“The improving economy and job creation mean growing demand for commercial real estate, according to the National Association of REALTORS®.”

“Lawrence Yun, NAR chief economist, said job creation will be the biggest factor moving forward. “Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and 2 million jobs annually both this year and in 2012, with the unemployment rate falling to 8.0 percent by the end of next year,” he said. “Given the minimal new supply in recent years, the rising demand means vacancy rates will be trending down in the commercial real estate sectors. Individual markets are now stabilizing and in some cases rising.”

“From the second quarter of this year to the second quarter of 2012, NAR forecasts vacancy rates to decline 1.0 percentage point in the office sector, 0.9 point in industrial real estate, 0.5 point in the retail sector and 1.1 percentage points in the multifamily rental market.”

“The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, an attitudinal survey of more than 360 local market experts, shows a firming up of market fundamentals.”

“The SIOR index, measuring the impact of 10 variables, rose 6.8 percentage points to 57.5 in the first quarter, the highest since the fall of 2008. The Northeast and South drove improvements in market conditions. Vacancy rates are improving, but concessions continue to make it a tenant’s market.”

“Although the SIOR index remains notably lower than a level of 100 that represents a balanced marketplace, this is the sixth consecutive quarterly improvement after almost three years of decline. The last time the index was at 100 was in the third quarter of 2007.”

“A separate NAR commercial lending survey shows 65 percent of REALTORS® report lending conditions have tightened thus far in 2011, and six out of 10 failed to complete a transaction this year due to financing problems. Regional banks provide the majority of commercial loans, followed by private investors. National banks are a distant third.”

“Just as in the residential sector, lending problems are the biggest issue impacting commercial real estate,” Yun noted.

“The multifamily sector is the only area that has clearly turned the corner, resulting in consistently falling vacancy rates and rising rents. “Solid rises in apartment rents will force some renters to consider home ownership,” Yun said.”

“NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data were provided by CBRE Econometric Advisors.”

Office Markets

“Vacancy rates in the office sector are expected to fall from 16.3 percent in the second quarter of this year to 15.3 percent in the second quarter of 2012.”

“The markets with the lowest office vacancy rates currently are Honolulu and New York City, each with vacancies below 9 percent.”

“Office rents are projected to rise 0.3 percent this year and another 4.3 percent in 2012. In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is likely to be 26.6 million square feet in 2011.”

Industrial Markets

“Industrial vacancy rates are expected to decline from 13.9 percent in the current quarter to 13.0 percent in the second quarter of 2012.”

“At present, the areas with the lowest industrial vacancy rates are Los Angeles and Salt Lake City, with vacancies in the 7 to 8 percent range.”

“Annual industrial rent should decline 1.5 percent in 2011 before rising 2.0 percent next year. Net absorption of industrial space in 58 markets tracked is seen at 126.1 million square feet in 2011.”

Retail Markets

“Retail vacancy rates are forecast to decline from 13.1 percent in the second quarter of this year to 12.6 percent in the second quarter of 2012.”

“Markets with the lowest retail vacancy rates currently include Honolulu; Long Island, N.Y.; and San Jose, Calif., all with vacancies below 8 percent.”

“Average retail rent is expected to decline 1.4 percent in 2011, and then rise 0.7 percent next year. Net absorption of retail space in 53 tracked markets is projected to be 5.4 million square feet in 2011.”

Multifamily Markets

“The apartment rental market – multifamily housing – is continuing to tighten as household formation grows. Multifamily vacancy rates should drop from 5.8 percent in the current quarter to 4.7 percent in the second quarter of 2012.”

“Areas with the lowest multifamily vacancy rates presently are Pittsburgh; San Jose, Calif.; and Portland, Ore., with vacancies below 3 percent.”

“Average apartment rent is likely to rise 3.4 percent this year and another 4.3 percent in 2012. Multifamily net absorption is forecast at 250,800 units in 59 tracked metro areas in 2011.”

“High down payment requirements being proposed by federal regulatory agencies as part of the upcoming rule-making under the Dodd-Frank Wall Street Reform and Consumer Protection Act will unnecessarily burden home buyers and significantly impede the economic and housing recovery, according to the National Association of REALTORS®.”

“Six agencies (including the Department of Housing and Urban Development, Federal Deposit Insurance Corp., Federal Housing Finance Agency, Federal Reserve, Office of the Comptroller of the Currency, and the U.S. Securities and Exchange Commission) are developing a proposed risk retention regulation under the Dodd-Frank Act that requires lenders that securitize mortgage loans to retain 5 percent of the credit risk unless the mortgage is a qualified residential mortgage (QRM); FHA and VA mortgages would also be exempted. The purpose is to create strong incentives for responsible lending and borrowing.”

“As the leading advocate for home ownership, NAR supports a reasonable and affordable cash investment requirement coupled with quality credit standards, strong documentation and sound underwriting,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “A narrow definition of QRM, with an unnecessarily high down payment requirement, will increase the cost and reduce the availability of mortgage credit, significantly delaying a housing recovery.”

“NAR believes that Congress intended to create a broad QRM exemption from the 5 percent risk retention requirement to include a wide variety of traditionally safe, well-underwritten products. Congress chose not to include a high down payment among the criteria it specified in the Dodd-Frank Act to guide the regulators in defining a QRM. Strong evidence shows that responsible lending standards and ensuring a borrower’s ability to repay have the greatest impact on reducing lender risk.”

“We need to strike a balance between reducing investor risk and providing affordable mortgage credit. Better underwriting and credit quality standards have greatly reduced risk. Adding unnecessarily high minimum down payment requirements will only exclude hundreds of thousands of buyers from home ownership, despite their creditworthiness and proven ability to afford the monthly payment, because of the dramatic increase in the wealth required to purchase a home,” said Phipps.

“The definition of QRM is important because it will determine the types of mortgages that will generally be available to borrowers in the future. Borrowers with less than 20 percent down could be forced to pay higher fees and interest rates, up to 3 percentage points more, for safe loans that otherwise do not meet too narrow QRM criteria.”

“NAR is concerned that a narrowly defined QRM will also require severe tightening of FHA eligibility requirements and higher FHA premiums to prevent huge increases in its already robust share of the market, adding additional roadblocks to sustainable home ownership.”

“Saving the necessary down payment has always been the principal obstacle to buyers seeking to purchase their first home. Proposals requiring high down payments will only drive more borrowers to FHA, increase costs for borrowers by raising interest rates and fees, and effectively price many eligible borrowers out of the housing market,” said Phipps. “We strongly urge the regulators to consider the negative consequences of setting onerous limits on the availability of credit.

“El presidente Barack Obama viajará a América Latina esta semana para intentar recuperar el liderazgo económico en una región en la que ahora enfrenta un renovado protagonismo de China.”

“En su primer viaje al sur del continente en casi dos años, Obama visitará países donde muchos cuestionan que un mandatario preocupado por las revueltas en Oriente Medio, la crisis nuclear en Japón y los problemas internos en su país tenga algo que ofrecer a un continente que se siente cada vez más independiente.”

“La gira, que se llevará a cabo entre el 19 y el 23 de marzo, incluirá paradas en Brasil, la potencia sudamericana, Chile, un exitoso ejemplo de economía de libre mercado, y el pequeño estado centroamericano de El Salvador.”

“El desafió de Obama será convencer a los latinoamericanos, que siempre han resentido la noción de que sus países son “patios traseros” de Estados Unidos, sobre su compromiso en priorizar el comercio y la inversión, frente a una enérgica iniciativa de China por pisar fuerte en la región.”

“La gira también tiene importantes implicancias políticas para su país. La Casa Blanca defiende a América Latina como un mercado fértil para aumentar las exportaciones, que Obama considera como el camino indicado para crear empleo, un aspecto crucial para sus chances de disputar la reelección en el 2012.”

“Pero América Latina, apuntalada por un crecimiento que supera al de Estados Unidos, no sólo se está diversificando económicamente, sino que está demostrando que ya no está dispuesta a seguir las directivas de Washington.”

“No podemos ignorar al Hemisferio Occidental ni darlo por sentado, debido a que otras personas se están moviendo rápida y efectivamente”, dijo Eric Farnsworth, vicepresidente del Consejo de las Américas.”

“Peet’s Coffee & Tea Inc recently held talks with Starbucks Corp about a potential sale to the large coffee shop chain, CNBC reported, citing a DealReporter report.”

“Peet’s has a market value of $589 million based on the stock’s closing price of $46 on Tuesday, when it rose 9.4 percent. Starbucks is valued at over $26 billion.”

“The DealReporter did not say how likely a deal was between the two, CNBC said.”

“Both Peet’s Chief Executive Patrick O’Dea and a Starbucks spokesman declined to comment. Rumors about a tie-up between the two companies, which have historical ties, have been floating around the market for months.”

“It’s not about the coffee shops. It’s about growing the grocery business. That’s where (a possible merger) has a lot of synergies” Stifel Nicolaus analyst Steve West said. What can Starbucks do with Peet’s business in the next 2 to 3 years? They can probably double or triple it,” West added. Peet’s currently trades at about 29.3 times current 2011 analysts’ average EPS estimate.”

“The Emeryville, California-based coffee company sells packaged coffee through retailers like Safeway Inc (SWY.N) and Kroger Co (KR.N) It also operated 192 retail stores in six states as of January 3.”

“Starbucks last week announced a deal in which Green Mountain Coffee Roasters Inc (GMCR.O) would sell Starbucks coffee for its Keurig single-cup machines, and Starbucks would sell the Keurig machines.”

“Their agreement was seen as a formidable challenge to Peet’s and its shares fell after the deal was announced.”

“Peet’s, which boasts of a loyal following of coffee drinkers called ‘Peetniks,’ has said it wants to get into the fast-growing single-cup coffee market. It lost a takeover battle with Green Mountain in early 2010 for Diedrich Coffee — which makes coffee for Green Mountain’s Keurig machines.”

• Blackstone offers to sell theme park stake to NBCU
• NBCU has three months to accept offer
• Blackstone can approach others if NBCU turns it down

“Blackstone Group (BX.N) wants to sell NBC Universal its 50 percent share of Universal Orlando, the Florida theme park featuring a popular new Harry Potter attraction.”

“Blackstone, which bought into the theme park in 2000, has set in motion a right of first refusal clause that gives NBC Universal until June 12 to make a decision. NBC Universal owns the remaining 50 percent of the park.”

“Should NBC Universal turn down the deal, Blackstone can then approach third parties and attempt to sell all of Universal Orlando, according to terms of the contract.”

“Blackstone’s interest in selling Universal Orlando was disclosed in a regulatory filing earlier this week by Universal City Development Partners Ltd, a holding company formed to oversee the park.”

“The filing said private equity firm Blackstone informed Universal City Development Partners on March 9 of its intentions. The asking price was not disclosed.”

“Blackstone’s purchased its stake from the Rank Group for $275 million in cash, plus other potential payments based on certain performance criteria.”

“A spokeswoman for NBC Universal, which is controlled by Comcast Corp (CMCSA.O), said, “We are studying the proposal and considering our options.”

“Last year, Universal Orlando opened the Wizarding World of Harry Potter, based on the blockbuster movie and book series. The 20-acre Harry Potter park reportedly cost $250 million to build and recreates the Hogwarts School of Witchcraft and Wizardry and other places dreamed up by author J.K. Rowling in her fantasy novels about the boy wizard and his friends.”

“Helped by the attraction, Universal Orlando’s park attendance rose by about 20 percent in 2009, when the travel industry was reeling from recession. Revenue last year rose 40 percent to $1.13 billion. (Reporting by Paul Thomasch; Editing by Steve Orlofsky)”

The NATIONAL ASSOCIATION of REALTORS® has watched with horror at the events in Japan since a 9.0-magnitude earthquake struck off shore on March 11, triggering a tsunami, unimaginable devastation and a nuclear crisis that is still unfolding.

As in the case of the recent earthquakes in New Zealand, NAR has identified four funds that the association believes are well equipped to provide disaster-relief services. NAR urges members who want to make a donation to consider one of these four organizations.

“REALTORS® build communities here in the U.S., but we also have a role to play in the global community, as well. With that in mind, we want to express our heartfelt concern and support for the people of Japan during these trying times,” says NAR President Ron Phipps.

Jason Watabe of Mercer Island, Wash., NAR President’s liaison to Japan’s four real estate associations, is working with the Seattle-King County Association of REALTORS® to develop additional support programs. “We cherish our business relations in Japan,” he said. “And we have to show our friendship by extending financial support in providing the victims food, water, heat and shelter for tonight and tomorrow.”

Here are brief descriptions of the NAR-recommended funds along with helpful giving tips from CharityNavigator.org.

AmeriCares
AmeriCares is a nonprofit global health and disaster relief organization whose passion to help is matched by its ability to deliver. In times of epic disaster, daily struggle or civil conflict, AmeriCares restores health and saves lives by delivering donated medicines, medical supplies and humanitarian aid to people in need around the world and across the United States. Donate to AmeriCares’ Japan relief.
Habitat for Humanity International
Founded in 1976, Habitat for Humanity International (HFHI) is an ecumenical Christian housing ministry. HFHI seeks to eliminate poverty housing and homelessness from the world, and to make decent shelter a matter of conscience and action. Donate to HHI’s Japan relief.

UNICEF-USA
The United States Fund for UNICEF was founded in 1947 to support the work of the United Nations Children’s Fund (UNICEF) by raising funds for its programs and increasing awareness of the challenges facing the world’s children. The oldest of 37 national committees for UNICEF worldwide, we are part of a global effort to save, protect and improve children’s lives. Donate to UNICEF’s Japan relief.

World Vision
World Vision is a Christian humanitarian organization dedicated to working with children, families and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice. Donate to WorldVision’s Japan relief.

“The Law Offices of David J. Stern, once one of the largest foreclosure law firms in Florida, is shutting down its home repossession operations as of the end of the month.”

“An SEC filing made Monday by DJSP Enterprises, a publicly traded company founded by Stern to handle the firm’s non-legal real estate work such as title searches, says the organization does not expect to receive any future business from the firm, which has been its primary customer.”

“On Monday, DJSP Enterprises’ stock (NASDAQ: DJSP) closed at 15 cents from a 52-week high of $13.65.”

“Stern’s Plantation-based law firm is one of eight under scrutiny by the Florida Attorney General’s Office for its foreclosure practices. It was fired by federal mortgage backers Fannie Mae and Freddie Mac last fall.”

“On Friday, Stern sent a letter to Florida judges saying his firm still needed to withdraw from 100,000 cases statewide, nearly a third of the state’s court backlog of 350,615 foreclosure cases.”

“We have been forced to drastically reduce our attorney and paralegal staff to the point where we no longer have the financial or personnel resources to continue to file Motions to Withdraw in tens of thousands of cases that we still remain as counsel of record,” Stern wrote. “Therefore, it is with great regret that we will be ceasing the servicing of clients with respect to all pending foreclosure matters in the State of Florida as of March 31, 2011.”

“Attorney Jeff Tew, who is representing Stern, said the law firm is not closing its doors, but foreclosure defense attorneys said the loss of lender business has effectively shut it down.”

“Do I think they’re a fully functioning law firm going forward? No,” said Ron Kaniuk, a Boca Raton-based attorney for Ricardo, Wasylik & Kaniuk.”

“Commercial real estate transactions have surged over the past year as low interest rates made it cheaper for REITs and various private-equity buyers to purchase office buildings, retail space, industrial facilities, apartment communities, and health care properties.”

“Market experts see the trend continuing this year as consumer confidence builds and investors gain more access to credit.”

“Completed acquisitions by U.S. REITs more than tripled to $24 billion in the 12 months ended Feb. 28 versus the year before, according to data compiled by Bloomberg.”

“Dan Fasulo, managing director of Real Capital Analytics Inc., said he “wouldn’t be surprised” if U.S. commercial real estate purchases double in 2011 from nearly $140 billion last year.”

“Demand for commercial space plummeted during the credit crisis and recession, as investors had a tough time securing financing for new purchases or refinancing short-term debt from earlier deals. U.S. commercial property transactions plunged 89 percent to $66 billion in 2009 from their 2007 peak of $579 billion, reports Real Capital.”

“In addition to near record-low interest rates, a resurgent debt-securitization market is also driving the recovery. Commercial mortgage-backed securities issuance in the U.S. climbed from $2.1 billion in 2009 to $10.9 billion in 2010, notes Jones Lang LaSalle (JLL). Issuance is estimated to be more than $40 billion in 2011, “providing added liquidity to owners with maturing loans to refinance,” the JLL report states.”

“The IRS announced Thursday that it’s significantly reducing the number of liens it will place on property owned by delinquent taxpayers and will make it easier for taxpayers to get existing liens withdrawn.”

“The use of tax liens has soared more than 60 percent since the start of the recession, according to IRS Taxpayer Advocate Nina Olson. Olson has called on the IRS to moderate the use of this collection tool, which can make it difficult for an individual to find a job, obtain affordable housing or buy insurance.”

“IRS Commissioner Doug Shulman said the IRS will impose a lien when a taxpayer owes back taxes of $10,000, up from the previous threshold of $5,000. As a result of the higher threshold, “Tens of thousands of people won’t be burdened by liens,” Shulman said.”

“In addition, taxpayers who set up an installment plan to pay back taxes will usually be able to have their liens withdrawn, Shulman said.  A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. A tax lien can devastate a taxpayer’s credit score and make it difficult for the individual to sell a home or other property that has a lien against it.”

“In a statement, Olson called the announcement a “significant step in the right direction” but said it won’t address some of the problems that she outlined in her report to Congress.”

“For example, the IRS often files liens against taxpayers who own little or no property, Olson said, and those liens damage the taxpayers’ credit profile without producing any revenue for the government.”

“Simply raising the dollar threshold for lien filings does not provide for the level of thoughtful judgment that should serve as the basis for the use of this powerful collection tool,” Olson said.”

“The IRS also announced that it has broadened its Offer in Compromise program, which allows taxpayers to negotiate a reduction in the amount of taxes they owe. Shulman said taxpayers with annual incomes of up to $100,000 can participate in the program, up from the previous cut-off of $50,000.”

“Only a small percentage of Offers in Compromise filed with the IRS are accepted. To obtain a permanent reduction in their tax debts, applicants must demonstrate that they have exhausted all resources available to pay the tax and have little hope of raising the funds.”

“Americans are more confident about the stability of home prices than they were at the beginning of 2010, according to Fannie Mae’s latest national housing survey, conducted between October 2010 and December 2010.. And when it comes to home ownership, younger Americans are particularly optimistic, the survey finds. “

“Nearly 80 percent of all respondents, including home owners and renters, surveyed said they thought housing prices would hold steady or increase over the next 12 months–which is up from 73 percent in January 2010. In fact, survey respondents expressed more confidence over the stability of home prices than they did about the overall strength of the economy. Sixty-one percent said the economy is heading on the wrong track.”

“Young Americans, Hispanics, and African-Americans were the most positive about their views on home ownership among the general population, according to the survey. Nearly 60 percent of Generation Y respondents (those between 18-34 years old) say that buying a home offers a lot of potential as an investment. Also, more than one-third of Hispanics and African Americans say they plan to buy a home within the next three years, compared to one in four of the general population.”

“We are also seeing encouraging signs in the positive attitudes toward home ownership among younger Americans, despite the severe impact of the housing crisis on Generation Y,” says Doug Duncan, Fannie Mae’s chief economist. “But most respondents to our survey continue to lack confidence in the strength of the economic recovery, and they are less optimistic about their ability to buy a home in the years ahead. This sense of uncertainty is weighing on the housing recovery today and reshaping expectations for housing for the future.”