Commercial Brokerage Business Flattens in Fourth Quarter
February 21, 2008 | Filed Under Commercial Real Estate, Boston Real Estate | Leave a Comment
The fourth quarter of last year was a telling quarter for the commercial real estate brokerage industry. While major brokerage firms reported record revenues and healthy net income last year, results dropped off sharply in the fourth quarter reflecting a weakening commercial real estate environment. The latest quarter results are also a sign of what is to come this year.
CB Richard Ellis Group Inc. reported full year 2007 revenue rose 49.7% to $6 billion. The company reported net income of $390.5 million compared to net income of $318.6 million in 2006. However, fourth quarter revenue was just 30.4% compared to the year earlier and net income was less in the fourth quarter of 2007 compared to a year earlier.
Jones Lang LaSalle Inc. reported record net income of $256 million for the year, an increase of 46% over 2006. Revenue for the full year 2007 was $2.7 billion, an increase of 32% from the prior year. Fourth quarter net income increased just 30% from a year earlier and revenue only 22% from 2006.
Both firms are world powerhouses, but it is clear from where the slowdown is coming. For Jones Lang LaSalle, revenue in the Americas region for the full year 2007 was $765 million, an increase of 23% over the prior year, but fourth quarter revenue increased just 11%.
For CB Richard Ellis, sales in the Americas increased by 7% for the full year but decreased by 14% for the fourth quarter. As for leasing, for the full year leasing activity increased 3% but fourth quarter was flat.
Executives from the two companies added color to the numbers and provided their outlooks for the coming year in their quarterly conference calls following the release of the results this month.
Source: Co-Star
Q4 Home Sales, Prices Fall, But 73 Cities Post Gains
February 16, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Condos, Boston Real Estate | Leave a Comment
Sales of existing single-family homes and condos fell 20.9 percent during the fourth quarter of 2007, to a seasonally adjusted annual rate of 4.96 million units compared to a year ago, according to NAR. The national median sale price of an existing single-family home was $206,200 in the fourth quarter, down 5.8 percent from the previous year when the median price was $219,000. Median sale prices fell in the fourth quarter in all four U.S. regions, with declines of 3.2 percent in the Midwest; 4.8 percent in the Northeast; 5.4 percent in the South; and 8.7 percent in the West.
Still, of the 150 metro areas covered in NAR’s survey, 73 showed price gains, including 11 with double-digit increases. Seventy-seven had price declines, including 16 with double-digit drops.
Boston, according to the “Median Sales Price for Existing Condos - Coops Homes for Metropolitan Areas” survey, increased 2.4% from last year. San Fransisco increased 2.7%, Providence increased 3.6% and Chicago increased 6.4%. New York decreased 2.9%, Miami decreased 6%, Los Angeles decreased 9.7% and Las Vegas decreased 10.3%.
Source: NAR
Luxury in Cambridge at One First
February 15, 2008 | Filed Under Boston Lifestyle, Boston Condos, Boston Luxury Developments, Boston Real Estate | 2 Comments
So, you want to be a stone’s throw from Downtown, steps to shopping and restaurants, right on a T line and have a garage space…One First may be the place for you. One First in East Cambridge features five elegant buildings surrounding an beautifully landscaped courtyard and offers homeowners the intimacy of a small residential building without sacrificing luxury ammenities. The One First project offers buyers the choice of 86 different floor plans includings lofts, duplexes, flats and townhomes. The units are light and airy with soaring ceilings and exceptional attention to detail. One First offers a common roof deck, underground garage parking, a fitness room, a library and 24-hour concierge services. The project is steps from the Lechmere Green Line T, Charles River Esplanade and the CambridgeSide Galleria Mall, and minutes to the Red and Orange Lines as well as the Mass General Hospital medical area.
Please contact us with any questions.
U.S. Is Top Global Market For Foreign Investment
February 9, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment, Boston Real Estate | 2 Comments
The United States was ranked the top global property market among foreign investors, but Asia is close behind, according to a new survey by the Association of Foreign Investors in Real Estate (AFIRE). China ranked second behind the U.S. for the second time in three years, and the gap between the two countries narrowed from 27 percent in 2005 to less than 5 percent in 2007.
The U.S. was also considered the most stable and secure for real estate investments by 56 percent of those surveyed, followed by Germany, the United Kingdom, Australia and Japan. New York City and Washington, D.C. were ranked the top two global cities for foreign investors’ real estate dollars, followed by London, Paris and Shanghai.
Other significant changes in 2007 where:
- Singapore, up to 6th place (tied with Tokyo) from 24th place in 2006
- Sydney, up to 9th place from 15th place in 2006
- Hong Kong, up to 10th place from 11th place in 2006
Top U.S. cities are:
- New York
- Washington DC
- Los Angeles
- San Fransisco
- Seattle
Boston was not mentioned in this survey.
Source: AFIRE
On low-balling. News from the front.
February 6, 2008 | Filed Under Real Estate Trends and Statistics, Real Estate Investment, Boston Condos, Boston Real Estate | 1 Comment
As a real estate professional watching the Suze Orman show the other night, I was disturbed to hear Suze encouraging buyers to put in low-ball offers due to the market. Now, I usually agree with most of what Suze has to say, but real estate is local and she often seems to forget that.
As a Boston real estate agent living everyday on the front lines of Boston’s real estate market, my perspective is somewhat different. First off, the Boston market has seen a slowdown, but even though fewer properties are selling, the median price continues to rise in Boston’s prime neighborhoods. Sellers also understand that if they really want to sell, they will need to price their home competitively and make sure it “shows” well. By offering a low-ball of 10-20 percent on a correctly priced home, the buyer is doing a disservice to his or herself and is most likely to get a flat “NO”. The buyer will need to either wait a good three months or come back with a higher price…a negative negotiating position. You don’t want to move twice while the other party hasn’t budged; it shows your cards.
I have seen buyer after buyer lose properties this way in the past few months. I have seen buyers shocked as their bid is not only rejected, but another competing bid is accepted within days. In order to understand if a low-ball offer is a good idea, speak with your buyer’s agent. If he or she is an Accredited Buyer’s Representative, the agent should be able to tell you if the home is competitively priced for the value, or if it is a good idea to low-ball.
Boston Is One Out Of Five Bubble Proof Markets
February 3, 2008 | Filed Under Real Estate News, Boston Real Estate | 2 Comments
CNN Money reported that Boston, along with New York City, San Fransisco, Los Angeles and Seattle is a “Bubble Proof” market.
“Boston had the strongest wage growth of these cities through the tech bust and jobless recovery. Over the next five years, it will have the highest per capita income, next to San Francisco.”
Source: Business 2.0
Boston Real Estate Market Seen As Better Off Than Nation’s
January 27, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | Leave a Comment
Boston seems to be better positioned for recovery than other parts of the country. At least that is what was portrayed at a dinner hosted by the Builders Association of Greater Boston last Wednesday and reported by Banker and Tradesman. Boston’s low unemployment and steady income growth will help the local housing market rebound, predicted Robert Denk, an economist with the National Association of Home Builders.
States such as California and Florida, as well as cities such as Las Vegas and Phoenix saw extreme price growth in a short amount of time. “These are markets that are riddled with thse bad (sub-prime) loans. They’re going to cause trouble in teh market,” said Denk. He also added that “Boston, in particular, (doesn’t) have these problems.”
The national headlines may not apply specifically to the Boston real estate market, as we have seen in recent months. Every market is different and, though national trends are important, local trends tend to be more meaningful.
Luxury Condo At An Affordable Price
January 24, 2008 | Filed Under Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
The Bushari Team listed a new luxury condo at the Regatta Riverview Residences: 8 Museum Way Unit 502 Cambridge. This 2 bedrooms 2 bathrooms condo is tastefully renovated and features marble floors entry and hardwood floors throughout the condo, cherry kitchen cabinets with granite counter-top and breakfast bar, stainless steel appliances, marble bathrooms and 1 valet garage parking space. The Regatta Riverview is well known for its high end services, including concierge, full size gym, indoor pool, screening room and a party room - all available to residents at no additional charge.
Price: $549,000
Views, Views and more Views
January 7, 2008 | Filed Under Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
The Bushari team started marketing another great property at the Regatta Riverview Residences. This unit has the most amazing views the Regatta has to offer: panoramic views of the Back Bay, Beacon Hill, Financial District, Zakim Bridge and the North Point Park. Unit 2122 is located on the 21nd floor of the North Tower and has 2 bedrooms, 2 bathrooms and 1 garage parking space. The unit needs some renovation and care — One thing is for sure: The views are just amazing!!!
Price: $799,000
NEW LISTING - 10 Museum Way #1124 East Cambridge
December 28, 2007 | Filed Under Boston Condos, Boston Luxury Developments, Boston Real Estate | 1 Comment
The Bushari Team started marketing a new property available for purchase: 10 Museum Way Unit 1124 Cambridge. This property has amazing city, river and park views, has 2 bedrooms and 2 full bathrooms, 1 garage parking and is in a full service luxury building. The Regatta Riverview Residences offers 24-hour concierge, full size gym, in-door lap pool, screening room, party room, business center, valet parking and a great location just across from the Boston Museum of Science.
The Regatta was completely sold this year by Crescent Heights and was declared the most successful luxury development in the city of Boston as more than 400 units sold in just 2 years. “The great amenities and the convenient location really sold out this project, and the up and coming neighborhood is only ads to the value” said one of the residents. The North Point development, a 45 acre development project just across from the Regatta Riverview Residences, is planned to be completed in the next 10 years and is will begin occupancy in 2008. The North Point development will include 14 acres of public park, lab spaces, restaurants and entertainment amenities.
Price: $659,000
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