Oceanside – Growing & Brewing!

Oceanside Brewing Company partners Greg Distefano and Tomas Bryant spent over a year building out their three-barrel brewhouse and tasting room, and hey spent the whole year before that searching for its unique and iconic location. All time and money well spent as Oceanside itself is in the midst of growth revitalization that has been long coming.

But it’s not all about the 8 new breweries on Oceanside, or the many new restaurants, bike lanes, and apartment buildings currently under construction all along historic Highway 101. . . it’s also about the $24 million in upgrades to the coaster train station, and an additional $5 million to create a quiet zone free from train horns for all those new residents.

This is a great time for commercial real estate in Oceanside. Starting a new business is all about timing and prices will be rising in the future as the redevelopment moves ahead. Location is critical and the best locations are fronting primary travel routes.

We are currently offering a 7,700 sq. ft. property with excellent visibility along Oceanside Blvd. just 3 miles from the beach and 1/2 mile from interstate 5. This location at 2040 Oceanside Blvd. is available now – or we would be happy to show you the current inventory in Oceanside.

Big Data is Coming to CRE in a Big Way

Big data is here and CRE will never be the same. CRE before Big data was the land where guesstimates of income and expenses, and risk analysis were made from multiple sources.

During our analysis of a property we might need to call the title company in the morning, and the city water services, then call a surveyor, and after lunch a call to the previous management company, and then print out comps from three different sources and compare numbers.

Welcome Reonomy!

This new concept platform scours through hundreds of public databases and brings together property information, outstanding mortgages, capital expenditure, Department of Building violations, and multiple other nuggets that provide an investor with critical data for making a single decision: BUY or NOT.

Charlie Oshman and Rich Sarkis, founders of Reonomy, didn’t have commercial RE experience but they did understand big data:

“I was grabbing a drink with a friend who worked as a commercial real estate investment analyst and he told me about the crazy inefficiencies in the work he was doing,” Oshman said. “Things were very manual and the access to data was woefully behind what you’d find in other public markets, such as finance. This resonated with me and even more so when you think about the size of the space – $15 trillion in the U.S. alone – I had to dig in.”

Reonomy’s clients include investment sales and debt brokers, major banks and small-to-mid-sized investment funds. Sarkis said that he plans to go after larger investment funds, private equity firms and real estate investment trusts once the firm expands its sales team. Revenue, which comes primarily through subscriptions, is expected to hit the low single millions in 2015, he said.

Understanding technology, data, and the physical aspects of commercial real estate is a big fish to swallow and have at your fingertips. Without it you are making deals with only half of the picture. Today’s market requires navigation using every option available to find a clear path to your investment potential.

China Making BIG Moves into U.S. CRE

Anbang is China’s largest insurance company and they already own the world-famous Waldorf Astoria in New York. They bought it for $1.95 billion ‒ the highest price ever paid for a U.S. hotel.

Over the weekend Anbang paid $6.5 billion for a portfolio of 17 of the most famous luxury hotels in Laguna Beach, and Jackson Hole, as well as more in New York, Chicago and San Francisco ‒ and that included the Del Coronado – San Diego.

Monday came with ANOTHER huge offer from Anbang: $12.2 billion to takeover Starwood Resorts Worldwide from Marriott.

Anbang is benefiting from the December 2015 Congressional changes to REIT and FIRPTA laws that now greatly favor the investment of foreigners into U.S. markets. 

Talk about heavily connected! Wu Xiaohui is the CEO of Anbang, married to the grand-daughter of Deng Xiaoping, China’s deceased but still revered leader. One of Anbangs directors is Chen Xiaolu, the son of Chen Yi, a top military commander under Mao. Anbangs director is Levin Zhu, the son of Zhu Rongji, China’s former prime minister, and a successful banker in his own right. Serious power and backing!

Already in 2016 China has invested as much as HALF of the $55 billion it invested in 2015 into the U.S. market. Expect 2016 to be over $100 billion invested into the U.S.

What will the effects be on our markets as billions of dollars pour into U.S. markets?

How will american investors compete against the power of the China-Fed? it wont be easy for the big-fish, but for smaller investors like you and me we can benefit by buying NOW before prices rise.

What will our markets do when our stocks responded so closely to China? A slow down in China will only help the U.S. economy. Expect China to continue and accelerate their buying U.S. real estate.

Many questions and the only good answers are long and complex – but a must read for anyone investing in commercial real estate today!

We suggest thinking long term. Short term won’t work in a volatile market ever. Position yourself with a long term strategy and buy commercial real estate now, don’t wait. All indication are that 2016 will be a big year for growth in  real estate and 2017 could easily follow that trend.

 

 

Multi-Family Growth and Challenges

Multi-Family housing is rising at rates not seen before in historical records – this is a direct result of both economic and social changes. Millennials are Gen-X’ers are delaying home buying due to being priced out of the market. as well as lifestyle choices that focus less on buying and more on mobility. Developers are rushing in to fill the void by building far more properties as rentals.

How long this trend will continue is without measure as we are in uncharted economic waters now. Rents may continue to rise and themselves create a new form of “bubble” economics as rental-rates replace home-buying as the “new” measure of economic health.

 

The latest Allen Matkins/UCLA Anderson Commercial Real Estate Survey found multi-family developer certainty has remained strong and consistent over the two years of 2014 and 2015. Amazing fact: San Diego County has historically desired and built single-family homes by a wide margin, but SANDAG forecasts a BIG shift; 82 percent of housing units built until 2050 will be multi-family!

This is a big shift in historical norms and will totally reshape the single family real estate market in the coming years. It’s possible that a long-term reduction in single-family home construction could lead very tight demand for SFR for several years to come. Prices of SFR could become quite insulated against the market simply by a long-term restricted supply.

This is an exciting time for real estate overall, both commercial and residential real estate are positioned with the potential to move prices in any number of directions including up, down and sideways!

Our advice is consistent: Buy now and don’t wait. Commercial real estate will continue to grow and morph itself into the needs of the growing millennial generation and you can’t go wrong buying close to urban centers and near transportation corridors. Pick the best property manager you can find and hold on for the long term.

Medical Commercial Space – Growth Age!

We are in the middle of an undeniable surge in growth that will help Medical Commercial Real Estate rise by as much as 67% in the coming decade – due to the aging U.S. population.

The 65-and-over population is expected to DOUBLE by the year 2060, and the 75-plus and 85-plus age groups are projected to grow at an even faster rate!

The graying of America also brings with it unique and unexpected stress on our way of life. Is the graying of America also an economic time-bomb? Reading this report might surprise you!

The Graying of America: An Economic Time-Bomb?

 

We are also going to witness the continued rise of health care expenditures right through to 2024. Millennials heavily favor reform to healthcare, more so than any other generation, and expect to see that result in MORE people having access to medical providers. This is without doubt a great time to invest in medical real estate.

Another SOLD! We just close escrow on a fantastic medical property in Poway originally offered at $1,450,000.

Suite C1 and C1B at Pomerado Medical Center offering over 3,500 square feet of prime medical space right in the heart of North County San Diego’s medical district.

Medical properties are having a great year of growth and we expect that to only get stronger as we move into 2016 and towards 2017. This is a great time to consider commercial property as a long-term investment strategy that will outperform residential property in the next decade!