Bay Area: 16,600 Unemployed in June

These numbers are a little scary. According to the Bureau of Labor Statistics, the Bay Area added 16,600 unemployed people between May and June. Though the raw numbers of unemployed workers were lower in June than a year ago, the number of people out of work grew by 16,600.

Implications of Rising Interest Rates on CRE Recovery

With a 100 basis point increase in interest rates in the last four months, the natural reaction would be a decline in pricing for 2011 however with Multi Family, that will not necessarily be the case. Strong absorption rates nationwide and especially core markets are driving pro-forma underwriting. With local assets well informed principals are underwriting 5% rental increases annually for the next three years.
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Price Gains Underscore Market's Volatility

Great analysis to get a macro overview of pricing and transaction volume... Read Full Article

Multi-family Property Asking Price Index Trends

Increase in Distressed CRE Mortgages

The number of distressed commercial real estate mortgages has increased by 10% to a total of $187.4 billion. However the velocity of distressed mortgages has slowed down, possilby due to lender's willingness to "extend and pretend." Is this a good thing or a bad thing? Read More

$160B Distressed Commercial Property Hits Close to Home

The unfortunate downfall of the Lembi Family's 8000 unit portfolio has created a lot of activity in San Francisco. With around 1500 units sold off, 1200 units with loan modifications, there could be as many as 5,300 units freeing up in 2010.