Commercial Real Estate Outlook: 2018.Q1

Analysis from RCA pointed to a growing gap between sellers’ high price expectations and buyers’ willingness to pay those high prices. 
The small cap space closed the chapter on 2017 on an upbeat note. Commercial real estate in SCRE markets continued to experience advances in investment sales, as the momentum picked up in the final quarter of the year. Following on the second quarter’s 4.4 percent increase and the third quarter’s 3.6 percent gain in sales volume, REALTORS® reported that sales volume advanced a solid 9.1 percent in the fourth quarter. 
International transactions remained a fixture in  REALTORS®’ CRE markets in the final quarter of the 2017. The average international sale price was $1.2 million in the fourth quarter of the year. Indicating a likely preference for safety of capital over returns, the average cap rate for SCRE international deals was 6.7 percent.
Office demand softened in the fourth quarter of 2017, even as employment in office-using industries expanded.  Office vacancies increased 1.7 percent in the fourth quarter, to $32.17 per square footIndustrial vacancy declined in the fourth quarter, to 4.5 percent. Industrial asking rents advanced in the fourth quarter by 0.6 percent, to $6.92 per square foot.
With rising wages and employment, consumer optimism was well- reflected in the fourth quarter’s  holiday shopping season figures. Demand for retail spaces advanced, with net absorption totaling 3.1 million square feet during the quarter, according to CBRE. Retail construction activity slowed, with completions totaling 9.1 million square feet. The retail availability rate picked up, moving to 6.6 percent in the fourth quarter, as asking retail rents reached $17.12 per square foot.


SAN JOSE, CA June 23, 2017 — CSR Commercial Real Estate, a true pioneer, doused in dedication and loyalty to the south Bay Area of California, is elated to have reached its 10-year anniversary as a local boutique commercial real estate service, providing unique opportunities to business owners of all sorts. “It just dawned on me that CSR Commercial is 10 years strong this year…that means we are among the 4 percenters”, exclaimed Tony Odom, Managing Partner of CSR Real Estate Services & CEO of CSR Commercial Real Estate. Given that nearly 50% of businesses fail within the first year of life, 73% within the first five years and an astounding 96% within 10 years, left Tony Odom smiling to reminisce about the long journey that him and his team have overcome.

“Our growth and success is solely due to building a team with the right people”, explains Odom. This milestone is a testament to CSR Commercial Real Estate’s commitment to continued innovation and to the future of the company as well as the commercial industry at large. Looking forward, the future of CSR’s Commercial Division is infinite and limitless.

Throughout the past 10 years, CSR Commercial has generated a reputation as the go-to place that will cater to your every need on a personal level and hold your hand through every step of the way, but times were not always so bright.

In 2007, CSR Commercial Real Estate was born in the most trying of times, particularly in the real estate industry. The market crashed, businesses were closing left and right, the economic bubble busted and the “American Dream” seemingly shattered as a result of the 2007 Great Recession. While many people raised an eyebrow at Tony, who could’ve retired at the time in opposition of starting this new business sector, he simply “Did it anyway”.

Mr. Odom explains, “The struggle was really just more motivation to find a breakthrough in the struggling economy. That being said, the worst times were also the best – it’s when I really learned the most”. It was at this time smaller businesses shut down and Tony was put in a battle against the highest-performing and most well-known commercial real estate agencies in the ever-so-unforgiving Silicon Valley. Although many of his peers attempted to give Tony a sense of encouragement by saying the market surely would turn around by 2010, Tony Odom simply replied, “I don’t have that long”, and continued working to reach for the stars and marketing himself to a doubtful community.

As a result of Mr. Odom dedicating his time to reaching out to seemingly scrambled, broken and hopeless business owners, he built trust by holding their hand every step of the way. “I figured I couldn’t change the market, but I could change the way people were reacting”, Tony clarified.

2012 slowly rolled around and that’s when things really began to change. “There was finally that light at the end of the tunnel I had been searching for”, Odom said with a smile while reflecting. He began working more with investors, explored and purchased more property, worked with high net-worth individuals and began to generate referrals through honest work. Later on, Tony Odom launched CSR Cares, a non-profit organization, benefitting children in the community with autism. This cause hit close to home as Tony Odom has four children, two with which have autism. Within that same year, CSR Commercial launched CSR Commercial Capital, providing comprehensive financial solutions, in congruence with welcoming Duane Hood, President, to the family. From there, CSR’s Commercial Division rapidly obtained key players such as Jonathan Hanhan, Nigel Endersby, Chris Reynolds and Steve Malech. Tony’s aspirations of building a strong team with the right people became a reality which is why the company continues to thrive today, having nearly ten people in its sector currently.

The future outlook for CSR Commercial is bright, with goals to expand in to different areas, develop more projects & strategies, onboard more quality agents, grow through loyally servicing clients and being even more active throughout the community.

Author: Jennifer Murdix, Director of Marketing, CSR Real Estate Services