Wow-what an interesting start to the New Year. Freedom explodes and the “buck stops here” mentality spreads. Middle Eastern leaders won’t leave their capitals and midwestern legislators won’t show up in theirs, while the Federal Government is scheduled to run out of money on March 4th (they can join me and the rest of my tenants and owners!) Close to home shopping mall managers say they are noticing small positive signs of recovery such as long waits at popular restaurants and more foot traffic despite a “thrifty mindset” among customers. As I reported last month we continue to see a pickup in activity and think that we have bottomed and turned the corner. The recovery is slow (and it is going to get slower with $4.00+ gas) but the momentum has started and it is not going to be stopped.
The shine is getting put back into commercial real estate. It is now being seen as an “opportunity.” It is seen as a higher-yielding asset class that provides protection from potential rising interest rates and corresponding inflation.
Again what we are seeing on the street and in the field is that the last quarter of 2010 almost equaled the first three quarters combined. January saw a return to a normal beginning of the year activity. Holiday retail spending was up 5.5% and Ford has its largest profit in more than a decade. Once again there are favorable expectations in the market place. We’re getting the wind back into our sails (or is that sales?)
As many of you will remember in past letters I likened our economic meltdown to a train wreck. Later using the analogy again I wrote that people were walking around like zombies after a wreck. I would now liken our situation to rehab (no not like Lindsay Lohan.) We are at the stage that we are hesitant to put our weight back on the broken legs. As we gain confidence and strength, however, we will again be walking and then running.
In our office, we are seeing this happen in the form of small hesitant deals. Short terms, low rents, etc…but we are starting to see more and more tenants and buyers returning to test the waters. I liken this to the entry-level buyers in the housing market who then trigger the move-up buyer. The difference we see in the market since the first of the year is a little more decisiveness. In some cases, it is to go out of business or downsize in others to finally grow or move but at least with more decisiveness, we can begin to march forward.
Between $100+ a barrel oil and the green movement you should be evaluating the energy efficiency of your building. The White House is making a big push to retrofit building which will probably show up as tax breaks and specialty loans. At some point in time tenants and buyers will offer a premium for energy-efficient buildings just as they did decades ago for ones that offered HVAC. In the meantime closer to home most North county cities are clamping down (pardon the pun) the lid on requiring trash enclosures to be covered. This requirement is being imposed when new tenants go in for business licenses and permits (and costing Landlords money and time). The two reasons are to keep recyclable materials marketable and more importantly to avoid rainwater runoff being filtered through the dumpster sending the toxins into the storm drain and ocean.
As you watch freedom and democracy pop up throughout the world be proud of what we have in our country. Look for a return on our success and recognize the importance of a buck… I hope you enjoy this month’s story.
On the backside of the One Dollar bill, you will see two circles. Together, they comprise the Great Seal of the United States.
The First Continental Congress requested that Benjamin Franklin and a group of men come up with a Seal. It took them four years to accomplish this task and another two years to get it approved.
If you look at the left-hand circle, you will see a Pyramid. Notice the face is lighted, and the western side is dark. This country was just beginning. We had not begun to explore the West or decided what we could do for Western Civilization. The Pyramid is uncapped, again signifying that we were not even close to being finished. Inside the capstone, you have the all-seeing eye, an ancient symbol for divinity. It was Franklin’s belief that one man couldn’t do it alone, but a group of men, with the help of God, could do anything.
‘IN GOD WE TRUST’ is on this currency. The Latin above the pyramid, ANNUIT COEPTIS, means, ‘God has favored our undertaking.’ The Latin below the pyramid, NOVUS ORDO SECLORUM, means, ‘a new order has begun.’ At the base of the pyramid is the Roman Numeral for 1776. (MDCCLXXVI)
If you look at the right-hand circle and check it carefully, you will learn that it is on every National Cemetery in the United States It is also on the Parade of Flags Walkway at the Bushnell, Florida National Cemetery, and is the centerpiece of most hero’s monuments. Slightly modified, it is the seal of the President of the United States, and it is always visible whenever he speaks, yet very few people know what the symbols mean.
The Bald Eagle was selected as a symbol for victory for two reasons: First, he is not afraid of a storm; he is strong, and he is smart enough to soar above it. Secondly, he wears no material crown. We had just broken from the King of England. Also, notice the shield is unsupported. This country can now stand on its own. At the top of that shield, you have a white bar signifying congress, a unifying factor. We were coming together as one nation. In the Eagle’s beak, you will read, ‘ E PLURIBUS UNUM’ meaning,’ one from many.’
Above the Eagle, you have the thirteen stars, representing the thirteen original colonies, and any clouds of misunderstanding rolling away. Again, we were coming together as one.
Notice what the Eagle holds in his talons. He holds an olive branch and arrows. This country wants peace, but we will never be afraid to fight to preserve peace. The Eagle always wants to face the olive branch, but in time of war, his gaze turns toward the arrows.
They say that the number 13 is an unlucky number. This is almost a worldwide belief. You will usually never (or seldom) see a room numbered 13, or any hotels or motels with a 13th floor. But think about this:
13 original colonies,
13 signers of the Declaration of Independence,
13 stripes on our flag,
13 steps on the Pyramid,
13 letters in, ‘Annuit Coeptis,’
13 letters in ‘E Pluribus Unum,’
13 stars above the Eagle,
13 bars on that shield,
13 leaves on the olive branch,
13 fruits, and if you look closely,
13 arrows.
And finally, if you notice the arrangement of the 13 stars in the right-hand circle you will see that they are arranged as a Star of David. This was ordered by George Washington who, when he asked Hayim Solomon, a wealthy Philadelphia Jew, what he would like as a personal reward for his services to the Continental Army, Solomon said he wanted nothing for himself but that he would like something for his people. The Star of David was the result. Few people know that it was Solomon who saved the Army through his financial contributions but died a pauper.
