Bay Area residents want more housing, but …

There are a few things locals aren’t willing to sacrifice to get more housing

Fed up with soaring prices that are increasingly putting home ownership, or even a decent rental, out of reach, Bay Area residents overwhelmingly say they want more housing built, according to a new poll. But it better not make their commutes worse.

Residents said they support everything from new single family homes to housing for the homeless in their communities, tossing aside NIMBY concerns that sometimes throw a wrench in building plans. But there were limits to their enthusiasm. Respondents balked at building anything that would cut into the Bay Area’s cherished open spaces or funnel more people onto crowded local freeways and public transit, making their treks to work longer.

Read more from The Mercury News

Next three years seen as largely favorable across Bay Area CRE market 

CRE professionals have a relatively positive outlook for Bay Area real estate for the next three years.

The recent Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate survey showed renewed optimism across multiple markets over that time frame, due in part to increased investor activity in the last half of 2017, the tax overhaul and a strong stock market. The biannual survey projects a three-year outlook for California’s commercial real estate markets.

Read more from Bisnow

Northern California cities remain prime locales for CRE investors

Investment activity in the Bay Area and Northern California remained strong in 2017.

San Francisco was reported as having one of the strongest office markets in the country, according to Avison Young’s 2018 North America and Europe Forecast. Industrial remains in high demand with low vacancies in Oakland and the East Bay. Investment activity remained strong throughout the Bay Area and capital markets continue to seek out additional opportunities in 2018.

Read more from Bisnow

 

California’s Cannabis Conundrum: Legalization Will Lead To Fewer Dispensaries, Not More

With legalization of recreational marijuana just around the corner in California, the state is about to embark on what could be a $5B industry and a boon for tax revenue. But state regulations have created high barriers to entry and many cities and counties have banned cannabis outright.

Legalization in California will not translate to an immediate influx of cannabis dispensaries. In fact, many dispensaries now in business will no longer be able to continue operations past Jan. 1. States like Colorado created a more open market with fewer regulations when it legalized recreational marijuana in 2012, leading to an explosion of cannabis businesses. California requires dispensaries to be at least 600 feet from schools, to close at 10 p.m. and to have 24-hour surveillance, among other regulations. Jurisdictions also have the right to be more restrictive.

Read more from Bisnow

How California’s State And Local Governments Are Addressing The Affordable Housing Crisis

With the highest cost of housing in the nation, California’s affordable housing crisis is threatening the economic vitality of the state.

The majority of renters, more than 3 million, pay more than 30% of their gross monthly income for housing, and one-third of renters, about 1.5 million, pay more than 50% of their income for a place to live, according to a California Department of Housing and Community Development report.

Read more from Bisnow

NAI Northern California Represents Buyer and Seller in $7.34M Sale of Absolute NNN Walgreens in Elk Grove

ELK GROVE, CA – July 12, 2017- NAI Northern California, the Bay Area presence for NAI Global, the largest commercial real estate brokerage network in the world, is proud to announce the $7.34 million sale of a Walgreens located in Elk Grove, CA. Vice President, Mary Alam, arranged the sale and represented both the buyer and seller in this off-market transaction.

Mary Alam, who specializes in single and multi-tenant retail investment sales, indicated that this transaction reflects the continued demand for more secure real estate investments in light of negative news surrounding the state of brick and mortar retail.

Drugstores have proven to be among the most successful and stable of retail tenants in this environment. This 10-year-old, long-standing Walgreens purchased at a 5.64% CAP presents itself as a valuable opportunity as an absolute NNN investment providing a stable, trophy asset for investors.

“This acquisition is a great addition to the buyer’s portfolio due to the high credit rating of the tenant, the long-term NNN lease with no landlord responsibilities, and a great location in Elk Grove which has consistently ranked as the fastest growing city in California,” said Alam.

Located on 9200 Elk Grove Florin Road, this property stands on the busy four-way intersection  of Elk Grove Florin Road and Bond Road with easy access to Highway 99. The 14,480 SF drugstore is the only large pharmacy within a one-mile radius and provides ample parking, a double-lane drive-thru window, as well as charging stations for electric and hybrid cars.

About NAI Global
NAI Northern California is at the leading edge of technology, collaborative culture, and training, giving our local professionals a competitive advantage and creating better outcomes for our clients. We are consistently a top Commercial Brokerage in the Bay Area, and continue to grow our team and revenues.

NAI Global is the largest commercial real estate brokerage network. Founded in 1978, today NAI Global has more than 400 offices worldwide and over 7,000 professionals, managing over 425 million square feet of property. Global offices deliver market-leading services locally and combine their in-market strengths to form a powerful bond of insights and execution for clients with multi-market challenges.

To learn more, visit www.nainorcal.com

Explore career opportunities with our winning team at www.nainorcal.com/careers

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Continued Success for New NAI Agents

 

Alex Orloff (L) and Shivu Srinivasan (R) with President James Kilpatrick

Congratulations to two more NAI Northern California agents who just closed their first deals!

Alex Orloff recently closed the Desert Sand Motel, a 42-room independent motel in a prime downtown Sacramento location for $2,000,000. The 11,276 square foot motel includes a cafe and two-bedroomowner’s apartment. According to Alex, “This hospitality investment gave an experienced operator access to the growing downtown Sacramento market in a rare value-add opportunity.”

Alex’s professional career spans both real estate investing and digital advertising. His background brings a uniquely well informed and strategically thoughtful advisory to clients from ownership, operations, and portfolio management perspectives.

Shivu Srinivasan‘s first deal was a multi-family property located on Regent Street in Alameda for $1,400,000. He “represented both the buyer and seller in this off-market transaction. The transaction is only one of three ever recorded in the city of Alameda to sell at or over $280,000 per unit. This was an excellent opportunity to acquire a stable asset  with high rental upside and a market CAP of 5.42%.”

After beginning his career as a commercial analyst with the U.S. the Department of Commerce, Shivu began working for the sales team at LoopNet, CoStar’s marketing platform, immediately establishing himself as the top producer. As a resident of the Bay Area for 7 years, he has an intimate knowledge of the regional market.

Congrats on your first deals at NAI! Interested in a career at NAI Northern California? Click here for more information.