Los Angeles Industrial Warehouse Market News

BY Bill McBride and From Roger Vincent at the LA Times: Southern California office rental market improves slightly

Office vacancy in Los Angeles, Orange, Riverside and San Bernardino counties was 17.5% at the end of the third quarter, Cushman & Wakefield said, down from 18.4% a year earlier. Landlords asked for average monthly rents of $2.33 per square foot, an increase of 5 cents from the same period last year.

“I don’t see a significant demand for additional office space and increasing rents in coming quarters,” [broker David Kutzer of Newmark Grubb Knight Frank] said. “We’re not turning the corner to what we consider really healthy markets, and we’re nowhere near the low vacancy that will result in new construction of office space.”
This is an important point – the vacancy rate for office buildings is slowly declining, however it is not close to the level that will lead to significant more investment (important for employment and GDP).
Note: Reis reported the national office vacancy rate (large cities) declined in Q3 to 16.9% from 17.0% in Q2. I’d post a graph comparing the office vacancy rate and private fixed investment in offices, but the data for office investment is currently not available due to the government shutdown.

Posted from WordPress for Windows Phone

National CCIM Market Trends Report Shows Commercial Real Estate Gaining Momentum in 3Q13.

Deal flow among members of the CCIM Institute increased 57 percent year over year according to an August 2013 intelligence survey conducted by the National Association of Realtors® in conjunction with the CCIM Institute. Results of the survey and other commercial real estate market trends were published in CCIM’s 3Q13 Quarterly Market Trends report. Headquartered in Chicago, the CCIM Institute confers the Certified Commercial Investment Member (CCIM) designation, commercial real estate’s global standard for professional achievement.

The report, which features data collected from CCIM members across the country, shows property sale prices were higher or about the same as one year prior, and more than 65 percent of CCIM members said they received more serious inquiries from buyers than the same period last year. These strong indicators reveal that the economy is retaining positive momentum and commercial real estate fundamentals will continue to perform well through year-end and into 2014.

“The current pace of moderate gains in employment and consumer spending should provide enough lift for absorption in the office, industrial and retail sectors to keep vacancy rates on a downward trend,” according George Ratiu, director of quantitative and commercial research for NAR. “Demand for rental housing will remain solid for the rest of the year, although competition from residential rental stock and new construction is likely to add pressure on rent growth.”

With rising deals and investor confidence, more than 50 percent of CCIM members surveyed in each region (East, Midwest, South, and West) indicated that the economic climate is moderately positive. Property sectors that stood out from the pack based on CCIM members’ local and regional property market activity included office, industrial, and retail.

More specifically, CCIM members experienced:

Higher rental income (58 percent) and increase deal flow (61 percent) in the office market
Higher rents (55 percent) and higher property prices (44 percent) in the industrial market
An increase in retail deals (58 percent) and higher rental income (45 percent) in the retail market
Other notable property sector highlights included more than 75 percent of CCIMs reported higher asset prices in the hotel sector, and rental income in the apartment sector rose for 62 percent of CCIM members.

The complete report findings can be found at http://www.ccim.com/resources/qmt.

Posted from WordPress for Windows Phone

blog.upcounsel.com
Matt Faustman

Commercial real estate law isn’t an easy thing to wrap your head around. There are laws at the federal level, laws at the state level, and regulations at the local level. In addition, real estate law encompasses everything from property law to insurance law and even contract law. In short, there is no one-stop-source to find everything you need to know about real estate law as a commercial property owner.

It’s always best in cases like this to seek professional help so you don’t find yourself in hot water after the fact—especially when there is a sizable investment at stake. However, the primer below will give 5 groups or areas of law that every commercial real estate owner needs to know about as well as a general overview of just how tangled the web can be.

Robert Freedman, senior editor and videographer for REALTOR magazine, says that any interested party should always consult a qualified attorney if they have any questions about the laws that govern property ownership, sale, and usage in their state.

Landlord/Tennant laws vary greatly by state, but generally they’re designed to protect the rights of both parties involved in any sort of rental or leasing agreement. Clauses in such laws often govern:

Payment of rental fees
Taxation
Rights of privacy
Necessary disclosures
Duration of tenancy
Rights to termination of tenancy
And much more.

Basically, these laws are a finely crafted legal definition of the relationship that exists between the commercial property owner and the individual or entity habituating the space. Understanding the laws within the state you’re operating in is an essential part of making sure you don’t violate your tenant’s rights. It’s also helpful to educate yourself on the laws should your tenants violate your contractual agreements.

To get an idea of how much an unwanted eviction case can cost a landlord, read this case study.

Disclosure laws are another set of laws that generally vary by state. These laws deal with the condition, location, and restrictions placed on the property itself. Generally, disclosure laws exist so that property renters understand what they’re getting into.

For instance, in many cases, owners are required to disclose the presence of known (or even unknown) toxic substances such as asbestos, lead paint, and radioactive materials. However, other less-shocking disclosures may also be required depending on the state in which you operate.

For instance, California just enacted two new disclosure laws that apply to commercial properties. These require that renters be informed of the necessity of accessibility inspections and aspects pertaining to the energy use of the property.

These laws are important for commercial property owners to understand—especially if they opt not to go through a realtor to facilitate the rental transaction.

Local or state legislation often dictates how the zoning and land use regulations are enforced. In addition to determining taxation, these regulations determine how a property (commercial or otherwise) can be used. Zoning regulations dictate whether a property can be used for retail operations and sometimes even what sort of retail operations can take place. For example, something as simple as a hot dog cart is covered under zoning laws, and the operator can be shut down if he or she infringes on the property rights of established businesses.

State legislation often dictates the process for changing any such zoning. Generally, the landowner must apply for rezoning and have the local board meet on the issue. However, it may be more complicated than that depending on local law.

Understanding your local regulations will prevent you from renting a commercial property to a business only to find out that the business can’t operate there without getting the property rezoned.

Leases and rental agreements are legally binding contracts drafted by one party or the other and accepted by both. As such, these documents must be specifically structured and contain very rigid verbiage in order to stand up to any challenges (either from one of the parties involved or outside entities).

Whereas the majority of contracts in the United States fall under the Uniform Commercial Code, generally, the sale of real estate is covered by the Common Law of Contracts. The common law is quite different to the UCC and as such, Brad Denton notes, “the common law follows the “Mirror Image Rule,” requiring an acceptance to be an exact mirror image of the terms of the offer for it to be a legally recognized acceptance. If any changes are made to the offer, there can be no acceptance because the offer has been changed. It then becomes a rejection and a counteroffer.”

You’ll want your investment covered—that’s why you’ll have insurance on the commercial property you’re leasing out. It covers your property and (to some extent) the property of your tenant should certain accidents occur. However, that same insurance policy is not intended to protect your tenant or the vast majority of their property. Indeed, they will need business insurance of their own in order to ensure that their property (such as equipment) is covered and to protect them against liability lawsuits.

Again, insurance laws vary greatly from state to state and there aren’t many overarching federal commandments. Therefore, it’s essential that you educate yourself and contact a qualified attorney to answer any questions you might have about commercial insurance law.

To learn about commercial property insurance rates, click here.

You should never attempt to navigate the tricky laws and local regulations that govern commercial property leasing. There are simply far too many variables on the federal, state, and local levels for a novice to keep track of. That last thing you want to do is enter into what you think is a legally binding contract only to find that you’re the victim of some legal loophole that ultimately leads to you losing your investment. Worse yet, illegal transactions could put you in a bad place with local and federal law enforcement. Always seek advice.

About Author Matt Faustman

Matt is the co-founder and CEO at UpCounsel. Matt believes in the power of online platforms to change antiquated ways of life and founded UpCounsel to make legal services efficiently accessible. He is responsible for our overall vision and growth of the UpCounsel platform. Before founding UpCounsel, Matt practiced as a startup and business attorney.

Comments
comments

About the Author: Matthew Faustman
Matt is the co-founder and CEO at UpCounsel. Matt believes in the power of online platforms to change antiquated ways of life and founded UpCounsel to make legal services efficiently accessible. He is responsible for our overall vision and growth of the UpCounsel platform. Before founding UpCounsel, Matt practiced as a startup and business attorney.

Read original article »

Posted from WordPress for Windows Phone

llenrock.com Eric Hawthorn

Week in Review for September 28-October 4:

After House and Senate lawmakers fail to agree on a federal budget, the U.S. government is forced to shut down for the first time in 17 years, halting all nonessential federal services. Congress’s partisan stalemate is triggered by some House Republicans’ attempt to defund the Affordable Care Act, also known as Obamacare.
On the West Coast, an increasing amount of foreign capital flows into commercial real estate opportunities in Silicon Valley. Chinese investors are increasingly attracted to investment properties in the area, which enjoys high real estate demand due to its thriving technology sector.
In Phoenix, AZ, at a lodging conference appropriately called The Lodging Conference, industry experts discuss the recovery of the hotel real estate sector, which was badly hit by the recession. Analysts project hotel values will continue to increase through 2016, though rising interest rates may slow this improvement, reports Hotel News Now.
In Philadelphia, City Council resolves to sell a number of abandoned school properties on behalf of the Philadelphia School District. The city plans to pay the beleaguered district $50 million, then sell off the district’s many vacant school buildings until it earns back this $50 million, reports Curbed Philly.
Also in Philadelphia, local super-developer Bart Blatstein of Tower Investments argues that his proposed casino development, Provence, offers greater benefits than the plans of competing developers. The Pennsylvania Gaming Control Board has yet to award the city’s second and last gaming license to a prospective developer.
Empire State Realty Trust (NYSE: ESRT), whose holdings include the Empire State Building, makes its public debut. The REIT raises $929.5 million in its IPO, reports Bloomberg. This IPO had been stalled for some time by legal battles with some of the Empire State Building’s legacy investors.
However, the Wall Street Journal reports that nontraded REITs are also extremely popular among yield-hungry investors, though regulators warn that these REITs offer less transparency than their publicly traded counterparts.

Posted from WordPress for Windows Phone

homeandgoodfamily.blogspot.com

Properties come with numerous responsibilities that we sometimes lose track on what we should set our focus on. There is a lot of predisposing factors that contribute to the market value of any real estate. It would be smart that you know all this to focus the renovations on the important ones and it is during this time that a commercial property inspection Riverside CA is important to every landowner.
Commercial properties are the type of properties utilized for the commercial means. It usually includes the restaurant, office building and shopping mall. They are very vital when we are planning on buying any real estate. Through meticulous inspection of the whole property they usually find defects where a suggestion for repair follows. They can produce some written reports to any landowner for evaluation and documentation purposes.

For starters, the zoning requirement of the land must be properly meet. Since this is a commercial property it should be used for that purpose alone and not for other things such as residential, industrial or agricultural. Anything that is out of that purpose will not work with the real estate standard.

The code of standards on every building is carefully followed as well such as the compliance to the health and safety hazards. They can tell the hazards involve when inspecting the worn out wall and faulty roofs. Repairs for those lacking areas are highly encouraged to be followed to increase the equity of the land.

You may also request to have a pest inspection report done along with the usual inspection. Pest control inspectors may be summoned to offer a better perspective regarding such report. They may suggest ways to control these pests or even eradicate them completely before purchasing these properties.

Typically, the landowners in a commercial vicinity will have a form of liability for any occurrence of accident that causes injury that happens on their land. Therefore, possessing an insurance for liability can greatly safeguard your investment. The buyer should also have access to this insurance by buying it to protect the two parties from any third party claims.

This type of real estate, since they are operating involving numerous people in a larger scope, requires to comply with the environmental standard. Sometimes an environmental assessment inspection is dispatched before you can purchase or lease any building especially gas stations. Proper maintenance in the ground of such properties should be done in a regular basis and it is the responsibility of every landowner.

Using all the information helps in making all the expectation easy. Developing awareness for the possible problem that may arise in advance enables the buyer to make a negotiation for much lower premium if there is an underlying complications with the land. Another benefit is the clearer idea you perceive on the lifespan of the property before any repairs initiated. It is very helpful as well to know the possible cost of repairs.

The benefit you get of hiring commercial property inspection Riverside CA will always outweigh the cost. They can even assist you to make the right decision of leasing or purchasing any land. Now you see the importance of carefully checking any property.

If you are in need of reliable commercial property inspection Riverside CA residents should visit the web pages at http://www.hbiinspections.com today. You can see details on services and qualifications at http://www.hbiinspections.com now.

Posted from WordPress for Windows Phone

rics.org – 23 Sep 2013

Charles Smith FRICS, Founder of Boston Fieldgate Commercial Property Advisors, tells you what to consider.

Location, location, location. “Not that old mantra!” I hear you cry, but location is one of the main ingredients in the recipe for successfully choosing your new commercial premises. However, it is not the only one and as a business owner you need to consider a number of factors.

Selecting the right property so it increases your profitability and reduces stress requires early and detailed assessment and planning. In my experience there are some key themes you need to factor in to your thinking so you can make an informed decision.

Choosing the right location
Location is a many-faceted issue that impacts upon not only your staff but suppliers and customers.

For staff it isn’t just how easily they can get from the bus or where they can park. It is also about the immediate environment of the building and its access to facilities that your employees like to use as well as how easily can you get to your customers or vice versa.

Location also has a significant impact upon your ability to retain and recruit the best staff which directly impacts your bottom line as the cost of recruiting is considerable. Besides, happy people are more efficient and productive and a stable business in terms of employees is always going to be better.

Getting this right adds value direct to your bottom line and it costs you little.

What are your space requirements?
Built space is expensive and it is not just the rent but business rates, service charges, costs in use that all start to impact. Even in off-prime, city centre style locations.

In Birmingham the cost per sqm would be around £320/sqm – a waste paper bin could cost you £30 a year!

To get an idea of what you need, look at the number of staff you have, their roles, and any future expansion planned. An initial calculation might be up to 10sqm for each member of the team. To that you add boardrooms, storage areas, kitchen and staff areas – the numbers add up very quickly.

As property is generally inflexible you need to factor in any growth or downsizing that is reasonably predictable.

Technology advancement and changing working practices (hot desking, working from home) continue to allow an element of ‘flex’ in any event and this may be sufficient for 10-15% variation in staff numbers.

Taking too much space could prove terminal for the business and provide it with unsustainable overheads. This is where the advice from a chartered surveyor is invaluable.

What can you afford?
Set a budget and stick to it. As a very rough rule of thumb property rental and associated rates should be less that 15% of your turnover.

If you’re outside of that then you should consider what the impact is on your bottom line and business sustainability. Every business is different so this is not a definitive line in the sand more a guide. Projected growth in turnover will then help inform your budget going forward. We would all love really plush offices with all the whistles and bells but it is about a balance.

Does it match your brand image?
Expensive finishes are great but not if your clients feel they are paying for them!

You want it to signify success not failure but more broadly, what do you want stakeholders to see – their first impression from the outside and then from the inside. From the reception area through to the space you will occupy?

There is plenty to think about but be realistic. You can be quirky, provided it is interesting and well done, it can be a real wow factor and differentiator.

A client of mine recently created a sound proof box, within their space, for video presentations and screenings. They pasted an enlarged photograph of No 10 on the entrance so you actually feel like you are going somewhere important – to see the PM, perhaps. I’ve not seen that before so it resonates positively.

Property can be an asset or a liability. Keep you profits up, your stress down and talk to the professionals – RICS members can guide you through the process as we have seen it all before and our knowledge can save you lots of wasted time and effort. We also know what is available through our own experience and our network of contacts.

Download the RICS Small Business Property Guide for comprehensive advice on common property decisions and actions you may need to take – from acquiring a lease to challenging a dilapidations claim – along with vital property-related issues such as valuations, planning permission and the business rates system.

Boston Fieldgate Commercial Property Advisors offer hands-on, pro-active commercial property advice tailored to client needs. They specialise in property strategy to delivery, acquisitions, disposals lease advisory, rent reviews, renewals and restructuring, business rates reviews and development consultancy.

Posted from WordPress for Windows Phone

As the global recession drags on, new concerns are rising about commercial real estate. So far, this sector — which in the past has led the economy into trouble — has been overshadowed by the crisis in the credit markets that has lead to sharply depressed stock prices, a collapse in consumer confidence and rising unemployment.

Now, with loans written during the boom years coming due, property owners face higher vacancies and lower rental rates as a result of the recession, and a less-than-receptive environment for refinancing their obligations. Wharton faculty, industry analysts and politicians suggest that commercial real estate is about to become the next high-profile casualty in the ongoing economic meltdown.

“The shoe has already dropped,” says Wharton real estate professor Susan Wachter. “Values are down severely. Vacancy rates are at 20-year highs.” The Federal Reserve reports that delinquency rates on commercial real estate loans have doubled in the past year to 7%, as companies pull back on commercial space and retailers go out of business.

Typically, commercial real estate developers help lead the nation from boom into bust by constructing too much space and defaulting on loans, jeopardizing the stability of lending institutions. This time, problems in the financial sector are branching out into commercial property.

“This is entirely a financial crisis, first and foremost. The problem is the seizing up of financial markets, not overbuilding as in the past,” Wachter says. “The overall economy is weak and weakening, which is driving down rents. Past real estate crises were centered in real estate without an economy-wide crisis at the same time.”

With financing tight, it is difficult or impossible for property owners to rollover short-term financing when it comes due. For example, General Growth Properties, the second-largest shopping mall company, filed for bankruptcy court protection after its lenders refused to refinance $27 billion in debt. The Real Estate Roundtable in Washington, D.C., estimates $400 billion in commercial real estate loans will come due this year. By 2012, the figure will be more than $1.8 trillion.

“The commercial real estate time bomb is ticking,” said Rep. Carolyn Maloney, D-N.Y., during recent hearings on the commercial real estate industry before the U.S. Congress Joint Economic Committee.

Wharton real estate professor Joseph Gyourko notes that residential real estate has already surfaced as a major factor in the recession. Many homeowners bought properties at inflated prices fueled by easy credit and now hold mortgages that are worth more than the value of the underlying property. “I think there was mispricing in commercial real estate, too, but it is not as bad as in housing because that would be impossible,” Gyourko says. “There was a lot of optimism about commercial real estate values and a lot of cheap debt [was taken on]. I think there will be stress that will make this worse than what happens [during a] normal downturn.”

In a paper titled, “Understanding Commercial Real Estate: Just How Different from Housing Is It?,” Gyourko presents evidence that today’s weakly capitalized commercial real estate sector will send property values down, as has occurred in housing. The paper concludes that commercial real estate, which is “further subject to the negative economic shock of a severe recession, looks likely to pose another problem for the health of the banking sector and the financial system more generally.”

Wachter sees a bifurcation in the commercial real estate sector. Large, publicly traded real estate investment trusts (REITs), with equity in projects and access to public markets, are best positioned to ride out the downturn, she says. Other real estate firms, particularly those controlled by private equity funds that face short-term debt obligations to financial institutions that are in trouble themselves, will have less flexibility.

An Opportunity?

“This is an opportunity — or may be an opportunity soon — for REITs that are positioning themselves to take advantage of other companies and bottom fish to purchase significant properties at bargain basement prices,” says Wachter. She cites plans by Vornado Realty Trust to raise $1 billion to create a fund to invest in distressed properties. “It’s back to ‘cash is everything.’”

Indeed, publicly held REITs reported strong second-quarter results. The Dow Jones Equity All REIT Total Return Index, composed of 114 REIT stocks, rose 28.9% — the largest increase since the index was created in 1989.

Brian Case, vice president of research for the National Association of Real Estate Investment Trusts, says many REITs have shored up their positions with cash raised in secondary offerings. In the future, he expects to see a new wave of initial public offerings (IPOs) by private real estate investors who are proven managers with strong portfolios, but who are also under pressure from debt that is coming due. In a better credit environment, that debt might have easily rolled over, but in the current climate an IPO may be the only source of new money. They have two choices: sell into a very soft market through 2012 or, if they are strong enough, do an IPO and use that equity to meet debt obligations,” according to Case.

Wharton real estate professor Peter D. Linneman agrees that private equity real estate funds face the greatest peril. Because the firms have committed so much capital, they have little in reserve to weather uncertainty, he notes. “I think it’s fair to say that economic and capital market uncertainty leaves a lot of those funds hamstrung.”

Meanwhile, the U.S. government is attempting to ease the crisis by extending its Term-Asset-Backed Securities Loan Facility (TALF) to troubled commercial real estate firms. The program opened for new real estate loans earlier this summer but received little interest. The TALF program was then extended to existing commercial mortgage securities. On July 16, the Federal Reserve Bank of New York said investors sought $668.9 million worth of loans to buy securities backed by commercial real estate loans that were made months or years ago. Two days earlier, Standard & Poor’s cut ratings on commercial real estate bonds issued by Goldman Sachs, JPMorgan Chase and other financial institutions, effectively disqualifying billions in bad loans from the government program.

“The government has successfully stopped runs on banks and has stabilized the banking economy, but that doesn’t mean it can coerce banks to make loans to entities where the value of their collateral is down as much as in real estate,” says Wachter.

Total losses in securities backed by commercial property loans could climb as high as $90 billion in the next few years, according to Deutsche Bank analyst Richard Parkus, who also testified during the recent Joint Economic Committee hearings. In addition, he estimated up to $140 billion in losses from construction loans made by regional and local banks is also in jeopardy. “We believe the bottom is several years away,” Parkus told the committee.

Wachter says the use of commercial mortgage-backed securities (CMBS) was not as flawed as mortgage-backed securitization in residential markets, but she predicts the CMBS market will face reforms before it becomes a force in commercial real estate finance again. Ultimately, however, securitization will continue to be an important element in structuring commercial real estate finance. “How it comes back is still in question, but it will come back. There are some clear issues with CMBS.”

In the meantime, property owners are scrambling to renegotiate with tenants and reposition properties to make them more likely to receive continued financing. Wharton marketing professor Stephen J. Hoch says retailers are approaching landlords and threatening to close their doors if they don’t receive concessions. “The REITs have adapted and tried to be proactive,” says Hoch. “It’s taken a catastrophe to wake up and smell the coffee.”

The Inflation Factor

Linneman cautions that a combination of record increases in the level of consumer savings as well as government fiscal and monetary policy designed to halt the economic collapse will inevitably lead to higher inflation. He notes that real estate companies have been able to predict an inflation rate of more or less 2% to 3% a year for the last 25 years, and focus more on location or operations. Now, he says, inflation has the potential to become a major factor in future real estate development and management decisions. “You have to actually say, ‘What is my view of inflation?’ and 2% to 3% is not an acceptable answer. You really have to think about it because the money supply could create a spurt of inflation that will swamp anything you do at the micro level with your property.”

Linneman says that while Fed Chairman Ben Bernanke has promised to pull back on the money supply the minute inflation ticks up, it will be politically difficult to pull back — by raising interest rates — while the country is still wrestling with lagging unemployment and weak credit markets.

Further, he argues, the government’s involvement in the economy will be another important factor shaping the future of commercial real estate markets. Actions taken by the Bush administration at the end of 2008, and later by the Obama administration, have thrown long-term market assumptions “out the window,” he says, noting that the government is taking on more socialist characteristics and creating more uncertainty in markets as policymakers change the rules of business. The government’s involvement in the economy will slow the rate of economic growth to rates not seen since the 1970s, he predicts.

Linneman says he voted for President Obama, but adds: “I didn’t vote for France” — where government plays a strong role in supporting particular companies and industries.

He is also critical of the current administration for not taking strong action to force banks to recognize losses, which he believes would have paved the way for renewed lending and growth. According to Linneman, it’s ironic that Larry Summers, who served as Treasury Secretary in the Clinton Administration and is now director of the National Economic Council, was constantly urging Japan’s banks to write-off bad assets during that nation’s prolonged economic slump. Now, he says, Summers is reluctant to take the same action against major U.S. lenders.

The administration seems prepared to let small banks go under, Linneman notes, although the policy would have little impact on commercial real estate because of their small portion of the real estate lending market. The largest 20 institutions control the bulk of the assets and the administration has not been forceful in encouraging them to clear out bad assets. Government ownership of shares in leading banks is a powerful reason. “It will look like we’re giving away the nation’s assets now that we are owners of these things,” says Linneman. Instead, “I think we will get prolonged stress.”

As technology takes on an increasingly important role in business productivity, replacing workers and their space requirements, real estate developers have steadily reduced the ratio of commercial square-footage to real GDP. Linneman notes that construction activity has dropped by half since peaking in 2006 and 2007. “The good news is that when the economy does turn around, we will be going into it with relatively little supply.” If the recovery is similar to those of the past, the upturn in absorption of vacant space and rental rates will be more robust than expected.

The future of commercial real estate, he stresses, is linked strongly to the overall economy. “Everything about real estate today is basically about the economy,” he says. “As the economy rebounds, confidence in general will grow. As that occurs we will see more confidence in capital markets and hopefully more stability in the political environment.”

Read original article »

Posted from WordPress for Windows Phone

enterprisedojo.com

A productive workspace is the key to a successful company. If you want to get the best out of your employees, it is crucial to consider productivity in every aspect of your office design. Happy employees are productive employees so whether you are trying to improve your existing office space or you are looking for a more productive office design from somewhere like Skyline Offices, here are three ways to boost productivity in your workspace.

Asses the Temperature

Designing a comfortable space isn’t just about high quality office chairs. The temperature of an office can affect the happiness of your employees and therefore affect productivity levels. Getting the temperature right can be quite a challenge as some people prefer to work in a cooler environment than others. Studies show that a cold working environment can have a negative effect on productivity and that’s not all. The study in question found that employees made more mistakes when temperatures dropped below 20 degrees Celsius. In order to reach a happy medium, give your employees a survey to fill in and this will help you decide on the best heating solution to put in place. It is also wise to provide employees with heaters to allow them more control over their working environment.

Lighting

Lighting is another important aspect to consider if you want to boost the productivity of your workforce. According to recent research, having access to natural lighting rather than artificial lighting can make you feel more alert. The quality of your office lighting can directly affect the mood of your employees and therefore this aspect should be carefully considered. Try to ensure that every employee has access to natural lighting where possible or try to position employees away from direct light and install lensed-indirect lighting instead.

Comfort

An uncomfortable working environment can see productivity plummet so as a business owner, it is your responsibility to make sure they are happy. Bad posture and back ailments are common in the office environment so providing employees with the right chairs and equipment to prevent these conditions will go a long way. Comfortable chairs, foot rests and back rests can improve office conditions significantly for many individuals and this will have a positive effect on your business. Provide your employees with a guide to office ergonomics so they can learn how to sit comfortably and improve their posture.

Posted from WordPress for Windows Phone

FORTUNE — Hilton Worldwide recently announced plans to return to the public market, after The Blackstone Group (BX) took the hotel giant private in 2007.

The private equity firm is eager to recoup some of the $26 billion it paid for the chain just before the credit crunch. Whether Blackstone will be successful remains to be seen, but the initial public offering comes as the hotel industry, and more broadly, the commercial real estate market, turns around.

Less than four years ago, lawmakers and executives warned that the market for hotels, malls, apartments and office buildings would be the next to collapse, after countless homeowners lost their homes to foreclosures. While prices across the commercial real estate declined almost 40%, it never quite crashed like the housing market. Yes there were foreclosures and defaults, but not to the scale of housing.

There are a few reasons why the crash never came, which also help explain how commercial real estate has recovered much faster than the market for homes. Unlike residential, the commercial market didn’t bubble up nearly as much as housing; it was not nearly as overbuilt, either.

MORE:The barbarians are still at the gate

This had a lot to do with timing, says Casey Mulligan, economics professor at the University of Chicago. The boom in home construction took workers, materials and land away from the commercial sector. It was only after 2005, when the housing market bubble burst, that more of these resources freed up and construction projects started picking up — but that was short-lived since the financial crisis shortly followed.

While there were defaults, the commercial market didn’t see nearly as many foreclosures as the housing market. Joblessness and plummeting home prices led many to miss mortgage payments, which led to the wave of defaults. Commercial properties saw similar price declines, but unlike residential properties, owners enjoyed continuous flow of income by way of rents from tenants. This gave owners struggling with the credit crunch considerable relief.

“There were defaults in the commercial space, but it didn’t hit the heights seen in the single-family market,” says Susan Wachter, real estate and finance professor at the University of Pennsylvania’s Wharton School of Business. Rather than a wave of defaults, the real estate crash triggered a wave of workouts whereby banks renegotiated the terms of loans, sold to new owners or took the properties over. Private equity firms also swooped in and bought up distressed properties.

“Any solution did not trigger excess supply in the market,” Wachter adds. “It was almost a nonevent in the commercial space.”

MORE:More Americans pay mortgage first again, then credit cards

On average, prices regained all the ground that was lost during the downturn, according to the monthly index by Green Street Advisors that tracks commercial real estate prices. While office industrial buildings have a ways to go, prices for apartments, high-end malls and strip centers are well above their prior peak.

Hotels, in particular, have recovered in big ways as stocks soar and the economy improves. And Hilton’s move to go public is the latest example. With hotel stocks close to a five-year high and revenue and profits growing industry-wide, investors are taking advantage of the stock rally to sell assets.

Hyatt Hotels (H), the chain controlled by Chicago’s Pritzker family, raised $1.09 billion in an IPO in 2009; it rose 12% on its first day of trading. Since the IPO, shares have gained 77%.

Caesars Entertainment (CZR), the casino chain that also operates hotels, sold shares to the public last year, after private-equity owners Apollo Global Management LLC and TPG Capital took the company private about four years ago. Since the IPO, shares have risen 81%.

The crash in commercial real estate may or may not have happened, but if it did, it probably wasn’t as bad as many thought.

Posted from WordPress for Windows Phone

Los Angeles Times

By Martin Eichner
September 20, 2013, 8:16 p.m.

Question: My partner and I went to check out a vacant apartment in a very attractive local rental community. We met with the management’s leasing staff in the community’s leasing office. We were happy with the rent amount and the other basic terms they described verbally, including a one-year lease. However, when they asked us to sign the lease we saw that it had a lot of pages with many terms and conditions. We asked if we could take a copy home to review before we signed it, but the leasing agent said no, because the lease was a proprietary document. Basically we were told to sign immediately if we wanted the apartment. We were told a copy would be sent to us after we signed.

We decided to go ahead and sign because we believed there was a law that allowed us to rescind the lease within three days, so we would be safe if it turned out we didn’t like the lease details. As three days were passing, we asked for our copy but did not receive it. Then when we tried to notify management that we were rescinding the lease under the three-day rule, they told us there was no such law. We have moved into the community because we didn’t want to lose our deposit, but we still don’t have a copy of the lease even though a month has passed. Were our rights violated?

Answer: Unfortunately for you and your partner, you were relying on a very common misconception when you assumed you had three days to cancel the lease you signed. Certain contracts such as consumer contracts are by law subject to a right to rescind within three days after execution, but there is no such right under the laws governing residential rental agreements. You were bound by the lease as soon as you signed it.

Also, there is no law that obligated the leasing staff to allow you to have a copy of the lease before you signed it. However, their failure to allow you sufficient time to review the document prior to signature should have been a red flag for you.

Civil Code Section 1962 does require your new landlord to provide a copy of the signed lease to you within 15 days after you signed it. Since it has now been more than 30 days since you signed your lease, your new landlord has violated this statute. Section 1962 does not, on its face, render the lease void for failure to comply with the duty to provide a copy.

However, you should document the landlord’s failure to comply with an email or letter demanding a copy. The landlord’s failure to comply, combined with the failure to allow you a sufficient opportunity to review the document, will give you a strong argument that the many detailed provisions in the lease form are not enforceable against you.

Eichner is director of Housing Counseling Programs for Project Sentinel, a Bay Area nonprofit. Send questions to info@housing.org.

Read

Posted from WordPress for Windows Phone