California Unemployment Rate Up 150 Basis Points Year Over Year

The latest unemployment numbers for the state of California indicate that the rate has jumped significantly from last year. Last June, the seasonally adjusted unemployment rate in the state was 5.3%, June’s preliminary numbers are 6.9%, up a further 10 basis points from May’s 6.8%.
To put in perspective the unemployment rate cycle in California, below [...]

California Commercial Mortgage Defaults Triple; Still Very Low

The CMBA (California Mortgage Bankers Association) released its latest number. The data covered 10,794 properties and found that only 7 were delinquent beyond 30 days. The default rate, .06% is triple what it was last quarter, but still only represents a small number of properties.
In August of 2007, the CMBA Index hit a 5-year low [...]

Second Quarter Silicon Valley Commercial Sales Activity

Given the state of the capital markets, it is not surprising to see that the assets which traded hands during the second quarter are far smaller in size than those traded this time last year. A combination of softening rents, dimmer outlook, and a brutal capital markets environment all contributed to the low transaction volume.
That [...]

NAHB/Wells Fargo’s July Housing Index Numbers Eclipse June’s All-Time Low

Last month, the NAHB (National Association of Home Builders)/Wells Fargo Housing Index reached an all time low of 18. July’s numbers were released last week, and they fell a further to points to 16. Anything north of 50 is considered good; and it is very obvious we’re very far off that mark.
The outlook for the future [...]

RREEF Report on Commodity Prices and Impact on Real Estate

RREEF Research has issued two reports this month. The first report covers commodity prices, and the impact on trade, housing, and other real estate impacts. Some of the items related to trade which are noted in the report include:

Pacific Northwest ports (i.e. Seattle, Portland, Vancouver) to benefit as the shipping distance is shorter than that to California
Rail [...]

Second Quarter Silicon Valley Office Space Leasing Activity

The list below represents the top lease transactions which occurred in Silicon Valley during the second quarter of 2008.

Tenant
Address
Submarket
Sq. Feet
Class

Blue Coat Systems
410-420 N Mary Avenue
Sunnyvale
       233,174
B

EMC Corporation
2350 W El Camino Real
Mountain View
       105,143
A

Symbol Technologies
6480 Via Del Oro
San Jose
       102,000
A

Philips Electronics
3860 N First St
San Jose
       101,582
B

Gunderson Dettmer
1200 Seaport Blvd
Redwood City
          98,022
A

Motorola
809 [...]

Excerpt of Boston Properties Q2 Earnings Call; Touches on San Francisco, Silicon Valley, and Investment Climate

Doug Linde, President of Boston Properties (NYSE:BXP), discussed on their second quarter earnings call the state of the various markets they are players in, amongst which are San Francisco and San Jose. He went into additional detail about the investment climate, as well as financing. Things to take away are that San Francisco demand for space is [...]