Many commercial properties have shown an increase in subleases, meaning that the property was vacated early, or the current occupants were subletting because the need for space diminished. More businesses were opting for better rates per square foot instead of looking for additional amenities when purchasing property. In Austin, the rate per square foot is down by 1.7% and expected to continue decreasing as the economy weakens further. New construction of commercial space was up for the third quarter in Austin, with a total of 28 new buildings. Most of this has been in mixed use properties. Warehouse vacancies increased from 7.6 in the second quarter to 8.1 in the third. Flex properties, or showrooms, did show more occupancy in the third quarter, going from 16.2 to 15.8 for vacancies.

Austin continues to do well overall amidst the economic strains of the nation. Of course, the city will be impacted, but most experts agree it will be felt less here. New businesses are still looking to Austin for development. There are several existing businesses that have expanded as well. As more mixed use properties are built, there is expected to be an increase in commercial occupancies.

In the last several years, banks and lenders moved away from traditional lending practices and many people who previously would not think of buying a home became eligible. The result was ARM mortgages with increased payments over time that the new homeowners had not been expecting. As the homeowners began to fall behind, the real estate market nationwide took a dramatic downturn. While lenders are now getting back to basics with regard to lending, those already in debt are feeling the burn. Many lenders have vowed to work with occupants to help through the crisis, but too many are behind and the loans are not being paid. Homeowners looking for ways to refinance are unable to meet new terms in regard to credit. These homes are set for foreclosure beginning January 9, 2009.

It is obvious that lending institutions are doing their best to modify loans when applicable and possible, however it may take months to be approved. It seems that they are overloaded with requests. The best thing for homeowners to do is start the process as soon as it becomes apparent that there will be a problem with staying current. The Federal Bailout plan was designed to help lenders assist in keeping many people in their homes.

The Federal report stated that it lent banks $2.1 billion less last week than the previous week. The total was $86.3 billion daily during the week ending this past Wednesday, down from $88.4 billion. Last year, during this same time frame, banks had only borrowed $4.8 billion. Investment firms borrowed $45.7 billion for the week ending December 24th, down from $50.5 billion the week before. The Federal Reserve also stated that the central bank has increased its net holdings of commercial papers to $325.8 billion. Commercial papers are used meet obligations for everyday expenses. Beginning in late October, the Federal Reserve began to buy these in order to help banks meet those needs. All of this assistance is in response to the credit crunch, which has made it difficult for banks to receive loans.

The economy continues to slow and consumer spending has reached record lows. People are holding off on buying homes due to the credit crunch. Regardless of the fact this is the best market for the buyer, it is still a difficult road right now. The Federal Reserve will continue to help lenders as needed with the hopes that the economy will begin to pick up within the next one or two years.

The Texas Legislature passed The Homestead Preservation Act in 2007 to protect those living in the designated areas from increasing taxes. This also included the tax increment reinvestment zones to filter financing to an area that may otherwise not be viewed as suitable for development or in need of redevelopment. The area in Austin that has been zoned is in need of redevelopment, and the land trust in place will assure no excess growth. Tax Increment Financing (TIF) is also in place for this area, if approved by Travis County. This allows the city to use tax revenue as part of the financing available for development. This type of financing has been helpful in many cities nationwide in encouraging the better development in otherwise overlooked areas. TIF helps to offset costs for builders so it can bring more bids to the table.

Austin continues to look for ways to increase the use of land in the city. This area between I-35 and Airport Road has been in need of redevelopment for some time, and the city is hopeful that with approval, it can finally be put to good use.

While there has been a recent surge in residential green building, many seem to have forgotten the number of retail buildings in a community. Within the last year or so, that way of thinking has been reduced dramatically as retailers begin to see the need for more energy efficient buildings. It may be the reduced cost that using energy efficient and sustainable materials that first got the attention of retail developers, but the important fact here is that new retail buildings are being added with green in mind.

Many large developers have been recognized with LEED (Leadership in Energy and Environmental Design) certifications on new construction projects. There are plans for several Wal-Mart stores to be built using recycled and recyclable materials with an included emphasis on energy saving options after completion. These buildings also include solar panels and skylights for energy and to disperse light more efficiently. The goal of these stores is to decrease energy usage and greenhouse gas emissions, as well as solid waste through increased recycling. Other large retailers have also built LEED-certified stores in several areas. Even smaller developments, such as banks, have been included on the certified list.

While a complete LEED certification program for retailers has not yet been released, many large retailers have taken the steps necessary to reduce their environmental impacts. As more energy efficient recourses and technologies are introduced, these retailers will most likely continue the lean toward green. Not only does a green building reduce energy usage, it also saves money, which every retailer looks forward to.

Your friend,

Joe

The recent mortgage crisis and ensuing credit crunch has reached another milestone. As of December 18^th, the rate for a 30-year fixed mortgage fell to 5.19%. This is the lowest rate on record since 1971 when records for rates began being surveyed. Just the week before, the average rate was 5.47% and last year at this time the rate was 6.14%. The dropping rates further show all too well the current economic state, especially in regard to real estate.

Austin has been a city that has managed to keep out of the national economic hardships very well. The city has never gone through a huge jump in property values, so when the real estate market began to falter, Austin had nowhere to fall. Home sales remained steady, if a bit slowed. Austin has not been hit nearly as hard as comparable cities nationwide. The city has been deemed a recession-proof city by Forbes online. While current market news does show for sale homes on the market for longer times, they are still selling. Those who have the credit available to purchase a new home are looking for places where the economy is still strong. Austin is at the head of this list. Unemployment here still remains low, despite the national rate increase. Companies are still looking to Austin for expansion, bringing more jobs to the area.

While the nation looks for more ways to help the economic structure of the country, Austin continues to lead the way. More mixed use properties are under development, creating more working and living space in the much desired downtown area. Home buyers are looking for a place that will be worth the investment, and Austin is certainly proving to be it.

A:  There is no difference.  Essentially a policy provided to a lender insures the validity and priority of the lien insured.  In Texas, that is now called a Loan Policy.  Prior to 2008, the Texas form was called a Mortgagee Policy of Title Insurance.  The form and name were changed in 2008 by the Texas Department of Insurance that promulgates all title insurance forms used in Texas, so that the coverage and name more closely tract those forms widely used across the United States called the ALTA (stands for American Land Title Association) policies.  The Loan Policy is often issued simultaneously with an Owner’s Policy when the transaction is a purchase.  Issued simultaneously in the same transaction, the premium (charge) for the Loan Policy and Owner’s Policy is greatly reduced and is always the “best deal” for the consumer.

The Leadership in Energy and Environmental Design, or LEED, was created to set up guidelines for green building. The program offers certification based on how energy efficient a home is, both during construction, and after a family moves in. In the last year, LEED has begun to include large retail buildings on its list, and several developers have received certification. The trend toward green building with a goal of certification has many retail developers wondering if it is necessary.

The recent trend toward going green has been ongoing for the last several years, though only recently have retailers begun receiving LEED certification. Perhaps the first thing that retail developers look for are ways to save money. This can lead to a more environmentally friendly construction site and more energy efficient technologies being used after completion. More retailers are choosing solar power and changing to newer fluorescent bulbs that use much less energy. Since the LEED requirements for retailers is still in the works, there are no specific guidelines as of yet to follow for certification. At this time, there is no date when established protocol will be available. Stores can be considered based on a cleaner construction zone, the use of more sustainable or recycled materials, and energy efficiency upon completion.

The major retailers currently topping the list of LEED certifications got there mostly through good financial planning. Since more energy efficient usage generally means less money spent in the long run, most new developments are including green options for this reason. Whether or not the retailer is recognized with an LEED certification, the benefits of greener retail developments far outweigh any additional upfront costs.

One of the most wasted resources we have is water. Without realizing it, thousands of gallons are lost every day by leaving the water running or not fixing leaky faucets. Inefficient irrigation systems also use more water than necessary for lawns. The Green Building Program has several suggestions that will decrease water usage, and therefore spending. Always check appliances for energy efficiency and water usage before purchasing. Switch to low flow toilets and showers that reduce usage. Front loading washing machines use less water and less energy than top loading machines. If you must have a dishwasher, look for one that uses a no-heat drying option, as it will also decrease energy usage.

Small changes in daily life can also help conserve water. Fix any leaky faucets and whenever possible check the pipes in the home as well. Use your water bill as a means to determine if there are any problems. If you notice a jump in usage, check it out. Use a rainwater catchment irrigation system for lawn care. This will bring rain down from your roof to water the lawn, as opposed to using sprinklers. Being eco-friendly usually also means saving money.