This Time Like Last Time: Alternative Uses Prevalent in this Economy
More than ever in this soft economy, TriValley landlords are seeing alternative users actively looking for commercial buildings to purchase or lease. Churches, sports related enterprises, and non profits are recognizing the tenant's or buyer's market and are scouting for locations that require, minimally, a conditional use permit (CUP) for their occupancy. Many of these organizations are expansions or relocations that can easily use warehouse, office, or retail s
We are assisting many companies in the TriValley renew their leases (often lowering their rents by blending current term with significantly lower future term rent) or relocate (if downsizing or the landlord won’t consider current market conditions). While expansions are less prevalent in today’s market, we still often get asked: how much office space do we really need? There are many variables in determining the size and configuration of your office space. Based on th...
SBA Financing: Still Available for User Owners with a Green Initiative Benefit
In the Tri-Valley, as well as elsewhere in the U.S.,commercial real estate can now be purchased significantly below replacement values and with an Small Business Administration (SBA) loan, for as little as 10% down. Besides the government recently reducing and waiving some fees, there is another benefit if the user/buyer will reduce their energy consumption with the new building or will be installing renewable energy: a larger loan value.
Leasing Space? Record it as a Liability on Your Balance Sheet in 2013
The Financial Accounting Standards Board (FASB) is working with the International Accounting Standards Board (IASB) to merge GAAP (Generally Accepted Accounting Principles) with the international standards. One of the changes coming in 2013 will require companies to book leases as assets and liabilities on their balance sheets, in order to stop significant off-balance-sheet activity for leases. This is estimated to be a $2 Trillion change in the US. In essence, compani...
Real Values On Specialized Properties
For Tri-Valley buildings that are highly unique and specialized, or functionally obsolete, there are some real values in our marketplace. An example is the San Remo purchase of 1252 Quarry Lane in Pleasanton, CA, from Breuner Asset Management for $1.75 million, or roughly $99 per square foot. In a good market, comparable buildings might sell for $200 psf. The 17,625-square-foot facility is on 1.207 acres in Balch Business Park. The property features two drive-in bays expandable t...
Did You Get Your Building's $0.60 to $1.80/sf Tax Break?
There are some no brainer, low hanging Federal tax breaks available to Tri-Valley commercial building owners and tenants. If you own or lease a commercial building and you have either built it after December 31, 2005 or you as a tenant or owner have retrofitted it with new lighting or heating, cooling or other energy-efficient systems, you qualify for the IRC section 179D, the Energy Efficient Commercial Building Tax Deduction. These tax breaks are in addition to Califo...
With lease rates at extreme lows, why would someone want to own vs. lease? The answer is when it actually pays for a buyer to own a building. In a recent study we did for a 30,000 sf flex building at 3201 Doolan Rd. in Livermore, we did a “Lease vs. Buy” scenario for an office user/buyer. With the bottom floor leased back to the seller and a Fortune 500 tenant, a 16,000 office user could actually put over $6,600 back into his pocket, after taxes by buying ...
The Tesla/Toyota Venture at Nummi
The recently announced joint venture between Tesla Motors and Toyota, and the following commitment of Tesla to purchase the Nummi manufacturing facility for $50M is great news for not only the City of Fremont, but for the TriValley as well. The initial hiring of 1000 workers is just the start; also following will be new suppliers, vendors, and other industries that need to supply the new venture with everything from parts, assemblies, and other materials. There will be an ...
Recently, business leaders from the Tri-Valley have been working on an initiative to collaborate with business and government to reposition the area to be, with some exceptions, more than the back office to San Francisco and the secondary location for companies in Silicon Valley. Focusing on innovation and diversity, the attached highlights the efforts of the two Federal laboratories, large local headquartered corporations (i.e. Chevon, Sybase, Adept Technology and others...
Livermore Industrial Market Update
Livermore’s light industrial market continues to attract alternative energy, consumer oriented food and health care related businesses. The warehouse market’s significant increase in vacancy to 18.5% reflects a 300,000 square foot vacancy in the former Circuit City building and a continuing vacant, 186,000 square foot, Discovery Toys building, among others. Asking rents continue to trend downward for warehouse space in Livermore, recently to $0.38 per square foot, NNN. The ...
