Priscilla’s Bits & Pieces

Optimism. I actually believe that things are getting ready to change for the better. I’ve been saying all along that the way to get this country up and running again is to have jobs. Well, there are plenty of jobs, only they’ve been migrating overseas because of three main things:(a) high corporate tax rates, (b) unsustainable union wages and benefits, and (c) unfriendly regulatory environment.  So to get those jobs back, our federal government needs to ameliorate the situation in all three categories. So why am I more sanguine these days? Because (a) the feds are talking seriously about reducing corporate tax rates, (b) unions are finally “open to discussing” wider use of profit-sharing plans instead of fixed pay increases of union members. Now, granted, this is at the “new” GM, government owned, and the government now realizes the old union models are unsustainable. Read more

Priscilla Terry – Market Report – May 2011

Dear Clients and Friends,

The commercial real estate in Thurston County appears to be stabilizing. Hopefully we will begin clawing back to levels that generate cash flow and make balance sheets look better.

For all asset classes the biggest expense is property taxes. One might think that line item would have decreased, but there are a several reasons why it hasn’t: (a) Thurston County reassesses only once every six years, (b) assessments look back to the previous year, and (c) when assessed value goes down, the County jacks up the levy rate. I guess that the best I can say is that property taxes should be stable over the next several years.

Sales prices for all assets have fallen in response to higher cap rates, although less so for multifamily projects, mainly because vacancies were low during the recession. Cap rates for multifamily have held at 7%, which is good.  Cap rates for office buildings are probably going to average around 8%, and retail class B properties may show up to 8.5%. I don’t see cap rates falling any time soon. Read more

Zach Kosturos – Market Report – May 2011

Well, it’s been almost two years since I became a partner at Prime Locations and what a great time it’s been.  We’ve revamped our logo, website, signs, promotional material and added three fantastic agents: Joni Baker, Charlie Grate and Crystal Harlow. In addition, I have purchased Jeff Powell’s shares in the company. Jeff, as you know, has been an integral part of PLI for over twenty years and I would like to thank him for the many valuable lessons he has taught me and for the great friendship we have developed. I know moving forward, he will continue to be a valuable asset as an agent and mentor just as Priscilla has been. I couldn’t be happier about the team we have in place and the direction in which we are headed.

On the real estate front, it’s been a difficult couple of years for many real estate investors and the industry in general has taken a beating. As we’ve watched the Dow climb its way back towards its 2007 peak in a bull rally like we haven’t seen in years, real estate continues to lag. So much so that in most parts of the country, prices still haven’t reached bottom. Read more

Press Release – April 2011

Dear Clients and Friends,

As we near the halfway point of 2011, we are excited to announce a few major changes at Prime Locations, Inc. which include the addition of three commercial brokers, Charlie Grate, Crystal Harlow and Joni Baker. In addition, I have recently completed the second leg of my buy-out of Prime’s founding partners by purchasing Jeff Powell’s shares.

Prime Locations, Inc. was founded in 1988 by Jeff Powell, Priscilla Terry and Dean Questi and has been a leader in the commercial real estate sector in the South Sound for over 20 years. In 2009, I purchased Priscilla’s shares. Both Priscilla and Jeff continue to work in the company as agents. Together they bring over 63 years of combined brokerage, property management and development experience, and I am fortunate that they are sticking around a little longer.  Dean Questi remains a partner at PLI and I can’t speak highly enough of him or ask for a more supportive colleague.  What he does for the company and for our clients is invaluable and I am thankful I am able to continue to work with and learn from him. Read more

Market Report – June 2010

Dear Friends and Clients

Well, do you think there’s enough reason for a train along the I-5 Corridor yet?

Gosh, why can’t we get this done? It would solve so many problems, and do so much for all the ideals we say we hold dear. I feel we are hypocrites if we can’t muster the will to do what is so clearly necessary.

Recovery in Thurston County is slow, but I’m seeing some interest from tenants. They are poking their heads up and having a look. There are buyers for investment properties, but large down payments are required. It’s all about skin in the game these days, and I don’t argue. Just think of all the problems we wouldn’t have had if there had been some skin required in all the games played over the last several years. When you have skin in the game you don’t game the system, and you are apt to factor in sound economic and financial judgment. One thing that the jerks had in common, no matter how big or small, was the fact that they took unfair advantage of an American system that was too easygoing…. Read more

Market Report – September 2009