Nate Klatt, CPA

🔥 East Bay HOUSING: Demand Outstrips Supply 🔥 ProTip: Now is the time to sell.. Read full bog: https://lnkd.in/gNx5Ytz9 I want to share a closer look at the dynamic real estate market of California's East Bay. As someone deeply interested in the intertwining of economic forces and real estate dynamics, I find the current market trends in this area both fascinating and vital for anyone looking to buy or invest here. So, let's break down the complexities of housing supply and demand in the East Bay, and explore what it means for buyers and sellers alike. Buyer Demand in the East Bay The East Bay has always been attractive due to its proximity to major economic hubs like San Francisco and Silicon Valley. This region draws a continual influx of professionals looking for more affordable living options while still staying connected to the bustling job markets of nearby tech giants. The high demand in real estate here is not just about location; it's also about the quality of life and the relative affordability compared to its neighboring regions. Challenges with Housing Supply Despite this robust demand, the East Bay faces significant challenges in housing supply. New housing developments are often slowed by stringent zoning laws and limited space for expansion, leading to a shortage of available homes. This scarcity is a critical factor driving up the prices in the area, making the market highly competitive. For instance, it's not uncommon to see bidding wars and homes selling well above their listed prices. The Price Scenario: With demand consistently outstripping supply, home prices in the East Bay have been on a steady climb. This trend is symptomatic of a broader state-wide issue in California, where housing shortages keep pushing prices up, making it challenging for first-time buyers and even for investors looking to expand their portfolios. Economic and Demographic Influences The East Bay's real estate market is also influenced by broader economic conditions such as interest rates, employment rates, and the overall economic health of the tech industry. Additionally, demographic trends, including migration from more expensive areas and the influx of younger professionals, further complicate the market dynamics. Pointers Whether you are a buyer or seller, we are consistently seeing an increase in home value over time so if you are buying, the sooner the better Sellers will be able to be able to negotiate competitively because of the shortage in housing Limit space / big population -- there are more people than housing available too, like even if the new build was 100% on track and fast, it still wouldn't necessarily fix the housing shortage since it is a huge percentage Conclusion: --Real Blog for full story

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good insight on Industrial

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Monday Market View Dashboards - For Lease - SoCal Markets SoCal Markets (OC/IE) - 30k -100k Sqft For Lease ➡ ~355 Prop/Spaces Available: - ⬆+5 from May ➡ $1.55psf Avg asking Lease Rate - ↕ No Change from May ➡ ~20.13m Sqft Available - ⬆ ~.31km sqft from May ➡ ~3.36m Sqft of Sublease - ⬆ +.06m from May ➡ 339.6 Avg Days on Market - ⬇ -4.7 Days from May 🔇 No Price changes as of the 3rd day of the month (June). 📢 30k-50k sqft (173) 48% & 50k-100k sqft (182) 51.3%. Check out the pie chart for size segment %'s. Top 3️⃣ Cities with the most product: Ontario, Santa Fe Springs, & Corona with Rancho Cucamonga a close 4th place. I believe there will be a big price delta between Class A and lower class product and locations. "Tides that raised all boats" (or properties) is gone, so value is the goal for tenants. They will seek out Class B & C to save on occupancy costs. Class A will be for tenants who demand that quality, but there will be some degradation in those rates as well. 🚀 Calling all tenants and lessors! If you're a tenant hunting for the perfect spot, now's the time to step up with a bold, aggressive offer. For lessors, it’s all about innovation to stay ahead – think smart, get creative with concessions and secure those leases before anyone else! Let’s make moves! 🏢✨ Cheers.....CJ

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🏢 Struggling with Commercial Property Taxes in California? 🏢 California's property taxes can be overwhelming, but Altus Group is here to help! Our experts specialize in reducing your tax burden and maximizing savings. 💼💰 🌟 Benefit from a FREE, no-obligation meeting with us! 🌟 Discover how we can: ✅ Ensure accurate property assessments ✅ Develop effective tax minimization strategies ✅ Guide you through the appeals process Why overpay when you can optimize? Book your free consultation today and see the Altus Group difference! #CommercialProperty #PropertyTax #CaliforniaBusiness #AltusGroup #TaxSavings #FreeConsultation #BusinessGrowth #TaxRelief #RealEstate #CRE

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Is your business prepared for potential changes in California's business tax environment? 🏛️ Considering California's proposed changes to NOL deductions, tax credit limits, and apportionment rules, it's crucial for businesses to stay informed and proactive. California plans to suspend NOL deductions for incomes over $1M, cap business tax credits at $5M, and retroactively amend apportionment rules to address substantial budget gaps. These changes could lead to significant tax liabilities for affected businesses. Our SALT team is here to help you navigate these complex changes and optimize your apportionment to potentially reduce your California cash tax liabilities. Learn more: https://lnkd.in/dyCD_qAV #SALT #BusinessFinance #TaxCredits

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Is your business prepared for potential changes in California's business tax environment? 🏛️ Considering California's proposed changes to NOL deductions, tax credit limits, and apportionment rules, it's crucial for businesses to stay informed and proactive. California plans to suspend NOL deductions for incomes over $1M, cap business tax credits at $5M, and retroactively amend apportionment rules to address substantial budget gaps. These changes could lead to significant tax liabilities for affected businesses. Our SALT team is here to help you navigate these complex changes and optimize your apportionment to potentially reduce your California cash tax liabilities. Learn more: https://lnkd.in/dyCD_qAV #SALT #BusinessFinance #TaxCredits

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Is your business prepared for potential changes in California's business tax environment? 🏛️ Considering California's proposed changes to NOL deductions, tax credit limits, and apportionment rules, it's crucial for businesses to stay informed and proactive. California plans to suspend NOL deductions for incomes over $1M, cap business tax credits at $5M, and retroactively amend apportionment rules to address substantial budget gaps. These changes could lead to significant tax liabilities for affected businesses. Our SALT team is here to help you navigate these complex changes and optimize your apportionment to potentially reduce your California cash tax liabilities. Learn more: https://lnkd.in/dyCD_qAV #SALT #BusinessFinance #TaxCredits

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The #1 most fixable mistake I see CA property owners making today?   Not filing for a Proposition 8 property tax appeal.   You may have heard about Proposition 13, or Prop 13, in California real estate. Proposition 13 helps property owners by preventing the assessed value from increasing rapidly in a market that historically appreciates every year. It caps the assessed appreciation by 2% per year. Note, I didn't say it caps property taxes by 2%, rather, it caps the assessed value by 2%.   Proposition 8 is different.   Passed in 1978 as an amendment to California's Proposition 13 property tax law, Prop 8 helps property owners even more. Proposition 8 steps in when market values have declined to reduce the assessed value to the market value if it is lower than the Proposition 13 factored base year value. This means it could be a good idea to look into appealing your taxes if the market has declined and you think your purchased at a higher price than what your property is currently worth. If your property assessed value gets reduced, and your taxes therefore can get reduced, all thanks to Proposition 8.   Back in the financial crisis of 2009 and after, local Assessors throughout California were proactive in establishing Proposition 8 values for owners of single-family homes and condominiums. I know because I've worked as an appraiser at a California County Assessor's office.   In today's market, the market value decline is most prevalent in office, multifamily and other commercial real estate. I haven't yet seen Assessors proactively act to reduce these assessed values.   It is up to the owners of these commercial properties to file a tax appeal under Proposition 8 laws.   Property owners are not taking enough action, in my opinion. 🏢 Owners, file your property tax appeal.   Every appraisal I complete, I look at how the market value conclusion compares with the property assessed value. Too many times the assessed value is higher than the current market value.   If you understand California property tax laws, you know the Assessor will look at the Fair Market Value, which is a little different than a market value done for other purposes. Remember, you can file an appeal for multiple years, but there are certain timeline restrictions that you need to file by, so start taking action now.   There are valuation professionals like myself who can help with the appraisal and inevitable debate around the property tax appeal.   There are also many other people who can help.   Reach out to me or another trusted advisor and get your property tax appeal filed asap. 

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Seeking recommendations on best RE investment management tech/software for performance measurement, financial reporting, and investment (investor) accounting etc. Using YARDI for operations reporting and accounting purposes but don’t find the investment suite modules to be better than average. Any recommendations from groups on best, connectable software to better automate these functions ? Familiar with Juniper and Appfolio….

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📢 Check Out the Latest Real Estate Update! 🏡💫 📆 This Week: Wed, Jun 05, 2024 📍 Location: Orange County, CA 💰 Median List Price: $2,097,000 📉 Market Action Index: 61 (Compared to last month's 63) 📦 Inventory: Holding Steady at 1,648 #OrangeCountyRealEstate #MarketUpdate #Trends #MedianPrice #InventoryStatus #InvestmentOpportunity #DreamHome #Homebuying #HousingMarket 🏠💼📊

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The SF Bay Area has had some amazing year-over-year changes, comparing May 2024 with May 2023:   The number of new listings coming on market:  +8% The number of active listings on a given day:  +37% - buyers have more choice The number of price reductions:  +52% - an unusual dynamic for the heart of spring selling season. (Some markets have seen price reductions more than double year over year.) The number of home sales:  +7.5%  The number of homes sales, $3 million & above:  +63% - higher price and luxury home sales dramatically outpacing the general market ***The number of home sales, $5 million & above:  +37% 

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How has capital shifted over the last 10 years in commercial real estate? Check out these key takeaways from my CoStar Risk Analytics colleague Joseph Biasi. 👇

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LME Investments: Weekly Newsletter - 5/5/2024 - California has reversed a three-year population decline, ED1 update. Hi All Thank you for taking the time to read the LME Investments / Local Multifamily Experts Meetup weekly newsletter. We strive to highlight the most relevant insights, trends, and issues impacting real estate investing, with a focus on the multifamily sector in the nation's largest county - Los Angeles. California's population grew for the first time since 2019. While California still lost more residents to other states than it gained (as has been true for 20 years), an increase in legal immigration helped push up the state's population. The population of Los Angeles County grew to 9.82 millon. LA County median home sale prices for March 2024 were 7.1% higher than March 2023, according to Redfin data. The median price per square foot of homes sold was $602, which is 8.3% higher than March 2023. Also, homes sold faster (on average 37 days on market), vs 44 days on market in 2023. LA City Councilmember Katy Yaroslavsky has introduced a motion which would limit the scope of Mayor Karen Bass's Executive Directive 1 (known as ED1). ED1 has been used to streamline affordable housing approvals. Yaroslavasky's proposal seeks to restore the Historic Preservation Overlay Process (HPOZ) for ED1 projects proposed in certain areas. Yaroslavsky's proposal follows another one by Councilmember Eunisses Hernandez, which would restrict discretionary ED1 developments on sites currently occupied by rent-stabilized apartment buildings. It remains unclear whether either of these proposals will pass - but if they do, it could restrict efforts to increase housing supply in Los Angeles. That's it for now. We'll see you next week!      Warm Regards, Sanjeev Bhatia & Shiva Bhaskar, Esq. info@lmeinvestments.com WWW.LMEINVESTMENTS.COM https://lnkd.in/eP-r_MSZ

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If you’re a CFO looking to make a change in Fund Administraion, click the link below to register for our webinar on June 12th to get insight into what modern fund admin looks like in this age of technology.

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