Sand Creek Plaza

The deterioration of available financing is continuing to wreck havoc on the investment sales market in the fourth quarter of 2008, reports New York-based research firm Reis. Sales volumes fell by double digits compared with the fourth quarter of 2007 in office, retail, industrial, and commercial sectors, all while cap rates continued to rise.

This deterioration spells bad news for commercial property owners because it will limit their ability to sell assets to avoid defaults on near-term notes.

The research firm estimates there are more than $270 billion in commercial real estate loans coming due in 2009, but securing refinancing remains difficult. In the first quarter of 2009, close to 80% of senior loan officers surveyed by the Federal Reserve reported tightening standards for commercial mortgages.

Normally, asset sales can serve as an alternate route for owners unable to refinance. But with the investment sales market at a standstill, projections of the commercial real estate default rate will rise to 4.2% in 2009 and could hit 4.8% by 2012.

So far, the office sector seems to have suffered the most, with a huge drop in the number of sales transactions in the fourth quarter, and a decline in dollar transactions, when will it ever hit bottom?

Despite the economic difficulties our world currently faces, improving the economy should focus its energy on small businesses. At Sand Creek Plaza our tenants objectives are at the forefront of everything we do, resulting in a rewarding long term relationship. We understand that our tenant’s real estate needs are ongoing and evolving especially in todays real estate market.

A surge in office space is sweeping the San Francisco bay area. With new buildings continuing to spring up all over, they remain to stay empty. Filling these new offices leave without leaving huge vacancies in existing buildings stands to be a challenge. The question on the minds of many is whether tenant demand will be sufficient in the face of a sluggish economy.

What do you think the current tenant demand is for bay area office space? Presently, the market seems to be quiet in comparison to last year, which may be due to tenants renewing leases early or the lack of quality alternatives in the marketplace. We have noticed some larger tenants negotiating in the future market looking for a sweet deal, but for the most part its very quiet.

Looking at the existing office space market between now and 2010, new buildings are not being built as fast. While the total square feet of office space is not growing, the availability of existing office space is. Given the state of the economy, businesses are hesitant about expanding operations. While some businesses are still growing, expansion is almost at a standstill.

With the prediction of more layoffs a significant amount of space will be put on the market. Most of these spaces will be for sublease due to existing leases or contracts. As real estate professionals we realize that subleasing is sometimes a necessity in this economy. We are here to work with our tenants during hard times like this, we understand the subprime market issues and corporate downsizing. Our company is proud to offer services that others do not. With our many years of experience we are here to last through this grueling economy.

At some point, your plans to start a new business may lead you on a search to find a suitable location. If you pick the right location, you’ll be made in the shade. Pick the wrong one, and your business could be over before you know it.

Selecting an office space can be a rather difficult endeavor. To try to make the process a little easier, we’re listing some things your should consider about any prospective rental property.

The square footage of the property is important. But, don’t just think about the rentable square footage, which is the figure the landlord will give you. Instead consider the usable square footage of the office space, the amount of the property which you will actually be able to use. To get this figure, measure the interior of the office space where you will actually be working. Make sure the usable square footage is enough for your business.

Next, find out about utilities. For some properties, the utilities are included in the lease. But, for others, whoever rents the office space is responsible for paying for the heat, electric, and water bills. If you are responsible for these bills, it can obviously make a big difference in the amount you are paying each month for your office space.

If you depend on foot traffic for retail sales make sure your office space is visible from the street and that there is adequate parking. Don’t rent an office space that is secluded unless your business does not rely on customers or clients coming in. If you do have customers during the day, be sure the location has adequate parking. You do not want customers or clients choosing not to stop at your business because the parking lot is full.

Find out about outside signage ordinances for the area. In some cases the landlord is responsible for providing signage, which saves the tenant money. In some cases the city or township may have certain laws about what types of signs an office space is allowed to have. For example, you may not be allowed to put up a neon business sign or a billboard that is taller than six feet. It is important to check the ordinances so that you do not get fined and so that you do not have to take down any expensive signage.

Lastly, ask about the onsite management services and get to know who’s managing the building. An onsite management team is indispensable. Should an issue arise, an onsite team can act immediately, responsively and effectively. Look around, is the place clean? Attentive onsite management teams routinely take care of the details that keep the building running smoothly.

Finally, be diligent. Get as much information as possible, and work to understand issues before you make your selection. By sticking to these principles, you decision will always be the wise choice. Never overpay, but if the numbers are right, don’t be afraid to pay a little extra for that perfect location. In the end, the building should contribute to your company’s bottom line.

Sand Creek Plaza: Brentwood’s Premier Retail & Office Space Shopping Center

Since this is this first official blog post for the Sand Creek Plaza we would kick it off by thanking you for visiting. To introduce ourselves we would like to tell you a bit about us and the services we offer.

Sand Creek Plaza is a  full range of professional space ideal for retail, office and general uses. We’re located at a high visibility corner at a busy signalized intersection. Suites are available for lease as small as 1,500± Square feet and as large as 6,000± Square feet. Our experiences contractors are ready to help with any interior improvements to suit your individual needs.

Located at 200 Sand Creek Road in Brentwood, CA our spaces available for rent or lease are the best in town at unbeatable prices.  Please contact Nate Lorenzini anytime for more information (925) 918-2861 We look forward to hearing from you.