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Big Box Bust – A Demise to Tech Craze

The Plunge

The big box bust that’s storming through the nation doesn’t seem to be lightening up any time soon. Unprecedented  retail mega-stores now shutting down at an incomprehensible pace due to evolving consumer trends via internet purchases and accommodating delivery services.  Kmart, Toys ‘R Us, Sears, Carson Pirie Scott, Abercrombie & Fitch, Barnes & Noble, J. Crew (U.S.), GNC, even Subways are shutting the doors in large batches across the country [1]. The iconic brands dissolving across the nation not only pulls at the nostalgic heart strings of many, but sheds light on the shifting ideals of what it is to be a retailer in conjunction with progressive consumer habits or preferences. With the shopping demand surging through the internet, this has left many retailers to discover a massive decrease in sales over the past decade. Some retailers, such as Rue 21, a tween clothing store, even filing for chapter 11 before even experiencing significant financial trouble as a proactive measure that is likely an inevitable hardship tumbling their way.

Tech giant, Amazon, the world’s largest online retailer, has forever changed the way modern shopping behavior is executed. Everything from groceries, digital books, electronics, clothes, school supplies, pet food, and more can be purchased and usually delivered between a few days and even hours, depending on the type of account a user has. The unfathomable convenience bit makes shopping on Amazon extremely attractive in that one can shop for anything, at any time, and have it delivered directly to their desired location. Inevitably, as Amazon popularity skyrockets, big box retailers suffer drastically, causing a wave in the economy and the way in which commercial real estate evaluates retail sectors [2].

With vacancy rates increasing in large shopping malls, the challenge of finding occupiers for big box spaces becomes evident. Throughout the U.S., stores previously occupied by, now-bankrupt,  retailers are being converted into shared office space or restaurants.  More than ever, mall owners are welcoming unconventional tenants to obtain some of the estimated 200 million square feet of retail space that has closed, or expected to do so since early 2017 [3].

“Landlords need to be creative, strategic and quick with their large-sized vacancies — the Silicon Valley has become a hotbed for small- to mid-sized retailers coming from all parts of the country to take advantage of our increased population density and disposable income. These large vacancies can be flipped into very lucrative, higher dollar-per-square-foot units with the right strategy in place.” explains Senior Vice President, CSR Commercial Real Estate Services, Jonathan Hanhan.

Getting Creative

As countless big box stores remain vacant, the leaders in commercial real estate are challenged to think outside of the box (pun intended). Ginormous buildings with a naturally open layout, such as Macy’s department store, have been converted into movie theaters, music entertainment venues, and even sporting arenas [4]. This new wave of occupancy bingo creates massive opportunity to get creative and move fast. In conjunction with the e-commerce craze, more of these spaces are being converted into warehousing units. In other areas, restaurants, fitness centers, and office space is taking over. Iconic Silicon Valley’s tech bubble creating crisis for local retailers with the rest of the nation not far behind.

Big Box Bust - Numbers don't lie

Are you a business owner looking to buy, sell, or lease commercial property? Contact our experts today.

The information furnished has been obtained from sources we deem reliable and is submitted subject to errors, omissions, and changes. Although CSR Commercial Real Estate has no reason to doubt its accuracy, we do not guarantee it. All information should be verified by the recipient prior to lease, purchase, exchange, or execution of legal documents. 2018 CSR Commercial Real Estate Services. All rights reserved.
Sources:
[1] https://www.kiplinger.com/slideshow/investing/T052-S001-12-retailers-that-may-soon-disappear-forever/index.html
[2] https://www.investopedia.com/news/5-companies-amazon-killing/
[3] https://www.cnbc.com/2018/08/08/coworking-spaces-are-one-way-mall-owners-are-filling-empty-stores.html
[4] CoStar

3 Notable Sales in Q2

Industry professionals, Tony Odom & Jonathan Hanhan, successfully closed deal after deal in CSR’s Commercial Real Estate division in the 2nd quarter. With a typical deal taking anywhere from 6 months to multiple years to sell, or lease, these featured time-efficient, model transactions set the bar for local competitors in the Bay Area.

425 E. Santa Clara St, located in downtown San Jose, posed as the ideal opportunity in ever-growing Silicon Valley for highly-desired office space. An increase in the implementation of collaborative office spaces in famously tech-savvy Silicon Valley has become evident in the past decade. With 9,848 SF of stand-alone office space, secured onsite parking space, and additional revenue potential created endless possibilities for eager buyers.

2730 Bayview Dr, Fremont, CA symbolizes massive breakthrough in the marketplace as CSR Commercial Real Estate strategically earned the business of Fremont with virtually no inventory in the immediate area. Not only did the 2,501 SF industrial condo complex sell in just four days, but also closed in 16 days and sold at an unprecedented price of $350 per SF.

135 El Camino Real, located in coveted  technology hub, Menlo Park, CA, sold in record timing. It’s high-traffic location, walking distance from Downtown Palo Alto, created a realization of its true rarity in having the opportunity to own in the surrounding area. The 1,450 SF building is situated in a mixed-use zone, just minutes from infamous Stanford University.

Are you a business owner looking to buy, sell, or lease commercial property? Contact our experts today.

The information furnished has been obtained from sources we deem reliable and is submitted subject to errors, omissions, and changes. Although CSR Commercial Real Estate has no reason to doubt its accuracy, we do not guarantee it. All information should be verified by the recipient prior to lease, purchase, exchange, or execution of legal documents. 2018 CSR Commercial Real Estate Services. All rights reserved.

Silicon Valley’s Super Commute

Is Traffic Becoming Unbearable in California? – Yes. 

You may have noticed traffic in California progressively getting worse and worse. Our freeways just can’t keep up with the increasing number of people moving to the Golden State. Here, in the infamous Silicon Valley, people from all over the world are flooding the area for coveted jobs in the tech and developer field. Not only is this impacting traffic, but the real estate market as well. Luckily, the state of California is working on a major project that will reinvent the way we drive and commute throughout California.

California’s new $64 billion high-speed rail could be the answer to our problems. With funds continuing to come in and construction playing out as planned, 800 miles of track will be installed up and down the densely-populated state. Passenger service between San Jose to Bakersfield is expected to be available as soon as the year 2025. This innovative mode of transportation will help those super commute in an ever-populating area.

The train has an anticipated speed of 220 mph, along with 24 available stations throughout California. This innovative mode of transportation will be more affordable and convenient than flying, while also eliminating the long hours it takes to drive from one end of the state to the other.

The project will be introduced in different sections, the first connection will take place in San Jose to the Central Valley in 2025. The second is expected to open in 2029 and will have tracks from San Jose down to Los Angeles. The end goal of this multi-million dollar project is to have tracks that run down as far as San Diego.

The new high-speed rail will not only make travelling much easier, but will also alleviate some of the heavy traffic that is infringing on Californians’ everyday lives. The biggest obstacle the new train faces is running out of funds to complete the project. However, with the necessary funds, the future of commuting in the state could be changed forever. Just imagine living somewhere less-congested, in a quiet neighborhood and pioneering the super commute to Silicon Valley each day. The high-speed rail could be the solution to negating the overwhelming amount of traffic in California while also making the state feel a little less crowded; something desired by every driver here.

Thinking of moving away from the traffic? Contact our Roseville Office today to find your dream home. 

 

Funding 15,000+ Autism Screenings

On Wednesday evening, CSR Cares’ board member, Laura Bonafede-Odom, was the proud representative at Autism Tree Project Foundation‘s (ATPF) Bay Area Parent Mentor Night at Stanford University. The Parent Mentor Night was hosted by Dr. Lawrence Fung, M.D., PH.D. The ATPF Parent Mentor Program serves families living with autism by offering personal support in a caring and warm environment. Parent mentors are there for mentees to lend an ear, help problem solve and guide the community to the resources children need. The night consisted of an insightful presentation, followed by recognizing CSR Cares as a strong Community Partner. Dr. Fung has opened doors and paved the way for internship and research programs at Stanford University involving those with autism. As a future outlook, the possibilities are endless.

As a result of CSR Care’s donations over the years, ATPF has gained the ability to conduct over 15,000 childhood screenings for autism detection in schools, free of charge. CSR Cares continues to host events to directly benefit ATPF on an annual basis. In years past, CSR Cares has proudly donated $20,000+ in 2017, in addition to 14 years of Golf Tournaments. 2018’s Annual Event is sure to be a success.

Lending the Community a Helping Hand

To finish up April strong, Don Jessup and the Santa Clara County REALTORS® Foundation repainted and conducted other repairs to a home in Downtown San Jose as part of Rebuilding Together Silicon Valley’s Rebuilding Day, an event to better the community. The 47 amazing volunteers, including San Jose Mayor, Sam Liccardo, really made a difference that day. #RebuildingSV

 

26 Years of Granting Wishes

We’re hosting our 26th Annual Make A Wish – Greater Bay Area Event!

Support an incredible cause and change a child’s life while enjoying tacos, music, adult beverages, and more alongside a gorgeous poolside venue, in the heart of Cambrian. Silent Auction, raffles and more to look forward to!

Purchase your tickets, here. 

 

***NO TICKETS AVAILABLE AT THE DOOR***
EVENT WILL SELL OUT FAST!

Follow this event on Facebook!

Thank you to our valued sponsors for making this event possible (more to come). 

Become a Sponsor

CSR Commercial Real Estate Welcomes Erika Cervantes

The Commercial division at CSR Real Estate Services welcomes Erika Cervantes to the team as Commercial Leasing & Sales Manager. Ms. Cervantes began her Commercial Real Estate career working directly for one of the largest individual commercial property owners in the Bay Area. Ms. Cervantes has dealt with all aspects of commercial leasing and property management for nearly a decade. From tenant management, building maintenance, leasing of retail, office & industrial property types, Erika demonstrates professional excellence throughout her career.

Being bilingual, Erika is able to connect with a larger audience and gain trust from the masses. Ms. Cervantes’ success lies within her philosophy, that if you take care of your clients, they will take care of you.

“Beyond Erika’s experience and skills, her will to go well above and beyond, and her driving force of doing what is in her clients’ best interest is why we knew we had to have her on our team” explains Jonathan Hanhan, CSR Commercial.

Ms. Cervantes is a strategic and key addition to support the growing Commercial team with Tony Odom and Jonathan Hanhan in the expansion and sustainability of quality care and service to their key clients. Her technical skill set, character and congruency with CSR’s culture, of doing what is best for clients, is what makes this career marriage the ideal match.

But wait, that’s not all; Erika also values community outreach and helping others in need which is a perfect parallel to CSR’s Charity, CSR Cares. For over 6 years, Erika has dedicated her time and efforts towards assisting the homeless and is on the Board of Directors for the Youth at Risk Organization.

Welcome to CSR, Erika!

Erika Cervantes

Commercial Leasing and Sales Manager

(c) 408.648.7514

(f) 408.559.5505

(o) 408.558.5000 Ext. 7351

Erika@CSRCommercial.com


 

 

Reaching New Heights

Silicon Valley Business Journal’s “Book of Lists” recognizes a compilation of the top-performing companies, by industry, within Silicon Valley. Released annually at the start of the new year, competitors evaluate how they rank among the rest.  It’s no surprise that CSR Real Estate Services continues to reach milestone after milestone over the years. The company’s various divisions embody professionalism, teamwork and ingenuity while placing a high value on integrity, passion and hard work. CSR Real Estate Services is proud to announce that over the past couple of years, both the Residential and Commercial division have continued to climb “The List” to earn a dual spot of Top 10 Residential & Commercial Real Estate Firms in Silicon Valley for 2017-2018. This is quite the jump when looking at just a few years ago in 2014 when they weren’t listed amongst even the Top 25. In 2015 the Residential division earned the title of Top 25 and leaped to 13 in 2016. That same year, the Commercial division joined the list and placed Top 10 out of the gate, matching that status in 2017 and meeting Residential there to bring home Top 10 all around.

“These are numbers that don’t really grasp the story in its entirety. In 2017 our office grew by 41 active agents while most other companies in our market may not have been so lucky. We have much gratitude and are thankful to have had to opportunity to gain so many wonderful staff members and agents over the past year through strategic recruiting, opening another office location in Roseville, California and having the privilege of merging with Silicon Valley Associates Real Estate. Just wait and see what we do in 2018,” details Terry Meyer, VP of Operations and Broker Associate of CSR Real Estate Services.

While CSR celebrates their victories, employees and agents of the ever-growing company get back to work and continue setting higher goals to reach even more aspirations ahead.

 

csr merges

SILICON VALLEY ASSOCIATES MERGES WITH CSR REAL ESTATE SERVICES

SILICON VALLEY ASSOCIATES MERGES WITH CSR REAL ESTATE SERVICES
CSR Real Estate Services & Silicon Valley Associates Become One

San Jose, CA (September 12, 2017) – CSR Real Estate Services, a leader in providing the highest level of customer service, announced today they are becoming a joint entity with Silicon Valley Associates (SVA), a company specialized in world-class real estate, to become the leading boutique, Silicon Valley real estate group.

Merging with Silicon Valley Associates, based in Campbell, CA, further increases CSR’s share in the Silicon Valley real estate market. “I’ve been a part of many real estate acquisitions and mergers throughout my career. This one is very special and has uniqueness to it. Silicon Valley is largely made up of corporate owned, Wall Street driven real estate brokerages. To see two of the most respected, independently owned and operated brokerages joining forces and gaining momentum, is a bold statement that the boutique, family-run business is alive and well,” Terry Meyer, CSR Real Estate Services Senior Vice President of Operations & Broker Associate.

Founded in 2003 by real estate veterans who sought to enhance the experience of buying and selling a home, CSR Real Estate Services is a boutique, Silicon Valley real estate group. CSR embraces dedication to the community, local business interaction and helping people make one of the most important transactions of their lives. CSR takes pride in providing a high-caliber of service to clients and business partners of all backgrounds. CSR strives to build long-term relationships fostered through integrity, competency and mutual respect. As the company continues to grow, locally as well as its recent expansion to Roseville, California, CSR flourishes because it offers the full spectrum of real estate services while maintaining its home-grown appeal and inclusive culture.

“We’re honored to have such a respectable brokerage and team of professionals join the CSR family. Combining the two parties is something we’ve been thinking about for a long time and we are excited to see what successes are to come in the near future,” Steve Bonafede, CSR Real Estate Services President & Chief Executive Officer.

From its inception in 2007, Silicon Valley Associates has continued its boutique-style, which ensures delivery of the highest level of personalized service. SVA’s innovative approach to organization and detail ensures that every real estate need is met well beyond the transaction – this is the SVA advantage. The company integrates technology to market listings and utilizes the knowledge and experience to deliver seamless transactions.

“Our goal is to become the power house in this industry by gravitating people to our unique, philanthropic, close-nit culture. With the combined experiences that both SVA and CSR possess, there’s no reason we can’t attract the best agents in Silicon Valley and create a stronger home for us all – we are all extremely enthusiastic about that”, Don Jessup, Silicon Valley Associates Owner.

CSR is known for traditional and remarkable customer service and attention to detail. CSR currently serves a large portion of the south bay area and employs over 80 staff members and agents between San Jose and Roseville, CA. It has won numerous awards for its outstanding services, continuous growth as well as maintaining a 96% agent retention rate. The company will focus on providing new CSR agents with a warm welcome, adequate training and a new place to call home. Business will continue as usual moving forward within CSR’s San Jose headquarters. For more information about CSR Real Estate Services, visit www.CSRRealEstateServices.com.

CSR Cares donates $5,000 to One Step Closer Therapeutic Riding Inc.

morgan hill csr caresCSR leadership was quoted on Morgan Hill Life’s website on May 24, 2016

“When CSR Real Estate Services established CSR Cares, our goal was to donate funds to charities that aligned with our mission of affecting positive change for children in our community. One Step Closer is exactly the type of specialized program that we want to support.” said Terry Meyer, vice president of CSR Cares.

“This is one of the largest donations One Step Closer has ever received.” said Mark and Landa Keirstead founders of One Step Closer. Says Mark, “We want to thank CSR Cares for their generous $5000 gift to our School Readiness Program for children with special needs.”

One Step Closer Therapeutic Riding Inc. is a Morgan Hill charity offering therapeutic riding and other equine assisted therapy to children with physical and emotional disabilities.

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