Newsletter - Winter 1999-2000
Special Issue - Commercial Real Estate and The Internet
Table of Contents
Klein launches Kleincom 2.0 - Commercial Real Estate and The Internet - Contractors and Vendors
Internet Brokerage - Recent Deals - Land Use Update - Real Estate Notes
T
he second version of www.kleincom.com has been launched with the purpose of developing useful tools for owners and tenants in the South Bay area. Users can examine real estate trends, locate important resources, and learn about important issues. Two areas were specifically designed for users to customize their own experience.A property database is available to search available properties on-line. Additionally, customers of Klein Commercial will receive news about "open listings" sent to their mailbox. This value-added service will contain properties not widely available to the general public.
A Virtual Office was created to give customers a password protected area that holds all correspondence, contracts, site surveys, and other important documents critical to your real estate dealings. This allows one or many people to review, edit, and critique important aspects of a property transaction providing a better understanding in a quicker period. It is a perfect tool when there are several decision makers, lenders, and distance obstacles to overcome.
Clients enter their unique password to see a list of documents for their particular account. Public documents, including many "how-to" articles are available by entering the password "customer".The links page offers important resources for government, business, and general property information. We will be expanding our list of contractors and vendors to make the site more valuable.Other areas are still under development. What’s New will contain our current listings and updates for the County Land Use Plan.
Commercial Real Estate and The Internet
Every major Broker, Lender and Owner has launched a web site to improve their business communication. Many companies are starting ground-up real estate services. Web sites allow you to search for property, obtain a loan, or hire a contractor. Like most other businesses, The Internet is becoming a pervasive part of the real estate industry. While the Internet will not supplant traditional practices, the Internet will give users a better understanding and more control of their properties.A few interesting sites that portend the future are:
www.pikenet.com – a search engine and general information source of commercial property nationwide.
www.niteowlplus.net – on-line title and ownership information.
www.rentv.com – a news service for every important commercial real estate deal in Southern California.
www.loopnet.com and propertyfirst.com – both are real estate listing services for user and investor deals, respectively.
We are collecting information about building contractors and vendors who service and repair properties. If you are in the business of servicing real estate – contractors, architects, lenders – send us your information and we will include your service on the Kleincom site. A new business model for brokering property is being developed. Traditional approaches are being merged with Internet tools. Brokers now use e-mail and their own web sites to market and search for properties. While most of the efforts are broker-to-broker, the new frontier will be broker-to-customer. Customer-to-customer contacts have been minimal because of the need to have professional assistance to overcome complex issues.Owners and tenants want brokers to explain how they will use e-business resources to fulfill the real estate assignment. While Internet proficiency has yet to become the deciding factor in hiring a broker, the Internet tool set will of of ever increasing importance.In the next round of application development, brokers will be adding project management, on-line contract negotiation and investment analysis. Additionally, the web will increase the level of brokerage service by allowing for more creative and insightful input.
Customers still want brokers who know, or who collaborate with brokers who know, a specific territory . However, the Internet provides an edge.
Recent Deals45,000 square foot warehouse in Gardena, California
50,000 square foot R&D manufacturing building in Cypress, California.
15,000 square foot industrial building for sale in Gardena, California.
100,000 square foot free-standing building needed for flammable storage
2-acre land lease in Carson, California.
12,000 square foot building lease in Gardena, California For those located in the Unincorporated County Strip, the new Land Use Plan is winding down with a vote by the Board of Supervisors expected late Spring, 2000.Most properties will be affected by an increase of regulation regarding a property’s use and appearance. Industrial Property Owners located on the fringe of the County Strip will be dramatically affected by having greater restrictions and in several instances a complete re-zone from an industrial to a commercial use.
We also learned that property owners who are facing a zone change from M to C, will have approximately 35 years to amortize the improvements before they lose the right to use the property for industrial purposes. Because this is a technical area of the zoning code, you must speak directly to the County about this issue.
Updates of the Land Use Plan can be found on the Kleincom web site and BRICA will be holding a follow up meeting in the near future
Real Estate Notes Spec Construction Hits South Bay: There are many new projects under construction. Most of these properties are designed for freight distribution with higher ceilings, a larger ratio of dock-hi loading and longer truck-turning radius. Manufacturers should look for older buildings to rehab.
Deals Still Available: Although prices are reaching all time highs, there are deals if you can creatively deal with physical issues. Good location will normally overcome other obstacles.
Interest Rates: Climbing - at roughly 250 basis points above 10 year treasuries for non-recourse.
Rental Rates and Sale Prices: Overall, it’s hard to generalize. For an avearge 25,000 square foot building, rents are approaching $.45NNN and sale prices are hitting $50 to $55.