Nina Desrocher

Institutional owners own 2% of California's single-family housing stock...yet they are vilified as being the reason housing is so unaffordable there. Increased investment increases the quality of existing supply as well as creates new supply, which ultimately helps pricing stabilize. In a world filled with sound bites and clickbait, policymakers need to surround themselves with deep thinkers and true strategists. Solving the housing crisis will take creativity and openmindedness.

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Let's take our wins where we can get them. SF might not be back to pre-pandemic levels just yet, but the burst of AI companies in the Bay has occupancy rates ticking in the right direction. It's a buyer's market and once other companies see the deals to be had, momentum will shift even more. #CommercialRealEstate #InPersonWork #AI

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Seattle's Passion: The Key to a Bright Future 🌟 Seattle's passion is what gives hope for the future. The city's unwavering dedication to improvement and innovation continues to foster a vibrant community, driving economic growth and development. With initiatives spearheaded by the Downtown Seattle Association and a robust multifamily market, Seattle remains a beacon of opportunity for investors. We've seen a dramatic uptick in offers on prime locations, averaging 9.25 offers on our last four listings in Q1, highlighting the market's vibrancy. Despite the challenges posed by fluctuating interest rates, Seattle's resilience and dynamic spirit continue to make it a compelling investment destination. Discover why the passion of Seattleites is your key to investment success. Follow us on social media and subscribe to our monthly newsletter for the latest insights into the Seattle real estate market. Don't miss out on the trends that matter! 🌐 Visit our website https://lnkd.in/guQJ8TWb 📺 Watch our YouTube channel https://lnkd.in/g3vXKWc9 #RealEstateInvesting #RealEstateMarket #InvestInSeattle #Seattle #CommercialRealEstate #SeattleRealEstate #BuckTheStatusQuo #InvestInSeattle #SeattleGrowth #MultifamilyMarket #EconomicVitality

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Offices Into Housing…Easier Said Than Done   Christopher Thornberg, founding partner and economist wit Beacon Economics, said at a recent presentation fo San Jose State ““How do you make housing more affordable? You build more housing… “You need to start taking down these office buildings and putting up apartments, However, Thornberg said he prefers “adaptive reuse” of existing office buildings rather than projects that bulldoze office structures. Too much demolition could create “dead zones” in urban areas”. In my previous blogs I have mentioned repeatedly that over time office buildings that are physically or economically obsolete will be demolished and replaced with housing. There will be very few that are transitioned into housing due to the constraints most buildings have with central restrooms, air conditioning, too-large floor plates to allow residential conversion with window access, and a host of other issues which makes most office buildings non-conversion candidates. Demolishing means the value of the office building goes down to less-than land value as you have to deal with the cost of demolition and disposing of the rubble. #OfficeConversion;#OfficeBuildings;#Housing; #SIOR

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Southern California Industrial Rents Dip Significantly Softer Demand and Rising Vacancy Lead Rents Lower and Concessions Higher Rents for industrial real estate across Southern California are dropping significantly for the first time since the Great Recession. After years of overall rent gains, the market is seeing lower asking rents, expanding vacancy rates and rising concessions under soft demand conditions. Part of the descent in asking rents stems from discounted sublease space, which has dragged rents down as it floods the market, accounting for 21% of total availability across Los Angeles, Orange County and the Inland Empire combined. On average, subleases are listed for rent 25% cheaper than directly available space. Rents began declining in Los Angeles before they did in Orange County, and those LA figures ultimately led industrial rent declines in Southern California. Across the United States, only Chicago's industrial rents have fallen more quickly over the past few quarters. Vacancy in Los Angeles and Orange Country bottomed out at under 2% in 2022, but since then, vacancy has expanded to more than 5% in Los Angeles, outpacing Orange County’s increase to 4%. In other regions of Southern California, the Inland Empire area has seen vacancy increase most substantially, reaching nearly 7%. The soaring rate has much to do with a combination of heavy supply growth and occupancy loss. Even though some of the supply growth came in the form of expensive, new buildings, asking rents in the Inland Empire fell 4% on average, compared to a decline of less than 3% in Orange County, which still maintains the lowest vacancy rate among major U.S. markets. In addition to lower contract rents, some industrial properties in Southern California offer several months of free rent in deals with substantial term length. Brokers have noted that effective rental rates have generally fallen from 5% to 15% or more from the peak, depending on a property's location, size, vintage and tenancy. The disparity in rents for comparable space in the market has widened in the downturn. Some owners are willing to cut unfavorable lease deals to secure tenancy and some return on their investments. In contrast, others have been reluctant to reduce rents substantially, optimistic that tenant demand in the market will rebound sooner rather than later. #SoCalIndustrial #industrial #cre https://lnkd.in/gCm2twGc

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How would you respond to our innovation discussion questions? 1. How do you define successful innovation in the context of your own organization’s culture and goals? 2. What enablers and blockers have you faced in fostering a culture of innovation at your organization? How do you support innovation failure? 3. How have you identified, communicated, and quantified the value of your innovation vision? What is the ideation process? 4. How do teams balance moving the needle on innovation with day-to-day operations? I am facilitating an executive boardroom session, "Weaving Innovation Into the Core of Everything" with Alvin Joseph on 5/22/24 at the Evanta, a Gartner Company, Southern California CIO Executive Summit. It's an in-person only event, and there are only a few seats left in our session. Seating priority is given to C-level executives and Governing Body members. Add this session to your agenda to secure your seat!

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AT&T isn't alone among telecoms in shedding office space in the Seattle area since the start of the pandemic. In Redmond, office vacancy rates in the first quarter of 2024 reached 18.1%, the third-highest among the Eastside submarkets. The only two submarkets performing worse are Bothell and the stagnant I-90 corridor. https://lnkd.in/gzT_24h9

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I'm honored to share my recent feature in @AZRE, discussing the impressive performance of the Phoenix medical office market. As Maricopa County continues to grow rapidly, our healthcare sector is expanding to meet increasing patient needs. Here are some key insights: - The Phoenix medical office market has 297,714 sq. ft. under construction, with six consecutive quarters of positive net absorption. - Direct vacancy in medical office spaces dropped to 11.8% at the end of 2023, compared to the overall office market's 14.9%. - We’re seeing rising rents and a very tight market, especially around major hospitals. For instance, properties near HonorHealth Scottsdale Osborn are now going for $420 per square foot, a significant increase from $250 per square foot eight years ago. In this dynamic landscape, the supply of medical properties remains constrained due to their specialized nature and specific tenant requirements. The trend towards smaller, more widespread medical practices is notable, with many opting for conversions of general office spaces to meet their needs. This shift, while costly, is increasingly common as inventory remains tight. For a deeper dive into how Greater Phoenix is fostering a burgeoning biomedical ecosystem and the developments in key submarkets, I invite you to read the full article: https://lnkd.in/d3v_DhdM #PhoenixRealEstate #MedicalOffice #CRE #AYdifference

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Distressed commercial ===> Residential is a big win. Especially when the new project is providing hundreds of townhomes. For many reasons, townhomes are the best (current) solution to the Bay Area housing crisis. This is a 7.9-site being converted to 252 market-rate townhomes and 63 affordable apartments. And kudos to the City of Sunnyvale -- they allow for the development of housing in ways that many other cities do not. It is worth noting.... property owners and lenders do not need a large/institutional group to lead this redevelopment process, as is the case here. There are plenty of smaller shops and service providers who can handle effectively.

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In July I'll be featuring a local Seattle attorney on our Podcast. What do you want to ask an attorney without having to pay them $750/hr? Write comments below and we'll make sure to get them asked. Ideas -Landlord tenant laws -Evictions -Seller financing -Defeasance Let us know! #commercialrealestate, #law, #landlordtenantlaw, #attorney, #apartments, #multifamily, #simonandersonteam

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 Alice Leung is the Vice President for Platform and Product Strategy at Brick & Mortar Ventures. She began her career working on major construction projects in the San Francisco Bay Area, including UCSF Medical Center and Lucile Packard Children’s Hospital. During this time, she championed the use of construction technology to improve efficiency on project sites. Her experience working in the US and Singapore demonstrates her understanding of the construction industry on an international scale. On Wednesday 5th June, at Bricks & Bytes, we sit down with Alice for round 2! And we need your help. 𝐋𝐞𝐭 𝐮𝐬 𝐤𝐧𝐨𝐰 𝐲𝐨𝐮𝐫 𝐜𝐡𝐨𝐢𝐜𝐞 𝐨𝐟 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐜𝐨𝐦𝐦𝐞𝐧𝐭𝐬 𝐛𝐞𝐥𝐨𝐰 👇👇👇 QUESTIONS: A) What excites you most about the startups Brick & Mortar Ventures invests in? B) What surprised you most about the differences in the construction industry between the US and Singapore? C) Other (please post below)

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A new state legislative bill, which is a vehicle for commercial rent control, will be heard before the CA State Senate Judiciary Committee on Tuesday, April 30. The bill, SB 1103 (Menjivar), will upend commercial tenant-landlord relationships, limit security deposits, and add complex and ambiguous regulations to the business-to-business relationship. SB 1103 will have detrimental consequences not only on commercial landlords but also on small businesses and not-for-profit organizations that the bill is trying to protect.

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While I wont likely agree with the economics of tearing down 17 units for a new development, these new units would all be rent controlled and restricted affordable and getting 9x the existing unit count. Seems like a win win for the city (yes, at the expense of some) and smarter for the greater, long term vision of our city. Can we get some rational thinking going on in LA??? If the city is so concerned with RSO demolition/relocation use some of that HHH, ULA, Prop 1, etc, etc, etc and etc monies that you have completely wasted and buy all rent controlled buildings in LA. Though, last I checked, HACLA will only consider buying buildings over 100 units. We are the richest country in the world and we cant figure this out? Shame on our city leaders.

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Pretty stark contrast when comparing the impact of accessory dwelling units (ADUs) on the cities of Los Angeles and San Jose, since the 2017 statewide laws were passed easing regulation: San Jose A recent Stanford study indicates that of the 1,300 ADUs built in San Jose between 2016 and 2020, 77% were built without permits. Los Angeles The city streamlined the approval process, reduced fees, eliminated certain zoning restrictions, rolled out the LA ADU Accelerator Program, and overall simplified the permitting requirements. The result - building permits for ADUs citywide jumped by 30% in two years, making up one-fifth of all new housing permits issued during that time. Here's to hoping we can learn from our neighbors. SJ Article -> https://lnkd.in/dfNZNTXy LA article -> https://lnkd.in/deF3h4Hq...

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Positive news to report for the San Francisco commercial real estate market and city in general! Crime is down about ~30% across the board in 2024. Both property crime and violent crime are down significantly. All neighborhoods except Noe Valley, including where most of the commercial office tenants are (FiDi, SOMA, Mid-Market, Union Square, Mission) are seeing material improvement. This improvement in public safety is the first step in the recovery of downtown which is our economic and tax revenue engine. Lots more work to do! The negative narrative about San Francisco is shifting. You can't talk your way out of the perception problem. But you can flip the script quickly by achieving actual results. Kudos to Mayor Breed, DA Brooke Jenkins, and the SFPD for getting things done. https://lnkd.in/gEvHeXPx

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The hardest thing about cash flowing an apartment The people that get paid the least have the biggest impact on apartment building value. The leasing agents! 👩‍💼👨‍💼 Why don’t we just pay the leasing agents more? Because apartment investments in Seattle yield about a 4-5% margin. 📉If we pay the leasing agents more, we give up all our cash flow. Has anyone solved this problem? 🤔 Let me know below in the comments! #RealEstate #ApartmentInvesting #LeasingAgents #Seattle P.S. This is my make up post for #Day19of20

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The startup community is crucial for the Puget Sound region's growth and vibrancy. The recent drop in rankings doesn't align well with our recovery timeline. Meanwhile, the Bay Area shows demand for office space matching pre-pandemic levels, largely driven by AI companies. Despite their unique recovery path, this demand coincides with their #1 global ranking as a startup ecosystem. https://lnkd.in/gAR4tXeb

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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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