped minimize speculative construction in most markets. The demand for space is expected to remain strong into 2008, and areas with strong job growth are benefiting the most. Older vacated space is lagging on the market in some cities.
Office vacancies are projected to edge up to an average of 12.9 percent in the fourth quarter from 12.5 percent in the fourth quarter of 2006, and then dip to 12.4 percent by the end of 2008. Annual rent growth in the office sector is forecast at 6.1 percent in 2007 and 3.1 percent next year, after rising 5.2 percent in 2006.
Projections for the third quarter show areas with the lowest office vacancies include New York City; Ventura County, Calif.; Seattle; Los Angeles; Honolulu; and Long Island, N.Y., all with vacancy rates of 9.4 percent or less.
Net absorption of office space in 57 markets tracked, which includes the leasing of new space coming on the market as well as space in existing properties, should total 53.8 million square feet this year and 65.1 million in 2008, compared with 78.0 million last year.
Office building transaction volume in the first seven months of this year totaled $147.0 billion, a record for the period, which is 53 percent higher than the same period in 2006. Equity funds accounted for 43 percent of office building purchases, followed by private investors at 21 percent.
Industrial Market Although the main driver for the industrial market continues to be the need for warehouse and distribution space, particularly in ports and distribution hubs, the rebirth of the technology sector is fueling demand for flex space, with a marked increase in markets such as San Jose, Calif.; Portland, Ore.; Seattle and Phoenix.
Much of the new industrial supply has been on a build-to-suit basis, and building obsolescence remains a factor for distribution facilities. With tightening availability in many primary markets, users are starting to show greater interest in secondary markets.
Vacancy rates in the industrial sector are likely to average 9.6 percent in the fourth quarter and 9.4 percent by the end of 2008, compared with 9.4 percent in the fourth quarter of 2006. Annual rent growth will more than double to 3.9 percent by the end of this year, and is estimated at 3.7 percent in the fourth quarter of 2008, up from a 1.4 percent annual rise at the end of last year.
The areas with the lowest industrial vacancies include Los Angeles; Albuquerque; Tucson; Orange County, Calif.; Portland, Ore.; and San Francisco, all with vacancy rates of 5.4 percent or less.
Net absorption of industrial space in 58 markets tracked will probably total 125.0 million square feet in 2007 and 165.6 million next year, down from 202.8 million in 2006.
Industrial transaction volume in the first seven months of 2007 was $26.8 billion, up 13 percent from the same period in 2006. Private investors accounted for 36 percent of industrial purchases, followed by equity funds at 25 percent.
Retail MarketRecovery in the retail market has been held back by high levels of new supply, but developers appear to have gotten the message. The majority of new space on the market today is in non-regional malls, but new available space should see marked declines in 2008. Credit problems have not yet impacted retail sales, but will be watched closely.
Vacancy rates in the retail sector are expected to rise to 9.3 percent in the fourth quarter from 8.1 percent at the end of 2006; vacancies are forecast at 8.9 percent by the end of next year. Average retail rent is projected to rise 2.9 percent in 2007 and 1.0 percent next year, following a 3.9 percent increase in 2006.
Retail markets with the lowest vacancies include San Francisco; Orange County, Calif.; San Jose, Calif.; Ventura County, Calif.; Washington, D.C.; and Las Vegas, all with vacancy rates of 5.1 percent or less.
Net absorption of retail space in 53 tracked markets should be 12.1 million square feet this year and 19.0 million in 2008, up from 10.7 million last year.
Retail transaction volume in the first seven months of this year totaled $37.4 billion, up from $22.3 billion in same period in 2006. Private investors accounted for 35 percent of transaction volume, followed by institutional investors at 22 percent and foreign investors, 18 percent.
Multifamily MarketThe apartment rental market – multifamily housing – anecdotally appears to be impacted by an influx of single-family homes being offered for rent, cutting into the demand for apartment rentals. In addition, condos are being converted into rental units, particularly in markets such as Washington, D.C., and several areas of Florida.
At the same time, potential first-time home buyers are hesitant and staying in the rental market, supporting multifamily fundamentals until the lure of homeownership returns, the housing cycle changes and more buyers enter the housing market.
Multifamily vacancy rates are likely to average 5.9 percent in the fourth quarter, the same as the fourth quarter of 2006, and then ease to 5.6 percent by the end of next year. Average rent is expected increase 2.9 percent this year and 3.8 percent in 2008, after a 4.1 percent rise last year.
Multifamily net absorption will probably total 209,200 units in 59 tracked metro areas this year, down from 229,400 in 2006, but increase to 234,400 in 2008.
The areas with the lowest apartment vacancies include Northern New Jersey, Salt Lake City, Philadelphia, Pittsburgh, Los Angeles, Minneapolis and Nashville, all with vacancy rates of 2.7 percent or less.
Multifamily transactions in the first seven months of this year totaled $46.3 billion, compared with $41.5 billion in the same period in 2006. Half of the purchases were by private investors, while condo converters accounted for only three percent of acquisitions.
The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the Realtors® Commercial Alliance. The RCA, formed by NAR in 1999, serves the needs of the commercial market and the commercial constituency within NAR, including commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and NAR affiliate organizations.
Organizations in the RCA include the CCIM Institute, the Institute of Real Estate Management, the Realtors® Land Institute, the Society of Industrial and Office Realtors®, and the Counselors of Real Estate. The RCA also provides commercial products and services.
Nearly 140,000 NAR members offer commercial services, and 73,000 of those are currently members of the RCA.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
http://www.realtor.org/press_room/news_releases/2007/solid_fundamentals_support_commercial_market.html?&WT.mc_t=LS102407&WT.mc_n=Comm
Friday, October 19, 2007
Fed President Calls This Housing Cycle Very Unique
Daily Real Estate News October 19, 2007
The current U.S. housing cycle diverged from past experience because the boom was driven by the growth of the subprime market and securitization of it, St. Louis Federal Reserve President William Poole told a monetary policy conference.
"[It] all worked as long as house prices were rising — and it all collapses when house prices stop rising," Poole said. "Obviously, this segment of the market, it is going to be a long time before it comes back."
Poole is a voting member of the Fed's interest-rate setting committee this year.
"I think this housing cycle is ... in many respects is quite different from previous housing cycles, and has unique characteristics from the housing cycles from the postwar period," he said. "And [it] is unlikely to give us much insight into the housing market for the longer run."
Source: Reuters News (10/18/07)
See original article at http://www.realtor.org/rmodaily.nsf/pages/News2007101906
The current U.S. housing cycle diverged from past experience because the boom was driven by the growth of the subprime market and securitization of it, St. Louis Federal Reserve President William Poole told a monetary policy conference.
"[It] all worked as long as house prices were rising — and it all collapses when house prices stop rising," Poole said. "Obviously, this segment of the market, it is going to be a long time before it comes back."
Poole is a voting member of the Fed's interest-rate setting committee this year.
"I think this housing cycle is ... in many respects is quite different from previous housing cycles, and has unique characteristics from the housing cycles from the postwar period," he said. "And [it] is unlikely to give us much insight into the housing market for the longer run."
Source: Reuters News (10/18/07)
See original article at http://www.realtor.org/rmodaily.nsf/pages/News2007101906
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