Vacant commercial space is everywhere – especially with office condos around North SD County:
CR scooped me again with my own video – it had been a couple of months!
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Jim Klinge
Klinge Realty Group
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
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Trustindex verifies that the original source of the review is Google. We sold a home with Jim and Donna and from beginning to end they were consummate professionals. Their initial walk through the property resulted in a list of items to be repaired or updated. They supplied a list of vendors and job quotes to do the repairs and updates. We originally wanted to sell ‘as is’ and just get it over with. They gave us a selling price for ‘as is’ and options for doing a few updates/repairs to doing it all with the selling price for each option. We agreed to do all they suggested and we sold for the exact price they predicted. For every dollar spent we got back more than $2 back in the selling price. And they got that price in a rising interest rate environment! Donna and Jim are extremely detailed and guide you through ever aspect of the sale. There were no surprises thanks to their guidance. We couldn’t be more pleased with their representation. Thank you Donna and Jim, Jerry and MaryTrustindex verifies that the original source of the review is Google. We have known Jim & Donna Klinge for over a dozen years, having met them in Carlsbad where our children went to the same school. As long time North County residents, it was a no- brainer for us to have the Klinges be our eyes and ears for San Diego real estate in general and North County in particular. As my military career caused our family to move all over the country and overseas to Asia, Europe and the Pacific, we trusted Jim and Donna to help keep our house in Carlsbad rented with reliable and respectful tenants for over 10 years. Naturally, when the time came to sell our beloved Carlsbad home to pursue a rural lifestyle in retirement out of California, we could think of no better team to represent us than Jim and Donna. They immediately went to work to update our house built in 2004 to current-day standards and trends — in 2 short months they transformed it into a literal modern-day masterpiece. We trusted their judgement implicitly and followed 100% of their recommended changes. When our house finally came on the market, there was a blizzard of serious interest, we had multiple offers by the third day and it sold in just 5 days after a frenzied bidding war for 20% above our asking price! The investment we made in upgrades recommended by Jim and Donna yielded a 4-fold return, in the process setting a new high water mark for a house sold in our community. In our view, there are no better real estate professionals in all of San Diego than Jim and Donna Klinge. Buying or selling, you must run and beg Jim and Donna Klinge to represent you! Our family will never forget Jim, Donna, and their whole team at Compass — we are forever grateful to them.Trustindex verifies that the original source of the review is Google. WeI had the pleasure of working with Klinge Realty Group to sell our home in Carmel Valley, and I cannot recommend them highly enough! Jim and Donna demonstrated exceptional professionalism, offering expert guidance on market conditions and pricing strategy, which resulted in a quick and successful sale. Communication was prompt and we were well-informed throughout the entire process. For anyone looking for a dedicated and knowledgeable real estate team, look no further! ---Trustindex verifies that the original source of the review is Google. Donna and Jim Klinge of Klinge Realty Group have our highest possible recommendation. From Donna and Jim’s first visit to our house through closing their advice and counsel was candid and honest in all dealings. They kept us fully informed throughout the process. The house sold less than three days after listing with a two-week closing. My wife and I have sold several houses during our lives. This was by far the best experience. Klinge Reality is a premium service realtor. You can’t make a better choice for someone to sell your home fast and for top dollar.Trustindex verifies that the original source of the review is Google. Donna and Jim provided exceptional support and professionalism throughout the entire process. We couldn't have been happier with their efforts. They made our house shine, and thanks to their expertise, it sold above the listing price in the very first weekend! Truly a fantastic experience from start to finish.Trustindex verifies that the original source of the review is Google. This year has been difficult on our family, mainly due to having to sell our home. Thankfully we knew God had a plan for us and working with the Klinge team was a key part of it. It was an obvious decision to work with them again after such an amazing experience when purchasing the same home we needed to sell. The challenge was, how will we do this in so little time with so much going on? Jim and Donna held our hand every step of the way. Whenever an unexpected issue arose they found and provided a solution. Never once did we feel pressured to make a decision and the Klinges were always reassuring after providing the information that the decision was ours to make. Despite the curve balls, they never panicked and exemplified the “can do” attitude, making us feel optimistic and taken care of. Their expertise and professionalism was superb. But of all the reasons to work with the Klinges, the most impactful and valuable is their compassion and genuine care for their clients. We pray that we can one day purchase our forever home and you better believe that Jim and Donna will be representing us - as long as they will have us of course. Thank you again Klinge team! Your execution, experience, and care are unmatched.Trustindex verifies that the original source of the review is Google. Jim and Donna were fantastic! Jim understanding my needs, recommending potential places, pointing out the pros and cons of each property was invaluable. Then when the offer was accepted Donna’s organized guidance through the inspections, paperwork etc made the whole process seem effortless. So grateful that I had them on my side!Trustindex verifies that the original source of the review is Google. We first found Jim through his blog at bubbleinfo.com, which really showcased his knowledge of SoCal real estate. Since then we've done three transactions with Jim and Donna, and they are an incredible full service agency, with Jim's deep market insight and Donna's deft contract and project management. We trust them implicitly in their analysis and strategy, which is based on years of experience. They're always available and on top of things, and we strongly recommend them to anyone.Trustindex verifies that the original source of the review is Google. The Good The Klinge Realty Group operates like a finely tuned machine, with a very personal touch. We contacted them on a Sunday and they were talking to us about our family and our needs on our living room couch the following day. They carefully listened to us and worked with us to identify the best and quickest path to listing within 2 weeks to take advantage of the low inventory conditions in our South Carlsbad neighborhood. They knew our tract specifically and had many previous sales there over the years - they came prepared with a thorough analysis of comparative sales and recommended a pricing strategy that they felt confident would yield offers the first weekend on the market. The Great Over the next two weeks Donna coordinated a range of vendors who she knew from experience could get the preparation to list work we needed done on time and with high quality. Our light tune-up involved excellent experiences with their stagers, landscapers, contractors, electricians, and plumbers. Throughout this period Donna's daily communication was clear, concise, and responsive. Any time we had questions Donna picked up the phone or texted immediately - but almost always, she answered our questions before we even knew we had them. The Outstanding We had a tricky situation with a shared fence that could have delayed our escrow. Donna used superb mediation skills to negotiate the terms of replacement and was personally on site with the fence contractor to make sure everything went smoothly. The fence looks great and escrow closed on time. The Truly Exceptional Our house came on the market on a Wednesday and between then and Monday morning Jim was personally at all three open houses. He was in constant communication explaining potential buyer reaction and strength. As he predicted offers began to come in on Saturday and each one was incrementally higher than the last. At the end we had 5 offers, 4 of which were over list, and the final accepted offer was $100,000 over list. In addition to being over list it included rent back terms that met our needs. The Recommendation For all of these reasons we would strongly recommend The Klinge Team to anyone wanting to sell in North County Coastal San Diego. I had been reading Jim's bubbleinfo.com blog for 15 years and knew when the time came to sell that he would be our first call. Jim Klinge is not your standard realtor. He is keenly aware of market conditions and sales strategies. And, works his tail off - though not as hard as Donna . At this point he's gone from realtor to friend and I plan to have him over to grill and chill at our new place to talk real estate, but also just about life and raising kids in San Diego. He's more interested in relationships than his sales numbers - and that's why his sales numbers are so high. We have already recommended the Klinge's to some close friends and another successful sale is on deck right around the corner...Trustindex verifies that the original source of the review is Google. We recently had the pleasure of working with Jim and Donna from Klinge Realty Group to sell our house, and we couldn't be more satisfied with the experience. From the initial meeting, they listened attentively to our needs and provided invaluable guidance on specific improvements to get our home market ready. Their responsiveness throughout the entire process was truly impressive. Anytime we had questions or concerns, they were quick to address them, ensuring we felt comfortable and informed every step of the way. What stood out the most was their team and extensive network of tradespeople, which made addressing any necessary repairs or updates seamless and stress-free. Thanks to their expertise and dedication, our house sold quickly and at a great price. We highly recommend Jim and Donna to anyone looking to buy or sell a home. They are a fantastic team who truly care about their clients and deliver exceptional results.Load more
I remember when they were building those, it seemed obvious that we were heading into a recession at the time. We commented that they would not be able to fill those. How could people who “do this for a living” fail to see what amateurs could see?
BTW, we just got back from another trip to LA, and the businesses along the 5 in OC and LA County are devastated. We’ve never seen such a depressing landscape along that route. Vast swaths of huge commercial/industrial buildings are absolutely vacant, all the way up the 5. Then we took another trip down Ventura Blvd. in the Valley to see how things are going in the retail industry. More vacancies than ever.
While the govt is pumping trillions of dollars into the RE and financial markets, making it appear as though things are stabilizing or improving, there are no “green shoots” in the real economy.
We underwrote the Ocean Collection property with EastWest and offered. $5.6. Like everyone else, they laughed at how out we were unable to see the true value of this property. It will probably be in F/C again in a year or so.
From $18M to $12M to $5.6M? And still no resolution? Ouch!
“How could people who “do this for a living” fail to see what amateurs could see?”
CAr, it didn’t matter. The developers get all the cash up front from the banks, pay themselves a handsome fee/salary/draw/whatever. If they sell, fine; more $$$ for them. If they don’t, the bank takes the loss.
It’s a win, win!!
Foreclosures: How cities compare:
http://money.cnn.com/2009/07/30/real_estate/worst_hit_foreclosure_cities/index.htm
I see those vacant office buildings in Carlsbad and Vista on my rides and think giant Ponzi. I’ve travelled a bit while on my ‘vacation’ and there are a number of locally owned furniture stores that have been around in Los Gatos, CA that are finally going out of business on the main strip including a Smith and Hawken store. I see a few closed car dealerships and a number of homes with unmaintained front lawns and of course a rather larger number of homes for sale. I get the same feeling drving through the foothills and neighoring towns (Santa Cruz, Scotts Valley, Ben Lomand and Felton). This place has really taken a turn for the worst the past two years. I’m sure the same thing can be said for Palo Alto, Saratoga, Cupertino, Mtn. View, etc… I know Silicon Valley has yet to go through a San Diego type devastation, but in ’06, I warned my friends still living in this part of town what was coming. They called me Chicken Little.
Jim nailed it: “There’s nothing price can’t fix.”…except broken egos. Prices are still not aligned with income and on the CRE side, overcapacity, underemployment, decreased consumer spending, etc., ad infinitum, will continue to erode the market.
It’ll take awhile to dissipate, but the benchmark in everyone’s mind for accurate property valuations was the peak of the bubble. IOW, the unsustainable should be the norm. Our ADHD country is in for a long, rude awakening. And when we come out the other side, the “new normal” won’t be pleasant for most.
Green shoots? Nope. Just wishful thinking…
I just got back from denver and stayed in aurora and the drive from aurora to denver intl airport is littered with empty commercial real estate and office parks. Too depressing.
We had a new commercial/residential development go in over 2 years ago in my little town: 11 commercial condos on the ground floor and 11 residential townhomes and 6 affordable apartment units on the top two floors. The location was questionable as it was located right near the freeway exit into town and next to my favorite auto repair shop.
But two hundred people showed up for the Grand Opening in 2007. As I remember, the townhomes were priced at $495-$595K with the commercial spots going for $300K.
Two years later, not one townhome has sold. They are now listed at $349,900 w/ $181/month HOAs. Why? Not only the poor location, but there are 18 killer steep steps to get to the townhomes above the commercial spots and only a large, open parking garage for residents with no extra storage. And all the kitchen windows on the back overlook the poorest section of town. I’ve heard that half are now rented at $1,500/month
As for the commercial, only one has sold. Two other spots are leased out. And the one sold? You guessed it– (just like Jim’s comment in the video) to a dentist who set up his first practice. I shake my head every time I drive by and wonder: What were the developer and the bank thinking?
We just leased a new building for our offices, moving this month from Carlsbad, 14k sq ft to Carlsbad 4k sq ft. The commercial agents are so high on them selves and the owners will not budge on price at all even with 30+% vacancies. Its the next chapter in disaster 2009! The experience was laughable. We went though both of these on your video of new ghost towns!
We send petro dollars overseas to “royal families” who control oil cartels, etc. We have drug cartels who are raking in the cash from our drug dependency. We send so much money, they don’t know what to do with it.
Those places are brutal regimes. They want to park their money in the most stable place they can find. That was the United States.
All this stuff we see as we drive around the places we live, we keep asking ourselves, “how much more retail and office space do we need?” And the chain restaurants just kept on coming.
The petro dollars and drug money had to go somewhere, so it went into what became our grossly overbuilt environment.
Again, most of this stuff (residential and commercial) was built just to park enormous amounts of cash. The world-wide leveraging craze allowed all the investors to cash out on the front end, if they had sense, and try not to get caught holding the bag.
Even finance has to observe the laws of nature. You can only build so much stuff at one time that serves a useful purpose (bubble formation).
Now American communities (we the taxpayers), are left to pick up the pieces. We are cleaning up the $#!#.
Virtually every office building in Sorrento valley has a space for lease sign. If qualcomm didn’t enjoy renting parts of many builders just to stick their sign up, the place would be a ghost town.
Wow, gotta love those big, generous asphalt parking lots. Nice inspiring places.
I think Consultant’s rant hits the nail on the head; there was so much cash looking for a home that any deal would do. Classic Ponzi. (Was the stock market at 14,500 all petro/narco/sino dollars too? Hmmm.)
Anyways, I would guess that the developer/investors of the first foreclosed commercial project had 20% of development costs into the deal, maybe $4,750,000 in addition to the $19MM loan! Most of it up front money. You can be certain that they are taking a hit too.
To buy a property, get approvals, get a construction and build it takes 3 years. A 2008 project could have been started in 2005 when residential was getting real spooky and unemployment was virtually non-existent. With all that cash money looking for a home it’s hard to resist the herd mentality when it comes to speculation. Commercial seems to always lag residential.
Now let’s sit back and see what happens when this same 3 year lag for development of residential begins to influence the market. Because nobody is building new homes. I read that MarketPointe realty advisers say that there is a 3 month supply of new detached houses but a 16 month supply of attached, (gotta love that “e” after point). http://www.marketpointe.com/housing_market_news/SD0209PR.pdf
“There’s nothing that price won’t fix.”
~~~~~~~~~~~~~~~~~~AGREED!
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We first started coming to NC to visit after my in-laws moved to San Marcos in 2001. There are office buildings here that were newly-built then that have had their “Available” signs up continuously for the past eight years. Why did anyone expect these to be any different? In order to fill commercial space, you need a long-term employment engine, and unrestrained real estate development is not such an engine.
Up north, Silicon Valley is still suffering the after-affects of the dot-bomb and the diversion of the VC that should have financed tech’s “next big thing” this decade to foreign wars and skyrocketing oil. Real estate prices there boomed along with the rest of the country, but mostly on existing housing stock because the prime areas have been built out for decades. The valley had a “jobless recovery,” and there was nowhere near the growth in housing bubble jobs that was experienced here in SD. SV will continue to drag on until someone with VC realizes that they need to get back to investing in tech again if they want to make any money, and then the tech employment engine will restart.
It isn’t often I disagree with our generous host but this time…
Price won’t fix CRE. There’s just too much CRE for norml supply/demand balances to reassert. Not until growth catches up but forever. There’s also been a huge disconnect twixt need and demand. We used to think demand=need. Not so anymore. Lots of companies for various reasons demanded far more than they needed. That is yet to play out.
Should have left Carlsbad as it was:
http://www.youtube.com/watch?v=s2PFBcwtM_s
Does anyone trust this stock market rally?Talk about a ponzi scheme.
I have a dozen donuts (to go with that cup of joe) that says many of these suburban office condos end up converting to some sort of residential.
Sounds preposterous, but a general contractor could clean up by offering a “conversion” package, and get government support to focus on low-income rentals.
As my second job, I own a small business.
We’ve looked at renting a larger strip-mall type facility several times the last few years in various parts of town.
What’s changed?
The vacancies, not the rent.
For the same reasons I’m not going to buy a house at bubble prices, I’m not going to lease a unit at bubble/full occupancy rates. Especially when occupancy is a fraction of what it once was.
Rental rates come down, more businesses will be interested and will have better chances of turning a profit.
Want an example (at least last I looked)? Do a Craigslist search in PB. You’ll see extremely small Tattoo and Yogurt sized locations available for lease at over $5,000 a month. Run some rough numbers in your head on that one.
There was a CRE offering in San Jose that was renting for 99 cents a sq ft., so 800 sq ft would go for a pretty decent price.
“I have a dozen donuts (to go with that cup of joe) that says many of these suburban office condos end up converting to some sort of residential.”
I don’t think that sounds preposterous at all. Some of the buildings in that video have more space between them and their nearest neighbors than a lot of newer residential developments. You’d just have to tear out a lot of the ashphalt and relandscape it.
I just got back from denver and stayed in aurora and the drive from aurora to denver intl airport is littered with empty commercial real estate and office parks. Too depressing.
I was in Denver too a few mos back and heading back there again (gotta love this ‘vacation’), but you can buy a nice detached SFR between 1700 – 2500 sqft home in or around Stapleton between 375K and 450K. Sure, there is a salary hit, but the price of available homes more than makes up for the salary decrease. A row home can be purchased and rented and be immediately cashflow positive in Denver.
Desmo,
No kidding. The bulk of the county has been ruined by city officials wanting growth and conscience-less developers. Extremely sad. And of course, we’ll never learn lessons from it.
Don’t suppose “desmo” is a hint at Ducati?
The crazy thing is people are still building. Jim, what’s w/ the building off Faraday and El Camino? Carlsbad was going to use as city hall at one time. I think it was a State Farm at one time.
Farmers Insurance Building?
The one the City of Carlsbad bought in 2002 for $16 million, have let sit vacant ever since, and spending $500,000 per year on it?
I think it got overshadowed by the golf course….
The U.S. housing market is starting to “bounce along the bottom,” the
director of the Federal Housing Finance Agency, James Lockhart, said Thursday.
Speaking in a interview with the Fox Business Network, he said that the FHFA’s
index, which reflect the book of business of Fannie Mae (FNM) and Freddie Mac
(FRE), is up 0.3% in the past three months. This stabilization of the market,
along with lower mortgage rates and lower house prices, could inspire some of
the people on the sidelines to start to buy. “That would really help the
market,” he said.
Here’s my favorite commercial failure in my neck of the woods: Moreno Valley Mall at Towngate. For you racing faces, it’s located where the Riverside International Raceway used to be.
The mall opened in 1992. There are store spaces inside the mall that have NEVER been occupied, not once in 17 years. In addition, there is a semi-underground parking garage level that has always been blocked off and never used.
There’s nothing really wrong with the mall location, they just built it about twice the size the area could honestly support.
I heard the shops in Bressi Ranch are going for $6.50/sq ft.
Come to Washington, D.C. The “see through” buildings litter the outer area of the beltway (495).