CDC Commercial Inc

Monthly Letter for February 2007

Happy New Year! So what is my forecast for 2007 you might ask? I think John Kenneth Galbreth said it best:

“There are two types of forecasters: Those who don’t know

and those that don’t know that they don’t know”.

Attached you will find the 2007 Gold Report – Intelligence in Real Estate (do you like the play on words?). This is our 11th edition and as in the past we give an overview of the economy then work our way down to the specifics of property types and suggestions to help you in the year ahead (The report is also on the website www.cdccommercial.com ).

Markets are mixed; the USD San Diego index is down; the CEO index of small firms is up for 2007. Another great economist said, “If you are going to be in the business of forecasting, do it often!” – the idea being the more often you do it the more often you can revise! (Lynford). With that in mind we will do our best to keep you updated throughout the year with our monthly letter.

For now, the housing slowdown is spilling over a little (as predicted) with housing related tenants (mortgage, realty, etc…) closing, vacating or subleasing their spaces. Landlords and property managers, please keep us posted even of your weak tenants. Often we can target a replacement before they go out of business and stop paying rent. As you do your common area maintenance (CAM or NNN) budgets for the new year, please be sure to send us the new estimate so we are quoting good numbers.

Phase I environmental reports just got more expensive due to higher licensing requirements. They also have to be current within 6 months.

I hope that you enjoy the Gold Report as much as I do putting it together for you. If you or your organization is interested, I have a short presentation that I can give along with a primer on commercial real estate (the talk can be tailored from 10 to 30 minutes and is good for Rotary, Kiwani’s or trade groups).

Although many are looking at this year as the cup half empty and equally as many as the cup half full, we at CDC Commercial like to see it as simply a glass that is twice as large as it needs to be!

May our 2007 be mutually prosperous!

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