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- Didn't That Used to Be an Office Building? – CoStar Group
Office demolitions and conversions are playing an interesting role in this cycle's office recovery. They decrease competition for tenants, especially between Class B and C landlords, and as empty space is removed from the market, vacancies decline.
The effect of space removals has been unusually visible in recent years due to the dearth of new office buildings. In 2012, the office stock shrunk in a third of the 54 top U.S. markets, and overall demolitions and conversions reduced the net inventory change by about 21.6 million square feet, or 0.3% of inventory, effectively resulting in about a 0.2 percentage point decline in office vacancy.
Conversion to residential usage is the most prominent reason that an office building is removed from inventory.
- Real Estate Tip: Price Protection for the Stalking Horse Bidder | Bernstein Shur – JDSupra
… compensation, called a "break-up" fee, is typically a cash payment equal to a small percentage of the purchase price (3% or less).
- Unaccredited Investors May Finally Get the Go-Ahead to Fund Startups – Liz Gannes – News – AllThingsD
The big deal here is the loosening of restrictions on what are known as accredited investors — currently, those with self-reported income exceeding $200,000 in each of the two most recent years, or net worth of $1 million.
The JOBS Act would allow approved crowdfunding portals to help startups raise money from people with a net worth of less than $100,000, as long the investment doesn't exceed five percent of their income or net worth, and the companies don't raise more than $1 million from the crowd per year.
"… as long [as] the investment doesn't exceed five percent of their income or net worth …." That will mean many tiny investments.
When startups fail, plenty of those investors will be glad that they weren't allowed to invest more.
Do your due diligence.
- The euro zone: A new test for the single currency | The Economist
Adjusted for inflation, German house prices in 2010 were below their 1975 level. Over that span real prices rose 50% in America, 150% in Britain, and 200% in Spain.
- Germans prove that long hours and productivity are often two completely different things – Office Insight
Another important factor is that workers in rich countries tend to work fewer hours than workers in poorer countries. The survey suggests that this is counter-intuitive because most people associate high incomes with hard work. In fact people in rich countries tend to work shorter hours than those in poor countries.
One notable exception to this rule is the USA. Americans work long hours and have high levels of productivity, which the report concludes may be the result of low and middle income earners not seeing the country's increases in GDP over the last 40 years reflected in their incomes.
How long will that last? In our view, it's been a drag on the US economy that the fruits of productivity increases haven't been more generally shared with the workforce.
- Condominium Sales | Rental Conversions
"What I don't think people envisioned is the pace at which the population is increasing and how quickly the units from the last cycle would be absorbed," Peter Torres, vice president at Miami-based Astor Cos., told the Journal. "People thought the recovery would be stretched out much longer, maybe 10 years, and it's obviously been sooner than a lot of us expected."
- MF, the Star of California's Housing Recovery – Daily News Article – GlobeSt.com
Two very interesting observations:
… a government ideology shift toward higher densities has also fueled investor attention. "Ten years ago, it was hard to get multifamily zoning for environmental reasons, but now multifamily, especially when close to transit, is viewed as green," Shulman [UCLA senior economist David Shulman] explains. "All of the sudden it has become extraordinarily easy to have multifamily permitted, and that is part of the reason why we are having this boom in construction."
In 2009, the market had hit a low, producing only 112,000 units. In Rovner's [Mike Rovner, president and founder of Mike Rovner Construction] opinion, the current development boom is really just the market catching up with demand after that development lull, which ranged between 2008-2012.
- China's Crazy Rich House Hunters – Forbes
Chinese buyers will spend $8.2 billion on American houses this year, according to the National Association of Realtors. That translates into $492 million in commission for American real estate agents thanks to China. Approximately 70% of Chinese buyers will pay cash. And while most of them are not buying multi-million dollar manors, the U.S. is the number one destination for Chinese property investors in 2013, according to Juwai.com data.
"You almost want to call it a bubble…." What do you mean, almost? :-)
- Lenders unwilling to loan to wealthy strategic defaulters – OC Housing News
The people who strategically defaulted and squatted for years got to enjoy a substantial benefit at the bank's expense. These people should have to endure some consequences for this action. The waiting period is a small price to pay for the good times they had while they enjoyed their free ride.
What are the ethical considerations with strategic defaults by affluent, solvent, liquid borrowers?
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