Marcelo Bermudez

Latest Savills Research report reveals San Diego and the San Francisco Bay Area are leading the nation's life sciences market. Even amidst economic challenges, tenant demand remains strong in these innovation hotspots. San Diego Highlights: - IQHQ's 1.7M SF lab/R&D space is nearing completion, still awaiting tenants. - DermTech, the brains behind a non-invasive skin cancer detection sticker, is expanding to restructure debt and initiate asset sales. SF Bay Area Highlights: - Foresite Capital secured $900M for a venture fund aimed at companies using AI in healthcare and life sciences. - IQHQ's new 330,000 SF, 5-story life sciences building in South San Francisco is part of a larger development. Other Key Takeaways: - VC funding surged nearly 30% from last year, with many companies raising millions. - Smaller leases (under 10,000 SF) are driving demand as occupiers watch costs. - Tenants are delaying decisions and relocations to optimize their spaces amid economic uncertainties. The Bottom Line: San Diego and the Bay Area are at the cutting edge of life sciences innovation. Firms that navigate current headwinds will be set for long-term growth in these dynamic markets 🌱🚀 Savills North America

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🗓️Circa August 2010 during the middle of the GFC. We represented the Buyers in the purchase of this Bank-Owned (REO) 22 unit apartment complex in downtown Sacramento on P St. This was a classic REO with half of the complex vacant and the existing occupants not paying their rent or squatting while dealing drugs. This was a high liability asset for the bank to hold onto. 🔨🔩 Apartments required a full renovation. ⚖️ Eviction of all the squatters and non-paying tenants. 🔐 Protecting the renovations and appliances from vagrants. Renting out and stabilizing the property once renovations were completed. The Buyers were not afraid of the scenario and wrote an all cash non-contingent offer with a 5 day closing! 💰Purchased it for $1,232,000 or $56K / unit. This asset would trade for close to $250K per unit today and they still own it. The Buyers beat out multiple offers because they were willing to take on problems, acted quickly, and took the liability away off the seller in 5 days. They’ve since renovated, stabilized it, and are enjoying high market rents. #sacmultifamily #multifamily #sacramentorealestate

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Southern California's real estate market is on fire!

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The real estate market is currently showing signs of high demand and low inventory based on the data provided. The Months Supply of Inventory, which measures how long it would take to sell all available homes on the market at the current sales pace, is at a low 3.04 months. This indicates a seller's market, where there are more buyers than there are homes available for sale. Furthermore, the 12-Month Change in Months of Inventory has decreased by -3.18%, showing a trend of decreasing inventory over the past year. This suggests that the market is becoming even more competitive for buyers, as the supply of homes continues to shrink. The Median Days Homes are On the Market is 41 days, which is relatively low and indicative of a fast-moving market. Homes are selling quickly, likely due to the high demand and low inventory levels. The List to Sold Price Percentage is 99.2%, indicating that homes are typically selling very close to their listing price. This suggests that sellers are pricing their homes competitively and buyers are willing to pay close to asking price in order to secure a home in a competitive market. Lastly, the Median Sold Price of $820,000 is relatively high, reflecting the strong demand in the market and the limited inventory available. Buyers should be prepared to act quickly and make strong offers in order to compete in this competitive market. Overall, the data indicates a strong seller's market with high demand, low inventory, and quick sales. Buyers and sellers should be aware of these market conditions and be prepared to act quickly in order to achieve their real estate goals. Milli Cannata, Broker-Associate Vanguard Properties 01990936 (707) 477-7839 https://lnkd.in/gPEV_K84 www.MilliCannata.com

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INVESTING IN AFFORDABLE HOUSING Renters in Los Angeles are seeking top-tier apartments which comprise only 15% of the market with vacancy rates at 8.6%. There is a ongoing demand for properties with onsite amenities such as fitness gyms, spas, pet parks and lounges. In contrast to improving occupancies in higher-end communities, vacancies continued to rise in lower-end one-and-two-star and mid-end three-star buildings. One-and-two-star properties, with around 65% of the market, witnessed negative demand in the past 12 months. Three-star properties, with around 20% of the market’s units, saw modest, positive demand. Lower and middle-income residents face greater budget constraints, with rents still near record levels. These renter cohorts have driven more limited household formation and continued outmigration from Greater L.A. to more affordable metros. There is also a big push for more affordable housing units with the City of LA and other state and federal programs subsidizing lease payments to owners. The city has even purchased multifamily complexes and converted them to affordable housing. Case in point, the recent sale (April 2024) of the 120 unit multifamily property at 349 S La Fayette Park Place, Los Angeles, CA 90057 was sold for $43,440,000, or $362,000 per unit to the Housing Authority of the City of Los Angeles. Primarily a 1 Bed + 1 Bath mix multifamily development with 97.5% occupied at the time of sale. MARQUIS Commercial Properties is working through entitlements with its affiliated partner, LA HAUS Company on a multifamily project in Los Feliz neighborhood of East Hollywood to convert a 6 unit property into a 35 unit affordable housing project. This is just one of a few entitlement projects underway to bring affordable housing to the community. Multifamily continues to be in high demand in Southern California and is expected to continue into 2025 with rents showing a continued upward trend. If you would like more details on how on acquiring off market multifamily opportunities, contact us at [email protected] #realestate #business #finance #banking #multifamily #investing #commercialrealestate #affordablehousing #california

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MLSs Will Evolve With Consumer, Broker Needs in Mind Most MLSs rapidly adopted the residential real estate practice changes ahead of the implementation deadline. But how are they continuing to evolve to meet the needs of the industry and the public in this new landscape? That question generated a lot of buzz at NAR NXT: The REALTOR® Experience in Boston earlier this month. In various forums, MLS executives, brokers and attorneys discussed the challenges of data sharing and privacy, how MLSs communicate their value, and how individual players will fare through the continuing disruption taking place in real estate. An Efficient Marketplace Although the panelists at a Nov. 9 discussion entitled “The Future of the MLS” brought a range of views, none wanted to contemplate transacting real estate in a world without MLSs. “If MLSs didn’t exist, we’d have a very fractured market,” said Art Carter, CEO of the California Regional MLS, with more than 100,000 users. “If we didn’t have [MLSs], we would invent one,” said Errol Samuelson, chief industry development officer for Zillow. He spelled out the intrinsic values of MLSs: namely, that MLSs give sellers maximum exposure for their home and a source for strategic pricing information; they give buyers equitable access to homes on the market; and they give real estate professionals and policymakers an authoritative source of timely, accurate data. Those who compare the experience of U.S. consumers to those of other countries often fail to understand the costs and barriers that exist in other places, Samuelson said. “[People] compare home sales [in the U.S.] to how they’re done in Australia, but Australia is a … subpar experience. … It’s cheaper to transact in the U.S. than in Australia, because we have a very efficient marketplace.” “I do believe in a strong MLS,” Reffkin said. “In New York City, where there is not a strong MLS, cleaning the data costs more money than in every other MLS combined. If every MLS were the same as New York, it would sink brokers.” In years past, the industry often referred to MLSs as the source for cooperation and compensation information. Referring to the rule that REALTOR® association–operated MLSs may no longer show offers of compensation for buyer’s agents, Donnellan asked the panelists whether MLSs could survive with offers of compensation removed. In answer, Carter pointed to research conducted by CRMLS. “We asked brokers what they valued most in the MLS. There was not one mention at that time of compensation being listed as key,” he said. “It was the transparent marketplace and the accuracy of the data.” “What matters is that it’s accurate and fairly presented. [For example], I can’t pay more to bump my listing to the top,“ said Lovett-Menkiti. Her agents are adapting to the practice changes—and are getting paid, she said. “Our agents work very collaboratively across different brands when they need to get information.” - nar.realtor

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Cities in California are losing jurisdictions for their housing plans revoked. As California addresses the housing crisis, they are encouraging most cities to rezone areas to allow for more density building to address the state housing crisis. What does this mean? More opportunities for developers to buy land and rezone/build multiple houses on lots, townhomes, condos, apartments, etc. PM to discuss opportunities for development where you live in what is becoming a wave of opportunity for investors in real estate https://lnkd.in/gTRbUWBB

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Building an ADU can be a fantastic way to generate rental income, accommodate family members, or create a dedicated workspace. However, navigating the regulations surrounding ADU construction in California can feel overwhelming. This blog cuts through the complexity and provides a comprehensive guide to the key ADU regulations in the state, empowering you to make informed decisions about your project. #adu #permits #grannyflat #realestate #construction #tinyhouse #tinyhome #accessorydwellingunits #casita #guesthouse #rentalincome #designbuild #backyardhome #inlawunit #backyardcottage #homedesign #tinyliving #california #design #realestateinvesting #yimby #homeremodeling #prefab #homeoffice #home #modularhome

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Did you know: - The average monthly net sales rate for public builders is 2x compared to that of private builders. -The average new home community count is 40% larger for public builders compared to private builders. - The market share of public builders extends to 80%+ in four markets: Las Vegas, Riverside, Tucson, and Cape Coral (table below). Subscribers to the Zonda National Outlook will get a report next week highlighting these trends as well as discussing WHY market share has shifted, WHO the largest public and private builders are, HOW sales rates and supply levels vary, and WHERE to find pockets of strengths and weaknesses by builder type. https://lnkd.in/gDp_7sm8 #housing #homesales #newhomes Tim Sullivan Sarah Bonnarens Sean Fergus Evan F. Alexis Wilmot Larry Buckner Susan Heffron Jeffrey Meyers Amy Dudley Kyle Cheslock Cameron McIntosh

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We held our Zonda Multifamily Executive conference this week in Las Vegas. We had great speakers from UDR, AVB, Airbnb, and more talking about the current state of the rental market. Here are my 5 takeaways: 1. Not all markets are created equal today. Markets in CA, the Northeast, and the Midwest still have rising rents and high occupancy levels. The ‘pipeline’ markets across the Sunbelt see increased supply, negative rent growth (YOY), and lower occupancy levels.   2. Demand for rentals is still high. The slower rental market in some areas is supply-related, not demand. In fact, net absorptions, a stat looking at space vacated versus space leased, is the highest in over 15 years (excluding the 2021 pandemic high). From UDR’s earnings call – “While our Sunbelt markets broadly have more robust job growth than our coastal markets, we remain cautious on the region in the near-term, given the very high absolute levels of new supply coming online.” From EQR’s earnings call – “Our expansion markets of Atlanta, Austin, Dallas-Fort Worth, and Denver…continue to have good demand, but remain under pressure from continuing high levels of supply.” 3. Reshoring is the most important economic trend to watch. Spencer Levy from CBRE did a great job discussing the importance of reshoring. He used New Albany, Ohio, as an example. The Intel chip factory has encouraged other related companies to enter the market, resulting in job growth, more development, and demand for ancillary services. 4. SFR/BTR is at the biggest risk. Experts said government regulations and policies pose a growing threat to this market segment. We have a blog on the topic available to our subscribers of the Rental Housing Outlook (https://lnkd.in/ecmtpeth). 5. Favorite markets for multifamily development varied geographically. Kimberly Byrum (formerly Fiala), Zonda’s Managing Principal and multifamily expert, led a great discussion on top markets. Of the big markets, Carl Whitaker at RealPage likes DC, Columbus, and Las Vegas. Joshua Clark with Zillow agreed on Columbus but also pointed to Miami and the Inland Empire in Southern California. Among smaller markets, Fayetteville, Charleston, Gainesville, Tallahassee, and Santa Rosa were all mentioned. Big thanks to Zonda's programming and events team for all the great work! Siobhan O. Jenna Wylie Yeleny Rivera-Flores Josh Brous Arthur Yampolsky, CMP Rob Britt #rental #housing #multifamily

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Average office asking rents in Los Angeles have shown modest year-to-date gains, marking a reversal from the declining rates observed in 2022 and 2023. As of late September, the average office asking rent in Los Angeles stands at $3.43 per square foot per month, reflecting a 1% increase compared to the previous year. Despite the region's high office vacancy rates, the rise in rents may come as a surprise. However, landlords are cautious about setting rates too low due to inflated build-out costs and operating expenses. Many property owners are maintaining current rates or implementing slight increases to avoid devaluing their assets. To attract tenants without reducing rents, some landlords are offering appealing lease concessions such as higher tenant improvement allowances, free rent, and beneficial occupancy. These measures aim to maintain property values in a challenging leasing environment. Nevertheless, with a record vacancy rate and numerous sublease options available, landlords may encounter limitations in further increasing rates. Consequently, lease concessions are expected to remain popular. With vacancy rates projected to rise, projecting slight declines in asking rents for the upcoming year. #losangeles #commercialrealestate #officeleasing #office #tenantrep #tenants

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#Sacramento has passed a plethora of new housing laws to address barriers to #housing supply. The data clearly shows that these efforts have not produced the desired result due to special interests influence in drafting these laws. Most local jurisdictions take the position that housing doesn't pay for itself and blame Proposition 13 for today's high impact fees that raise the cost of housing. However, the truth is that State and local governments have mismanaged #taxpayer dollars, leveraged land use authority to damage property owners (as well as new #homebuyers) and passed onerous #labor, #energy and building codes that increase the cost of construction. Government needs to prioritize spending on basic services ie #police and #fire and #infrastructure investment and repeal legislation have driven construction costs in #California to the highest in the US. If the #Sheetz decision made anything clear, regulatory agencies cannot force #property owners to pay for costs that should be borne by society at large. "The Takings Clause saves individual property owners from bearing “public burdens which, in all fairness and justice, should be borne by the public as a whole.” https://lnkd.in/giyz7CfC

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U.S. commercial foreclosures more than doubled in March compared to the same month in 2023. California had the most commercial foreclosures in March at 187, an 8% decrease from February but a 405% increase from a year earlier. Texas saw a 31% increase month-over-month and a 129% increase from March 2023, while Florida experienced a 30% uptick for the month and 107% for the year. Delinquency rates for mortgages backed by commercial properties were the same during the first quarter as during Q4, with 3.2% of loans either more than 30 days late at the end of the quarter or real estate-owned. Office properties remain the most common for delinquencies and foreclosures. The delinquency rate for office-based commercial loans increased to 6.8% in the first quarter, while hospitality-backed properties ticked up to 6.3%. Delinquent retail-backed loans dropped from 5% at the end of 2023 to 4.7% in Q1. #CRE #commercialrealestate #foreclosures #creinvesting #crelending #creadvisors

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Discover the essentials of California’s Section 8 housing program, including eligibility, income limits, and application steps. Learn how this program supports low-income families and individuals in finding affordable housing.

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