The Most Interesting Properties in LA County

Posted on: Friday, March 16th, 2018, under Los Angeles.

Interesting commercial real estate properties in LA
Eighteen Eighty Eight Building in LA

Los Angeles is a complex market that always has a high volume of listings to analyze. This means we have more data to pore over and look for interesting information.

We’ve been doing just that across LA County recently. Naturally, the asset that is the most important is location. But there are more than a few really interesting listings out there. Here are our favorite in LA County right now:

Hermosa Pavilion

This business center in Hermosa Beach is located in the heart of an affluent area on the coast, giving you the modern office amenities in a dynamic location. Located at 2447 Pacific Coast Highway, Hermosa Pavilion offers  amazing ocean views that this enclosed office and retail mixed-use building offers, this is definitely a unique listing. The average lease rate for this building is around $2.50/SF, and the individual spaces in this building range from 1,102 SF to 3,366 SF.

Eighteen Eighty Eight Building

The Eighteen Eighty Eight Building is a 21-story high-rise building located at 1888 Century Park. More than $5 million has recently been put into renovations and improvements. Ranked as 66th tallest building in LA, great views are a guarantee in this space. This is a great property that offers an opportune location for a creative firm, corporate office, and growing professional firms. The spaces available range from 1,746 SF to 24,430 SF.

Ernst & Young Plaza

If you’re looking for something located in the Financial District in downtown, the Ernst & Young Plaza is the perfect building. This is a 41-story office tower designed by a world-class architectural firm, and its central location just can’t be beaten. The spaces available in this building range from 931 SF to 23,247 SF, so whether you’re just starting to grow your firm or need a more corporate space, Ernst & Young Plaza offers the amount of space you need.

Sunset Media Center

Located in the heart of Hollywood is the Sunset Media Center. The Sunset Media Center was built in 1971 and is a 22-story Class A office building. The building is adjacent to many great amenities and is just a stone’s throw to the 101. The Sunset Media Center is the perfect space for tech, media, and post-production tenants to call home. The available space ranges from 1,461 SF to 17,468 SF.

If you’re looking for CRE property in LA County, these buildings have so many unique and interesting qualities. They can offer you all of the amenities needed to run a comfortable office space!


Take a look at one of our related blog posts:

How to Read a Commercial Real Estate Listing: 8 Terms You Need to Know About Your Investment

Posted on: Tuesday, March 13th, 2018, under Brokers, RealMassive, Tenant Brokers, Tenants.

Man reviewing commercial real estate termsFamiliarizing yourself with these terms will help you make a good investment

Purchasing and financing Commercial Real Estate is significant decision that can affect your business, positively or negatively, for decades to come. This is why it’s so important to get a good CRE on your team to help you find the right property.

But, as everyone who looks at a Commercial Property listing for the first time finds out, there’s a lot of industry jargon that doesn’t help you figure anything out – like the price and details about a property.

With that in mind, we thought we’d compile a glossary of terms that you should know to translate CRE listings into plain English.

How is Commercial Rent Calculated?

When you look at a listing, you’ll see that the price is set per square foot per year.

So, if it’s $11 a square foot and a 2,200 square foot space, the rent would be $24,200 a year.

What is a Capitalization Rate (Cap Rate)?

Basically, the Cap Rate is a commonly used metric to normalize properties and compare potential returns of different properties. The Cap Rate is the percent return you can expect from a property in its first year. You get it by dividing the net operating income (NOI) by the sale price.

So, if you’re looking at investment properties and a building’s asking price is $10 million, its Cap Rate would be 10% if it produces $1 million in income a year.

What is the Debt Coverage Ratio (DCR)?

The Debt Coverage Ratio is the other side of the coin from the Cap Rate. It is figured by dividing the mortgage payments by the NOI. When you figure out the two of them together, you can see how profitable a potential property would be at the asking price, and what sale price is necessary to make it a good deal.

For example, if it costs $750,000 a year to service the mortgage on that $10 million property with a NOI of $1 million, the DCR would be 1.3.

What is the Internal Rate of Return (IRR)?

The IRR is a metric to measure the profitability of a potential investment. In short, it is the percentage rate earned on each dollar invested for each period it is invested.

For example: let’s say you purchase the $10 million dollar property and at the end of the year your profit is $250,000. Your IRR for the year would be 2.5%. Then, if you earn that $250,000 a year for four years and sell the building for $11 million at the end of the fourth year, you’ll have earned a profit of $2 million over four years, which adds up to an annualized IRR of 5%.

What are Capital Expenses (Cap Ex)?

Capital expenses include improvements (not necessarily repairs) to a fixed asset that increases the value or life of that asset. A capital expenditure is typically amortized or depreciated over the useful life of the asset, as opposed to a repair, which is expensed in the year incurred.

What is a Core Investment?

A core investment refers to an investment in a high-quality real estate asset that is located in a highly accessible and highly desirable submarket. For example, a core investment is an asset that is at least 80% leased, carries long-term leases with credit-worthy tenants, and is among the most sought-after assets in the market.

What is a Value Add Investment?

A value add investment is an investment in a real estate asset with existing cash flow (and value) that can be increased by raising occupancy, rents, or both. To add value to a property, owners typically improve or replace building systems, provide new finishes, introduce new amenities, improve access or circulation to the building, or add square footage.

What is a Triple Net Lease (NNN)?

In a triple net lease, also referred to as a net-net-net or NNN, a tenant pays all operating expenses, taxes, and insurance. Landlords are responsible for the structure, roof, and sometimes the parking lot.

Familiarizing yourself with these CRE terms will help you decide which property is the best investment for you. RealMassive offers detailed and transparent CRE listings, so that you have all the information you need to select your property.

What Role Will Big Data Play for CRE in 2018? Part III for CREs

Posted on: Tuesday, March 6th, 2018, under Data, Open Data, Real Estate Investing, Research, Technology, Thought Leadership.

Commercial Real Estate Skyline

Having more accurate market big data has always been a distinct competitive advantage in Commercial Real Estate: it gives us the ability for better informed site selection, improved floorplan design, and the ability to provide more value to our clients than anyone else can.

Because of this, it’s understandable that CREs are wary of making any technological change. They’ve been building their data-gathering system since they entered the industry and it’s one of their most valuable assets. This is a large part of the reason why big data, which has revolutionized countless other industries, has been slowly adopted in Commercial Real Estate.

The thing is, technological change happens regardless of whether the industry, as a whole, wants it. And as tech makes it easier to gather and analyze market data, what was once a competitive advantage quickly becomes a liability. As real-time market data becomes the norm in Commercial Real Estate, early adopters will be able to seize market share with better information gathered more cheaply.

We have high expectations for the role of big data for CREs in 2018. New, easy-to-use software is giving us new ways to receive and interpret actionable data – in real time. We can now see how a given market is performing right now so you can spend less time gathering and analyzing market data and more time building relationships with your clients.

Here’s our prediction for big data’s role for CRE in 2018:

Assessing Opportunities

CRE companies will invest heavily in data and analytics platforms, which means data-centricity is quickly becoming the strategic choice among CRE executives. We’re beginning to use CRE data to shape our opinions and to come up with actionable strategies to use. Big data allow us to monitor trends in our industry as they develop, so we can stay one step ahead of the newest topics giving us the advantage to spot opportunities in leasing trends.

Improving Site Selection

With software to analyze big data, you can map out locations for your clients based on minimizing their employees’ average commute. Then, with real-time market information, you can look for properties that are available within that area and give them the most up-to-date pricing information: we can use real-time data to strategically pair the right space with the right tenant.

Being Able to Give Your Clients More Actionable Data 

Being able to see your market in real time means you can see if one building in a particular area is leasing at below-market rates before their Owner Rep realizes it and increases their price per square foot. You can also see if the market is about to start a downturn and make sure they don’t sign a long-term lease and wait for better options down the road.

Building a Competitive Advantage

Today, utilizing big data and the newest tech available will give you an advantage over your competition. Today’s market intelligence platforms allow us to make informed insights on current value, risks, and opportunity costs. But, as more and more CREs adapt their intelligence-gathering to focus on real-time data, the value will shift from grabbing market share to just keeping up.

What Role Will Big Data Play for Commercial Real Estate in 2018: Part 1

What Role Will Big Data Play for Commercial Real Estate in 2018: Part 2

Austin Things to Know and Do for Visiting CRE Pros

Posted on: Tuesday, February 27th, 2018, under Uncategorized.

The first quarter of 2018 has been a busy time here in Austin’s CRE world. One of our favorite events, the CORFAC 2018 Spring Conference, is coming up on February 28 – March 3.

And while we’re looking forward to connecting with the best and brightest international network of independently-owned and entrepreneurial brokerage firms that will be in attendance, we know that if we were visiting Austin we would want to sneak away and see at least some of the renowned activities and eats that Austin has to offer.

If you’re limited on time and can only indulge in the essentials, here’s RealMassive’s list of the top four activities you don’t want to miss out on while here in Austin:

  1. Take a Tour of Austin’s Breakfast Tacos: Juan in a Million, Taco Mex, Torchy’s, Tacodeli. If you’re having something else for breakfast while you’re here, you’re doing it wrong.
  2. Go bat-watching under Congress bridge around dusk. It’s a great way to savor the sunset and is just a few steps from Downtown and happens to be one of the most Instagram-worthy locales to make everyone back home jealous.
  3. Take a stroll down South Congress Avenue on a weekend morning/afternoon for brunch, cupcakes, unique boutique shop gazing, and more.
  4. For a casual night out, gander down Rainey Street for an array of eateries/food trucks, bars, and live music.

So, after you’ve checked off all the above and are now seriously considering moving here (trust us: everyone does), we expect you might want some data on the local market. With our platform that covers 388 million square feet of commercial space in the Austin Metroplex, we’re in a great position to help you out.

The average asking price right now for commercial properties in the Metroplex is $30.46/sq ft.
It’s $31.19/sq ft for Retail
It’s $31.47/sq ft for Office
It’s $27.29/sq ft for Industrial.

The average property size is currently 8,068 sq ft.
It’s 12,538 sq ft for Retail
It’s 5,247 sq ft for Office
It’s 7,310 sq ft for Industrial.

When you’re at the conference, visit us at our booth to say hi. We’ll give you the insider’s tip for the best breakfast tacos that we’re not willing to share publicly (you know, we locals have to keep some of our secrets).

How Commercial Real Estate Uses Big Data: It can help you reach the right client

Posted on: Wednesday, February 21st, 2018, under Commercial Real Estate, Open Data.

Market Data is the lifeblood of Commercial Real Estate; without it, we simply cannot do a good job representing our clients. This is why the best brokers spend so much time and effort gathering the most accurate picture of the market. It’s also why we always hear stories of brokers giving inaccurate information about their listings to some companies gathering Market Data: keeping the real data for yourself can give you an edge over your competition.

But big data is able to change all that.

Before we dive into the how, it’s important to talk about what big data actually is. When terms like cloud computing, machine learning, and big data get used as much as they do, they start to take on different meanings to different people.

What Big Data Is

For us, big data is simply a large amount of information. But what’s most important is not the amount of data, though if there isn’t a lot, it isn’t big data. The value you can get from analyzing it is important, but it doesn’t take the cake either. The most important part is what you can do with the information.

That sounds semantic, we know. But hear us out:

How Big Data Is Changing Commercial Real Estate

Amazon changed retail and Zillow changed residential real estate in one simple way: they gave people more control over, and more access to, information. Today, people can research products, see reviews and make a decision on what they want to buy on everything from coffee makers to homes because the markets have a large amount of transparency.

Commercial Real Estate, on the other hand, is one of the last bastions of the 20th century way of managing information. But people, be they investors or prospective tenants, are used to handling a large amount of research on their own.

And they prefer it that way.

By simply giving them what they want, you’ll be simplifying your operations, and freeing up your time, while providing better customer service. This is exactly why we’ve seen a big shift in listings for properties being showcased online, instead of being hidden behind closed doors, over the past few years. This gives us the critical mass of data that lets us shift to how Big Data is changing CRE.

New Tools at Your Disposal

Ok, these aren’t ‘new’ tools exactly, but they are more efficient and effective versions of your old tools. With big data, your expertise becomes more valuable, and you are able to spend less time gathering and analyzing data and more time gathering and helping clients.

Here’s how it works:

Confirming previously formulated opinions

 If you think the market is being distorted by a few big deals skewing the average sale price, a quick look at the market’s data can glean the truth. Along the same vein, if you think sales volume is down because of a lack of new properties hitting the market, it’s easy to verify. With Big Data, what took hours now takes minutes.

Developing an actionable strategy

Confirming your theories, obviously, helps you build your strategy. You can interpret the data and show your clients that now is not a good time to buy, that they should rent for another year or two before looking to purchase because of x, w, or z reasons.

Discovering new metrics to measure the market by

This is the real game-changer. By sorting and resorting the data based on multiple different metrics, you can begin to see patterns, like the premium a building gets for having a loading dock. This, in turn, informs your actionable strategy for a given client based on their needs and goals.

Creating more accurate deal valuations

The phrase, ‘Price is what you pay, value is what you get,’ has almost become cliché…but it doesn’t change how true it is.

The more data you have at your fingertips, the stronger your negotiating position is. And if you have real-time data to mine, you can know exactly what is going on in the market without having to spend large amount of time and resources to discover it.

What’s Next

Access to big data is changing the face of the CRE industry. It saves brokers time and gives them better information to act on.

The best news? Once the masses are using it, you’ll have to use it as well just to keep up. But right now, getting on board as an early adopter gives brokers a competitive advantage.


The Census 2020 Impact on the Office Market and Economy

Posted on: Tuesday, February 13th, 2018, under Uncategorized.

Bob Samiiby Liz Berthelette, Director of Research NAI Hunneman. Liz is a seasoned CRE researcher with a penchant for maps, graphs & data; providing insights on the local Boston market and beyond.

Demographers and data geeks rejoice! Preparations are well underway for one of the largest data collection efforts in U.S. history; the decennial census. With 2020 just around the proverbial corner, it’s not surprising that the U.S. Census Bureau is already gearing up to take on this mammoth task. While the survey results provide invaluable insights on the nation’s population base and ever changing demographic profile, this undertaking has deeper implications for the U.S. economy and office market.

A look back at the most recent decennial Census, which took place in 2010, offers us key insight on what the future might hold. In a report published by the Bureau of Labor Statistics (BLS) in 2011, the impact of national employment was far from negligible. In fact, the number of temporary and intermittent workers hired to complete the 2010 Census actually muddied monthly employment trends during that year. Below are some key data takeaways from the BLS report:

1. Temporary/intermittent hiring totaled 564,000 workers
2. Soup-to-nuts the project took 30 months to complete
3. Peak hiring occurred in May of 2010
4. Temp employment declined by almost 100% by September of 2010

With that many new employees on the payroll it’s not surprising the General Services Administration (GSA) was also in need of commercial space. Accordingly, 12 Regional Census Centers and 494 Local Census Offices were established throughout the United States to temporarily house collection operations. Ultimately, this space acquisition program resulted in several million square feet of short-term office demand in 2010.

For the upcoming Census 2020 program, the GSA has released requirements for 245 short-term leases nationwide. The average size of these temporary offices ranges from 6,600 to 8,550 square feet, with up to 19 months of lease term. While this represents roughly half the number of requirements issued for the 2010 Census, additional U.S. office demand will likely surpass two million square feet on a temporary basis. When you factor in the need for several Regional Census Centers (RCC), which require a much larger footprint, this number is closer to 2.5 million square feet. We’re already starting to see the impact of the GSA’s latest space acquisition program. The administration’s first regional operation will be located at 1601 Market Street in Philadelphia; where a 37,500-square-foot lease was executed in November of 2017. The effect of the decennial census operations may only be provisional, but as history has shown us, it won’t go unnoticed.

The 8th Second: How to Keep People Looking at Your Listing

Posted on: Wednesday, January 17th, 2018, under Uncategorized.

People’s attention spans are shrinking by the minute. Seven seconds is, in fact, the average. If digital content doesn’t hook people in those few seconds, they’re gone forever. So, how do you keep people looking at your commercial real estate listing for the eighth second and beyond.

Striking the appropriate tone, messaging, and topics dramatically increases the effectiveness of your listing. It’s all about making your listing seem like it’s speaking directly to the person clicking on it. These strategies will help keep people looking at your listing.

Go on a Virtual Tour

Video is a game changer for your CRE listing, and it’s becoming more and more essential in attracting attention. Most people prefer video over photos and written content. Adding a video tour of the property can give you a search-engine advantage.

You can record the video yourself using a smartphone, but hiring a videographer is a worthwhile upfront investment, especially if you have a large commission on the way. Put yourself in front of the camera as the tour guide. This can build trust and let you establish yourself on the CRE expert in your area.

A virtual tour of the property lets viewers better understand the property’s full scope, depth of space, how the light comes into the space, how rooms interconnect, and other criteria. Photos are still an important addition to the listing, but videos paint a more accurate picture.

Write Inventive Descriptions

CRE listings need detailed descriptions that highlight all the essential information about the property, but go beyond the basics. Square footage, number of rooms, and other standard characteristics should be included, but extend the description to what’s outside the property’s four walls. Talk about the neighborhood, tenants in the building, past uses of the space, and any other details that will highlight the property.

Be upfront about the not so great aspects of the property. Potential buyers and investors will appreciate the honesty. This gives the listing credibility and shows your integrity in the CRE world.

Get Social

It sounds obvious, but you should always share your listings on social media, both on your personal and business pages. A few-sentence description and eye-catching hashtags will get people to click on the listing. Sharing on social media also gives you the chance to broaden the listing’s reach.

Though it sounds simple enough, amazing visuals and accurate details are the best way to keep people engaged with your listing beyond the seven-second average.

What Role Will Big Data Play for CRE in 2018? Part II How Tenants Will Benefit

Posted on: Monday, January 8th, 2018, under Uncategorized.

Commercial Real Estate has always been, and will always be, an information-driven business. For example, we’ve always known that law firms often want offices near the courthouse and that creates a submarket that operates somewhat independently from the metro area at-large in terms of pricing and demand.

The big shift that the industry is making now is the drastic reduction in the investment, both financial and time-wise, of gathering information about the market and the ability to make real-time analysis – and thereby getting a competitive edge. For example, with data analytics, we can determine the borders of a submarket built around, say, Google’s offices, and help your client find a pocket right by where they want to locate that is at a discount to the submarket.

In other words: we’re shifting from using data to support pre-determined intuition and opinions to using it to develop opinions.

How Real-Time Data Will Give You a Competitive Edge

Right now, one of the biggest advantages real-time data gives you is being ahead of the pack. If you can analyze what was happening yesterday while everyone else is looking at data from last month, you can see the trends before everyone else and use that information to your clients’ benefit.

One of the first aspects we’re seeing CREs capitalize on is with comparables. Seeing actual recent transaction prices and cap rates rather than just the numbers publicly bandied about gives you better information to act on. This in turn enables you to let your clients know if this deal is a steal or if it’s better to pass as it should be lower in a month.

It can also help with site selection. If your client is looking to expand their office, you can use data on where current employees live and find the ideal location to minimize average commute times. You can then collate that data with current market prices and find the location that allows them to maximize productivity at the lowest lease rate available.

The Door is Open…But the Window is Shrinking

As we enter 2018, there is ample opportunity to grow your market share by having better information, and at a lower cost, than the rest of the industry. But that opportunity will fade and turn into a necessity.

There are 5 stages of technology acceptance: innovators, early adopters, early majority, late majority, and laggards. While CRE is still in the innovator/early adopter stage for using real-time data, the adoption rate will continue to grow quickly. There is still significant value to getting onboard now, but waiting 12 months could be forcing yourself to play catchup.

At RealMassive, we’re working to keep you ahead of the competition. Find out how by signing up for a demo today.

What Role Will Big Data Play for CRE in 2018? Part I Retail The Future of Retail is Now

Posted on: Friday, December 22nd, 2017, under Data, Market Analytics.

Commercial Real Estate Data and InformationThere are countless prognostications about the future of retail that run the spectrum: a quick search for ‘the future of retail’ will tell you that brick and mortar retail is dying at the same time as it highlights successful eCommerce startups building dozens of retail stores across the country.

You already know the truth: retail is changing – just like it always has. If you go back 20 years and look at the headlines, they covered in the death of Main Street and the boom of the mall and big box retailing.

The real question is, ‘How is retail changing and what’s next?’

The answer is in the data.

Market Intelligence

Commercial Real Estate has always been about information: gathering it, analyzing it, and then providing your clients with value. What we’re excited most about is the influx of new information coming into CRE.

More and more, building owners are installing sensor technology to gather real-time pedestrian and vehicle traffic statistics. Combining this with unstructured data from sources like search engines and social media enables us to overlay traffic volume with other data, such as interests, behaviors and income, giving retailers real, actionable data to find their ideal location.

Being able to ascertain the revenue a specific type of retailer can generate from a given location in turn gives LL Reps more information so that they know precisely what NOI is possible.

On top of that, the trendy business model for retailers is to start out as an eCommerce-only store and then expand to have physical locations. This gives them a large amount of data about their customers when they’re shopping around with their Rep. They can see where their site is getting the most traffic from, and the common interests of their fans on Facebook and Twitter, and use that to help with site selection.

The Long-Awaited Internet of Things

IoT has been on pretty much every ‘what’s next’ list for years. The idea of creating smart buildings to adjust temperature, humidity, and lights has had people excited for ages. Now, the addition of tech to give us more location analytics so that retailers can learn more than ever before about people’s in-store purchasing behavior, giving retailers a better ability to determine what building layouts work best, and which ones don’t.

This, layered with traffic data, likely makes for the best-informed tenant in history.

The Meaning for Commercial Real Estate

From CRE’s point of view, the need will be centered around gathering actionable market data as quickly as possible. With it, Tenant Reps will be able to see what building layouts and assignable area they will need to maximize revenue for the store as well as ascertain reliable revenue models to make sure the location is a good long-term fit.

At RealMassive, we are creating real-time data analytics so you will be able to give your clients the best advice with the latest data to back it up. Want to find out how? Sign up for a demo.

The Benefits of Real-Time Data Management: Save Time & Increase Accuracy

Posted on: Tuesday, December 19th, 2017, under Open Data.

Commercial Real Estate Data Visualization

It’s not a stretch to say that business happens in real-time. Doors open and possibilities present themselves at a moment’s notice, and inaction can mean missed opportunities.

At the same time, information has become one of our most valuable commodities. Without accurate, up-to-date data, decision-making is instinctual rather than informed.

These facts are leading commercial real estate towards a new trend: real-time data aggregation.

What Real-Time Data Means

Real-time data effectively is information that is constantly being updated. In short, real-time data gives you the ability for more thorough analysis: the less time you spend gathering the data, the more you have to analyze its meaning.

It has been a trend in consumer-facing industries for a while: for example, when you’re booking a flight online or ordering an Uber. Once it becomes commonplace, you expect the information to be accurate to the minute and it marks a paradigm shift for an industry.

In commercial real estate, however, we haven’t encountered that shift yet. In the past, information on assets or leasing data was often looking back two or three weeks at best. To get the whole picture of what was going on in an entire market today, you would need a robust network and a lot of legwork to get an accurate snapshot.

The good news: that’s beginning to change.

How Real Time Data Benefits You

If a client or prospect has ever asked a question about the market and you’ve had to answer, ‘let me get back to you,’ real-time information can change how you do business.

Having an up-to-date portfolio of your agency’s listings streamlines the search experience and allows you to promote and lease properties more rapidly. What’s more, being able to keep track of market-wide trends and availability as they’re happening, rather than after-the-fact, enables you to make more informed decisions and give you a competitive advantage.

What’s Next

At RealMassive, our goal is to give you flexibility and control over your listings with automated, real-time data management tools to ensure you have your full marketplace presence at your fingertips at all times. We’ve been working hard to develop pioneering tools that not only give you the ability to better promote your listings, but to see market-wide data in real-time so that you can focus on taking advantage of changing trends rather than wasting resources to discover if they are happening.

For our latest solution, check out AutoPilot Property Listing Management Platform