Article by Rick Hendershot

In its most recent report released Jan 24, The National Association of Realtors anticipates “solid” gains in the US commercial real estate sector.

David Lereah, NAR’s chief economist said “Even with a lot of new construction around the country, we are seeing healthy levels of commercial real estate space being purchased, rented and occupied.

As a result, vacancies are declining across the board – this is improving the fundamentals for commercial real estate sectors into the foreseeable future.”

The report also sees rising concerns at the Fed that commercial real estate is being concentrated in some banks. According to Federal Reserve Governor, Susan Bies, The Fed is considering issuing “supervisory guidance” on risk-management to avoid commercial real estate exposure that was typical of previous economic downturns.

According to NAR’s latest forecast vacancy rates are generally declining across most of the 57 metropolitan areas examined. This means rents are stabilizing in all four commercial market sectors: office, retail, industrial and multifamily housing.

Employment increases in all sectors is what is driving the lower vacancy rates. According to the NAR, these rates are expected to fall to 14.1 percent by the fourth quarter of 2005 and to 12.2 percent in 2006. This is down from 15.4 percent in 2004. They project that office space rent will grow 4.4 percent for 2005 and 4.9 percent next year That is up significantly from 2004 when the increase was just 0.4 percent.

Their analysis of specific metro areas for investment singles out New York, Los Angeles, Washington, San Francisco and Chicago as good targets for commercial real estate investment.

In the industrial sector vacancies are projected to go down to 8.8 percent by the end of 2006 compared to 10.9 percent last year. Industrial rents, actually declined slightly in 2005, but are projected to increase 2.5 percent in 2006.

Retail space vacancy is predicted to hit 6.8 percent in the fourth quarter of 2005, down from 7.5 percent the previous year. Rents are expected to rise 3.2 percent in 2006 after a similar increase in 2005. Increases in 2004 were 3.3 percent.

**Some Local Commercial Real Estate hi-lites**

The St. Louis region had an all-time high of .2 billion in commercial real estate transactions in 2005. Local real estate experts predict it will be even higher in 2006 – perhaps as high as .4 billion.

A Colliers report found that industrial vacancy rates in the region were at a five-year low, and demand for office and retail space had fully recovered from the recession a few years ago.

Part of what is driving the real estate boom is that investors have moved from the stock market to commercial real estate. Many investors prefer commercial real estate because it is more transparent and provides a steady cash return as well as a reliable rate of appreciation.

In the Bradenton, Florida area (Manatee County) commercial real estate is also going strong. Local experts say commercial development follows residential, so given the rapid pace of residential development in most of Florida over the last few years, there is little likelihood that commercial development is going to slow down any time soon.

Development here as elsewhere is also dependent on interest rates, but in Florida the cyclical nature of real estate development is somewhat mitigated by the unique location and climate, as well as a shifting demographic pattern.

Lack of convenient parking, and traffic on main downtown streets, as well as a limited number of downtown development sites are the biggest challenges facing commercial real estate developers in this smaller Florida city.

In the Marina Del Rey area of Los Angeles about .5 billion in commercial and residential improvements are underway. The county is encouraging leaseholders to make improvements to boost visitors and increase county revenue.

So far two shopping centers have been renovated and the marina’s shops and restaurants, called Fisherman’s Village, will be completely renovated.

Approximately 1,600 apartments are being added, at the same time as reducing the number of boat slips at the 40-year-old marina.

About the Author

Rick Hendershot does website promotion | Mortgage and Loan Information | Commercial Loans without banks

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The Golden Hill region is located near Downtown San Diego County, California. The community is located between Interstates 5 and 15, just south of the famous Balboa Park.

For the period observed (January through July 2006 compared against January through July 2005), the number of homes sold remained relatively consistent. Approximately 74 single-family homes sold in 2006 and 76 homes sold in 2005.

One method to analyze pricing trends for a particular community is to evaluate the median and average price of homes for a particular month, and compare that data against the same period last year. What follows is a comparison of the median price and average price of homes for the past seven months (January through July 2006), compared against the data for the corresponding time period in 2005.

The median price of homes represents the point at which half the homes are above a particular price point, and half the homes are below a particular price point. The average price of homes is calculated by adding up the sales price of all homes sold in a particular month, and dividing that value by the number of homes sold.

The median price of homes in July 2006 was 2,000, compared to 5,000 in July 2005, which represents a 34.6% increase. The average price of homes in July 2006 was 1,875, compared to 6,636 in July 2005, which represents a 19.5% increase. Approximately 8 homes sold in July 2006 and 11 in July 2005. In summary, there was an upward price trend in July 2006 compared to the same period last year.

The median price of homes in June 2006 was 1,500, compared to 0,000 in June 2005, which represents a 16.4% drop. The average price of homes in June 2006 was 7,600, compared to 4,846 in June 2005, which represents an 11.1% decline. Approximately 10 homes sold in June 2006 and 13 in June 2005. In summary, there was a downward price trend in June 2006 compared to the same period last year.

The median price of homes in May 2006 was 0,000, compared to 0,000 in May 2005, which represents a 13.9% increase. The average price of homes in May 2006 was 5,067, compared to 5,727 in May 2005, which represents a 10.5% increase. Approximately 15 homes sold in May 2006 and 11 in May 2005. In summary, there was an upward price trend in May 2006 compared to the same period last year.

The median price of homes in April 2006 was 2,500, compared to 0,000 in April 2005, which represents an 8.3% drop. The average price of homes in April 2006 was 8,071, compared to 2,067 in April 2005, which represents a 10.9% decline. Approximately 14 homes sold in April 2006 and 15 in April 2005. In summary, there was a downward price trend in April 2006 compared to the same period last year.

The median price of homes in March 2006 was 5,250, compared to 7,500 in March 2005, which represents an 8.2% decrease. The average price of homes in March 2006 was 1,886, compared to 8,375 in March 2005, which represents a 5.5% increase. Approximately 14 homes sold in March 2006 and 12 in March 2005. The data was mixed for March 2006, as the median price dropped and the average price increased from the same time last year.

The median price of homes in February 2006 was 2,500, compared to 2,500 in February 2005, which represents a 6.7% drop. The average price of homes in February 2006 was 3,128, compared to 3,625 in February 2005, which represents a 1.7% decline. About 8 homes sold in February 2006 and 8 in February 2005. In summary, there was a downward price trend in February 2006 compared to the same period last year.

The median price of homes was 5,000 in January 2006, compared to 0,000 in January 2005, which represents a 9% decline. The average price of homes in January 2006 was 6,280, compared to 7,483 in January 2005, which represents a 1.3% drop. Approximately 5 homes sold in January 2006 and 6 in January 2005. In summary, there was a downward price trend in January 2006 compared to the same period last year.

So what does the data tell us? Well, the data above does not reveal a consistent pattern. The home prices for May and July 2006 were up year-over-year in the range of 10% to 35% from the same period last year. However, prices were down 1% to 16% during January, February, April and June 2006, compared to the same time last year. The data for March 2006 was mixed, with the median price dropping 8.2%, and the average price increasing 5.5% for the same time last year. Given the ups and down described above, a longer period of evaluation is needed to determine if a clear pattern emerges. Contact an experienced Realtor to obtain additional insights about the pricing trends in the Golden Hill real estate market.

The community of Clairemont (sometimes called Clairemont Mesa) is located in central San Diego County, California. The community is located off Interstate 5 at Balboa Ave and is within the 92117 Zip code.

The real estate and homes for sale in Clairemont fall into the moderate-income category for San Diego County. The number of homes sold in a particular year is relatively high. For example, during the period from January through July 2006, approximately 183 single-family homes sold. Approximately 226 homes sold for the same period in 2005.

One method to analyze pricing trends for a particular community is to evaluate the median and average price of homes for a particular month, and compare that data against the same period last year. What follows is a comparison of the median price and average price of homes for the past seven months (January through July 2006), compared against the data for the corresponding time period in 2005.

The median price of homes represents the point at which half the homes are above a particular price point, and half the homes are below a particular price point. The average price of homes is calculated by adding up the sales price of all homes sold in a particular month, and dividing that value by the number of homes sold.

The median price of homes in July 2006 was 0,000, compared to 2,500 in July 2005, which represents a 0.9% drop. The average price of homes in July 2006 was 5,114, compared to 5,602 in July 2005, which represents a 2.4% drop. Approximately 21 homes sold in July 2006 and 26 in July 2005. The data provides evidence that there was a downward price trend in July 2006 compared to the same period last year.

The median price of homes in June 2006 was 5,000, compared to 0,000 in June 2005, which represents a 2.6% drop. The average price of homes in June 2006 was 6,758, compared to 4,415 in June 2005, which represents a 0.4% increase. Approximately 30 homes sold in June 2006 and 34 in June 2005. The data for June 2006 was mixed, as median prices declined and average prices rose slightly from the same period last year.

The median price of homes in May 2006 was 0,000, compared to 2,000 in May 2005, which represents a 2.3% drop. The average price of homes in May 2006 was 4,012, compared to 2,000 in May 2005, which represents a 0.3% increase. Approximately 33 homes sold in May 2006 and 37 in May 2005. The data was mixed in June 2006, as median prices declined and average prices rose slightly from the same period last year.

The median price of homes in April 2006 was 4,000, compared to 5,000 in April 2005, which represents a 0.20% drop. The average price of homes in April 2006 was 4,722, compared to 2,897 in April 2005, which represents a 4.6% drop. Approximately 32 homes sold in April 2006 and 36 in April 2005. The data provides evidence that there was a downward price trend in April 2006 compared to the same period last year.

The median price of homes in March 2006 was 8,000, compared to 5,000 in March 2005, which represents a 1.5% increase. The average price of homes in March 2006 was 9,161, compared to 6,227 in March 2005, which represents a 3.60% increase. Approximately 29 homes sold in March 2006 and 39 in March 2005. The data provides evidence that there was an upward price trend in March 2006 compared to the same period last year.

The median price of homes in February 2006 was 0,000, compared to 5,000 in February 2005, which represents a 7.4% increase. The average price of homes in February 2006 was 2,435, compared to 1,708 in February 2005, which represents a 2.50% increase. Approximately 17 home sold in February 2006 and 29 in February 2005. The data provides evidence that there was an upward price trend in February 2006 compared to the same period last year.

The median price of homes was 5,000 in January 2006, compared to 5,000 in January 2005, which represents a 10% increase. The average price of homes in January 2006 was 4,524, compared to 2,708 in January 2005, which represents a 16.9% increase. Approximately 21 homes sold in January 2006 and 25 in January 2005. The data provides evidence that there was an upward price trend in January 2006 compared to the same period last year.

So what does the above data tell us? Overall, there was a 19% decline in the number of homes sold during this period from 2006 to 2005. The pricing trends early in the year (January, February and March) were in the upward direction for both median and average prices, which showed increases year-over-year ranging from 1.5% to 16.9%. However, since then, the pricing trend has been downward or mixed depending on the month. For example, April and July demonstrated downward median and average prices ranging from around half a percent up to 5%. For May and June, the median price was down around 2% from the previous year, and the average price was slightly up around half a percent. These findings suggest that at best, prices have leveled off, and at worst, are starting to decline. Continued monitoring of sale data in subsequent months is needed to identify enduring market trends.

Be sure to consult your Realtor on other factors that influence home pricing before buying or selling real estate in Clairemont.

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The College Grove region (also know as the College Area) is located in central San Diego County, California. The community is located off Interstate 8 just east of Interstate 15. San Diego State University is located within the borders of the College Grove area.

The real estate and homes for sale in College Grove fall into the low to mid-income categories. The number of homes sold in a particular year is relatively high. For example, during the period from January through July 2006, approximately 211 single-family homes sold. Approximately 268 homes sold for the same period in 2005.

One method to analyze pricing trends for a particular community is to evaluate the median and average price of homes for a particular month, and compare that data against the same period last year. What follows is a comparison of the median price and average price of homes for the past seven months (January through July 2006), compared against the data for the corresponding time period in 2005.

The median price of homes represents the point at which half the homes are above a particular price point, and half the homes are below a particular price point. The average price of homes is calculated by adding up the sales price of all homes sold in a particular month, and dividing that value by the number of homes sold.

The median price of homes in July 2006 was 5,000, compared to 7,000 in July 2005, which represents a 9.2% increase. The average price of homes in July 2006 was 3,476, compared to 8,602 in July 2005, which represents a 10% increase. Approximately 25 homes sold in July 2006 and 38 in July 2005. The data provides evidence that there was an upward price trend in July 2006 compared to the same period last year.

The median price of homes in June 2006 was 5,000, compared to 6,500 in June 2005, which represents a 5.9% drop. The average price of homes in June 2006 was 2,427, compared to 6,078 in June 2005, which represents a 4.1% drop. Approximately 38 homes sold in June 2006 and 40 in June 2005. The data provides evidence that there was a downward price trend in June 2006 compared to the same period last year.

The median price of homes in May 2006 was 2,000, compared to 8,500 in May 2005, which represents a 0.7% increase. The average price of homes in May 2006 was 4,812, compared to 7,085 in May 2005, which represents a 1.4% increase. Approximately 30 homes sold in May 2006 and 46 in May 2005. The data provides evidence that there was slight upward price trend in May 2006 compared to the same period last year.

The median price of homes in April 2006 was 0,000, compared to 5,000 in April 2005, which represents a 5.1% increase. The average price of homes in April 2006 was 3,421, compared to 4,306 in April 2005, which represents a 0.2% drop. Approximately 41 homes sold in April 2006 and 47 in April 2005. The data for April 2006 was mixed, as the median price showed a moderate increase from last year, while the average price had a slight drop.

The median price of homes in March 2006 was 5,000, compared to 9,000 in March 2005, which represents a 5.3% increase. The average price of homes in March 2006 was 4,690, compared to 9,856 in March 2005, which represents a 13.4% increase. Approximately 41 homes sold in March 2006 and 44 in March 2005. The data provides evidence that there was an upward price trend in March 2006 compared to the same period last year.

The median price of homes in February 2006 was 2,500, compared to 5,000 in February 2005, which represents a 0.50% increase. The average price of homes in February 2006 was 2,600, compared to 6,932 in February 2005, which represents a 4.6% increase. Approximately 20 homes sold in February 2006 and 25 in February 2005. The data provides evidence that there was an upward price trend in February 2006 compared to the same period last year.

The median price of homes was 0,950 in January 2006, compared to 3,000 in January 2005, which represents a 9.9% increase. The average price of homes in January 2006 was 8,416, compared to 1,904 in January 2005, which represents a 3.20% drop. Approximately 16 homes sold in January 2006 and 28 in January 2005. The data for January 2006 was mixed, as the median price showed a moderate increase from last year, while average prices dropped.

So what does the above data tell us? Overall, there was a 21.3% decline in the number of homes sold during this period from 2006 to 2005. Four months out of seven (February, March, May and July) demonstrated increases in both median and average prices from the same period last year. The magnitude of the increase ranged from half a percent to 10%. The months of April and January had mixed findings, with average prices decreasing slightly (less than 3.2%), and median prices increasing 5% to 10%. In contrast, the June data showed a downward trend in both median and average prices with a range of 4% to 6%.

The data above suggests that although there are monthly variations, on balance, homes in the College Grove area continue to demonstrate price gains. Continued monitoring of sale data in subsequent months is needed to identify enduring market trends.

Be sure to consult your Realtor on other factors that influence home pricing before buying or selling real estate in College Grove.