Fancy Flats in Old Boxes
Nationwide, a growing number of developers are transforming previously undistinguished office buildings into high-rent apartment units. Many of the properties are ugly, non-descript structures that date back to the 1970s and earlier. Inside such conversions, units are resembling the former offices — which also means that tenants have to put up with little to no natural light deep into their long and narrow units. The former headquarters of Getty Oil Co. in Los Angeles was one such building that went this route. The 22-story structure sat empty for a decade. It will be holding its first open house for potential apartment renters in May, with monthly rents ranging from $1,150 for one-bedroom units on up to $3,500 for the largest apartments. Developers acknowledge that the drivers behind some of these conversion projects are tax incentives and rebates that promote investment in historic buildings. Similar projects are taking place in such markets as New York and Dallas. (www.wsj.com)
Wall Street Journal (04/07/04) P. B1; Frangos, Alex
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A Not-So-Mobile Society
A recent Census Bureau report shows a decline in the number of Americans relocating, from 20% of the population in 1948 to 14% from 2002 to 2003. Experts attribute the trend to the weak economy, the stagnant job market, the post-Sept. 11 desire for home and security, the belief that the U.S. frontier is now crowded and the aging population. Residents once fled the Northeast and Midwest in droves for the West and Southwest, but NAHB Chief Economist Michael Carliner says the numbers are slowing as the gap in regional incomes closes. The majority of migrations between 1995 and 2000 were from New York to Florida and from New York to the New Jersey suburbs, involving 308,000 and 207,000 residents, respectively. During the same period, Nevada, Arizona, Georgia, Florida and North Carolina welcomed the most newcomers. Those between the ages of 20 and 29 were once the most mobile, but even this group has decided to stay put after completing college. Given that the situation is not likely to change, Carliner believes developers should think twice before adopting the "build it and they will come" mentality. (www.csmonitor.com)
Christian Science Monitor (04/06/04) P. 1; Wood, Daniel B.
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Trade Group Raises Forecast for Home Sales
The National Association of Realtors® confirms that it has raised its estimate for home sales, predicting that solid jobs data will offset an expected interest-rate hike. "While in the short term jobs growth will put upward pressure on mortgage rates, in the long term it will be a plus because employment translates into home sales," explains NAR economist Lawrence Yun. The group's forecast now calls for sales of new residences to reach the 1.06-million mark in 2004, up from an earlier estimate of 1.04 million units sold for the year. Existing-home sales, meanwhile, are expected to hit 5.96 million, up from the prior estimate of 5.92 million. (www.dallasnews.com)
Dallas Morning News Online (04/07/04)
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Builders Should Beware of Land of Opportunity
Builders had a surplus of unsold homes at the end of previous housing booms, but many stock-market analysts believe that inventory is finally under control. Small builders were largely responsible for the glut of speculative properties in the past; but larger builders have usurped most of the few developable parcels left in red-hot markets, while lenders have reduced their access to capital. Still, some observers are more concerned with builders' excessive land holdings and their dependence on land sales to meet earnings expectations — characteristics that could land bigger builders in the same boat as smaller ones once the market shifts. Much of Lennar Corp.'s first-quarter profits, for example, can be attributed to land sales. Though the company secures big plots of land through purchases or options to buy in the future, sells certain tracts and joins forces with other builders with offerings in different price ranges, its holdings continue to swell. The strategy has proven successful in a healthy market, but Gimme Credit Senior Analyst Kathy Shanley believes a weakening market could make it difficult for Lennar to unload certain parcels and leave the company vulnerable to price declines. (www.wsj.com)
Wall Street Journal (04/06/04) P. C3; Lahart, Justin
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Our Sprawling, Supersize Utopia
Not only are Americans relocating from the Northeast and Midwest to the South and West, but they also are dispersing from the inner suburbs to the outer suburbs as more and more jobs move out of the urban core. The suburbs are now home to numerous cultural zones; and because there are no factories, ports or other definable centers, residents have the freedom to simply choose a neighborhood with like-minded individuals. Exurbia, also known as the new suburbs, attracts success-oriented people who desire a causal atmosphere. Critics believe the suburbs are materialistic, superficial and complacent, among other things, yet millions of Americans move into these areas each year. "On Paradise Drive: How We Live Now (And Always Have) in the Future Tense" author David Brooks attributes what he calls the great dispersal to the notion of the American dream. According to Brooks, Americans flock to the suburbs in search of what the future holds. Thus, they are willing to live in new developments surrounded by vacant space because they anticipate the top-notch schools and office parks that will eventually be built and cling to the promises of happiness and order. (www.newyorktimes.com/library/magazine/home)
New York Times Magazine (04/04/04) P. 46; Brooks, David
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Now You See It, Now You Don't
South Florida developers are spending millions of dollars to build multiple-story sales centers showcasing their designs for future condominiums and apartment buildings. Although the centers are only temporary fixtures, often torn down after a year or two, developers say the benefits of having an elaborate design showcase outweigh the costs. Designer Stephen Gurowitz of Fort Lauderdale notes that sales centers fill a variety of functions: they serve as the headquarters for the sales team and also allow potential buyers to assess the quality and design of the unit. Depending on the project, developers may choose to build sales centers on or off the future site of the building. Extravagant kitchens and other amenities are commonplace in South Florida condo and apartment models. Other, more innovative sales centers, such as Canyon Ranch Living in Miami Beach, employ interactive audio-visual tools explaining the design concept and mission of the project. (www.miami.com)
Miami Herald (04/04/04) P. 1H; Werne, Jo
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Home Bars Host a Toast in Any Room
Experts believe home bars are gaining popularity due to post-Sept. 11 cocooning and wine's purported health benefits. Home owners are moving away from traditional built-in bars to antique armoires and mobile carts to save space, and some are even coupling their bars with TV cabinets or home theaters. "What's appealing about the freestanding bars is that they can reflect your personality in a more distinctive piece," says American Furniture Manufacturers Association Vice President Jackie Hirschaut. Many manufacturers are rolling out so-called "hospitality centers" that cater to parents of teens and small children, who stock juices and soft drinks to encourage family gatherings. (www.chicagotribune.com)
Chicago Tribune (04/04/04) P. 15; Markoutsas, Elaine
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A Home Like No Other
Architect-designed homes have more rooms, features and multi-functional spaces than those built 50 years ago, which experts attribute to cultural changes and wealthier buyers who want to showcase their individuality. Custom dwellings are more different from production homes than in the past, and buyers call on architects to design houses of all sizes and styles. Buyers hire architects for personalized, innovative designs; and even production-home buyers are tacking on more and more extras. According to Real Vision Research President Suzanne Britsch, buyers — not architects — made ground-floor master suites, great rooms and open-plan kitchens popular in all price ranges. Seattle-based architect David Fukui says custom-home buyers "have money, they have taste, they know what professionals do and they want something beyond what they can just buy going into the classifieds on Sunday." (www.washingtonpost.com)
Washington Post (04/03/04) P. F12; Rhodes, Elizabeth
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A Crowning Touch for Any Room
Custom millwork is a sure way to infuse a room with character — especially formal dining areas or living rooms. Moreover, it is an improvement project that just about any home owner can tackle with ease. For example, there are numerous molding systems on the market with special connecting blocks that make installing crown molding a snap. No longer do home owners have to struggle with time-consuming miter cuts to make the pieces fit together. The molding comes in classic patterns that soften the angles where walls and ceilings join, and the millwork comes pre-primed and ready to be painted. When embarking on a millwork project, do-it-yourselfers should choose moldings that mesh with their home's architectural style, reserving the more detailed options for period properties and using less ornate moldings for contemporary residences. Meanwhile, the job will be facilitated if the moldings and blocks are painted in advance and allowed to dry for 24 hours. An artist's brush can be used for any needed touchups once the pieces are in place. (www.chicagotribune.com)
Chicago Tribune (04/02/04) Dymski, Gary
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Presto! A Powder Room
Home owners who lack a first-floor bathroom could boost the salability of their residence by carving out a powder room in a closet, under stairs or in another existing space. Powder rooms, also known as half-baths, are generally four feet by five feet and have only a toilet, a sink and maybe some storage cabinets. Home owners should hire a professional to design the powder room — especially since plumbing fixtures, heating systems and building codes must be considered. Depending on the location of the room, the work necessary to revamp the space, lighting, wainscoting and fixtures, among other things, home owners could spend as much as $10,000 or more. However, they can minimize costs by taking care of debris disposal, painting and decorating themselves. (www.philly.com)
Philadelphia Inquirer (04/02/04) P. E1; Heavens, Alan J.
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Arizona OSHA Encourages Spanish-Language Safety Training for Hispanic Workers
Though overall fatalities within the construction industry have declined by 9% over the past year, the fatality rate among Hispanics has risen by 11%, according to U.S. Occupational Safety and Health Administration statistics indicating that Hispanics make up 10.7% of the U.S. work force but experience 13.8% of workplace fatal injuries. Efforts are underway in Arizona to integrate Spanish into safety manuals and talks to help protect Latino workers. Attending the recent NAHB International Builders' Show, attorney Julie Pace, who heads the law firm of Stinson Morrison Hecker in Phoenix, said that construction contractors, especially those involved in residential and commercial projects, must implement safety training in Spanish for workers. Employers, Pace said, must also be aware of the cultural differences between the United States and these workers' home countries, where safety rules are often lax. (www.miami.com)
Miami Herald (03/27/04) Yantis, John
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What's Next for Real Estate
Despite widespread claims that the housing market is poised to collapse when interest rates rise, Wellesley College economist Karl Case and Yale University economist Robert Shiller believe Hawaii, Connecticut, New Hampshire, California, Rhode Island, Massachusetts, New Jersey and New York are the only states facing possible housing bubbles. According to Case, the remainder of the nation has seen property prices surge due to income gains. Experts anticipate appreciation rates of 5%-7% this year, and home values in the riskiest markets will likely rise as well due to an ongoing supply-and-demand imbalance. Case Shiller Weiss believes the South will post the largest appreciation rates in 2004 as improvements in the energy and airline industries generate new jobs. Rather than collapse, experts expect the market to level off as home owners avoid slashing their asking prices and postpone any relocation plans once interest rates climb. Meanwhile, University of Southern California's Lusk Center for Real Estate Director Stuart Gabriel says home owners need to stop viewing their property as retirement nest eggs, especially since the market cannot sustain double-digit price gains for the long term. (www.money.com)
Money (03/04) Vol. 33, No. 3, P. 92; Birger, Jon
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Unified Messaging Gives All E-Mails, Voice Mails in One Stop
Unified messaging can be the perfect solution for workers who are feeling overwhelmed by the loads of data they are attempting to gather from their voice mail, e-mail, fax machines and other systems throughout the day. Unified messaging makes all voice mails, faxes and e-mails accessible from users' e-mail boxes on their personal computers. The system allows users to quickly access and even forward voice messages, faxes or e-mails. Unified messaging can be especially helpful for telecommuting employees who may not always have access to fax machines and other in-office systems. Advanced unified messaging systems even have the ability to read e-mails to users over the phone. Unified messaging gives workers the tools to become more focused and more productive. (www.mcall.com)
Morning Call (04/05/04) P. D1
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Financial Forecasts You Can Take to the Bank
Whitebirch Software's Projected Financials program is designed to help small and medium-sized businesses create sophisticated financial models and long-term forecasts well beyond the capabilities of what traditional spreadsheets and budgeting software can do. Projected Financials can simplify creating, comparing and documenting "what-if" scenarios, and its projections and financial models have real-time flexibility designed to improve the quality of forecasts it provides. Available as a Web-based desktop application, Projected Financials has built-in business rules intended to prevent logic and calculation errors. It can quickly create reports as monthly, quarterly and annual statements, and they can be easily shared as HTML pages or Excel spreadsheets. Such features make it a useful software package for companies seeking small business loans or venture-capital investments. (www.smallbusinesscomputing.com)
Small Business Computing (04/06/04) Fusco, Patricia
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