RealtyBizNews: Real Estate News
Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO ConsultantCTAC LEED Certification The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*630 North Sepulveda Boulevard, Suite 9A
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 CellWebSite: http://www.harriscompanyrec.com Resume: http://www.harriscompanyrec.com/rESUME2011.pdf Commercial Appraiser Blog: http://commercialappraiser.typepad.com/blog/ IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership: "A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization," including the appraisal institute. http://www.ofi.state.la.us/re-otspart565.pdf CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal.
From: no[email protected] [mailto:[email protected]]
Sent: Saturday, October 31, 2015 1:15 AM
Subject: RealtyBizNews: Real Estate News and More
RealtyBizNews: Real Estate News and More
Real estate tech startups rake in $1.4BN, but trouble lies ahead Matrix Monthly Reports Cooling Apartment Rents in October Candy and Mayhem: What are the dangers of Halloween? Data Reveals Pittsburgh is #1 City for Home Flippers From the Top Down: As Workspaces Shrink, CEOs Lead By Example Real estate tech startups rake in $1.4BN, but trouble lies ahead Posted: 30 Oct 2015 07:58 AM PDT
Although investors are pouring millions of dollars into real estate technology startups, experts are worried that many of these companies might not stay around long enough to enjoy the money.The Wall Street Journal says investors will back real estate startups to the tune of $1.4 billion in 2015 alone, compared to the $1 billion that was plowed into the sector the year before, citing CB Insights’ data. Those numbers were presented at a Rubicon Venture Capital-hosted conference last week, where experts also gave dire warnings about the future.According to panelists at the conference, while real estate tech presents numerous opportunities for startups, there are just as many obstacles that lie in their path.“It’s pretty easy to get a meeting if you are disrupting something in real estate,” said Richard Sarkis, CEO of Reonomy, at a panel.One reason for that is because, although startups like the short term rental service Airbnb and co-working platform WeWork have been wildly successful, the real estate industry has been rather slow on the whole to adopt new technologies. The WSJ notes that numerous tech startups in the space have died out as quickly as they arrived on the scene, and panelists at the conference warned the situation could easily be repeated when there’s a downturn in the market.“It’s going to be a bloodbath,” said Floored CEO Dave Eisenberg. He quickly added that it’s not always easy to get customers to appreciate the benefits of new technology.“It’s such a big space, but historically so insular,” added Clelia Peters, co-founder of MetaProp NYC, which sponsors a program for helping startup real-estate-technology firms.Many real-estate-tech companies that got into the business early hoped to knock out brokers in both residential and commercial real estate, an ill-fated strategy. The brokerage business has been surprisingly resilient, panelists said.That is partly because tech firms haven’t been able to replicate the hand-holding that buyers and renters need when deciding where to live or work. “The people who are thinking this is another one of those transactions with a middleman that needs to go away are foolish,” Mr. Svrluga said.
Matrix Monthly Reports Cooling Apartment Rents in October Posted: 30 Oct 2015 07:44 AM PDT
U.S. multifamily rents in October were $1,166, virtually the same figure as September, according to the newly released edition of Matrix Monthly, a survey of the 111 markets covered by Yardi Matrix. It was the first survey in 2015 that did not document a rise in rents month-over-month.The October year-over-year increase of 6.7% was 10 basis points lower than September’s post-recession high-water level. The survey found signs of a potential shift in rent patterns. Despite double-digit percentage rent growth year-over-year in Portland, Ore., San Francisco, Seattle and Denver, the rate of increases are showing signs of moderating. Meanwhile, markets such as Atlanta, Orlando, Fla., Phoenix, Dallas and Tampa, Fla., are displaying later-stage strength.Yardi Matrix serves as a business development tool for brokers, sponsors, banks and equity sources that underwrite multifamily investment transactions. Now in its fourth decade, Yardi is committed to the design, development and support of software for real estate investment management and property management. With the Yardi Commercial Suite, the Yardi Multifamily Suite, Yardi Investment Suite and Yardi Orion Business Intelligence, the Yardi Voyager platform is a complete real estate management solution. It includes operations, accounting and ancillary processes and services with portfolio-wide business intelligence and platform-wide mobility. Yardi is based in Santa Barbara, Calif., and serves clients worldwide from offices in North America, Asia, Australia, Europe and the Middle East.Download the full October report here for more information. Alternatively, you can subscribe to Matrix Monthly by clicking here. Email m[email protected] or call 480-663-1149 with questions or comments.
Candy and Mayhem: What are the dangers of Halloween? Posted: 30 Oct 2015 07:04 AM PDT
“It’s Halloween, everyone’s entitled to one good scare.” – Halloween (1978)The orange lights, saccharine headaches, and glowing jack-o-lanterns are all postmarks of Halloween night; it’s hard not to get caught up in the mischievous fun of costumes and candy, but, the scariest thing about Halloween aren’t the skeletons or vampires, it’s the real (and potentially) life threatening dangers that occur on October, 31st.With fun ratcheted up and awareness down, Halloween can put you, your family, and your home in jeopardy. Here are the real dangers of Halloween and how to combat them.Are Motorists the Real Monsters?Halloween has become synonymous with a lack of safety and heightened danger. Did you know that pedestrians under 18 are twice as vulnerable to getting hit by a car on Halloween? A statistic like this is frequently overshadowed by stories of strangers poisoning chocolates and candy apple razorblades, but, these tales are mostly urban legend; families should be thinking about safe travels through the streets.A solution to this troubling problem is to make sure you, your kids, and anyone in your party has a flashlight and their costume is fashioned with reflective tape. Additionally, make sure your costume or mask does not obstruct your vision. Lastly, if you are trick-or-treating on Halloween, it is necessary to make sure the group sticks together and no one wanders off.On Halloween it isn’t always pedestrians who are getting caught up in their candy bags and not paying attention to the road—23% of pedestrian fatalities on Halloween involve a drunk driver. This, combined with the congested streets and running children, means that you and your family need to be cautious, prepared, and informed.Costume ConcernsCostumes are as common as candy corn on Halloween. In 2014, there was $7.4 billion dollars spent on Halloween and 38% of that was on costumes. The problem is that these costumes, which are highly targeted towards children, can be very dangerous.One of the main concerns that has recently been raised is how flammable are today’s Halloween costumes? The answer is extremely. It is especially troublesome for children who are walking door to door, hoping for a treat. Many of these walkways are lined with lit jack-o-lanterns that could easily catch any part of a costume and send it up in a blaze of flames. It is recommended that you look for outfits made of nylon or polyester and avoid things like glitter.In addition to the costumes themselves being dangerous, it is imperative to consider who is underneath those devil horns. With burglaries spiking on Halloween, you should proceed with extra caution. The violent crime count on October 31 can be 50 percent higher than on any other date during the year. Thankfully, programs like Operation Safe Halloween have been recently established to put a bigger emphasis on police presence to protect children.Vandalism and Property PranksWith anonymity being a cornerstone of the Halloween holiday, misguided confidence and fearlessness begin to take hold. This means that there is an increased amount of property damage reported. The types of vandalism and property damage you are likely to see include: pumpkin smashing, toilet paper rolling, house-egging, and broken-in windows/doors. Fear not though, there are ways to prevent your house from looking like a ransacked supermarket.First off, and this should be a no brainer, it can go a long way on Halloween to be nice to little ones who eagerly lay out their palms for candy. If you unenthusiastically toss a pack of raisins at a 12-year-old, then you could be doomed to cleaning egg off your siding for the majority of November, 1st.To really combat the threat of property damage, it is recommended that you invest in a smart security system. This will enable you to monitor your property through video cameras and be aware of any mischievous activity. At a Halloween party and worried that chaos will ensue once kids realize the candy bowl is empty? Smart systems allow you to access live feeds right from your smart phone and act accordingly.While it may affect the spooky ambiance you are going for, it is helpful to have a set of motion sensor lights that you can control. This will give the interior and exterior of your home the sense that it is occupied. With these safety and precautionary measures in place, you can ensure that the only thing you have to worry about is a post-Halloween sugar hangover.
Data Reveals Pittsburgh is #1 City for Home Flippers Posted: 30 Oct 2015 06:53 AM PDT
Pittsburgh is the best city in the US at the moment for home flippers, according to recent real estate data released by RealtyTrac. The city provided the best profit for home flippers during third quarter this year.Real estate investors had earned the highest average returns on homes that they bought, renovated and sold quickly in the City of Steel for a profit. On average investors were able to sell 78.4% above the purchase price in the metro area of the seven county Pittsburgh.RealtyTrack real estate data also revealed that the there were various other cities apart from the Pittsburg that were profitable for home flippers. York-Hanover, Allentown-Bethlehem, and Philadelphia were ranked as the third, seventh, and ninth most profitable areas in terms of return on investment.RealtyTrack Vice President, Daren Blomquist opined that many market in Pennsylvania especially Pittsburg offer the perfect combination of gentrifying and distress neighborhoods. Home flippers have also become more disciplined that has led to increased profits thanks in part due to near zero level interest rates. Low level interest rates has increased the purchasing power of homebuyers including flippers. As a result, they can afford homes that are higher priced located in plush neighborhoods.Despite increased home sales by flippers across Pennsylvania, it remains only a fraction of total home sales in the state – 4.5% in Pennsylvania and 2.9% across Pittsburg.The reason for lower percentage of home sales by investors across the state, according to Blomquist, may be due to the fact that there are fewer opportunities for home flipping. Moreover, rising home prices also has made it difficult for investors to purchase houses in large numbers for flipping. Increased home prices increases foreclosure rates that leads to great losses for the investors.Ross-based Synergy Capital’s Josh Adamek says that there may be another reason for investors not scooping up properties in Pittsburg. The RealtyTrac statistics are based on sale and purchase price. They do not take into account expenses that are incurred in renovating the homes before being sold. The real estate properties in the metro area in Pittsburg require lot more work as compared to newer houses that are sold in the region. This may be the reason that the sales by flippers account for a small portion of net home sales.Most properties that are purchased by home flippers in Pittsburg are more than 100 years old. So, they require a large amount of investment for renovation. Adamtek who has flipped homes across Allegheny County says that if you go to areas like Phoenix, Arizona, the average homes are around 10 – 20 years old that just require some floor or paint rehabs. There is not water or foundation issues in such areas due to which the renovation project is completed in around 2-3 weeks.At the end of the day, investors are still able to earn larger profits on flipping homes in Pittsburg, and the profits are increasing. Last year the average return on homes in Pittsburg was 66.4%. This year investors were able to earn greater returns on investment. Nationally the returns have also increased from 32.7% last year to 33.8% in the Q3 this year.
From the Top Down: As Workspaces Shrink, CEOs Lead By Example Posted: 30 Oct 2015 06:47 AM PDT
The trend of the shrinking workspace is well established. The average amount of space per office worker in North America dropped from 225 square feet in 2010 to 176 in 2012, according to CoreNet Global, the commercial real estate association. When a company institutes a reduction in individual workspaces, more often than not the CEO is the exception. This doesn’t exactly help foster a sense of shared commitment to this new way of working.Michael Bloomberg famously subscribed to an open office “bullpen” configuration both in his business and during his tenure as mayor of New York City. Encouragingly, more CEOs are starting to lead by example. Here at Siemens Real Estate, we are seeing a number of C-suite executives throughout Siemens shrink their own workspaces as we roll out our New Way of Working (NewWow) office configuration, which emphasizes open office environments and shared workspaces.Some of these executives have even decided to go a step further and forgo assigned offices, a decision that often makes a great deal of financial sense. This is especially true for executives who travel frequently. In a traditional office environment, their spaces would go unused when they are out of the office. Instead, these executives maximize real estate efficiency and help set the tone for the rest of the company.Executives who give up the big corner office demonstrate that it is not just okay, but advantageous to do so. The elimination of the designated office opens up the space, both literally and figuratively, making it more inviting for employees at all levels to get together when necessary to collaborate on tasks, and easier to find a private place to complete a project solo.For example, Siemens Foundation CEO David Etzwiler successfully manages his Foundation team remotely with personnel in DC, NY, Atlanta and New Jersey. In his case, a dedicated office is unnecessary given his and the team’s extensive travel commitments. The team takes full advantage of current technology for team “virtual check-ins,” individual one-to-one meetings, and daily interactions to stay in touch and ensure a close and coordinated working environment.At Siemens Canada, all of the divisional CEOs and CFOs have relinquished their assigned offices. In fact, when the sectors changed to divisions within Siemens, the executive team decided to follow a progressive path and change all sector offices to “think tank” conference rooms that anyone can use.In my own case, I have a non-dedicated office at our Orlando headquarters. The style is that of a conference room and is open to others. So when I am not present, it is available for use by other employees. I’ve also committed to being paper-free so I can seamlessly work from anywhere in the world. Since I am not in Orlando everyday of the month, this is clearly the appropriate choice.By 2017, over 150,000 Siemens employees around the world will work in an open office environment. CEOs that lead by example and participate in shared workspace environments help set the tone for successful rollouts of open office configurations and ensure buy-in by employees across the company. Time will tell if this becomes a widespread practice. I, for one, hope others will follow their lead. About the author: Michael Kruklinski is the Head of Siemens Real Estate for the Americas
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Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO ConsultantCTAC LEED Certification The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*630 North Sepulveda Boulevard, Suite 9A
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 CellWebSite: http://www.harriscompanyrec.com Resume: http://www.harriscompanyrec.com/rESUME2011.pdf Commercial Appraiser Blog: http://commercialappraiser.typepad.com/blog/ IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership: "A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization," including the appraisal institute. http://www.ofi.state.la.us/re-otspart565.pdf CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal.
From: no[email protected] [mailto:[email protected]]
Sent: Saturday, October 31, 2015 1:15 AM
Subject: RealtyBizNews: Real Estate News and More
RealtyBizNews: Real Estate News and More
Real estate tech startups rake in $1.4BN, but trouble lies ahead Matrix Monthly Reports Cooling Apartment Rents in October Candy and Mayhem: What are the dangers of Halloween? Data Reveals Pittsburgh is #1 City for Home Flippers From the Top Down: As Workspaces Shrink, CEOs Lead By Example Real estate tech startups rake in $1.4BN, but trouble lies ahead Posted: 30 Oct 2015 07:58 AM PDT
Although investors are pouring millions of dollars into real estate technology startups, experts are worried that many of these companies might not stay around long enough to enjoy the money.The Wall Street Journal says investors will back real estate startups to the tune of $1.4 billion in 2015 alone, compared to the $1 billion that was plowed into the sector the year before, citing CB Insights’ data. Those numbers were presented at a Rubicon Venture Capital-hosted conference last week, where experts also gave dire warnings about the future.According to panelists at the conference, while real estate tech presents numerous opportunities for startups, there are just as many obstacles that lie in their path.“It’s pretty easy to get a meeting if you are disrupting something in real estate,” said Richard Sarkis, CEO of Reonomy, at a panel.One reason for that is because, although startups like the short term rental service Airbnb and co-working platform WeWork have been wildly successful, the real estate industry has been rather slow on the whole to adopt new technologies. The WSJ notes that numerous tech startups in the space have died out as quickly as they arrived on the scene, and panelists at the conference warned the situation could easily be repeated when there’s a downturn in the market.“It’s going to be a bloodbath,” said Floored CEO Dave Eisenberg. He quickly added that it’s not always easy to get customers to appreciate the benefits of new technology.“It’s such a big space, but historically so insular,” added Clelia Peters, co-founder of MetaProp NYC, which sponsors a program for helping startup real-estate-technology firms.Many real-estate-tech companies that got into the business early hoped to knock out brokers in both residential and commercial real estate, an ill-fated strategy. The brokerage business has been surprisingly resilient, panelists said.That is partly because tech firms haven’t been able to replicate the hand-holding that buyers and renters need when deciding where to live or work. “The people who are thinking this is another one of those transactions with a middleman that needs to go away are foolish,” Mr. Svrluga said.
Matrix Monthly Reports Cooling Apartment Rents in October Posted: 30 Oct 2015 07:44 AM PDT
U.S. multifamily rents in October were $1,166, virtually the same figure as September, according to the newly released edition of Matrix Monthly, a survey of the 111 markets covered by Yardi Matrix. It was the first survey in 2015 that did not document a rise in rents month-over-month.The October year-over-year increase of 6.7% was 10 basis points lower than September’s post-recession high-water level. The survey found signs of a potential shift in rent patterns. Despite double-digit percentage rent growth year-over-year in Portland, Ore., San Francisco, Seattle and Denver, the rate of increases are showing signs of moderating. Meanwhile, markets such as Atlanta, Orlando, Fla., Phoenix, Dallas and Tampa, Fla., are displaying later-stage strength.Yardi Matrix serves as a business development tool for brokers, sponsors, banks and equity sources that underwrite multifamily investment transactions. Now in its fourth decade, Yardi is committed to the design, development and support of software for real estate investment management and property management. With the Yardi Commercial Suite, the Yardi Multifamily Suite, Yardi Investment Suite and Yardi Orion Business Intelligence, the Yardi Voyager platform is a complete real estate management solution. It includes operations, accounting and ancillary processes and services with portfolio-wide business intelligence and platform-wide mobility. Yardi is based in Santa Barbara, Calif., and serves clients worldwide from offices in North America, Asia, Australia, Europe and the Middle East.Download the full October report here for more information. Alternatively, you can subscribe to Matrix Monthly by clicking here. Email m[email protected] or call 480-663-1149 with questions or comments.
Candy and Mayhem: What are the dangers of Halloween? Posted: 30 Oct 2015 07:04 AM PDT
“It’s Halloween, everyone’s entitled to one good scare.” – Halloween (1978)The orange lights, saccharine headaches, and glowing jack-o-lanterns are all postmarks of Halloween night; it’s hard not to get caught up in the mischievous fun of costumes and candy, but, the scariest thing about Halloween aren’t the skeletons or vampires, it’s the real (and potentially) life threatening dangers that occur on October, 31st.With fun ratcheted up and awareness down, Halloween can put you, your family, and your home in jeopardy. Here are the real dangers of Halloween and how to combat them.Are Motorists the Real Monsters?Halloween has become synonymous with a lack of safety and heightened danger. Did you know that pedestrians under 18 are twice as vulnerable to getting hit by a car on Halloween? A statistic like this is frequently overshadowed by stories of strangers poisoning chocolates and candy apple razorblades, but, these tales are mostly urban legend; families should be thinking about safe travels through the streets.A solution to this troubling problem is to make sure you, your kids, and anyone in your party has a flashlight and their costume is fashioned with reflective tape. Additionally, make sure your costume or mask does not obstruct your vision. Lastly, if you are trick-or-treating on Halloween, it is necessary to make sure the group sticks together and no one wanders off.On Halloween it isn’t always pedestrians who are getting caught up in their candy bags and not paying attention to the road—23% of pedestrian fatalities on Halloween involve a drunk driver. This, combined with the congested streets and running children, means that you and your family need to be cautious, prepared, and informed.Costume ConcernsCostumes are as common as candy corn on Halloween. In 2014, there was $7.4 billion dollars spent on Halloween and 38% of that was on costumes. The problem is that these costumes, which are highly targeted towards children, can be very dangerous.One of the main concerns that has recently been raised is how flammable are today’s Halloween costumes? The answer is extremely. It is especially troublesome for children who are walking door to door, hoping for a treat. Many of these walkways are lined with lit jack-o-lanterns that could easily catch any part of a costume and send it up in a blaze of flames. It is recommended that you look for outfits made of nylon or polyester and avoid things like glitter.In addition to the costumes themselves being dangerous, it is imperative to consider who is underneath those devil horns. With burglaries spiking on Halloween, you should proceed with extra caution. The violent crime count on October 31 can be 50 percent higher than on any other date during the year. Thankfully, programs like Operation Safe Halloween have been recently established to put a bigger emphasis on police presence to protect children.Vandalism and Property PranksWith anonymity being a cornerstone of the Halloween holiday, misguided confidence and fearlessness begin to take hold. This means that there is an increased amount of property damage reported. The types of vandalism and property damage you are likely to see include: pumpkin smashing, toilet paper rolling, house-egging, and broken-in windows/doors. Fear not though, there are ways to prevent your house from looking like a ransacked supermarket.First off, and this should be a no brainer, it can go a long way on Halloween to be nice to little ones who eagerly lay out their palms for candy. If you unenthusiastically toss a pack of raisins at a 12-year-old, then you could be doomed to cleaning egg off your siding for the majority of November, 1st.To really combat the threat of property damage, it is recommended that you invest in a smart security system. This will enable you to monitor your property through video cameras and be aware of any mischievous activity. At a Halloween party and worried that chaos will ensue once kids realize the candy bowl is empty? Smart systems allow you to access live feeds right from your smart phone and act accordingly.While it may affect the spooky ambiance you are going for, it is helpful to have a set of motion sensor lights that you can control. This will give the interior and exterior of your home the sense that it is occupied. With these safety and precautionary measures in place, you can ensure that the only thing you have to worry about is a post-Halloween sugar hangover.
Data Reveals Pittsburgh is #1 City for Home Flippers Posted: 30 Oct 2015 06:53 AM PDT
Pittsburgh is the best city in the US at the moment for home flippers, according to recent real estate data released by RealtyTrac. The city provided the best profit for home flippers during third quarter this year.Real estate investors had earned the highest average returns on homes that they bought, renovated and sold quickly in the City of Steel for a profit. On average investors were able to sell 78.4% above the purchase price in the metro area of the seven county Pittsburgh.RealtyTrack real estate data also revealed that the there were various other cities apart from the Pittsburg that were profitable for home flippers. York-Hanover, Allentown-Bethlehem, and Philadelphia were ranked as the third, seventh, and ninth most profitable areas in terms of return on investment.RealtyTrack Vice President, Daren Blomquist opined that many market in Pennsylvania especially Pittsburg offer the perfect combination of gentrifying and distress neighborhoods. Home flippers have also become more disciplined that has led to increased profits thanks in part due to near zero level interest rates. Low level interest rates has increased the purchasing power of homebuyers including flippers. As a result, they can afford homes that are higher priced located in plush neighborhoods.Despite increased home sales by flippers across Pennsylvania, it remains only a fraction of total home sales in the state – 4.5% in Pennsylvania and 2.9% across Pittsburg.The reason for lower percentage of home sales by investors across the state, according to Blomquist, may be due to the fact that there are fewer opportunities for home flipping. Moreover, rising home prices also has made it difficult for investors to purchase houses in large numbers for flipping. Increased home prices increases foreclosure rates that leads to great losses for the investors.Ross-based Synergy Capital’s Josh Adamek says that there may be another reason for investors not scooping up properties in Pittsburg. The RealtyTrac statistics are based on sale and purchase price. They do not take into account expenses that are incurred in renovating the homes before being sold. The real estate properties in the metro area in Pittsburg require lot more work as compared to newer houses that are sold in the region. This may be the reason that the sales by flippers account for a small portion of net home sales.Most properties that are purchased by home flippers in Pittsburg are more than 100 years old. So, they require a large amount of investment for renovation. Adamtek who has flipped homes across Allegheny County says that if you go to areas like Phoenix, Arizona, the average homes are around 10 – 20 years old that just require some floor or paint rehabs. There is not water or foundation issues in such areas due to which the renovation project is completed in around 2-3 weeks.At the end of the day, investors are still able to earn larger profits on flipping homes in Pittsburg, and the profits are increasing. Last year the average return on homes in Pittsburg was 66.4%. This year investors were able to earn greater returns on investment. Nationally the returns have also increased from 32.7% last year to 33.8% in the Q3 this year.
From the Top Down: As Workspaces Shrink, CEOs Lead By Example Posted: 30 Oct 2015 06:47 AM PDT
The trend of the shrinking workspace is well established. The average amount of space per office worker in North America dropped from 225 square feet in 2010 to 176 in 2012, according to CoreNet Global, the commercial real estate association. When a company institutes a reduction in individual workspaces, more often than not the CEO is the exception. This doesn’t exactly help foster a sense of shared commitment to this new way of working.Michael Bloomberg famously subscribed to an open office “bullpen” configuration both in his business and during his tenure as mayor of New York City. Encouragingly, more CEOs are starting to lead by example. Here at Siemens Real Estate, we are seeing a number of C-suite executives throughout Siemens shrink their own workspaces as we roll out our New Way of Working (NewWow) office configuration, which emphasizes open office environments and shared workspaces.Some of these executives have even decided to go a step further and forgo assigned offices, a decision that often makes a great deal of financial sense. This is especially true for executives who travel frequently. In a traditional office environment, their spaces would go unused when they are out of the office. Instead, these executives maximize real estate efficiency and help set the tone for the rest of the company.Executives who give up the big corner office demonstrate that it is not just okay, but advantageous to do so. The elimination of the designated office opens up the space, both literally and figuratively, making it more inviting for employees at all levels to get together when necessary to collaborate on tasks, and easier to find a private place to complete a project solo.For example, Siemens Foundation CEO David Etzwiler successfully manages his Foundation team remotely with personnel in DC, NY, Atlanta and New Jersey. In his case, a dedicated office is unnecessary given his and the team’s extensive travel commitments. The team takes full advantage of current technology for team “virtual check-ins,” individual one-to-one meetings, and daily interactions to stay in touch and ensure a close and coordinated working environment.At Siemens Canada, all of the divisional CEOs and CFOs have relinquished their assigned offices. In fact, when the sectors changed to divisions within Siemens, the executive team decided to follow a progressive path and change all sector offices to “think tank” conference rooms that anyone can use.In my own case, I have a non-dedicated office at our Orlando headquarters. The style is that of a conference room and is open to others. So when I am not present, it is available for use by other employees. I’ve also committed to being paper-free so I can seamlessly work from anywhere in the world. Since I am not in Orlando everyday of the month, this is clearly the appropriate choice.By 2017, over 150,000 Siemens employees around the world will work in an open office environment. CEOs that lead by example and participate in shared workspace environments help set the tone for successful rollouts of open office configurations and ensure buy-in by employees across the company. Time will tell if this becomes a widespread practice. I, for one, hope others will follow their lead. About the author: Michael Kruklinski is the Head of Siemens Real Estate for the Americas
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