CoStar Releases 2010 Power Brokers Awards

CoStar annually releases their “Power Brokers Awards” to the top earners of the year. It was a pleasure to see not only our brokerage, Kidder Mathews among the top spots, but also one of “The Industrial Pros”, Mark Melbye for the San Francisco Bay Area region. Here’s the list of brokerage winners:

And the individual industrial winners:

We’re looking forward to getting the entire Industrial Pros staff on the list for 2011!

Costar and Loopnet Agree to Merger

Two Titans in the Commercial Real Estate Industry Join Forces

Costar announced yesterday (5/26) that it entered into an agreement to acquire Loopnet, the MLS-style giant in the commercial real estate industry.  The transaction was reportedly worth $860 Million.
Costar, known for its research and analyzing platform, believes that the merger will produce a company with even more comprehensive tools and options for both individual investors and companies.  Andrew Florance, the Founder and CEO of Costar said that there is little overlap between the companies since Loopnet appeals to the general public and individual investors, while Costar with its subscription-only model, typically is used by companies and institutional investors.
If you are into Commercial Real Estate, this is big news.  Both companies, once rivals, will now essentially monopolize the commercial real estate listings and information services.  It will be interesting to see how the technology unfolds.

*Exclusive* Investor Purchases Burlingame Industrial Property

We have the exclusive reporting on a property sold in Burlingame on Cowan.  The building was a fully leased, true NNN, long-term investment and shows that there is movement in the market.  Here are the details:

Address:   868 Cowan Road, Burlingame

Buyer:  Confidential

Seller:  Confidential

Sale Price:  Call for pricing (650-769-3516)

Bldg Type: Class B  Industrial – Warehouse (Food Manufacturing)

RBA:  55,700 SF

Land Area:  2.20 AC (95,832 SF)

REIS Q1 Pre-Analysis

REIS recently reported on some of their findings for the first quarter of 2011.  Not a huge surprise given the fact that we’ve reported on many of these happenings recently, including their analysis on office absorption.  Here are some snapshots on their early findings:  (By the way, look out for our Kidder Mathews Q1 report to come out soon!)

Office:  

Office vacancies decline for the first time in three years. National vacancy rates for office properties fell from 17.6% at the end of 2010 to 17.5% in the first quarter of 2011. This period also marks the second consecutive quarterly increase in occupied space following eleven consecutive quarters of decreases.

Still, uncertainty hangs over the global economy. Although we expect the economy and labor markets to continue to improve, we expect this to be a long and inconsistent ride given the depths of the past recession, ongoing pervasive debt problems, geopolitical risk, and increasing food and commodity inflation.

Retail:  

We’re still searching for the bottom in the retail sector. The vacancy rate for neighborhood and community centers stayed flat at 10.9% during the first quarter. This marks the third consecutive quarter that the rate was unchanged. However, the main reason vacancies have trended flat is because inventory growth has slowed to a crawl. Only 83,000 square feet of new neighborhood and community center space came online this period. In other words, flat vacancies represent the absence of demand more than a sector heading for recovery.

Hayward Industrial Purchased for $1.25M

Details: 29588 Ruus Road, Hayward

Buyer:  CA Fleet Maintenance Inc

Seller:  Julietta R. Lucas-Vales

Sale Price:  $1,250,000

Bldg Type: Class B  Industrial – Warehouse

Price/SF:  $71.57

RBA:  5,976 SF

Land Area:  1.66 AC (72,309 SF)

BINSWANGER FORMS STRATEGIC ALLIANCE TO PROVIDE CORPORATE ADVISORY SERVICES WITH WEST COAST-BASED FIRM

Philadelphia, PA – Two major players in the real estate business, Binswanger and Kidder Mathews, are pleased to announce the formation of a strategic alliance offering global corporate advisory services to clients located in the Washington, Oregon, and Northern California markets and for clients with requirements in the Northwest.  The alliance will focus on corporations and governments located in the region and the services for the planning, acquisitions, management, and redeployment of real property assets used in the conduct of their businesses.  

In addition, Binswanger has teamed with the Industrial and Advanced Technology Group of CH2M Hill on projects in various manufacturing sectors such as Technology, Life Sciences, Automotive, Logistics, Operations, and other areas and with GoIndustry-DoveBid to offer our clients extensive engineering and equipment/machinery services.  Adding these leading companies to our platform allows us to achieve the highest positive impact on company performance across a wider accounting of costs, use and value goals for our clients, including Amgen, Johnson & Johnson, IBM, Texas Instruments and many others.

Headquartered inPhiladelphia,PA, Binswanger is an international full-service real estate organization with offices worldwide throughout theUnited States,Canada, Latin America, Europe, the Middle East, andAsia.  Binswanger offers comprehensive real estate services including advisory/consulting, property acquisition and disposition, location consulting, management services including facility and project management, financial services, and valuation.  Founded in 1931, the company has completed thousands of transactions for billions of dollars across a diversified portfolio of businesses.  We serve a vast number of the Global 1000 companies and completed over 11 billion dollars in activity last year.

Kidder Mathews is one of the largest independently owned commercial real estate firms on the West Coast, with over 400 real estate professionals and staff in nine offices inWashington,Oregon, andCalifornia.  Kidder Mathews provides brokerage, appraisal, property management, consulting, project and construction management, and sustainability consulting services. Founded in 1969, the firm has performed $6 billion in transactions over the last three years, currently conducts 1,000 appraisals annually, and manages over 22 million square feet of commercial space.

Palo Alto Office Building Sells For Approx. $900/SF

In a strong display by Silicon Valley’s office sector, RREEF recently acquired 100 Hamilton Ave for a reported $65 Million according to several sources.  The property was only on the market for 3 months through Jones Lang Lasalle and attracted both national and international investor attention.  This deal goes down as one of the Top 10 deals on a price per square foot basis in the last ten years, and speaks to the lack of available office space in the area.  The 72,000 SF office building lies in the heart of the valley and with large scale purchases recently by companies such as Google, Facebook, and several high-profile REITs, the office rate has been in an upward spiral and looks to continue to stay hot through the summer.   Keep an eye out as surely this will overflow into several other submarkets such as the South Bay, Mid-peninsula, and even the East Bay.  San Francisco office space is also seeing high-end pressure.  Details of the deal:

Address: 100 Hamilton Ave, Palo Alto

Buyer:  RREEF

Seller:  Embarcadero Capital Partners

Sale Price:  $65,000,000 (estimated)

Bldg Type:    Class A Office

Year Built/Age:  Built 1983 (updated 2005)

Price/SF:  $904.95

RBA:  71,827 SF

Land Area:  0 .55 AC (23,958 SF)

Menlo Park Retail Sells for $423/SF

Details:  889 Santa Cruz Ave, Menlo Park

Buyer:  Village Properties

Seller:  Private

Sale Price:  $1,100,000

Bldg Type:  Retail

Price/SF:  $423.00

RBA:  26,000 SF

HP Takes 394,000 SF at New Office/R&D Project

By Bob Howard

SUNNYVALE, CA-Hewlett-Packard has signed a lease for 393,776 square feet at the newly developed Moffett Towers, where the technology firm will consolidate multiple Bay Area locations. The new HP space is at 1140 and 1160 Enterprise Way at San Francisco-based Jay Paul Co.’s 1.8-million-square-foot LEED Gold Moffett Towers office/R&D development.

HP plans to create a state-of-the-art software innovation center in its new facility, according to an announcement from Cornish & Carey Commercial Newmark Knight, whose EVP Phil Mahoney represents Moffett Towers property in all leases. HP, which was represented by Ken Gilbert and Alex Somerville of CB Richard Ellis, intends to begin occupancy of Moffett Towers in early 2012.

Terms of the HP lease were undisclosed. Asking rates for Moffett Towers are $2.85 per square foot per month, NNN.

Read more of the GlobeStreet article here.

 

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