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CBRE Executive Managing Director Whitley Collins on the trend to “do more with less” in the real estate market.
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Los Angeles area total hotbed of luxury real estate totally contrary to some many other areas in the country that take a look at this -- Hollywood Hills.
For a -- thirteen point seven million you can be the owner of this modern 7500.
Where -- at home.
She 20% -- your monthly mortgage payment and come out to happen now 34000 dollars move.
On the other side of the -- -- stories commercial space which is a booming market on the West Coast right now as well.
Robert -- in Hollywood hills California.
-- Robert.
Thanks very -- trying to -- -- my -- century city bay area of well Los Angeles and some of the commercial buildings there and back some -- -- their own some leased by CB RE and my next guest Billy Collins works for that company here to join us thanks so much for joining us on Fox News doesn't -- arduous and about how much of -- -- have we seen on the commercial side.
Vs where we were pre recession.
Well the the rebels would slow like companies are still managing their business is cautiously.
If you look in the last couple months -- in 2012.
The areas like Seattle San Francisco -- Los Angeles really benefited by the explosion.
In the high tech job growth.
So the leasing side in those markets were were strong.
Still have a lot of money wants invests in real thing.
And we've seen some strength there and primarily that the stronger.
Class a Billings.
Type properties is not as much demand for those you see that when when markets slow delegate in 20072008.
Prices have come down in the class a buildings and there's been a a -- flight to quality.
Now what we have certainly seen is a lot of jobs coming back outside -- the tech sector you mentioned there if we do actually see jobs are gonna be created in the economy will we see.
Office buildings being -- up or maybe something else.
-- -- a trend right now bruises workplace trying to do more with less.
Reels it's the second biggest cost that every company has pretty much -- company second to labor.
So the opportunity to take less base is a real phenomenon.
What we're doing right now as a company we're removing -- 170 people in downtown LA.
We're moving into less space.
But the -- space we have is -- company growth for 20% more people so the traditional model of looking at it.
Employment growth and as it -- and how much space will will be taken by that growth.
Those miles from me tested going forward and just very briefly a lot of money still on the sidelines looking to get into buys some of -- commercials lot of money as much as we've seen in in the last 45 years.
The biggest factor right now is loan to values.
Low and values in 2007 were up to 1995%.
And now you have is is really 6065.
Creeping up to 70% so mix of buyers lot more cautious.
Alright Whitney -- -- CB -- thanks very much so you have to put down a lot more to buy commercial.
Not just the residents July -- an allegory about the mortgage payers I think a lot of buyers of these types of robbery like -- -- and they're paying cash and we bones being nice -- okay thank you very -- -- outright.
It is just.
