Saturday, June 06, 2009

Commercial Vacancies

The LATimes has one of those classic cases of understatement. Apparently there might be some trouble brewing in SoCal commercial real estate (CRE).
In Los Angeles and Ventura counties, the vacancy rate in the first quarter rose more than 50% over the previous year to more than 3% and asking rents fell from an average of $2.29 a square foot per month to $2.14, according to the real estate brokerage CB Richard Ellis Inc.
THREE percent? That's just plain silly. Nevertheless the article is interesting as long as you double all the small numbers.


bhutchinson said...

do you even bother reading the newz? The feel-good economists are predicting an un-explained upturn by the end of the year. Problem solved!(?)

Bob said...

The New York Times says "it's always a good time to buy or sell" (c).

Bill in NC said...

Some perspective on unemployment (includes California)

sm_landlord said...

Montana Avenue here in SM is starting to look a bit empty. I must say I will not miss Shabby Chic, where a bed with a bad slip cover could cost you almost $30K.

In other WLA news, Fox Interactive is looking for tenants to sublet the 420,000 sqft in Playa Vista that they just leased for 12 years at a cool $350 million and never moved in to. According to the LATimes, that little mistake will increase the available office sublet space on the Westside by 16% to a total of 2.5 million sqft.

Yee-Haw! Soon we will haz office upgrade at reasonable price!

W.C. Varones said...

Ha! Hilarious that inland empire (recent Forbes' "worst places in America" honoree) rents are higher than LA-Ventura even with 10% and rising vacancies.

Bill in NC said...

The Governator wants a new tax:

No chance, because it wouldn't generate the revenue the CA state government needs.

Now, if it was in addition to, instead of a replacement for, current income, property, etc. taxes I'm sure the CA state legislature would get right behind that!

Sun said...

DC is about to add a $.05 tax on plastic and paper bags.

Just curious if any of the astute readers here have any thoughts on this. I am a resident of DC but am in favor of the tax. Based on the WP comments though, I think I’m in the minority.

Rob Dawg said...

Behavior taxes are stupid. The unintended consequences are usually outsized relative to benefits. By taxing plastic bags the city is likely to see an upswing in dog owners failing to clean up after their pets as but one example of not thinking things through.

Make the tax modest, say 1¢ if the intent is behavior modification. San Francisco has had a punitive tax for years with no evidence of it working.

Sun said...

In general I agree with you. As a "policy guy" though, I find this very interesting. First, they were able to sneak it past the interest groups, and second I am really curious what the outcome will be. As you noted though, how much more "crap" am I going to see on my street. I grew up in Michigan where cans/bottles have a $.10 return fee. That did in fact alter behavior significantly (for better or worse).

H Simpson said...


You don't get the finer points of the statement.

If you rent the parking lot of your empty mall to park unsold Hummer/BMW suvs, it is "under lease".