Blog

The apartment sector had been holding out relatively well compared to other industries, but it too will succumb to the massive loss of jobs that is expected to accelerate as we go into 2009. Through the third quarter, the national apartment vacancy rate according to the Census Bureau was 10.7 percent, only 0.3 percent higher compared to the same period a year ago and still below the level in 2003-04, reported the National Multi Housing Council (NMHC). And rents continued to rise through September, albeit at a slower rate and less than the rate of inflation. The apartment fundamentals however,…

In a stunning announcement, Timothy Geithner was named as President Elect Obama's pick for Treasury Secretary, replacing Henry Paulson. To give you some idea, "Timothy F. Geithner became the ninth president and chief executive officer of the Federal Reserve Bank of New York on November 17, 2003. In that capacity, he serves as the vice chairman and a permanent member of the Federal Open Market Committee, the group responsible for formulating the nation's monetary policy.
 
 Mr. Geithner joined the Department of Treasury in 1988 and worked in three administrations for five Secretaries of the Treasury in a variety of positions….

Oh, those happy go lucky guys at AIG are at it again. Having been the fortunate beneficiaries of millions in taxpayer funds, they've now held another retreat and are claiming it was for educational purposes for the investment broker network. Isn't the investment broker network responsible for how we got into this mess in the first place? According to AIG, the meeting was at minimal cost, compared to the value these events supposedly create and get this – if AIG can't get the brokers to sell their products to the right customers for the right purposes, then the brokers will…

Green design has become more popular in recent years in large multifamily and commercial building planning. Take, for example, the Conference Center at the newly re-opened TreePeople Center for Community Forestry in Los Angeles, which recently was awarded LEED Platinum certification. TreePeople is an environmental non-profit. Its Conference Center provides a gathering place for local, national and international leaders to meet and create plans for sustainable cities. Which brings us to another growing green practice: Building sustainable communities. Using green design when planning new multifamily buildings can help maximize energy efficiency and decrease any negative impact a single high-rise structure…

The apartment investment sales market since the financial market crisis occurred in mid-September has “freezed up” as apartment buyers and sellers face deep uncertainty over the future of the nation’s—indeed, the global—economic condition. According to the results of one study, reported here in the previous issue, apartment sales volume has plunged a whopping 69 percent. Indeed, one broker, Kitty Wallace, senior vice president at Sperry Van Ness, says that in her experience in California, multi-housing transactions have dropped 70 to 80 percent. The severe drop in apartment investment sales volume generally is attributed to a combination of negative sentiment and…

Despite the optimism that greeted Barak Obama’s election to the Oval Office, the economy continues to struggle in a variety of areas. While experts continue to disagree as to whether or not an official recession is in the offing (or already taking place), it is clear that the President-Elect will inherit an economy with more than its share of problems. Early this week, the nation’s No. 2 electronics retailer, Circuit City, filed for Chapter 11 bankruptcy. The move came a week after the firm announced it would close 155 stores in the wake of a drop in consumer spending. Circuit…

"I don't think we're in Kansas anymore"Dorothy in the Wizard of Oz(c) MGM 1935 The election o f Barack Obama to president of the United States is going to have a diverse impact on markets, real estate and ultimately the status of the recovery package authored by the U.S. Treasury department, under Henry Paulson. Not since the administration of Herbert Hoover (what a fun president he was) has a newly elected president faced the myriad of complexities we are now facing as a nation. There are a lot of promises contained in the campaign messages that now ring hollow, it…

It’s no secret that green building is becoming more popular. And, as a result, green building training and certification programs are becoming more fashionable, too. With good reason: As green building gains popularity in the multifamily sector–and in the overall building industry–there is an increased need for information about what green building entails and how to actually do it. The industry is responding by offering grants, training and more information. •    New grants mean new training funding: Consider, for example, the upcoming green building program at the Technical College of the Lowcountry in South Carolina. Funded by an $86,000 grant…

Up until recently, the kitchen was designed as a functional laboratory for a single participant, the woman of the house, the little lady, mom.  It was laid out with assembly line efficiency with a window centered on the sink so she could watch the little ones in the back yard. The evolution of the Modern Kitchen has grown far from its primary function of food preparation, to that of “the social center of the home”.  A place where the family, both nuclear as well as tribal, still gather to share, rejuvenate and commune together. Today the Modern Kitchen is still…

Homeownership is a hot button issue politically. Recently, the four horsemen of HUD, secretaries Alphonso Jackson, Henry Cisneros, Jack Kemp and Moon Landrieu were together for a session at the Fall ULI Conference in Miami. As the discussion turned to housing needs and the concept of the suitability of homeownership for anyone so inclined, the secretaries, in one form or another claimed that the issues now facing the housing markets were politically motivated, corrupt practices in the mortgage industry, uninformed buyers or others that preyed on unsuspecting borrowers. They also suggested in some fashion that HUD was an essential tool…