How Remote Work is Impacting San Diego’s Commercial Real Estate Landscape
The workplace has undergone a transformation with the widespread adoption of remote work, particularly in San Diego. Recent data from Pew Research Center says that 41% of the national workforce whose jobs allow for remote work now work remotely at least part of the time. Furthermore, a study by SANDAG found that the percentage of […]
Exploring Guarantor Types in Commercial Real Estate Financing
In the dynamic world of commercial real estate financing, understanding the different types of guarantors involved in securing financing is crucial for developers and investors. Each guarantor type carries distinct responsibilities, risks, and benefits, significantly impacting project success. This blog delves into the key types of guarantors and their importance in securing real estate financing. […]
Multifamily Insights: Why San Diego’s Cap Rates Remain Persistently Low, Defying National Trends
San Diego’s Multifamily Market Shows Little Signs of Cooling as Cap Rates Remain Compressed. Introduction While the real estate market in San Diego has seen significant transformations over recent years, some things remain the same, notably the persistently low cap rates. As of May 2024, major trades in the San Diego market average just 4.6%, […]
Beyond the Surge: What Makes San Diego’s Rental Market a Prime Investment?
San Diego’s multifamily real estate market has experienced an extraordinary surge over the past decade, characterized by a remarkable 57% increase in average asking rents, significantly outstripping the national average increase of 40%. Such impressive growth is a testament to San Diego’s real estate landscape’s robust demand dynamics and immense investment potential. While several other […]
Understanding Common ALTA Endorsements
ALTA endorsements can be a confusing piece of the closing process in commercial real estate. With that being said, they are incredibly important and often requested by lenders to ensure protection for not only the asset, but also the lender and the borrower. While there are around 150 different and very specific endorsements, the average […]
The Significance of Benchmark Interest Rates and Spreads in Financial Markets
Financial markets employ benchmark interest rates as critical reference points for pricing a wide array of financial products. These benchmarks and risk premiums ascribed to them are integral to the commercial lending processes. The most widely recognized benchmark is the Secured Overnight Financing Rate (SOFR), which gained prominence as an alternative to the London Interbank […]
AB 2011
California’s cities contain a significant amount of land used for commercial purposes, and in many cases tight local land use constraints prevent such land from being converted into housing. As several prominent downtowns with a large concentration of exclusively commercial uses, most notably San Francisco and Los Angeles, have emptied during the global pandemic, policymakers […]
Estoppels and SNDAs – What Are They and Why Do You Need Them?
Estoppels and SNDAs are a vital component of the relationship between property owner and tenant in the world of commercial real estate. Understanding exactly how they protect both parties is important, as is ensuring that these documents are executed in a timely manner, given that lenders commonly require these documents to complete their closing process. […]
Modular Development – Fast Forward or Not So Fast?
Modular construction provides developers an opportunity to streamline construction, increasing efficiency, and reducing the development timeline. However, because the modular components are constructed offsite, and don’t reside at the development site, they are not a part of the construction lender’s collateral. This challenge requires both lenders and developers to consider the sufficiency of the collateral […]
Multifamily ADUs in New Construction – California’s Biggest Density Bonus of All?
By Emily Laetz Introduction A creative interpretation of California’s recently-passed legislation regarding multifamily accessory dwelling units (ADUs) looks to offer developers of new multifamily housing the opportunity to increase their projects’ maximum allowable unit density by up to 25%, a tool that planners and legislators are hoping will make a substantial dent in the state’s […]
