News Alerts. Oct. 12, 2013. Afternoon Edition. #RealEstate

Linking ≠ endorsement. Enjoy and share:

  1. Jones Lang LaSalle: E-commerce drives demand for big-box industrial centers | REJournals.com

    Demand is soaring for big-box industrial distribution centers, those centers covering more than 300,000 square feet. And that's good news for the commercial real estate business. Jones Lang LaSalle recently released its first Big Box Velocity Index. And according to the numbers, 96.7 million square feet of industrial construction is now underway across the United States. Surprisingly, nearly half of this construction is of the speculative kind. And when Jones Lang LaSalle says "big box," the company means it. According to the index, the aveage size of the industrial distribution centers now under construction is 360,000 square feet. Who's filling all this space. Much of it is going to large e-commerce retail players.

    Source … http://www.rejournals.com/2013/10/11/jon es-lang-lasalle-e-commerce-drives-demand -for-big-box-industrial-centers/


  2. Denver sees biggest boost in home listings as prices slip

    Unsurprisingly:

    Home prices are falling across the country, according to ZipRealty Inc., an online real estate brokerage firm and real estate marketing solutions provider.

    "The fall's cooler temps are being matched by a cooling off in the housing market's red-hot trends," ZipRealty President and CEO Lanny Baker said. "For the month ended Sept. 15, median homes sale prices in the 24 metropolitan areas surveyed were up 14 percent year-over-year, compared to a nearly 16 percent gain one month earlier. Median sale prices were higher than a year ago in all cities studied, but the year-to-year median price increases shrank in 19 out of 24 markets. The median sale price of about $272,000 in mid-September was also about 2 percent lower than in mid-August."

    Institutional buyers will shake out. The competition will become more consolidated. That will leave more higher fruit for the traditional homebuyers. However, if incomes don't improve more for the middle and lower classes and if mortgage-interest rates are allowed to rise and if lending standards remain tight, more people will remain renters, like it or not.

    Source … http://www.boulderijournal.com/article.p hp?id=9772


  3. House Of The Future: How Automation Tech Is Transforming The Home – Forbes

    … the six largest U.S. luxury home technology providers merged to create the first national-level, full-service integrator, VIA International. "The luxury homeowner now is automating everything," says Eric Thies, a co-founder and director of marketing for VIA international. "So what you'd expect like audio, lighting, climate, video, motorized shading — but also some stuff you wouldn't expect."

    As costs come down, we'll see more and more of this in rentals even at the middle and "affordable" ranges.

    Source … http://www.forbes.com/sites/morganbrenna n/2013/10/10/house-of-the-future-how-aut omation-tech-is-transforming-the-home/


  4. MortgageOrb: Earl Cummings: REO-To-Rental Could Be A Sustainable Strategy

    Investors range from small "mom and pop" operations to large, bulk acquisition specialists. The first-time investor looking for a single property to own as a rental is usually a small "mom and pop" hoping to acquire five to 10 properties for rental income. This buyer is usually purchasing from the MLS. The small investor usually does not intend to dispose of the properties.

    The large acquisition specialist attempts to buy 100 to 1,000 properties at a time, aggregating 5,000 to 10,000 properties for net operating income with the eventual goal of selling the inventory at a premium. …

    If the demand, the technology and financial exit strategies are perfected, we may have a new asset class in five years.

    As our longtime readers know, there's been a wide range of actions by institutional investors from dropping out to buy and flip to buy and hold.

    Source … http://www.mortgageorb.com/e107_plugins/ content/content.php?content.14449


  5. Gains to the Real Estate Lords: Since 2009 Landlord income up a stunning 85 percent. Interest income has gone negative because of Fed monetary policy. Big money selling into momentum. – Dr. Housing Bubble Blog

    The pessimistic view:

    The recovery in real estate has largely gone to big institutional players. Recent data from the US Commerce Department shows that rental income grew the fastest compared to other asset classes since 2009. Of course as we have chronicled over the last few years, most of the distressed property buying has gone to the investor class. The gains in rental income only impact a small portion of the population but the growth has been astounding. Rental income is now up 85 percent since 2009. Even stock dividends up at 44 percent have not met the pace of change in rental income. The trend is reflective of the insatiable demand from Wall Street for rental property over the last few years. Right on time however is the small investor jumping in at a tipping point as inventories rise, big money slows down, and interest rates have an impact on the housing market. Some big funds are even selling into momentum.

    Source … http://www.doctorhousingbubble.com/real- estate-lords-income-gains-rental-income- share-of-income-growth-rental-buying-wal l-street/


If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.

Hill & Usher (PropertyPak™ is a division) has many insurance offerings. See our menu above for more info and links.

Did this post help you? Let us know by leaving your comment below.

Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.

Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.

We do not necessarily fact checked the contents of every linked article or page, etc.

If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.

The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?

For our part, we believe in strong regulations and strong regulators.

We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.

We are allowed to share rating-bureau data/reports and industry-consultant opinions but make clear here that those opinions are theirs and do not necessarily reflect our position.

Subscribe