In April, there was no significant movement in delinquencies specific to any one commercial real estate property type. Current delinquency rates by property type are as follows:
Hotel 18.42%
Multifamily 13.60%
Retail 5.83%
Industrial 4.60%
Office 3.97%
The proposed area for discussion for the new CleanTech Corridor in Los Angeles, California. The location surrounds the industrial property district near the LA River. We’ll see if any substantial development or absorption by cleantech companies occurs as this is a nascent concept at this time. Environmental product manufacturing companies are the target.
A New York Times article describes some of the challenges of local-food movements across the country: a lack of slaughterhouses.
...growing problem for small farmers here and across the nation: too few slaughterhouses to meet the growing demand for locally raised meat." Los Angeles has only a handful of live animal processing plants, when decades ago there were dozens. In what could be a major setback for America’s local-food movement, championed by so-called locavores, independent farmers around the country say they are forced to make slaughter appointments before animals are born and to drive hundreds of miles to facilities, adding to their costs and causing stress to livestock. As a result, they are scaling back on plans to expand their farms because local processors cannot handle any more animals.
The LA Times recently posted this article “One of L.A. County’s last slaughterhouses could go on the chopping block.” Neighbors and city zoning codes pose serious challenges to any type of animal processing plant here in Southern California.
I represent one of the last slaughterhouses in the City of Los Angeles. The company is thriving with hearty demand for their product.
About 30 percent of newly delinquent commercial real estate loans in the U.S. were from commercial mortgage-backed securities loans originated in 2005, according to Fitch Ratings’ February delinquency index. Upcoming maturities for deals originated five years ago contributed to a delinquency rate that stood at 6.29 percent at the end of February.
Office properties had the largest increase in the loan delinquency index, growing by 45 basis points from January to a total rate of 3.5 percent. The hotel industry’s delinquency rate is the greatest at 16.6 percent, while multifamily is at nearly 9 percent, retail at 5.1 percent and industrial at 4.2 percent.
In 1929, architects Morgan Walls and Clements (Mayan Theater) built Commerce’s most recognizable landmark, the Assyrian-themed Samson Tire and Rubber Co. factory before being shut down in 1978. The city bought the Samson site for $14 million in 1983. Seven years later, Trammell Crow Co. was brought in to oversee the $118 million redevelopment of the site into an outlet center, as well as the construction of a 201-room Wyndham Garden Hotel next door.
When the partnership defaulted on its ground lease with the city in 1998, Commerce officials took back the center and began marketing it to firms that would double its retail size and make it competitive with newer outlet malls in Southern California.
Craig Realty bought the Citadel Factory Stores from the City of Commerce for $50 million in July 2002, with the condition that his firm would double the size of the retail center of outlet shopping stores. Craig Realty owns factory outlet centers in Cabazon, just outside Palm Springs, and Carlsbad. It also helped develop Camarillo Premium Outlets.
