Price Momentum Continues to Build for Commercial Real Estate

Price Momentum Continues to Build for Commercial Real Estate

Latest CoStar Commercial Repeat Sale Analysis Finds Property Pricing Benefitting from Broad Recovery in Market Fundamentals

By Tim Trainor

April 16, 2014

 

 

This month's CoStar Commercial Repeat Sale Indices (CCRSI) provides more evidence of two broad trends in the commercial real estate investment market: the continued strong demand for top quality institutional-grade assets by big investors, and widening investor demand for mid- and lower-quality commercial property as the pricing recovery extended to smaller markets and secondary property types.

Based on an analysis of 1,028 repeat sales in February 2014 and more than 125,000 repeat sales since 1996, the CCRSI found commercial real estate prices registered broad gains during that month. The two broadest measures of aggregate pricing for commercial properties within the CCRSI-the value-weighted U.S. Composite Index and the equal-weighted U.S. Composite Index-gained 1.1% and 1.7%, both reached double-digit growth over the previous 12-month period.

The value-weighted U.S. Composite Index, which is more heavily influenced by high-value property sales that have seen prices skyrocket over the last two years, has risen to levels not seen since early 2008, reaching to within 5% of its pre-recession peak.

Meanwhile, the equal-weighted U.S. Composite Index, which is more heavily influenced by the more-numerous lower-value trades, remained 22.3% below its prior peak. However, pricing for lower-end properties appears to be gaining momentum. The index made its strongest annual gain in February 2014 since the current recovery began, advancing by 15.7% over the last 12 months as investors continued to expand their buying activity in non-prime markets.

The momentum shift to lower quality and smaller properties also appeared in the recent growth of the General Commercial segment, which grew by a similar 15.7% over the previous year, while its counterpart, the Investment Grade Index, advanced by an equally strong 15% over the same period.

In reporting on commercial property pricing trends, CoStar's CCRSI made note of the continued positive net absorption across the three major property types - office, retail and industrial - which totaled 378.2 million square feet, a 15.3% increase from the prior 12-month period. Consistent with recent pricing trends, net absorption within the General Commercial segment rose 48% during the same period, compared with a 5% annual gain for the same period in the Investment Grade segment.

In keeping with the pattern set in previous years, the number of properties trading hands over the first three months of year is typically one-third lower than year-end sale volume. However, despite the slowdown, the CCRSI noted that transaction activity through February 2014 suggests that the year as a whole will be very active for commercial real estate investment. Having racked up a composite pair volume of nearly $10 billion through the first two months of the year, 2014 has already exceeded first quarter 2013 totals.

 

see the full article here: http://www.costar.com/News/Article/Price-Momentum-Continues-to-Build-for-Commercial-Real-Estate/159580

 

A Buyers Choice Home Inspections/ Building Inspections inspect commercial property too – call 0800 86 36 36

New Franchise Announcement - A Buyers Choice Home Inspections (building Inspections)

April 2014 – New Franchise Announcement

Here at A Buyer's Choice Home Inspections New Zealand we are excited to announce the following new franchise to join our growing network!

Rob Beagle our very first franchisee and his Fiancé Joan have purchased a second complimentary area to their existing West Auckland franchise. 

Please join us in welcoming ... Amy Cooper who will be the inspector serving the Central West Auckland area.    

                                 
 
Originally from the Hawkes Bay, Amy Cooper now resides in West Auckland.  Having previously owned a successful personal training business, Amy is excited and focused on a career with A Buyers Choice Home Inspections.  

Amy is dedicated to offering a high level of service and believes in putting the customer first. Amy understands the important decisions involved in buying or selling a home and strives to give the customer peace of mind through honesty, integrity and a strong work ethic.

Should you wish to communicate directly with Duane please contact him via amy.g.cooper@gmail.com

Congratulations Rob and Joan,
Welcome to the team Amy!

Best wishes,
Sarah Turner
Operations Manager
A Buyer's Choice Home Inspections New Zealand     

 

Sarah Turner
New Zealand Operations Manager



Ph: 09 413 7936
Mob: 022 043 1226
Toll free: 0800 86 36 36

www.abuyerschoice.co.nz
sarah.turner@abuyerschoice.com

New Franchise Announcement

New Franchise Announcement - April 2014

Here at A Buyer's Choice Home Inspections New Zealand we are excited to announce the following new franchise to join our growing network!
 
Please join us in welcoming ... Emenuwal Chandra who will be the inspector serving the next central Auckland area.    

  

Emenuwal was born and raised Fiji and worked for the ANZ bank prior to moving to New Zealand in the 1990’s where he has spent the majority of his career as a builder.

 He has achieved silver and bronze awards from the Registered Master Builders House of the year competition for the Auckland region in 2006 and 2007 respectively.  He prides himself on his hard work and excellence in whatever he does. He has been working for the last few years in project management and is now very interested in the home inspection services.

Emenuwal speaks both English and Hindi fluently and brings with him a wealth of building and construction knowledge to our team and we very much look forward to working with him. 
Should you wish to communicate directly with Emenuwal please contact him via emenuwalchandra@hotmail.com

Congratulations and welcome to the team Emenuwal!

Best wishes,

 

Sarah Turner
Operations Manager
A Buyer's Choice Home Inspections New Zealand     

 

 

Autism Speaks Canada Partnership - A Buyers Choice Home Inspections (Building Inspections)



ABCHI Forms Philanthropic Partnership with Autism Speak Canada April 23, 2014 Good day to the ABCHI Family, It is with sincere excitement and deep meaning that we share with you news of a new partnership that ABCHI has formed. We are partnering with Autism Speaks Canada to fund research into the causes, prevention, treatments and cures for autism, as well as to enhance the public's awareness about autism. Charitable causes request ABCHI commitments from home office and franchisee partners several times a year, and it is important for us to be active in philanthropy. It is along these lines that ABCHI Home Office and the regional owners have come together in jointly selecting Autism Speaks Canada. To support the efforts, our public relations partner, All Points Public Relations, is conducting proactive media outreach aimed at generating awareness for our new relationship with Autism Speaks. This is being carried out throughout Canada and you will be kept abreast of press opportunities generated in your markets. This announcement comes amid one of Autism Speaks' most prolific promotional periods – Autism Awareness Month. We join them in their efforts this April, but our partnership is year-round. Our first year fundraising goal is $15,000. To achieve this amount, we ask you to consider contributing .15 cents per inspection monthly. This small amount per inspection, while seemingly insignificant, should allow us, with our combined efforts, to reach our stated goal. For those who participate, the region as well as home office will match your contribution. The ABCHI home office will account for and pay all donations from each individual franchise partner. And, Autism Speaks Canada will issue each individual partner tax receipts at years end. We will pay contributions at the same time we pay monthly royalties. ABCHI will offer participating franchise partners ABCHI/Autism Speaks Canada vehicle stickers, marketing messages on your micro websites and all promotional materials. We will be advertising, "for every inspection performed, a donation will be made…" This is a fantastic opportunity for A Buyer's Choice to join a cause marketing campaign that receives significant national exposure. There is a significant portion of the population, all things being equal, which will support our business as a result. We thank you for your participation and welcome any questions you may have. Sincerely, Bill Redfern A Buyer's Choice Home Inspections President & CEO

House to Home

 

10 Reasons Why Homeowners Have an Edge on Renters

Shutter stock The homeownership rate remains relatively low. By Kimberly Palmer

Homebuying has earned a bad rap in recent years: The subprime mortgage crisis and ensuing economic meltdown left many homeowners underwater, unable to pay their mortgage and even facing foreclosure. Homeownership rates fell throughout the recession and got down to about 65 percent, compared with almost 70 percent before the recession, according to the Census Bureau. While record low interest rates helped entice homebuyers, the bureau reports that the homeownership rate remains relatively low, at 65.2 percent in the fourth quarter of 2013.

If you're among those struggling to decide whether to buy versus rent, consider these 10 reasons to take the plunge into homeownership:

1. You can ramp up energy efficiency. Energy-efficient improvements, from adding insulation to upgrading your air-conditioning unit, can reduce your monthly utility bill, says Jane Hodges, author of the book "Rent vs. Own." While renters can make plenty of green improvements on their own, from unplugging appliances to turning off lights, homeowners can make bigger changes, such as

"Lock in a low monthly payment, and you've just taken a huge step in protecting your family against inflation."

adding solar panels or installing an energy-efficient roof. (Of course, a renter living in a one-bedroom apartment likely uses far less energy than a homeowner in a three-bedroom house, so size can trump energy improvements.)

2. You can customize your space. Whether you need to knock down a wall to make a larger master bedroom or redo the bathroom to reflect your art deco tastes, owning the space you live in means you have the freedom to do so, without worrying about losing your security deposit.

3. Homeowners buy less furniture. "Often when you're renting you need custom furniture that fits the space," Hodges says, such as room dividers for a loft or miniature furniture to fit into a basement apartment. "When people move a lot, they can end up buying a lot of furniture," she says. If you buy a home and settle in for the long haul, you can likely purchase a few pieces that will stick around.

4. Owning a home forces you to save. The so-called "forced savings" argument is a widely-held one: Since homeowners have to pay their mortgage every month, they are routinely putting money away (and into their house, which they own), instead of squandering it on new shoes or fancy meals. Then, if you eventually sell your home after the mortgage is paid off, there's a good chance that "you'll walk away with a payoff," even after subtracting the costs of ownership, Hodges says. (Of course, homeowners who face foreclosure or declining home values often find themselves without such equity to show for their monthly mortgage payments.)

5. Homeownership allows you to build a second income stream. From taking in a renter in a spare bedroom to renting out driveway space to commuters, Hodges says homeowners are increasingly finding ways to monetize their homes. In cities with scant green space, some homeowners even rent out small patches of grass for people who want to grow vegetables.

6. No landlord can kick you out. Renters can face an unexpected eviction notice if their landlord suddenly decides to sell the home, rent to someone else or otherwise end the lease. That's one reason Boston University economics professor Laurence Kotlikoff says that for older people with a fixed income in particular, he recommends homeownership (and a paid-off mortgage). "It's important for older people to be in a home that they own as security against a landlord," he says.

7. In fact, you don't have to speak to a landlord, ever again. Landlords can take ages to fix a broken dishwasher, let the air vents fill with dust and particles, or leave pesky messages about repairs. If you're the homeowner, then you're in charge – which means you have to be home when the plumber calls, but the plumber reports to you. (And, of course, you also have to pay the plumber.)

8. Unlike rent, a fixed mortgage can't go up (even if inflation does). Fixed mortgage rates don't go up, even if the cost of everything else does. To protect yourself, Jack Otter, author of "Worth It ... Not Worth It?" suggests making a 20 percent down payment and taking out a 30-year fixed mortgage to lock in today's low interest rates. "Mortgage rates haven't been this low since GIs were heading home from France. Lock in a low monthly payment, and you've just taken a huge step in protecting your family against inflation," he writes in his book.

9. Homeowners can take tax deductions. The chief tax benefit of homeownership is the ability to deduct mortgage interest payments, but the perks don't stop there. Homeowners can also deduct eligible expenses (certain energy-efficient improvements, for example) and in some cases can avoid federal taxes on earnings from the sale of a home.

10. You can take advantage of currently low interest rates and prices. Despite creeping back up, interest rates remain relatively low from a historical perspective, and at the same time, home prices in many areas remain soft. That can make for an appealing buyer's market. Of course, buying isn't for everyone. If you might move soon or you want the flexibility to upgrade your digs with just a month's notice or your job outlook is uncertain, then renting can be ideal. Hodges says potential buyers should first consider the transaction costs of homeownership, which can add up quickly, especially if a buyer doesn't plan to stay put for very long.

"During the bubble, people were looking at homes as a tool to make money," Hodges says. Now, they just see them as a place to live.

 

View full article here http://realestate.aol.com/blog/2014/04/21/homebuying-money-saving-reasons/

Outstanding Achievement in British Columbia

Kim & Dave Williams BC Regional Owners A Buyer's Choice BC 2559 Shaughnessy Street Port Coquitlam, BC, V3C 3G3 Canada 778 996-0369 604 608-3852 April 21, 2014 Hello everyone, Please help us to congratulate Ken Oldale on the occassion of completing his 1000th home inspection. Ken has been very diligent in steadily growing his business in Chilliwack and the Fraser Valley.  Now with the addition of a second franchise in Abbotsford and Mission Ken is poised for a great year in 2014. As Ken says: "Platinum is the new Gold this year!" We enjoyed a lovely evening wtih Ken and his wife Shannon to give him some recognition in reaching this quite amazing milestone within a 4 year period. This is what some of the realtors have to say about Ken and his efforts:      "Ken has done all the right things as he grew his business and developed relationships, from delivering coffees at open houses, donuts to the offices, but even more Ken has always demonstrated that he is prepared to go the extra mile to assist a Realtor, I know personally Ken has come by and checked a house for a specific problem for me, and refused to take compensation, just said he was glad to be able to help me. For that and the above reasons Ken remains the number 1 inspector when we provide Inspectors names and I am sure he will be doing many more 1000's of inspections." Jim Adam, Sutton Group, Showplace Realty       "In my eyes "Ken" has been the epitome of his profession. His caring, giving, friendly and positive attitude has gone a long way with us Realtors and our clients. His efficiency and going the extra mile is always what I believe & practice with my clients as I see Ken does. Hence a real fit/ compliment to my business :) Kudos to you Ken for achieving your 1000th inspection!!! Cheers to many more thousands of inspections!" Laura Nisbet, Homelife Glenayre Realty   Our President and CEO; Bill Redfern had this to say to Ken: "I am extremely proud of Ken and his accomplishments. He has worked very hard for it and deserves the success he has achieved. He is a shining example for our team and I see him only getting better in coming years."    Congratulations once again, Ken. Kim & Dave Williams, BC Regional Owners

 

New Franchise Announcement

April 2014 – New Franchise Announcement

Here at A Buyer's Choice Home Inspections New Zealand we are excited to announce the following new franchise to join our growing network!

Rob Beagle our very first franchisee and his Fiancé Joan have purchased a second complimentary area to their existing West Auckland franchise. 

Please join us in welcoming ... Amy Cooper who will be the inspector serving the Central West Auckland area.    

                                 
 
Originally from the Hawkes Bay, Amy Cooper now resides in West Auckland.  Having previously owned a successful personal training business, Amy is excited and focused on a career with A Buyers Choice Home Inspections.  

Amy is dedicated to offering a high level of service and believes in putting the customer first. Amy understands the important decisions involved in buying or selling a home and strives to give the customer peace of mind through honesty, integrity and a strong work ethic.

Should you wish to communicate directly with Duane please contact him via amy.g.cooper@gmail.com

Congratulations Rob and Joan,
Welcome to the team Amy!

Best wishes,
Sarah Turner
Operations Manager
A Buyer's Choice Home Inspections New Zealand     

 

Sarah Turner
New Zealand Operations Manager



Ph: 09 413 7936
Mob: 022 043 1226
Toll free: 0800 86 36 36

www.abuyerschoice.co.nz
sarah.turner@abuyerschoice.com

What is not covered during the typical home inspection/ building inspection?

What is not covered during the typical home inspection/ building inspection?

A home inspector or building inspector will not have access to the plans or details of the LIM report for the property not are they required to do so. They will not be able to tell if an extension has been permitted or had consent but they should be able to tell if there have been changes made to the property that may require such.

0800 86 36 36 Inspecting Auckland wide (and some other areas – ask us where)

 

Why is it not a good idea to have a moisture only home inspection/ building inspection completed?

Why is it not a good idea to have a moisture only home inspection/ building inspection completed?

 

A Buyers Choice Home Inspections do not do moisture testing alone. You may say why not? The reason is that stand alone moisture testing is not a good indication of weather tightness or future weather tightness. To be able to accurately assess a home for weather tightness and moisture related issues resulting from water ingress or penetration into the homes you must look at all the risk factors and all the other factors related.

 

In Auckland there have been many leaky buildings and people are often scared of monolithic homes. At A Buyer’s Choice Home Inspections we report on the type and condition of the cladding and roof systems noting the correct use of flashings and also that all penetrations are sealed well. Roof to wall junctions, eaves and or the lack of eaves must be inspected and noted to be able to make a qualified decision about the property. Some properties may do well in a moisture only test today but suffer from moisture ingress/penetration problems within the next month, year or decade due to the type and condition of the claddings, flashings and sealants etc.

 

Why risk it? Call Duane Turner from A Buyers Choice Home Inspections Today:

 

09 8118 018 / 027 376 4806 / 0800 86 36 36

 

Duane Turner
duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com
A Buyer's Choice Home Inspections
Waitakere & Surrounding Areas
(Waitakere Building Inspections Ltd)

 

 

 

How much should I pay for a home inspector/ building inspector?

How much should I pay for a home inspector/ building inspector?

The usual rate for a home inspection in Auckland, New Zealand is around $500 give or take. There are a lot of inspectors out there that are starting to charge less to remain competitive in the market place and offer standalone moisture testing and other part inspections.

We don’t recommend having standalone moisture testing as it will not include checks for risk factors or problem areas which could allow moisture ingress.

Typically an A Buyer’s Choice Home inspection will cost around $450 - $550. They can be cheaper or more expensive if you have a smaller or larger than average sized property. Please call your local inspector Duane Turner today to receive a firm quote:

 Call Now 09 8118 018 / 027 376 4806 / 0800 86 36 36

Duane Turner

duane.turner@abuyerschoice.com

www.waitakere.abuyerschoice.com

A Buyer's Choice Home Inspections

Waitakere & Surrounding Areas

(Waitakere Building Inspections Ltd)

Why do you need a suitably qualified & fully insured home inspector (building inspector)?

Why do you need a suitably qualified & fully insured home inspector (building inspector)?

When purchasing a new home (especially in Auckland) or perhaps even an investment property you are making a decision involving a significant sum of money which can influence your wealth or lack of wealth in the future.  You want to make sure you are buying a sound home which will support good potential for capital growth in the future.

How will you know if the home you are interested in is sound and well maintained? You need to have it inspected by a qualified and fully insured home inspector like Duane Turner of A Buyer’s Choice Home Inspections Waitakere City & Surrounding Areas. Duane will inspect every aspect of the home including but not limited to:

Crawl space
Cladding
Roof
Roof Space
Plumbing
Electrical
Moisture
Site features
Interior features
 
Should you be concerned about buying a home with weather tightness problems or commonly called a “leaky home” then you can rest assured Duane Turner is fully trained and qualified to check your home for moisture issues. In most cases he will indicate where the problem is arising and if there is a solution to remedy the problem.

 

Call Duane now 027 376 4806 / 09 8118 018