Commercial real estate sectors, hurt by weak job growth, are offering incentives in many areas that are conducive to business expansion, according to the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said fallout from the recession continues to impact commercial real estate.  “Vacancy rates are beginning to level off in some sectors, but rent discounts and moderate levels of landlord concessions are widespread,” he said.  “This is very much a tenant’s market, which is quite favorable for businesses that are considering expansion.  It’s also encouraging that there is a modest improvement in the sentiment of commercial real estate practitioners.”

The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, an attitudinal survey of more than 600 local market experts,¹ shows vacancy rates are beginning to level, but rents remain depressed, and subleasing space is high.

The SIOR index, measuring 10 variables, rose 2.8 percentage points to 41.0 in the second quarter, but remains well below a level of 100 that represents a balanced marketplace.  This is the third consecutive quarterly improvement after nearly three years of decline; the last time the commercial market was in equilibrium at the 100 level was in the third quarter of 2007.

Fifty-seven percent of respondents expect improvements in the office and industrial sectors in the third quarter.

Commercial real estate development remains stagnant in all regions with low investment activity; 88 percent of respondents said it is virtually nonexistent in their markets, but development acquisitions are beginning to grow in many areas in what is described as a buyer’s market.

Looking at the overall market, vacancy rates will shift modestly in the coming year according to NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK.²  The NAR forecast for four major commercial sectors analyzes quarterly data in the office, industrial, retail and multifamily markets.  Historic data were provided by CBRE Econometric Advisors.

Office Markets

Vacancy rates in the office sector, with high levels of available sublease space, are expected to increase from 16.7 percent in the second quarter of this year to 17.0 percent in the second quarter of 2011, and then ease later next year.

The markets with the lowest office vacancy rates in the second quarter were New York City, Honolulu and Long Island, N.Y., with vacancies around the 9 to 11 percent range.

Annual office rent should fall 2.7 percent this year and decline another 2.1 percent in 2011.  In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is projected to be a negative 13.6 million square feet this year and then a positive 22.6 million in 2011.

Industrial Markets 

Industrial vacancy rates are likely to decline from 14.1 percent in the second quarter of 2010 to 13.7 percent in the second quarter of 2011, and then continue to ease modestly as the year progresses.

The areas with the lowest industrial vacancy rates in the second quarter were Los Angeles, San Francisco and Kansas City, with vacancies ranging between 8 and 11 percent.

Annual industrial rent is estimated to drop 5.4 percent this year, and to decline another 4.7 percent in 2011.  Net absorption of industrial space in 58 markets tracked is seen at a negative 31.7 million square feet this year and a positive 157.2 million in 2011.

Retail Markets

Retail vacancy rates should hold steady at 13.1 percent in both the second quarter of this year and in the second quarter of 2011, with a level pattern for most of next year.

Markets with the lowest retail vacancy rates in the second quarter include San Francisco, Honolulu and Miami, with vacancies of 7 to 8 percent.

Average retail rent is expected to decline 2.6 percent in 2010 and then flatten out, slipping 0.1 percent next year.  Net absorption of retail space in 53 tracked markets is forecast to be a negative 2.3 million square feet this year and then a positive 6.4 million in 2011.

Multifamily Markets

The apartment rental market – multifamily housing – is benefiting from modestly higher demand.  Multifamily vacancy rates are likely to decline from 6.0 percent in the second quarter of this year to 5.6 percent in the second quarter of 2011.

Areas with the lowest multifamily vacancy rates in the second quarter include San Jose, Calif.; Pittsburgh; and Philadelphia, with vacancies of less than 4 percent.

With additions from new construction, average rent should slip 0.6 percent in 2010, and then hold even in 2011.  Multifamily net absorption is expected to be 105,200 units in 59 tracked metro areas this year, and another 138,000 in 2011.

The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the commercial community.  NAR’s Commercial Division, formed in 1990, provides targeted products and services to meet the needs of the commercial market and constituency within NAR.

The NAR commercial components include commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and the NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors^® Land Institute, Society of Industrial and Office Realtors^®, and Counselors of Real Estate.

Approximately 79,000 NAR and institute affiliate members specialize in commercial brokerage services, and an additional 263,000 members offer commercial real estate as a secondary business.

The National Association of Realtors^®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

¹ The SIOR Commercial Real Estate Index, conducted by SIOR and analyzed by NAR Research, is a diffusion index based on market conditions as viewed by local SIOR experts.  For more information contact Richard Hollander, SIOR, at 202/449-8200              202/449-8200      .

²Publication of additional analyses will be posted under Economists’ Commentary in the Research area of Realtor.org in coming days.

The next commercial real estate forecast and quarterly market report will be released on November 29.

Source: http://tinyurl.com/25h89m7

New home construction edged up slightly in July but applications for building permits tumbled to the lowest point in 14 months, a sign of continued stress in housing. 

Construction of new homes and apartments rose 1.7 percent in July, the Commerce Department reported Tuesday. Still, applications for building permits, considered a good sign of future activity, fell 3.1 percent. 

A rebound in housing is considered critical for a sustained economic recovery. But builders continue to struggle with weak demand for new homes caused by high unemployment and a glut of foreclosed homes on the market. 

The July increase in housing construction pushed total activity to a seasonally adjusted annual rate of 546,000 units. Building activity in June was weaker than first reported. It fell 8.7 percent to an annual rate of 537,000 units, the slowest pace since October of last year. 

Housing construction got a boost earlier in the year when the government offered buyers up to $8,000 in federal tax credits. But after the incentives expired at the end of April, sales and constructions activity slumped. 

Driving the July increase was a 32.6 percent surge in construction of apartments and condominiums, which jumped to an annual rate of 114,000 units. The bigger single-family sector declined 4.2 percent, falling to an annual rate of 432,000 units. 

The drop in building permits left applications for new construction at a seasonally adjusted annual rate of 565,000, the slowest pace since May 2009. 

Construction activity surged 30.5 percent in the Northeast and was up 10.7 percent in the Midwest. However, construction fell 6.3 percent in the South and was flat in the West. 

In advance of the report on housing starts, the National Association of Home Builders reported Monday that its monthly index of builder sentiment dropped to 13 in August. That was the lowest reading in 17 months. Readings below 50 indicate negative sentiment about the housing market. 

The last time builders' index was above 50 was in April 2006. 

Builders say consumers remain worried about the weak economic recovery and the sluggish jobs market. Among those who are buying, many are opting for deeply discounted foreclosed properties.

Sourcee: http://www.foxnews.com/politics/2010/08/17/new-home-construction-edges-percent-july/

EVANSVILLE - Authorities in Vanderburgh County have issued a burn ban for the county and the City of Evansville.

The Evansville EPA issued the ban Tuesday night, effective immediately, because of extremely dry conditions.

Since July 1st, Meteorologist David Heckard said Evansville is 3.45 inches of rain below normal, and for the year is nearly 9 inches below normal.

The burn ban prohibits all forms of Open Burning including recreational fires, burn barrels, and agricultural and ditch cleaning. The ban does not include grills or patio fireplaces.

If you have any questions about the ban, call the Evansville EPA at (812) 435-6145. The EPA will issue a press release when the ban has been lifted.

Source: http://www.news25.us/Global/story.asp?S=13042027

Watering, weeding and deadheading are among the main activities for gardeners this month. But it's also time to harvest fruits and flowers.

Summertime, and the livin' is easy — at least it can be for gardeners.

Aside from tasting, weeding and watering, essential gardening tasks are at a lull in August.

Never fear, gardening addicts: There's always something to tend for those who are determined. But go easy on yourself and take advantage of the occasional cool day to work in comfort.

Annuals

• August is a relatively low-maintenance month for flowers, but regular watering isn't the only task that will keep your garden in top shape.
• Keep deadheading flowers as they fade; not only will the plants look better, but if they're allowed to produce and shed their seeds, they're more likely to stop producing new blooms.
• In areas with mild winters and longer growing seasons, annuals should have another feeding of fertilizer in late summer.

Perennials

• Along with the tips below, water perennials weekly and deeply.
• To check on water levels, trowel into the soil and look for moisture to a depth of three or four inches, or deep enough to ensure that water is reaching roots.
• Deadhead spent blooms before they have a chance to seed.
• Dahlias are probably getting leggy right about now; if so, support them with stakes.
• Iris and other early-blooming perennials can still be divided this month and even into September. Choose a cool day or time of day, and give them a tall drink of water in their new locations.
• If you're gardening in a mild climate, fertilize roses once again this month.

Lawns

• Since August is usually the hottest month of the year, watering is a top priority in lawn care.
• Water deeply once a week (more often during scorching dry spells) for an hour at a shot.
• Raise the cutting height on your mower to keep grass longer, conserving water and helping roots stay cool.
• If water is scarce, consider letting your lawn go dormant, and reduce watering to once a month. It may look a little scrappy, but that glowing green hue will return with fall rains.
• Wildflower seeds tend to be ripe by late summer, so if you have a meadow to mow, this is a good month to hop on the tractor.

Watering
April may be the "cruelest month," but for gardens August is worse if the weather is hot. Even in mild climates, a single heat wave can put the kibosh on your garden if it doesn't receive enough water.

• Water evaporates quickly on sunny days, so water early in the morning to give plants a head start.
• Make a frequent check of flowers and vegetables for their watering needs. Generally, you'll want to give them about an inch of water each week; deep, less frequent watering is better for them than frequent surface watering.
• Add a light layer of mulch around young plants to help their roots retain water.
• If you're keeping a green lawn, give it an inch of water once a week or slightly more often.
• Check hanging baskets and container plants every day in hot weather.

Planting
Here are a few tips for extending your growing season:

• Early in the month, plant seeds in the ground for fall and winter vegetables such as spinach, radishes, scallions, carrots and lettuces.
• There's still time to transplant greens such as kale and collards, broccoli, cauliflower and early cabbage.
• Container plants, including perennials, trees and shrubs, can be put in the ground now.
• Plant crocus bulbs for delicate splashes of fall color.
• Order fall bulbs for planting.

Pest control
Keep up the battle against slugs and aphids.

• Slugs will tend to be more abundant now due to extra watering; plant saucers of stale beer around the garden, especially around mulched areas (a favorite slug hiding place) and near tender greens.
• At first notice of aphids, hose-blast them off of leaves or spray them with an insecticidal soap.

Weeds
Extra watering and hot weather make August a red-letter month for weeds. Expect weeds to germinate and drop their seeds faster; pull them out as soon as they pop up.

Pruning and grooming

• Shrubs and trees are approaching dormancy and should not be pruned except in mild climates. In colder climes, they may not have time to harden off before the cold weather sets in.
• Prune hybrid roses late in the month.
• Cut back lavender once it has finished flowering.
• Pinch back tomato plants for a higher yield.
• Prune raspberries after the last harvest: Cut out old flowering canes, leaving shoot tips and three or four younger canes per foot of raspberry row.

Harvest

• To avoid giving pests a free lunch, pick fruits and vegetables as soon as they're ripe.
• It's apple-pickin' time! Early apples should be ready to pick this month.
• Garlic and onions can generally be harvested now; pick them when you notice their dry tops beginning to fall over, and let them air-dry.
•  Harvest raspberries, which should be producing the last of their fruit this month.
• Tomatoes and melons should be harvested as soon as they're ripe, before pests have a chance to dig in.

Houseplants

• Houseplants will need to be watered more often this month, especially if they're in a sunny window.
• Before you head out for your Lake Minnehaha vacation, move plants out of direct sunlight, especially those in south-facing windows.
• Check the undersides of leaves for aphid clusters and send them to their doom with an appropriate insecticide.
• Flowering houseplants should be pruned after flowers fade; make cuts directly above leaf joints.

Greenhouse

• Be especially vigilant about ventilation and watering needs in the greenhouse this month.
• Take cuttings of geraniums.
• Give tomatoes plenty of water and food.

Source: http://realestate.msn.com/article.aspx?cp-documentid=20823708

Market Watch For August 2010

Two months have passed since the expiration of the homebuyer’s tax credit and we’ve had time to see how the market would react.  As I predicted, we did see a decline in closed transactions from May and June levels as a result of a decrease in written transactions from the previous months.  And while the news isn’t great, it’s better than expected.  July brought an increase in written contracts up 37% from May and up 22% from June.  I believe July written contracts are more representative of the remainder of the year than either the spectacular numbers we saw in March and April or the depressed numbers we saw in May and June.

The tax credit has expired, but there really has never been a better time to buy.  I mentioned briefly last month that interest rates were attractive but I don’t think many potential buyers realize how much more house the same payment buys today than it did not long ago.  Thirty year fixed rates are now about 4.25%.  On a $100,000 loan that monthly payment (before taxes and insurance) is only $492.  That is $75 a month less than the payment at 5.5% and $140 a month less than the payment at 6.5%.  Buyers can buy the same home and have more money in their pocket or buy a bigger home with the same payment.  Either way rates are great and will not stay at this level.  Don’t miss your chance to take advantage of this opportunity.

While you are shopping for your home don’t forget that TuckerMobile.com allows you to search for any listed home from any smart phone.  It is easy to search by price, address or MLS number and you can save your search results.  Please call me at 812-499-9234 if you have any questions. 

We would like to take this opportunity to congratulate Kevin Eastridge Broker/Owner of F.C.TuckerEmge Realtors this year’s recipient of the Realtor of The Year 2010 Award.

Enjoy your Labor Day weekend and I’ll update you again next month. 

From a price perspective, the latest news is good for the housing market. Home prices for the second quarter are up on a year-over-year basis in almost two-thirds of the big metro areas that the National Association of REALTORS® tracks, and in almost 10 percent of markets, the gains were in the double digits. The national median home price at the end of June was $176,900, about 1.5 percent higher than the same time last year.

Although the clear firming up of prices is positive, the question you’re no doubt asking is: What happens going forward? The second-quarter data reflects the impact of the home buyer tax credit. When it comes out, the third-quarter data won’t have the stimulus effect of that credit. So, what the numbers look like at the end of September will be illuminating.

Based on his most recent comments, NAR Chief Economist Lawrence Yun believes prices should hold steady, with no swings either up or down, for the near term even though the tax credit is gone and the economy isn’t being cooperative. The reason for the predicted stability is the way prices change over time. Price shifts tend to reflect longer-term trends, and the long-term trend for the past year or so has been stabilization.

As I interpret his point, there would have to be a significant shift in the economy for big changes to show up in broad home price trends. So, if the economy remains sluggish but doesn’t lurch downward, prices could remain relatively stable (with small up or down movement on a month-to-month basis) for the next several months. But if the economy remains sluggish until, say, the end of the year and beyond, then prices could be affected.

Of course, you have to approach national price data with a realistic eye. Last year, distressed sales comprised almost 40 percent of sales, compared to a little over 30 percent this year through the second quarter. That means some of the price improvement could be the result of the different mix of properties, not price appreciation.

The bottom line, though, is that prices so far are stable. That’s good for consumer confidence. When the stable prices are combined with historically low rates (about 4.9 percent on average right now for long-term, fixed-rate financing), you have good conditions for the market. For that reason, housing prospects are really hinging on jobs. Tepid job growth is the main impediment to rising consumer confidence.

Access NAR’s latest quarterly price data for yourself: Metro Area Median Prices.

Source: http://speakingofrealestate.blogs.realtor.org/2010/08/11/home-price/#more-3208

Pundits warn of a new housing crash after a tiny number of people signed contracts to buy homes in June, according to the Pending Home Sales Index kept by the National Association of Realtors.

The seasonally-adjusted Index sank to 75.7 in June. That's down slightly from May, and down steeply from April and March, when buyers rushed to take advantage of the federal homebuyer tax credit.

"Hell has broken loose all over again in real estate. Don't buy a home. Sell one," said commentator Michael David White at HousingStory.net.

However, if you look closely at the numbers, the Pending Home Sales report seems less like a sign of impending doom and more like all the other economic headlines you've been reading, pointing to continued weakness and a wimpy recovery.

The Economic Development Coalition of Southwest Indiana is reporting its mid-year accomplishments for community development include more than 35 written and administered grants. The organization says since its formation in 2006, it has secured $32.2 million in direct grants for its four partner counties to help with water and sewer improvements, downtown planning and purchase of emergency responder equipment.

The Economic Development Coalition of Southwest Indiana announced its mid-year accomplishments in Community Development with more than 35 written and administered grants for 2010. An integral part of its mission, the Coalition provides up-to-date grant program information to units of local government and works with local elected officials to identify projects that could potentially be funded by grant awards. Since its formation in 2006, the Coalition has secured $32,266,710 in direct grants for its four partner counties to help with projects such as water and sewer improvements, downtown planning and purchase of emergency responder equipment.

“We love what we do! It is very fulfilling knowing that in a small way the Coalition is helping to build this region for generations to come,” said Debra Bennett-Stearsman, Vice-President of Community Development for the Coalition. “It is an honor working with the communities to make them better places to live.”

“Efforts like those exhibited by Debra and her team enrich the quality-of-life for the region’s residents and helps to attract both talent along with new businesses to our communities,” said Greg Wathen, President & CEO for the Coalition.

The Coalition also recently completed the Comprehensive Economic Development Strategy (CEDS) document for submission to the U.S. Economic Development Administration (EDA). Spearheaded by consulting firm Strategic Development Group, a committee of 46 community leaders was brought together over a period of four months to compile goals and objectives for the region. A master list of projects for future grant consideration by the EDA and the Indiana Office of Community & Rural Affairs (OCRA) is also part of the document. The CEDS document may be viewed at www.southwestindiana.org/cd_CEDS_Report.

The Economic Development Coalition of Southwest Indiana acts as the umbrella economic development organization for Gibson, Posey, Vanderburgh and Warrick Counties in Southwest Indiana. The Coalition facilitates and coordinates business retention, expansion and attraction activities; and, supports efforts to enhance the business climate through regional capacity building. For further information about the Economic Development Coalition of Southwest Indiana please visit our web site at www.southwestindiana.org.

Source: Economic Development Coalition of Southwest Indiana & Inside INdiana Business

http://www.insideindianabusiness.com/newsitem.asp?ID=42904

The real estate market here in Evansville Indiana does not always follow the national trend. We are in a fortunate situation that our market is sheltered and we do not have the extreme ups and downs as in other markets. However, the trend that: “Demand Strong for Well-Prices Homes” does apply to our local market. Homes that have been updated and are in move-in condition and that are priced right, will sell faster.

Demand Strong for Well-Prices Homes