Latest Articles
A Thought on Cupertino Square
August 25, 2007
When investors took over the old Vallco Mall a few years ago I was hoping that the project would be rebuilt from the ground up. The fact that some of the outparcels (including Sears) were not part of the deal made that an unlikely event and instead the mall underwent a major renovation which has [...]
Options Being Explored for San Jose’s Old City Hall
August 18, 2007
After sitting vacant for nearly two years, the City of San Jose is beginning to more seriously explore its options for the site. The city is currently exploring a potential sale of an approximately 7.5 acre site for high-density residential use. In addition, the old city hall which sits on roughly 10 acres is also [...]
What Does NNN (Triple Net) Mean in Commercial Leasing?
August 17, 2007
In a commercial leasing, rents are often quoted as being NNN or Triple Net. What this means is that in addition to the quoted rental rate, the tenant, under the lease, is responsible for their share of the operating expenses and real estate taxes associated with the property, in addition to the tenant’s own janitorial [...]
Amgen Shedding 365,000 SF of Space in South San Francisco
August 16, 2007
In response to a reduction in forecasted revenues, Amgen is offering for sublease 365,000 Square Feet of R&D and Office Space in South San Francisco. The space is spread across three properties, one of which is in shell condition. The other two spaces are currently under construction and will be available sometime in 2008.
While most [...]
Dot Com Redux? Some Lease Deals Involving Equity Again
August 16, 2007
Some companies are beginning to offer equity to their landlord’s in lieu of rent. This certainly is not a common occurrence in the marketplace, but there are some reports floating around that some deals are again involving options and/or grants.
Back in the late nineties companies were often required to give up grants or options to get into [...]
OfficeSnapshots.com provides a glimpse into the offices of popular companies
August 15, 2007
Ever wonder what a company’s office looks like? Looking for ideas for your own office? A recently launched blog, Office Snapshots provides a look into the offices of companies such as Craigslist, Digg, Meebo, and Pixar with more companies being added often.
Back during the late 90’s there was lot of extravagant spending taking place building out and [...]
Mission West Properties Deal Scrapped
August 13, 2007
Last week I wrote a few posts about the tightening of credit and the impact that would have on lending standards and ultimately prices and cap rates. I indicated that the deal by Starwood Capital (rumored) to purchase Mission West Properties for $1.8B might come under pressure.
It seems the tightening of the credit belt by [...]
European Central Bank is Forced to Pump $130B Into Markets
August 9, 2007
As liquidity quickly dries up, there has been a severe credit crunch in the markets. As a result, the ECB was forced to pump roughly 100 Billion Euros into money markets overnight as the demand for cash heated up. Credit facilities are quickly forcing central banks to inject massive amounts of money into the market [...]
Subprime Related Losses Spread to France
August 9, 2007
BNP Paribas of France is freezing withdrawals from 3 funds following 20% losses and its inability to price the holdings of the funds. As there will likely continue to be a ”run” on these types of funds we are likely to see a period of continued volatility in credit markets and higher spreads for both commercial paper and [...]
S&P in Partnership with Schwab Launches a Commercial Real Estate Index
August 8, 2007
In a sign that the commercial real estate industry is continuing its assimilation into Wall Street, S&P, in partnership with Schwab is launching a Real Estate Index aimed at tracking commercial real estate prices by both product type and location. The increased reporting and transparency in the industry has helped fuel a market where cap rates have plummeted [...]
