Posted on Thursday, 15th March 2012 by Robert Domini

Continental Valuations Launches New Website

Continental Valuations is proud to announce the launch of our new website. Just click the image below to visit us and take a look.

 

 

How is the Economy Doing?

According to GlobeSt.Com in an article by Hassam Nadji, the outlook for 2012 is rapidly improving. Total private-sector employment growth for the last 12 months is 2.3 million. First-time unemployment applications are at a four-year low. Part-time workers hold only 9% of jobs added now, compared to about a third a year or two ago. Still, according to the Bureau of Labor Statistics, total unemployment is still stubbornly high at 12.8 million. It was at 11.1 million in January 2009 after the jobs market had crashed during the previous twelve months. Exports are doing well with a 5.1% year over year increase and accounted for 13% of total economic output. The increasing exports bode well for manufacturing employment which has reversed its downward spiral.

On the international front, it appears that Greece is being bailed out once again. Relations with Iran are at a boiling point, which bodes ill for oil prices. Still, all indications right now, barring a world war or a financial collapse, are that 2012 is looking like it will be a good year.

As to commercial real estate, the improving corporate outlook will be a boost. Apartments will continue their upward march until housing begins to recover. Reports from SE Florida are that residential sales are up dramatically and the inventory is down substantially. Hopefully, Florida will lead the rest of the country out of the housing depression. Retail should turn in a respectable year with positive net absorption. Again, most positive activity is at the higher end of the spectrum. The office sector is still in a wait-and-see mode with job gains not yet strong enough to boost office absorption.

Banks Returning to Commercial Real Estate Lending

According to a costar.com report, overall loan balances on the books of banks, have shown the first real increases in four years. The gains, however, are coming from multi-family and owner-occupied sectors. On the flip side, there has been a marked decrease in multi-tenant lending and construction / development lending. In fact, construction-development loan balances have declined 25% year over year. On the positive side, business loans are up 5%. In the Cleveland Federal Reserve District demand for business credit is increasing slightly overall.

Reliance Financial Services Economic Forecast

The stock market took a major dive mid-year 2011 due to the S&P downgrade. The money supply is increasing more rapidly than in any period since 2008 due to the Fed’s money-printing and easy credit spree. Our debt/GDP ratio is almost highest in the world. Consumer sentiment and the personal savings rate are on the increase. Corporate debt is way down and profits are way up. Leading economic indicators are pointing up. Last year the top ten stocks in the S&P drove the entire 500 while the other 490 were down. Stock investors are not coming back from the 08-09 drubbing like they did in the early 90s. Interest rates are down and globalization is resulting in cheaper corporate labor. However, the cheap labor is coming to an end as developing countries join the developed world. Baby boomers are past their earnings peak. Easy credit for housing is gone, although rates are historically low.

They believe excess government spending is at an end. I would disagree with that. Consumers are getting healthier due to lower debt levels. Small business confidence is improving as inflation is beginning to go up.

Wood County Ohio Has Two Major Jobs Ready Sites

According to the NB Press, the Wood County Economic Development Commission is marketing over 1,000 acres of land directly across from the new Northwest Ohio Intermodal Hub recently completed by CSXTransportation. The $175 million hub is an integral part of the $842 million National Gateway project being developed by CSX. The project will enable CSX trains, carrying double-stacked containers from maritime ports on both U.S. coasts (western ones bypassing Chicago) to be unloaded by Hans Kuenz ultra-efficient cranes at the facility near North Baltimore, in Henry Township, Wood County, Ohio. Continental Valuations had the great honor of doing the appraisals for the CSX acquisitions and for the S.R. 18 bypass.

 


From this hub goods will be shipped via rail to eastern rail destinations and via truck to locations in the Midwest via I-75 and I-80/90.


This site can be designated as a foreign trade zone. Primary interest at the present time is for a major agribusiness company to locate here to ship soy beans to Asia and other locations around the globe.

The Eastwood Commerce Center

This site is located just south of the I-280 and the I-80/90 interchange, and it consists of 446 acres. This site has heavy electric capacity, heavy natural gas capacity, heavy water capacity and heavy wastewater capacity. This site has it all; excellent highway transportation access via the extension of I-280 and a new interchange with U.S. Route 20. To top it off, this site has direct access to the CSX mainline. It also has copper fiber optic access through Century Link.

Continental Valuations was the appraiser for this new interchange highway project.

Toledo and Wood County Hurt by Solar Downturn

In three separate news stories, Toledo and Wood County’s solar fortunes have been dampened significantly. Perrysburg, OH company, Willard and Kelsey, has announced the layoff of 40 employees. Other than “some technical people” manufacturing is shut down.

Meanwhile, First Solar, a firm founded in Perrysburg, OH with headquarters in Arizona, is reporting the “strong possibility” of a layoff of 1,200 of its employees. This is definitely not good news for the region. First Solar has been our rock star these last few years.

In other bad news, Toledo-based Xunlight has lost the services of its founder, Zunming Deng. This plant is essentially shut down and the company appears to be well on its way to being out of business.

All of this is a startling turnaround in our alternative-energy fortunes. Toledo was becoming known as a hub for solar energy. We expect these developments to have significant political ramifications in this election year.

This Report Has Been Brought to You by:

Robert D. Domini, MBA, MAI

Certified in Ohio, Michigan and Florida

p.s. This is property-tax-appeal season. I will consult with you for a very modest fee to help to determine if you have a good case for tax appeal. Give me a call!

Posted in Uncategorized | Comments (0)