by Dan Effinger

Do you work with the best insurance agent for your personal assets?  As you mature undoubtedly your family needs have grown, become more complex, and diversified as well.   Are you still using the agent you used when you only owned one automobile from an on line source?  How do you know if your insurance coverage is right for you?  According to a recent survey by Greenwich Associates their study reported that nearly two thirds of their customers were considering changing either their agents or Insurance companies. 

Wallick & Volk has signed a lease for ±3,167 square feet at Overland Corporate Center located at 41469 Margarita Road, Temecula.  Mary Piper, Rob Crisell and Sheri Shoemaker of Lee & Associates represented both the Lessee and the Lessor in this transaction.

World Wide Relocation Specialists has signed a lease for ±829 square feet at Vista Office Centre located at 43460 Ridge Park Drive, Temecula.  Sheri Shoemaker and Mary Piper of Lee & Associates represented both the Lessee and the Lessor in this transaction.

Toward Maximum Independence, Inc. has signed a lease for ±2,438 square feet at Atrium Office Building located at 41707 Winchester Road, Temecula.  Mary Piper & Sheri Shoemaker of Lee & Associates represented the Lessor in this transaction and Laura Menden of Lee & Associates represented the Lessee.

SCA Marketing Group, Inc. has signed a lease for ±2,714 square feet at Jefferson Commerce Center located at 27710 Jefferson Avenue, Temecula.  Sheri Shoemaker and Mary Piper of Lee & Associates represented both the Lessee and the Lessor in this transaction.

by Gene Wunderlich

I recently attended a seminar where one of our speakers reminded us that as far as housing goes – these are the ‘Good Old Days’. As prepared as we were to argue the point, he continued to back up his assertion with a number of considerations that we all know to be true but too often ignore in the face of more immediate concerns and media onslaught.

For example, there are millions of people who have recently lost their homes who would take serious issue with his assertion – for them these definitely aren’t the good old days. But the fact is for millions more, this market has been a blessing.  For every family that has lost a home, there has been another family that has found a home. That home was more affordable, the interest rate was lower and during the last year the government even gave them a tax incentive to buy that home. For them it’s the good old days.

About 1/3 of American homeowners are upside-down in their homes – they owe more than the home is worth. They might disagree that these are the good old days.  The fact is, being upside down is only a problem if you want to sell or refi right now.  For the vast majority of people who look at their home as a place to live as opposed to an investment or an ATM, the fact that they are upside-down is immaterial. They have a place to live and the value fluctuates up and down as it always has. They know over the long haul, you don’t lose money in real estate.

And if only 1/3 of homeowners are upside-down, then it stands to reason that the other 2/3 have equity in their homes. They’re all pretty happy about that and tend not to have much sympathy for those who ‘bit off more than they could chew’. In addition, many people are getting a property tax reduction right now because the value of their home is down. They’re happy living right where they are and their taxes have just gone down. When was the last time that happened? These must be the good old days.

Housing affordability? A decade ago we thought it was great when 40% of Californian’s could afford a median price home in their community. When that number dipped into the teens just 3 or 4 years ago, we bemoaned the fact that our children, our teachers, our policemen couldn’t afford to live in the community. Today homes in the area are affordable to more than 60% of residents and 60% of those recent buyers have been first-timers – for them these are truly the good old days.

Mortgage interest rates in the mid-4% range? You’d have to go all the way back to the 1950’s for good old days like that. Lots of qualified buyers are taking advantage of that to buy 2^nd homes and investment properties. Prices on Florida’s Gold Coast have dropped further than ours and are still down. Want a condo in Vegas, a ski-out in Telluride, an ocean front in Kauai?  Five years from now you’ll be kicking yourself. But by then property values will be up 20% or more, interest rates will be back in the 6%’s, inventory will be down and you’ll look back on ‘the good old days’ - Boy I shoulda…

This is not meant to minimize the serious problems we are dealing with like record unemployment, the difficulty of getting a loan, the California budget or Lindsay Lohan in rehab, but it helps to keep things in perspective. We sometimes suffer from ‘enormity paralysis’ – so many problems across such a huge population, we are paralyzed by the thought of how to cope. But as the explorer said when confronted with how to devour an entire elephant – one bite at a time, my friend, one bite at a time. Carpe diem.

If you have questions on the market please contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or to keep up with the latest legislative and real estate trends go to http://gadblog.srcar.org/. It’s a great time to buy low – just don’t expect to sell high anytime soon. Your house is a home, not an investment.

 

by Todd Dorn

Yes, it is true, in many cases the business you worked so hard to build could be subject to the landlord’s rights under your lease.  Many leases give the landlord the right to recapture your space, i.e. terminate your lease in the case of a lease assignment which is part of the process when a business is sold.  In many cases, the location of the business will have a major impact on how much it is really worth.  This especially holds true with retail space.  When substantial tenant improvements are involved, it is important to protect your investment as well.  There are other fine print areas in a lease that make it restrictive to assign a lease when you sell a business.  Long term planning and attention to detail is paramount when it comes to leasing commercial space in addition to the short term financial aspects.

When your business is facing the important real estate decision of signing a lease, you may have concerns about several issues; the cost involved, hidden risks and obligations, the amount of time and money your business spends dealing with commercial real estate problems and the integrity of the company that advises and represents you.   Your time and resources are extremely valuable.

by Aaron Lloyd

Increasingly over the last several months I’ve found myself needing a little encouragement. The way I figure it, I’m a business owner trying to succeed just like the rest - maybe someone else could use a little encouragement as well. In an uncomfortable moment of self-analysis, I’d realized my battle against the whirlwinds of pomp and circumstance had made me yield the high-ground.

Times have been tough, no doubt. We’ve all felt the squeeze of a world wholly absorbed with singular survival. The employer hordes their money and refuses to hire for fear of tax implications in newly passed legislation. You cut and save every dime to make sure you can pay the bills. You don’t purchase that much needed new item for fear you may not have a job next week. You give up on that loan modification because everyone has scared you into hopelessness about your circumstances, and on and on it goes.

The Thesaurus defines several synonyms for “encouragement”. Here are some of them: assistance, backing, boost, cheer, comfort, confidence, consolation, fortitude, helpfulness, hope, incentive, inspiration, optimism, reassurance, refreshment, relief, softening, stimulation and trust. 

Kambria’s dedication to serving her clients is very important to her. She is well-known and deeply appreciated for her personal touch used to assist her clients with their toughest real estate transactions. Easy Access, Relevant Market Data, Education, and Networking Support and Title Tuesday's are just a few of the many benefits clients enjoy as a part of Kambria’s all-inclusive service. Kambria’s 9 years of title and escrow experience yields a title & escrow representative that is always one step ahead of the real estate sales process. She is dedicated to SRC YPN and knows that it is bringing like-minded young professionals together to help with the integration of technology, education and wisdom throughout the real estate industry.  Being apart of the SRC YPN has definitely helped her grow business and network

Greg Prudhomme, CPA has signed a lease for ±2,429 square feet at Vista Office Centre located at 43460 Ridge Park Drive, Temecula.  Rob Crisell of Lee & Associates represented the Lessee and Mary Piper & Sheri Shoemaker of Lee & Associates represented the Lessor in this transaction.

University of Redlands has signed a lease for ±8,477 square feet at Jefferson Plaza Office Building located at 27720 Jefferson Avenue, Temecula.  Scott Katcher of Studley Real Estate represented the Lessee and Mary Piper & Sheri Shoemaker of Lee & Associates represented the Lessor in this transaction.

by Rob Crisell and Mary Piper

The good news: As we move into the second half of 2010, developers, brokers, and investors in Southwest Riverside County are cautiously optimistic about commercial real estate.  In 2009, those of us caught up in a miserable commercial real estate market were frantically “looking for the bottom.” Thankfully, around the start of 2010, we found it. The bad news: It is very, very dark at the bottom.

Nationally, the consensus of prognosticators in California and elsewhere has been that, while growth in most sectors of our economy has been slow, it does exist. The current forecast for growth is between 3.5 and 4.2 percent, with unemployment declining from 9.5 to 9.1 percent. This July, a majority of Fed officials announced at its quarterly meeting that it would take “no more than five or six years” to reach national benchmark goals for maximum employment with low inflation. In San Diego and Orange Counties, we have had reports of much stronger leasing and sales over the past six months.

The story is similar here in the Inland Empire. Our unemployment may be higher and our growth may be slower than elsewhere, but the trend is definitely upward. John Husing and others have pointed out recently that our region has seen a slight decline in unemployment numbers and small increases in home values and retail sales. As Husing puts it, we are “transitioning from severe shrinkage to very slow growth.”

by Todd Dorn

As many commercial Landlords are trying anxiously to fill their vacancies with new tenants, offering many concessions, perks, etc., what happens to those tenants that re- sign for an extended term.  Many end up subsidizing the concessions offered to new tenants while they get to just stay for a longer term at a higher price.  Many options negotiated into leases are worthless as the option rates in many cases are higher than market.  How does the established tenant get the same treatment as a new tenant right off the street?  The answer is simple…the Landlord needs to know that his current tenant is looking at alternative space, thus creating competition for the landlord.  There are several ways to accomplish this and the right strategy can yield the renewing tenant thousands of dollars never thought possible.  The process becomes more challenging when the tenant has made substantial improvements to the premises, but still can accomplish this with careful planning and preparation.  It is critical for the tenant to understand the market and their needs in depth before attempting to renew their lease.

When your business is facing the important real estate decision of signing a lease, you may have concerns about several issues; the cost involved, the hidden risks and obligations, the amount of time and money your business spends dealing with commercial real estate problems, and the integrity of the company that advises and represents you.   Your time and resources are extremely valuable. At Dorn and Company, “The Lease Doctor”, we sort through the ever changing market issues and complexities such as, available locations, current rates, concessions, zoning restrictions and other factors to give you as many viable commercial space options as possible, including hidden opportunities that are only known to our firm. We help you to understand your lease and reveal lease concessions you never thought of asking for. Whether you’re starting a new business or already have an existing location, renewing your lease, consolidating or looking to expand and/or relocate, we are committed to exclusively representing the rights of the commercial tenant to help gain more affordable and sensible lease space under superior terms.