EnergyStar Portfolio Manger

Here's another cool website/tool that I picked up at the "Green Boot Camp" put on by BB&T - Tanner Insurance Services last week.

We're all probably familiar with EnergyStar (since it plastered all over those new appliances) and some of you may be familiar with the EnergyStar website, but the Portfolio Manager tool is kind of buried in the website

"Portfolio Manager is an interactive energy management tool that allows you to track and assess energy and water consumption across your entire portfolio of buildings in a secure online environment. Whether you own, manage, or hold properties for investment, Portfolio Manager can help you set investment priorities, identify under-performing buildings, verify efficiency improvements, and receive EPA recognition for superior energy performance." (Now if only, I had a portfolio of buildings to use it on. LOL)

Your comments are always appreciated. Thanks for reading.

DSIRE - Database of State Incentives of Renewables & Efficiency

Last week I attended a "Green Boot Camp, Breakfast & The Basics" seminar (BTW both the seminar and the breakfast were outstanding) put on by BB&T - Tanner Insurance Services in Pleasanton.

One of the websites presented by one of the speakers that really caught my attention was DSIRE.

DSIRE is a comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency. (While we all want to do what right, having some incentives always help.) Click on the title to go to the website.

There is also a Glossary of Programs & Policies, a Link to various organizations and a Library of reports, papers and presentations on the website.

The Glossary provides a description of the programs and policies that promote renewable energy and/or energy efficiency. They are divided into two general categories -- (1) Financial Incentives and (2) Rules, Regulations & Policies -- and roughly 30 specific categories.

The Links go to numerous National, State, Regional and International Organizations as well as Federal Resources.

The Library features reports, technical papers, and presentations authored by DSIRE staff from 1997 to the present. Publications related to the DSIRE project co-authored with renewable energy colleagues in academia, government, and private practice are also included

Your comments are always appreciated. Thanks for reading.

Sunnyvale Town Center - Update

In an earlier post, I wrote about the progress that was being made on the Sunnyvale Town Center project.

Some questions came up regarding when the residential units would be available and where they would be located. I addressed these questions to Connie Verceles, Business Development Manger for the City of Sunnyvale.

Connie replied that the developer has not given the City a firm date as to when the housing would be available. The developers are approved for housing on McKinley, Washington and Iowa Avenues. She also mentioned that they are taking names for the waiting list.

Here's a link to their website: http://www.svterraces.com/splash/

Your comments are always appreciated. Thanks for reading.

When Is the Commercial Real Estate Market Going to Turnaround

Whenever I tell people that I'm in Commercial Real Estate, the questions that always comes up are "what's happening with the Commercial Real Estate market"and "when is it going to turnaround". (I'm sure that the Residential Agents get the same types of questions.)

Here's an extract from an interesting article by Randy Drummer that I received from the CoStar Group that gives one projection. Click on the Title to get the full article. (I would tend to agree with the article, but then, I'm trying to be an optimistic.)


Frozen By Fear: Forecasters Say Real Estate Likely to Hit Bottom in ’09

Moderate Development During Last Boom May Help Markets Avoid Deep V-Shaped Downturn. But Navigating Financial Meltdown May Prove Increasingly Tricky

Economics -- the dismal science -- earns its nickname during real estate down cycles. And following the shock of seeing Wall Street all but implode, it should not be surprising that the first round of forecasts for next year paints a fairly gloomy picture for commercial real estate -- though studious observers (especially those with ample cash for distressed property opportunities) may find a silver lining or two. (There's still hope if you have cash.)

U.S. commercial real estate is facing the prospect of its worst year since the depression of 1991-1992, with property values expected to plunge, foreclosures/delinquencies rise sharply, and a limping economy likely to put a crimp in property cash flows, according to the 2009 Emerging Trends in Real Estate report released Tuesday by the Urban Land Institute and PriceWaterhouseCoopers LLP.

Total expected returns on private equity real estate investments will likely drop into negative territory for the first time in nearly two decades as the market hits bottom next year. A weak recovery is expected to begin in 2010.

Your comments are always appreciated. Thanks for reading.

Random Thoughts on SV Commercial Real Estate

Is it just me or does it seem that the retail sector (both Sales and Leasing) has really slowed down, not only in Silicon Valley, but across the nation?

It just seems in the last couple of weeks that:

1. I'm getting a lot more emails/e-flyers for retail properties for lease,
2. I'm getting a lot more emails/e-flyers for retail based single tenant net lease properties for sale, and
3. I'm seeing cap rate creep on the net lease properties, even in California.

Maybe it's just the ease of sending out this information or maybe the retail sector is finally starting to slow.

Any thoughts?

Your comments are always appreciated. Thanks for reading.

CCIM - Silicon Valley District Meeting: Nov 19, 2008

Here's another plug for the CCIM - Silicon Valley District.

The next CCIM Silicon Valley meeting will be on Wednesday, November 19th at the UCSC Extension campus in Sunnyvale (1180 Bordeaux Drive). The meeting will run from 8:30 - 10:30 AM with networking from 8:30 - 9:00 AM.

Please note that because of the Thanksgiving holiday, the meeting will be held a week earlier and on a Wednesday instead of the normal Tuesday. (As always there should be coffee, muffins and pastries, but no turkey.)

The speakers will be:

Nanci Klein from San Jose Economic Development. Nanci will be speaking about the future growth of San Jose including “Envision 2040” which is the general plan update currently underway. She will also talk about all the exciting development going on in downtown and north San Jose.

Jeff Birdwell from Sares Regis. The Sares Regis Group is one of the largest most diversified real estate companies in the Western United States. They develop, acquire, build and manage a variety of commercial properties. Jeff will speak about leasing and development trends, construction costs, challenges encountered in the development process and working with different cities (why some are easier to work with than others). He will also address the financing environment for new projects and his vision for the future of Bay Area projects.

Comments are always appreciated. Thanks for reading.

Investment Exchange Counselors Meeting, October 21, 2008

Here's a meeting that I try (and the operative word is "try") to attend. There's a lot of commercial real estate experience at this meeting and a major focus on property offerings.

Investment Exchange Counselors
Tuesday, October 21, 2008 @ 9:00 AM
First American Title
1737 North First Street
1st Floor
San Jose, CA 95112
Hosted: First American Title & First American Exchange

The speaker is Robert Meyer, CCIM with Exchange Solutions.

Robert consults on tax-advantaged real estate investment strategies for appreciated real estate. He specializes in 1031 tax deferred exchanges, TIC Investments and single tenant net leased properties.

(I've heard Robert speak before. I think that you'll find him interesting, engaging and very knowledgeable.)

Your comments are always appreciated. Thanks for reading.

Is It Time to Buy Commercial Property?

This question has probably been on the minds of everyone involved with commercial real estate. (If you're looking for the magic answer from me, you're not going to find it here.)

However, there are some interesting things happening.

There was an article in the Oct 10 issue of Silicon Valley/San Jose Business Journal by Katherine Conrad titled "$115M loan has Berg shopping". The article goes on to say that Carl Berg, chairman and CEO of Mission West, has borrowed $115M in order to buy distressed properties because he thinks that "There's opportunity out there."

Here's a link to the complete article. http://sanjose.bizjournals.com/sanjose/stories/2008/10/13/story2.html

Apparently, some of the "Vulture" funds have started gearing up, waiting for that major market correction, so that they can swoop in and pick up those bargains.

So the question is, do you follow the "smart money"? (Of course, it always helps to have some money to swoop in with.)

Your comments are always appreciated. Thanks for reading.

San Jose's Green Vision 2

Yesterday's post was in regards to San Jose's Green Vision. I came across an article on the progress that San Jose has made in a local paper, The Almaden Times. I've summarized it below.

1. Create 25,000 Clean Tech jobs as the World Center of Clean Tech Innovation
   In the past 12 months, the City has increased Clean Tech jobs by more than 1,500.
   
2. Reduce per capita energy use by 50 percent
   2008 figures are not yet available. The City has reduced operational usage by 21%.
   
3. Receive 100 percent of our electrical power from clean renewable sources
   Since Oct 2007, solar systems have been installed @ eBay and various schools in the San Jose Unified School District. (Check out Leland High School's parking lot.)
   
4. Build or retrofit 50 million square feet of green buildings
   In the past 12 months, the City has added 159K sf.
   
5. Divert 100 percent of the waste from our landfill and convert waste to energy
   The City is currently recycling 75% of municipal waste.
   
6. Recycle or beneficially reuse 100 percent of our wastewater (100 million gallons per day)
   The City is currently recycling or reusing 10% of wastewater.
   
7. Adopt a General Plan with measurable standards for sustainable development
   The City is in the middle of updating it's General Plan.
   
8. Ensure that 100 percent of public fleet vehicles run on alternative fuels
   In 2007, 1,000 of the City's 2,700 vehicles were using alternative fuels.
   
9. Plant 100,000 new trees and replace 100 percent of our streetlights with smart, zero-emission lighting
   In the past 12 months, the City has planted over 2,000 new trees. They are currently studying its ability to replace the street lights.
   
10. Create 100 miles of interconnected trails
    The City has increased its trails to 51, some of which are interconnected.

So, you can see that the City is making very good progress on their Green Vision.

Your comments are always appreciated. Thanks for reading.

San Jose's Green Vision

As I was driving in last week, listening to KLIV (another shameless plug for the local radio station), I caught something about Mayor Reed's Green Vision for San Jose. I didn't catch all of it and I wanted to know more, so I "googled" it (I guess I can probably drop the quotation marks).

Here they are. (If you click on the title, you can get the complete PDF file.)


Green Vision Goals
Within 15 years, the City of San José in tandem with its residents and businesses will:

1. Create 25,000 Clean Tech jobs as the World Center of Clean Tech Innovation
2. Reduce per capita energy use by 50 percent
3. Receive 100 percent of our electrical power from clean renewable sources
4. Build or retrofit 50 million square feet of green buildings
5. Divert 100 percent of the waste from our landfill and convert waste to energy
6. Recycle or beneficially reuse 100 percent of our wastewater (100 million gallons per day)
7. Adopt a General Plan with measurable standards for sustainable development
8. Ensure that 100 percent of public fleet vehicles run on alternative fuels
9. Plant 100,000 new trees and replace 100 percent of our streetlights with smart, zero-emission lighting
10. Create 100 miles of interconnected trails

Pretty cool goals, huh. And I understand that they are making good progress on them. I'll give an update on their progress later in the week.

Your comments are appreciated. Thanks for reading.

Random Thoughts on SV Commercial Real Estate

Just some random thoughts from the NCal CCIM and Bay Area Apartment Brokers Forum meetings that I attended this week.

There are still commercial lenders lending, at least that's what they are saying. They may require good credit and a fairly high LTV (here's a radical concept, having some "skin" in the game). However, the interest rates are pretty good.

It seems that business is slowing down. (I don't have any actual data. It's just a feeling that I'm getting as I listen to the marketing presentations at these meetings.) There use to be a lot more properties for sale presented. If I remember correctly, we use to have 5 -10 property presentations per meeting. There were probably only 5 or 6 properties presented in total at the 2 meetings and only half were new listings.

There seem to be less people at these meeting. (Again nothing scientific, just me looking around the rooms.) Maybe everybody is real busy (I don't think so) or it's the time of the year or they are cutting back on expenses or they're no longer in the business.

Your comments are always appreciated. Thanks for reading.

San Jose Approves Green Building Standards for Commercial Real Estate Projects

As I was driving to the Bay Area Apartment Brokers Forum this morning, I heard on KLIV that San Jose had approved "Green" Building Standards for Commercial Projects. (Here's a plug for KLIV. I listen to them when I want to know what's going on in Silicon Valley and, especially, when I'm driving in SV. They have the best traffic reports focusing on SV traffic.)

I just caught the highlights (or lowlights depending on where you stand), but you should be able to find more detail on either KLIV or the SJ Mercury website.

1. Commercial Projects greater than 25,000 sf must meet LEED Silver certification.
2. Residential projects of 10 or more units would have to be LEED certified or have a minimum of 50 points on the Build It Green's GreenPoint Rated system.

So, San Jose continues to move toward being "Green".

What Do You Consider Silicon Valley?

According to Silicon Valley Index 2008 (the Index is published by the Joint Venture: Silicon Valley Network and Silicon Valley Community Foundation), the Core of Silicon Valley is defined as the following cities:

Santa Clara County (all)
Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga, Sunnyvale

Alameda County
Fremont, Newark, Union City

San Mateo County
Atherton, Belmont, East Palo Alto, Foster City, Menlo Park, Portola Valley, Redwood City, San Carlos, San Mateo, Woodside

Santa Cruz County
Scotts Valley

Do you agree?

NCalCCIM Meeting - October 7

It's not too late (or it may be depending on when you read this post) to register for the October 7 Marketing, Mentoring and Luncheon Meeting. (Another plug for CCIM. Don't say I didn't warn you.)

Join us next Tuesday in Pleasanton for our monthly Mentoring, Marketing and Luncheon Meeting. Luncheon speaker is Attorney Maine Shafer and his topic is: Tax Strategies for the Commercial Real Estate Broker.

Many of us assume our accountants take care of our taxes... but forget that WE are the ones giving them the numbers and records they are using to prepare our tax return.This program is guaranteed to identify between $2,500 and $27,500 in NEW deductions that can be used right away to pocket thousands in tax savings. These deductions are based in tax LAW, but presented in simple English that all of us can easily understand. (That's good because I have an MBA in Finance and I still have a tough time understanding Tax Code.)

Mentoring session topics are: "Go Green, Save Green" and "Improving Sales with Dale Carnegie." Mentoring at 9:00, marketing at 10:30 and the luncheon begins at Noon.

To register or for more information, click on the title.

Bay Area Apartment Brokers Forum - October 8

Here's a meeting that I try to attend. Not only do they have interesting topics, good speakers and free food (just bagels and coffee, but it's free), but if you listen carefully, you can get a real good feel for what's happening in the multi-family market in Silicon Valley and the greater Bay Area. It's an interesting mix of brokers, title folk and lenders and there is a lot of "experience" in the room.


Group: Bay Area Apartment Brokers Forum - Established 1986 - (22 Years)
Guest Speaker: Michael Thomas - Principal, Wheelhouse Real Estate Investment Brokerage
Topic: How Technology is Changing Real Estate
Date: Wednesday, October 8, 2008 - 8 AM
Place: First American Title Company, 1737 North First St., San Jose
Breakfast: Continental Breakfast - no charge - First American Title/Exchange
Chairman: Richard Domich - CB Richard Ellis
Vice Chairman: Keith Suddjian - Cornish & Carey
Membership: Kari Noomen - Washington Mutual
Sponsor: Mary Kay Kennedy - First American Exchange
Sponsor: Joe Campi - First American Title
Sponsor: Paul Monaco - First American Title

Note: All present will have an opportunity to present their listings, buyer requirements, as well as their analysis of current events and market trends that directly effect the multi-housing (apartment) industry in Silicon Valley and greater Bay Area.

Adjournment: 9:30 AM

Nov. 12, 2008 Ken Orvick - Apartment Management Issues 2008
Dec. 10, 2008 Robert Meyer - Tenant-In-Common Update - Proposed NAR Exemption

SV Joint Venture Sustainable Building Initiative Webpage & Launch

Joint Venture: Silicon Valley Network has added a new Sustainable Building Initiative webpage to their site (Click on the title to go to it).

It's very nicely done and provides the reader with a very good idea of what the Sustainable Building Initiative is all about. (This is where the future is going whether we like it or not or to put it another way, this is where we have to go to have a future. I, for one, thought this whole "green" thing was just a "fad", but I've since changed my mind.)

If you're interested in learning more about the Sustainable Building Initiative, there is a Sustainable Building Initiative Launch (hosted by Kara LaPierre of Joint Venture: Silicon Valley Network) on October 30 at the Holiday Inn San Jose. You can register online for the meeting on the webpage. (I don't know if there's going to be food, but it's only $20, so I'm planning on attending.)