February 26th, 2010

It seems you learn something new every day when the market slows down.  We have been working to get a building permit issued for a building on Capitol Hill for about three months now.   With all the work going on prior to September 2008, it seemed hard to get noticed at DPD.  Today it seems there aren’t enough folks to keep the work going through the pipeline.  In this case, we’re hopeful to finally get the permit out next week and start refurbishing a building that has been sitting vacant for far too long.  We’re excited for what the final, much improved, product will look like.

February 2nd, 2010

I read The Long Walk over the holidays; I enjoy both WWII history and stories about human triumph and endurance. The story is indirectly about lots of real estate. A Polish Cavalry officer is sent from Moscow to a Siberian labor camp in the late 1930`s. He manages to escape and treks south through Russia, China and Mongolia to India. Kind of like walking from Juneau to Mexico City without shoes, gortex or food. When you think about what people went through in WWII and real times of human tragedy, it really helps put our collective whining about the economy and depressed rents in perspective. I`m as competitive as anyone trying to keep buildings full at market rents but I have a warm house, good clothing and a great family. Like Ghost Soldiers (Bhutan Death March), In Harm`s Way (sinking of USS Indianapolis) and Flags of Our Father`s (Iwo Jima), The Long Walk is a great story of human triumph and persistence, I fully recommend it.

January 20th, 2010

Pacific NW Magazine (in Sunday`s Seattle Times) has recently had some nice write-ups on some properties and tenants we work with. On January 2, the magazine ran ~ Some of Seattle’s finest chefs see a solid future for fine dining~, which included a very complimentary piece on Poppy and Jerry Traunfeld (http://seattletimes.nwsource.com/html/pacificnw/2010571513_pacificptaste03.html).

This week the magazine`s cover story was on historic meeting places in the city, including OddFellows Hall (http://seattletimes.nwsource.com/html/pacificnw/2010642505_pacificpcommunity10.html).

January 13th 2010

It’s hard to believe it’s already been ten years since the millennium.

It’s also hard to believe it’s already been a few months since we had a couple of great new tenants open at the OddFellows building.  Congratulations to both Nube Green ( www.nubegreen.com ) and Flora & Henri   ( www.florahenri.com ).

Nube Green describes themselves as “a retail outlet for ecologically minded consumers who want to give responsible gifts…”

Flora and Henri, a children’s clothier, “combines the finest European fabrics with superior craftsmanship to create a collection for ages newborn to 10 years that is unique and sought after worldwide.”

These two retail additions as well as the addition of Smith-Harmon on the 4^th floor ( www.smith-harmon.com ),  have made for some great new tenants.

These three additions have only helped to build on a great group of tenants at the OddFellows Building.

October 27, 2009

Nothing quite like some big rains and leaky roofs to get us all excited about the leasing market over the next few months!  Actually, it continues to be quite good for us, our vacancy rates are significantly better than the average for all metrics I’ve seen for the region.

The server in our office crashed last week.  This is the first time anything like this has ever happened to a computer I have worked with.  I now have a much better appreciation for good back-up processes and a great IT person.  Fortunately we have both and all we “lost” was about a day and a half where we upgraded our security mechanisms, installed Windows 7 and some other new software.  We’re back up and running, and on an even better platform to serve our clients.  Like anything that runs all the time (e.g., cars, etc.), we can easily take our computers and technology for granted.  Used properly, they are wonderful tools that make us much more efficient.  I don’t wish such a “stall” on anyone and hope folks with important, crucial data at home or at their business, take system back-ups seriously.

September 30th, 2009

I attended a real estate symposium today and got a hearty download of dour data.  About halfway through the presentation my friend sitting next to me suggested we bow out and get a drink.

There is a ton of data out there to ponder.  Interest rates are low, vacancy rates are way up, rent concessions are way up, housing starts are way down, the federal deficit isn’t getting any smaller anytime soon…  Maybe I should have gotten that drink after all…

I was most surprised to see that Marcus & Millichap (the symposium sponsors) were reporting over a 7% vacancy rate for Capitol Hill/Downtown and Queen Anne.  While our concessions are up and our effective rent is certainly down from last year, our vacancy rates are still less than 2%.  I credit this to diligence in advertising, sales, and having a good product to sell.  I wish the folks who have 5% vacancy rates and higher the best of luck as the unemployment rate goes past 10% this winter.

September 28th, 2009

I’m very pleased with our two new tenants at OddFellows, Flora & Henri and Nube Green.  There are no shortage of restaurants on Capitol Hill and in the Pike/Pine corridor.  Great, local retailers like these folks are hard to find these days and they will help bring new, daytime traffic to Capitol Hill.  Welcome.

September 9th, 2009

I was recently reading through Fortune magazine (August, 31, 2009) and came across some interesting quotes about “service” from Home Depot’s CFO, Carol Tome.  Her perspective on Home Depot’s growth is very similar to my thinking, she said:

“You cannot win the game by square-footage growth.  You win by the customer experience, making sure that service is there and the products are there at the right price.  We realized over the years that you could continue square-footage growth because there’s plenty of real estate out there, but you dilute returns.  That is not in the best interest of the customer…”

I compare this to the new business that some of these large companies are getting–especially when looking at the properties that were originally built as condos and are now being converted to apartments.  All parties need to be really careful in managing this growth so as not to dilute the customer experience.

Craig

July 2009

I speak for all the residents, resident managers, and folks in, and out of the office who had any interaction with Andy the Plumber in extending our heartfelt condolences to Andy Potebnya’s family.  Andy was a great vendor and more importantly, a trusted friend.  He always had a smile on his face, was anxious to say ‘hello’, and sincerely cared about his work.  I speak for all of us in saying that he’ll be missed and his sudden death reminds us all just how precious life is.

July 2009

In difficult economic times, do you ever wonder where all the renters have gone?  After all it’s not as though there are fewer people in the world?  We’re finding that a number of our tenants are simply pulling back.  A number of tenants seem to be moving in with roommates or moving back home with their parents.  Certainly, there are a number of factors at play.  Though purportedly lower in the city, the unemployment rate in the state is nearly 10%.  Nationally it’s nearly 9%, in Michigan it’s about 15%!

I read an interesting article recently published by CB Richard Ellis (“Where have all the renters gone”).  It highlighted how many options renters now have and suggests that the apartment market is caught in a “perfect storm”.  According to their sources there is a record inventory of single family houses and condominiums for rent.  This inventory, coupled with falling home prices, is giving apartment renters more options; and creating more competition for landlords.  Every time I drive around town and still see condominium projects being topped off, I continue to wonder how the infusion of that inventory will impact our apartment vacancies and rates.

I then remind myself how important it is for us to be creative, aggressive and especially attentive to prospective and existing tenants right now.

Craig