Blog Archives

We do not generally answer a question with a question however this is one on the mind of everyone recently.Answer this? Are you a yield or per square foot buyer?Case Study-Class A Industrial Building-756,000 sf, Inland Empire, CA, 50% leased-Purchase Price $35 or Replacement Cost of $55 a foot-Ingoing yield 4% “As Is”-100% Leased Yield 8.6%If you are a price per square foot buyer this building would be cheaper to purchase than to build. If you are a yield buyer, you would be able to acquire a existing class A building 50% occupied with a current 4% yield. Taking into...

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We do not see the market recovering until a few major indicators begin to rise such as jobs, port traffic and more jobs. The economy is going to have a very difficult time recovering without a rise in employment. The latest figure is pointing unemployment around 12% however we feel it is closer to 20%. To Keep it SimpleJobs = spending Jobs = vacancy absorption Jobs = a recovery in the economy A recent article from By Wanfeng Zhou at ABC, NEW YORK (Reuters) - “Consumer confidence rebounded in March, while home prices rose in January for the eighth straight month according to a closely...

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Link: Growing Your Business: 5 Tips from the Co-Founder of Foursquare This is a great article that reviews simple yet very effective ways to promote and increase your Brand Image. The O’Donnell Group uses all of the techniques described in this article. Please contact for more information.

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Posted by the Orange County Business Journal In Case You Missed It: We’re in RecoveryBy Murray Coleman - 3/22/2010Orange County Business Journal Staff Orange County’s economy is approaching a full year of recovery, though that may not mean much if you’re still struggling to restore sales and profits or are looking for a job. Economists estimate the county’s economy has been growing since the second quarter of 2009, after declining for four straight quarters from early 2008 to early 2009, according to figures from Moody’s Corp.’s Economy.com. But employment, which has been falling...

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There has been some major buzz the past 3 months in the Commercial Lending sector that debt is AVAILABLE. We have attended a few different seminars in 2010 listening to panels and panels of lenders talk about the amount of capital that they need to deploy here in 2010. The questions is: Where are lenders lending, on what deals and where. We know that debt is not easy to come by even if the lenders are advertising. So what do you do if you are a asset seeking debt that is coming due? The answer is: -National Lenders are Lending on 50% or less LTV at current or forecasted values on full recourse,...

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Link: JLL: Industrial real estate close to market bottom TUESDAY, MARCH 09, 2010 JLL: Industrial real estate close to market bottom by Chicago Industrial Properties ReportsEconomic indicators such as trade flows, manufacturing production and consumer sentiment indicate the United States industrial sector is nearing bottom, according to Jones Lang LaSalle’s North America Industrial research report. The 2009 report, which tracks 40 American markets, shows that overall industrial demand remains weak and occupancy losses in many markets during 2009 could prolong the length of the industrial...

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Link: Online Ad Spending to Surpass Print in U.S. This Year March 8 (Bloomberg) — U.S. advertisers will spend more on digital marketing than on print this year for the first time, boosting overall ad sales, according to research company Outsell Inc. Print will make up 30 percent of total advertising and marketing spending in 2010, compared with 33 percent for digital, Outsell analysts Chuck Richard and Sheila King wrote in a report released today. Last year, print spending accounted for 32 percent of the total, compared with 30 percent for online. Spending on Web sites and other digital...

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The O’Donnell Group, Inc. Green Pearl Events - Los Angeles, CA - Feb 4th, 2010 The Green Pearl Event in Los Angeles was a very informative afternoon from the commercial real estate industries top professionals. I would definitely recommend attending the next event. (www.greenpearlevents.com) In the next few years going forward there is an expected $1.3 Trillion in debt coming due and $40-$50B in commercial notes coming to market through 2012. There is an estimated $3-$5B in life insurance capital on the sidelines ready to deploy in second half of 2010. As so much product is on the horizon,...

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The total number of containers handled in January at the ports of Los Angeles and Long Beach rose by +1.6 percent on a year-to-year basis (the second consecutive month of year-to-year increases), to 1,001,774 TEUs (twenty-foot equivalent units). The two straight months of improvement are encouraging as the total number of containers handled at Los Angeles and Long Beach (including empties) deteriorated by -17.6 percent in 2009 when compared to 2008. This was the seventh consecutive month of TEU totals above one million units after seven months of TEU totals below that mark. The Port of Long...

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CALIFORNIA ASSEMBLY BILL 2640: PROPOSED REPEAL OF SECTION 1031 AND OF OTHER NONRECOGNITION PROVISIONS OF THE INTERNAL REVENUE CODE EFFECTIVE JANUARY 1, 2010 California taxpayers who engage in tax-deferred transactions under Section 1031 and other provisions of the Internal Revenue Code should take note of Assembly Bill 2640 (“AB 2640”), introduced last Friday, February 19, 2010. If enacted, AB 2640 would repeal many nonrecognition provisions of the Internal Revenue Code, including Section 1031, for California...

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