Coldwell Banker Commercial & MAJ Development | Adopt-A-Family Kickoff

Coldwell Banker Commercial & MAJ Development have adopted 5 families from the Evergreen School District this Holiday Season! Last year we raised $1700. This year we have really set the bar high. Our goal is to raise $3,500 doubling what we received last year. So far we have $3,150 and were getting close. Help us beat our goal and help local families by dropping off cash or a check (made out to Coldwell Banker Commercial) to our office at 300 West 15th Street Suite 201, Vancouver WA 98660.

Michael Williams | New Listing

Our Newest Broker just got his first listing and it’s a couple blocks from our office! If you’re looking for a small office to lease in a historical looking building Contact Michael Williams at MichaelW@CBCWorldwideNW.com or 360-823-5109. The four offices available range from 117 SqFt to 531 SqFt. Located at 1112 Daniels Street, Vancouver WA.

For More information Click Here

Introducing Mike Williams

Mike Williams joined our team this week! Congratulations Mike on the new adventure we get to share with you! Mike looks to specialize in Office/Retail and Leasing.

MEET MIKE:
Mike grew up in the real estate business. A native of Dallas, Texas, Mike’s father, who turns 89 on September 6th, has been an active commercial broker since 1967 and continues to work in the field, though in a much-reduced capacity. His mother was a residential broker and appraiser for many years. She now helps her husband with his commercial business.

Mike’s brother is the Seattle partner for Moran and Co., a national company specializing in multifamily investment sales. Real estate is literally the family business.

A graduate of Texas Tech University with a Bachelor of Business Administration, Mike has worked as a commercial: property manager, broker, developer and lender in several markets in the country including Dallas, San Antonio, Austin, Minneapolis, Portland and finally Vancouver. He began his real estate career in 1980.

He is married to Diane, a native of Palouse, WA and between them they have 5 children from ages 43 to 24 years old and 2 grandchildren ages 21 and 16. They moved to Vancouver in 2014 with plans to never move again.

Do you want to join our amazing team? Contact Steve Mack at 360-823-5131 or via email at SteveM@CBCWorldwideNW.com

Washington is America’s Top State for Business in 2017

Washington is America’s Top State for Business in 2017

  • Washington’s economy grew 3.7% in 2016, nearly two and a half times the national rate.
  • The nation’s largest concentration of STEM (science, technology, engineering, and math) workers reside in Washington state.
  • Washington state follows California in the most patents filed last year.
  • Washington state has no income or corporate income tax, but wages and rent are among the highest in the United States.
Washington is CNBC's Top State for Business

With the nation’s fastest-growing economy and an all-star business roster of household names and up-and-comers, Washington — the Evergreen State — soars above the competition as America’s Top State for Business in 2017.

The home of Amazon and Costco, Boeing and Expedia, as well as rising stars like Adaptive Biotechnologies, online marketplace OfferUp and space company Blue Origin, Washington has the old and new economies covered — as well as pretty much everything in between.

But the success story does not end there. At a time when the best workforce rules, Washington boasts the nation’s largest concentration of STEM (science, technology, education, and math) workers. Nearly 1 in every 10 Washington workers is in those professions, according to the U.S. Bureau of Labor Statistics. The University of Washington’s computer science school — recently named for one of the state’s most famous natives, Microsoft co-founder Paul Allen — is world class. There is no brain drain here; no state does better at hanging on to its college graduates. And the state is consistently a magnet for investment capital. Washington businesses attracted nearly $1.6 billion in venture capital last year, the sixth-highest total in the nation.

Washington climbs to the top of our rankings this year with 1,621 out of 2,500 points, including top 10 finishes in five of our 10 categories of competitiveness. As always, we score all 50 states using 66 metrics across those 10 categories. Using our tried-and-true methodology, we assign a weight to each category based on how frequently the states use them as selling points in their economic development marketing pitches.

This year’s categories and point totals are:

  • Workforce: 425 points
  • Infrastructure: 400 points
  • Cost of Doing Business: 350 points
  • Economy: 300 points
  • Quality of Life: 300 points
  • Technology & Innovation: 225 points
  • Education: 200
  • Business Friendliness: 150 points
  • Access to Capital: 100 points
  • Cost of Living: 50 points

Washington’s first-place finish culminates a steady ascent since the state first cracked our top 10 in 2014 — the same year the Seattle Seahawks won their first and only Super Bowl. Also that year, Gov. Jay Inslee told legislators, “Washington’s outstanding workforce is our state’s greatest asset.”

Since then, that workforce has been outdoing itself.

Washington’s economy grew 3.7 percent in 2016, the largest increase of any state and nearly two and a half times the national rate. That, along with solid job growth and one of the hottest housing markets in the country, wins the state a No. 3 finish in our Economy category.

Washington also finishes No. 3 in Technology & Innovation. Only Californians received more patents last year, and Washington institutions were among the largest recipients of medical research grants. All those smart workers help the state finish No. 5 in the important Workforce category. The state also finishes No. 5 for Quality of Life and No. 8 for Access to Capital.

Education a sore spot

But all is not perfect here. The state is under orders from its own supreme court to adequately fund its 19th-ranked education system. The state has been paying fines of $100,000 per day for every day without a plan that complies with the state constitution. The fines began in 2015.

Washington is also notoriously expensive. Even though the state has no individual or corporate income tax, it finishes No. 37 for Cost of Living and No. 32 for Cost of Doing Business. With the average worker earning $26.83 an hour, according to the U.S. Bureau of Labor Statistics, Washington wages are the eighth highest in the country. And with office space going for more than $26 per square foot, according to the CoStar Group, rent is the sixth highest.

In the increasingly important Infrastructure category, Washington lands in 32nd place. Two-thirds of the state’s roads are in mediocre or poor condition, according to the U.S. Department of Transportation.

All of the failings prove that despite Washington’s strong competitive position, it is not immune to the polarization gripping the rest of the country. The state government in Washington is about as divided as can be. Gov. Inslee is a Democrat, and Democrats narrowly control the House of Representatives, 50–48. But Republicans control the state Senate by a single vote, 25–24. No wonder that it took three special sessions for Gov. Inslee and the legislature to reach an agreement on a new budget, narrowly averting a government shutdown on July 1. The new budget relies primarily on higher property taxes to increase school funding, raising more than $7 billion over four years and, the legislature hopes, finally complying with the Supreme Court order.

An even bigger concern for the state is whether the recent pace of growth is sustainable. The state’s largest employer, Boeing, has cut more than 8,400 jobs in Washington in the past year. That has prompted “I told you so’s” from critics of the generous subsidies the state has provided the company, as well as broader concerns about whether Washington’s competitive position has peaked.

A rise to the  top

Our 2017 field of Top States is our most competitive since we began ranking the states more than a decade ago. Washington outranks its nearest competitor by a mere five points. And second-place Georgia outscores third-place Minnesota by a single point.

Georgia and Minnesota illustrate a running theme in our study year after year: There is no exclusive path to competitiveness.

Georgia follows a more traditional route, the one typically favored by business, emphasizing lower taxes and fewer regulations. The state has come roaring back from the Great Recession, which hit Georgia hard. Now it has the best all-around economy in the nation, according to our study. But it falls seriously short in two categories that often benefit from more state support: Education, where it finishes No. 33, and Quality of Life, where it finishes No. 28.

By contrast, Minnesota takes the position that you get what you pay for. The North Star State finishes No. 2 for Education and No. 3 for Quality of Life. And the state is no slouch in the Economy category, finishing No. 6 with the help of a solid housing market and strong state finances. But the state finishes No. 36 for Cost of Doing Business and No. 31 for Cost of Living. State taxes — at least as far as the top brackets go — are among the highest in the country.

Minnesota ranks 3rd in America’s Top States for Business  

Culture clash

Our 2017 study marks the first time since our rankings began in 2007 that Texas has fallen below second place, dropping to No. 4 this year. In that sense, it is a remarkable drop for a three-time Top State (2008, 2010 and 2012).

The biggest factor in Texas’ slippage is its economy, which plummets to No. 25 this year from No. 1 last year. And the biggest factor in the Texas economy is the price of oil.

While prices have bounced back somewhat, they are still well off of their 2014 highs and roughly 70 percent below their peak before the 2008 financial crisis. That has led to some difficult budget decisions in Austin. The blow is cushioned somewhat by the state’s strong reserves, a decades-long push to diversify and a tentative return to Texas-style GDP growth at the beginning of 2017.

But Texas gets low marks when it comes to Quality of Life, where it repeats at No. 37 this year. The state has the lowest percentage of people without health insurance—17.1 percent, according to the U.S. Census Bureau—a fact that state policymakers ascribe to personal freedom, but one that affects Texas residents or would-be residents nonetheless.

And despite widespread outcry from business groups, Texas remains 1 of only 5 states with no statewide antidiscrimination protections for non-disabled residents. Inclusiveness counts in our study, where we consider it a factor in Quality of Life. This year’s biennial session of the state Legislature has been marked by multiple proposals aimed at making the state even less inclusive.

Another state without such protections is North Carolina, which finishes No. 5 overall for a second straight year. In the face of a nationwide business backlash, the Tar Heel state this year repealed its so-called bathroom bill, which restricted transgender people’s use of public facilities. But even as it repealed the law, the state affirmed its prohibition of local antidiscrimination ordinances.

Some businesses and events that had boycotted the state over H.B.2 — like the NCAA Men’s Basketball Tournament — decided to return anyway, and North Carolina does improve to No. 28 from No. 30 last year in Quality of Life. But the state remains among the least inclusive in the nation. That partially cancels out some of North Carolina’s big advantages, including its No. 7 Workforce and its No. 6 finish for Technology & Innovation.

Indeed, for the second year in a row, both North Carolina and Texas might have finished at or nearer to the top of our rankings had either state decided to be a bit more welcoming to workers.

Changing state dynamics

This year’s most improved states — a three-way tie — are all in the Northeast, each jumping 10 spots in our overall rankings this year. But beyond the numbers, the stories of Massachusetts, Pennsylvania, and Connecticut are very different.

Massachusetts’ jump lands the Bay State in the Top 10 for the first time since 2011. The state logs solid improvement in Quality of Life (tied for No. 10 vs. No. 17 last year), Economy (No. 14, up from No. 18) and Access to Capital (No. 7, up from No. 19). The state is a perennial leader for Education and Technology & Innovation, but high costs and poor infrastructure ultimately hold Massachusetts back from true Top State status.

Pennsylvania, which moves into the top half at No. 23, posts the best all-around improvement. The Keystone State moves higher in five categories: Workforce (up 8 spots to No. 21), Economy (up 8 spots to No. 34), Education (up 11 spots to No. 10), Business Friendliness (up 7 spots to No. 28) and Access to Capital (up 7 spots to No. 5). It is the state’s best overall ranking in six years.

Connecticut’s 10-place move takes it out of the bottom 10, but the Constitution State still finishes a disappointing 33rd. Connecticut owes much of its improvement to a big jump in its Education ranking, climbing to No. 3 from No. 18, due largely to better high school test scores. But the state is in a budget crisis, with school funding a central issue as Gov. Dannel Malloy seeks to overhaul the state formula to redistribute money to districts in need. Meanwhile, Connecticut does poorly in Infrastructure (No. 47), Cost of Doing Business (No. 43) and Cost of Living (No. 45). With a number of high-profile companies leaving or thinking of leaving the state, a No. 33 finish in our Top States rankings is what passes for good news in Connecticut these days.

The biggest move in the other direction is Wyoming, which plunges 14 spots to No. 27 after the state’s resource-rich economy practically ground to a halt last year amid low commodity prices.

That also helps explain a new Bottom State for 2017. Suffocating under the weight of declining coal production, West Virginia falls to No. 50 from No. 47 last year. Other states bringing up the rear are No. 46 Maine, No. 47 Alaska, No. 48 Mississippi and No. 49. Hawaii.

Notice something missing from the bottom five? That would be Rhode Island — just barely. The state is still something of a mess, with high taxes, sky-high utility bills, and America’s worst infrastructure. But efforts by the Ocean State to improve itself are paying off in a stronger economy. Rhode Island’s 45th-place finish is the best it has ever done in our study.

Full Article Can Be Found Here!

Slowdown in Rent Growth Cools Portland Apt. Investment Levels

CoStar Market Insights: Slowdown in Rent Growth Cools Portland Apt. Investment Levels

June 7, 2017

Jared Kadry is a Market Analyst with CoStar Market Analytics.
Jared Kadry is a Market Analyst with CoStar Market Analytics.

Introducing CoStar Market Insights: a new feature providing a snapshot of recent real estate trends in your market. The CoStar Market Analytics team monitors commercial and multifamily real estate across 206 metro areas, with a granular understanding of the projects, players and economic trends that move these markets.

Slowdown in Rent Growth Cools Apt. Sales

Institutional and local investors alike had the Rose City on their radars earlier in this cycle, mostly due to the strong apartment fundamentals and robust rent growth, but high yields Class A and B properties have mostly become a thing of the past.

Annual multifamily sales volume in 2016 marked a cycle high and cap rates for 4 & 5 Star product were some of the tightest on record. However, sales volume in 2017 is on pace to be much lower than last year’s, with first quarter volume amounting to about half of the apartment sales from first quarter 2016. Much of this can be attributed to external factors such as interest rate hikes, but local trends such as the significant slowdown in rent growth have also caught the attention of investors.

Portland enjoyed the strongest apartment rent growth among US markets in 2015, but has decelerated significantly over the last two years due to supply-driven vacancies, especially in the urban core.

Despite this slowdown, multifamily remains the preferred asset type in Portland for investors, with office being a distant second at around half the sales volume in 2016.


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Although Sales Volume Falls, Pricing Still Moving Up

Somewhat surprisingly given the slowdown in sales, pricing for apartment properties is still on the rise in Portland. In Goose Hollow, Liberty Mutual and Security Properties formed a joint-venture and paid $47.5 million ($355,000/unit), at a 4.3% cap rate, for the 134-unit Modera Goose Hollow complex. Mill Creek Residential developed the property in 2015 and sold it shortly after it was stabilized.

Foreign investment has also made its way to the region. In December 2016, Thai-based Land and Houses paid $127 million ($446,000/unit), at a 3.8% cap rate, for the newly built YARD in Kerns. The property was reportedly less than 50% occupied when sold, highly unusual for such an expensive deal.

Multifamily investment activity over the last year has been concentrated in Portland’s suburban areas, especially the Sunset Corridor and Vancouver. The nearby Hillsboro market has also experienced high levels of institutional investment volume thanks to a few large trades, and Vancouver has seen a good mix of local and institutional players.

In the region’s largest multifamily property sale over the last 12 months, Invesco and Holland Partner Group combined to pay $140 million ($247,000/unit), at a 4% cap rate, for the 566-unit LaSalle Apartments in Beaverton in November 2016. The asset was reportedly 95% occupied when sold and is a great example of how tight cap rates are not unique to the urban core.

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Mark McCloud | Investment Broker

Meet our Newest Broker!

Mark McCloud comes to Coldwell Banker Commercial Jenkins & Associates with 45 years in residential real estate in the Clark County area. He looks to expand his horizons to Investment Properties.

He began his real estate career in Vancouver/Clark County with Whitfield-Bernhardt, Inc. – widely recognized at the time as the premier company in this market. CBC Jenkins & Associates stems from Whitfield-Bernhardt, Inc. as well. Mark progressed from being a broker to branch manager and eventually the owner/designated broker of his own company.

Mark is a Certified Real Estate Instructor by the State of Washington Department of Licensing-Real Estate Division. His professional memberships include the National Association of Realtors (NAR), Washington Association of Realtors (WAR), and the Clark County Association of Realtors (CCAR). In addition, he has achieved numerous professional designations, earned many awards, and has been active as a community volunteer as well as serving on industry committees and boards of directors, including:
– Board of Directors – CCAR
– Grievance Committee – CCAR
– Professional Standards Committee – CCAR
– Board of Directors – Multiple Listing Service
– City of Vancouver:
Downtown Parking Advisory Committee
– Clark County Commissioners:
Mental Health Advisory Committee
Landfill Siting Advisory Committee
– Youth Basketball and Baseball Coach

As a commercial real estate investor himself, Mark is excited to be part of Coldwell Banker Commercial Jenkins & Associates, a firm which is consistently an Elite firm with Coldwell Banker commercial.

Whether it’s throughout the Pacific Northwest, across the nation, or anywhere in the world – Mark and the entire team of professionals at CBC can assist you with any and all of your real estate needs.

Eight Economists Offer Investment Advice for 2017

Despite rising interest rates and a slowdown in price growth on commercial real estate assets, there are still opportunities in the market for astute investors. We asked eight real estate economists and researchers their advice for today’s commercial real estate investors.

Hessam Nadji, president and CEO, Marcus & Millichap

“We are in a window of time that offers an opportunity for investors—it is also a window for sellers. Rising interest rates and a wait-and-see stance regarding tax reform, regulatory easing and infrastructure spending proposed by the Trump Administration have created a pause in the marketplace. These factors are resulting in an exaggerated slowdown in commercial property sales. Sales declined in the fourth quarter of 2016 by approximately 15 percent and have slowed further in the first quarter of 2017. I say that the slowdown is exaggerated because we have healthy property fundamentals and rising rents in most property types and less leveraging in this cycle. On the lending front, as interest rates went up in the fourth quarter, lender spreads came in and absorbed the impact to a large degree. As interest rates keep climbing, there will be less margin for spreads to tighten further and borrowing costs will go up, but they are expected to do so in line with job and rent growth. We don’t anticipate seeing the interest rate spike that we saw in the fourth quarter, which was tied to the presidential election outcome.”

Jim Costello, senior vice president, Real Capital Analytics

“Make sure you can back up your underwriting assumptions. Those assumptions in place the last few years—using modest income growth, easily accessible debt, low interest rates—those aspects are changing. Deal volume is down so far this year. Buyers are looking at rate changes and cost of debt and [are] not willing to pay—sellers saw assets go for high prices last year. Sellers are not feeling pressured to sell right now, especially if they have cash-flowing assets. Now we are at an impasse.”

Peter Muoio, chief economist, Ten-X

“For multifamily, one investment theme is to look to the post-housing bust markets. They were slow to recover economically and demographically, but this also held back development. Now they are growing robustly, but have tame supply pipelines so the outlook for fundamentals is good.

Gateway cities, particularly New York and San Francisco, have a good deal of development coming on-line and are going through digestion issues.But investors with long-term capital may want to take advantage of any near-term dislocations in these markets.

For office investment, head west. The non-Bay Area markets on the West Coast are ‘Goldilocks markets’—they have healthy economies and good demand, but not too much supply.

In retail, ‘demographics is destiny.’ We are seeing better opportunity in the Southeast, Southwest and West than in the North and Northeast because the population is growing faster there, helping to offset the multiple headwinds brick-and-mortar retailers are facing.

The Las Vegas hospitality segment looks good now because travel is up, but the long workout from the over-building of the last cycle and the sharp drop in visitors during the Great Recession has constrained development. Miami, New York City, the Bay Area and Seattle are dealing with excess hotel supply situations, as a substantial number of rooms are coming on-line. These are also the markets seeing more competitive threat from Airbnb. They are also more vulnerable to slowing foreign travel to the U.S., owing to the strong dollar, weak economies abroad and declines in bookings since the election because the U.S. is perceived as less welcoming.”

Kevin J. Thorpe, chief economist and global head of research, Cushman & Wakefield

“More often than not, a gradual rise in interest rates signals that stronger NOI growth is right around the corner. The Fed is raising rates, in part because they see a stronger economic trajectory is forming. A stronger trajectory means stronger leasing fundamentals (strong demand for space, occupancy gains, rent gains, more free-flowing debt). Build-to-core strategies, redevelopment projects and value-add are likely to benefit the most from the stronger growth scenario and offer higher yielding opportunities. Markets that have strong employment growth and low levels of construction are also attractive.

Don’t fight aggressive foreign capital for core assets. Instead, take advantage by selling some core assets at a premium price and reinvest in other geographies/product types where new construction is limited and where foreign capital is less likely to go (yet), such as: most secondary markets (all product types), suburban office in most markets, smaller warehouses along the supply chain, most niche product types (e.g. data centers, medical office). Those investments offer more upside and less competition from foreign capital. A corollary is that as more investors are ‘pushed’ into different markets and strategies, liquidity will improve creating the potential for a virtuous cycle.”

Robert Bach, director of research—Americas, Newmark Grubb Knight Frank

“The investment cycle has toned down a bit from the peak year of 2015. Sales volume is a bit soft at the start of 2017, but pricing has softened only a little. The yield curve suggests the next recession is at least a year down the road, and probably longer. The Federal Reserve has penciled in two more rate increases this year, meaning that rates will remain low by historic standards. The labor market is hot, but overall growth, as measured by GDP, is unlikely to reach the Trump administration’s informal goal of 3 percent. It may be closer to 2 percent this year. Add it all up and you get an investment cycle that is in its latter innings, but the innings are long and drawn out. Industrial and medical office assets are among the solid performers that can produce good returns now and will have staying power through the next downturn. Gateway cities are pricey, but the next tier of markets—traditional growth markets such as Dallas and Atlanta, along with Millennial magnets such as Nashville, Denver and Portland—will hold up well.”

Sam Chandan, founder of Chandan Economics

“Conceding the uncertainty in the magnitude and exact timing of long-term rate increases, we cannot dismiss the impact of higher risk-free yields on the performance of real assets. Nor can we ignore the longevity of this economic expansion and the likelihood of a contraction before monetary policy normalizes fully.

Investors and lenders should be careful of overly general assessments of price responses to changes in interest rates. Depending on a range of factors, including the density of investors and lenders in a particular location and market segment, adjustments in cap rates and debt yields will not be uniform.

Constraints on timing are crucial for investors when making investment decisions in this environment. Investors with defined time horizons and hard exit requirements for their funds should be cautious in navigating secondary markets. Having to exit at the bottom of a cycle in locations that exhibit severe liquidity constraints during the cycle’s trough will exacerbate losses.”

Barbara Byrne Denham and Victor Calanog, economists at Reis Inc.

“Few would argue that there is more uncertainty plaguing the market today than there was a year ago, although things always look better in retrospect. At this point in 2016, there were tremendous concerns centered around the oil markets and accompanying stock declines, yet the S&P 500 has climbed 14.8 percent from one year ago—who would have predicted? As for commercial real estate, apartment rents are up over 3 percent this year and office rents are up 2 percent. Yes, the landscape is bumpy across the U.S., with some metros outpacing others. Investors would be wise to look to the apartment and office markets in those markets with strongest job growth, including Dallas, Orlando, Nashville, Atlanta and Jacksonville. Job growth has been positive in nearly every metro with a few showing small losses—namely, Fairfield County, Conn., Tulsa and Milwaukee. The retail sector is still suffering from some major structural shifts, but many neighborhood and community center shopping centers that we track still see positive rent growth, although growth rates have been very low. The industry that has fared the best of late is warehouse/distribution and flex/R&D that have seen tremendous growth from e-commerce. Those on the coasts and in the central parts of the U.S., such as Chicago, have seen the most growth.

In general, we advise that investors look at the fundamentals and not worry as much about the broader macro uncertainties. In this year’s case, the uncertainties stem from the new administration and the mixed reports on how it will proceed with its agenda. It is too soon to make any predictions on much, but the fundamentals are still expected to stay sound as they have over the last few years.”

For the Original Article Click Here

Meet a Broker – Steve Mack

Steve Mack specializes in Investment Property Sales in the Vancouver & Portland Metropolitan areas and also holds the position of Sales Manager for the Coldwell Banker Jenkins & Associates office. With more than 25 years in commercial real estate, he has a proven track record of providing guidance to clients. Steve is experienced in the sale of office buildings, retail shopping centers, Triple Net leased investments, multi-family properties, manufactured home communities, mini-storage facilities and land.

In 2016 Steve had many successful sales some of which include the following;

 

We are excited to see what Steve has up his sleeve for 2017! Wish Steve a successful year.

Coldwell Banker Commercial helped Pines Coffee get a new location!

 

Pines Coffee, currently located off Mill Plain Blvd. & Grand Blvd, is Moving! Coldwell Banker Commercial helped Pines Coffee secure a spot off Mill Plain Blvd. and Garrison Rd. More updates to come but let’s Congratulate Pines Coffee for their new location!

4th Quarter Top Producer – Gordon Lewis

gordon-web Gordon Lewis has been awarded the “4th Quarter Top Producer of 2016” by Coldwell Banker Commercial Jenkins & Associates. Gordon has been a valued broker of CBC since 1986. He specializes in Commercial Land Properties. We thank him for his hard work and dedication to the Company.

Learn more about Gordon Lewis.

View all of Gordon’s Listing’s