Mobile Bay Blog

How to survive the real estate market
December 4th, 2007 10:59 AM

 

The latest property trends and what they mean for small business.

If your business suffers from real estate blues brought on by plummeting prices, it may come as little comfort to know that this trend was supposed to have ended by now. When the market began its downturn in early 2006, some of the smartest economists in the country, as well as the CEOs of major home-builders and the National Association of Realtors, predicted that prices would rebound by mid-2007. Instead the experts have been humbled by the depth and breadth of the downturn - and the resulting sub-prime credit crisis has shaken financial markets around the world.

Expect tremors to keep shaking the real estate market along multiple fault lines in 2008. Here are the winners and losers in the housing, rental and commercial categories.

UP MARKETS: As a whole, the national housing market will finally hit bottom - and start bouncing back - at the end of 2008, says Celia Chen, director of housing economics at Economy.com, a subsidiary of the financial rating agency Moody's (Charts). But more than a dozen major metro areas are already ahead of the curve, and enjoying modest but significant price appreciation.

Markets such as Atlanta, Austin and Dallas didn't draw enough speculators to skew prices during the housing boom. Yet they boast sufficient employment and income growth to increase demand for housing. Mobile, Ala., surprisingly, is poised to be a top performer in this group of metros: in recent years it's seen only a trickle of new housing but is currently booming thanks to billions of dollars worth of new mega-projects.

WHAT IT MEANS: Small business owners in these regions will still be able to tap home equity loans for funds, or won't face calls on existing loans from banks because of declining values.

DOWN MARKETS: The regions that will likely lag the national recovery are Phoenix, Las Vegas, south Florida and California's Central Valley. Although publicly-traded home builders packed these areas with inventory, prices soared beyond reason thanks to easy credit and an abundance of speculators who never intended to occupy the homes they bought.

In some cases the inventory glut will take years to clear, even at heavily discounted prices. Phoenix currently offers about 55,000 listings, the highest in the Arizona capital's history, in addition to an estimated 15,000 spec houses.

"Builders have now dropped new three-bedroom, single-family homes as low as $130,000," says Frank Owens, a local real estate analyst and headhunter for the home-building industry. "That's unheard of. The lowest we'd see a year ago was $200,000."

WHAT IT MEANS: In these cities, stagnation equals opportunity for entrepreneurs: Because a big slice of the local labor force was employed in the broader housing sector, the downturn has shaken loose many workers who are desperate for a new gig and not so picky about pay.

THE RENTAL MARKET: By some estimates, the clampdown on easy credit provoked by the subprime crisis will ultimately wipe out 25% of national demand for housing. That's good news for landlords, predicts Todd Sinai, an associate professor of real estate at the University of Pennsylvania's Wharton School.

Look for two ingredients: a high concentration of sub-prime borrowers and average income levels near the national average, or lower. "One-time homebuyers will be relegated to renters because young households will have an even harder time amassing a down payment," says Sinai. Memphis and St. Louis, come on down!

WHAT IT MEANS: Commercial rents will remain stable in these areas, because the general economy is slowing and there won't be much new competition for office and retail space.

COMMERCIAL REAL ESTATE: Thanks to a white-hot tech sector and a renewed surge of VC funding for Internet start-ups, office rents in the Bay Area are testing records set during the dotcom bubble. But the trend is moving in the opposite in bellwether markets such as New York.

Having been the shining star of real estate for the past two years, the commercial market is due for a slump. A dramatic rise in commercial mortgage rates this year, and tougher bank lending standards have sidelined buyers. Many record-setting deals are falling apart. Prices for office buildings, hotels and shopping centers around the country may fall by double digits, commercial analysts now concede.

Perhaps the most telling indicator is legendary developer Sam Zell, once lord of the largest commercial real estate portfolio in history. A legendary market-timer, Zell sold his holdings to a private equity firm for $39 billion last February.

WHAT IT MEANS: Because of tight credit and soft prices, cash-rich businesses will hold the upper hand when negotiating to buy their own property. To top of page


Posted by Kelby Linn on December 4th, 2007 10:59 AMPost a Comment (0)

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Why is real estate in Mobile, Alabama so popular?
December 31st, 2007 9:17 AM
The real estate market in the southern United States is increasing, specifically in Alabama. Many qualities make Alabama a crucial spot for real estate, from its temperate weather all year and lively culture to its rising . The city of Mobile has emerged as a top spot in real estate, and many people are hopping on board, in search of housing here.

There are a of residences for sale in Mobile, Alabama, and those in hunt of housing will likely find just what they're searching for. Finding a dependable Mobile, Alabama realtor is key in getting a dream house there. Good real estate agents in Mobile will be able to find housing based on what their clients are looking for. Effective communication between real estate agent and home hunter is key to a successful pursuit. All details should be discussed between real estate agent and house seeker.

Mobile, Alabama enjoys warm weather, close location to the ocean and excellent restaurants and pubs and clubs. Mobile, which appears a lot like New Orleans, hosts a kid-friendly Mardi Gras. The city has great cafes, arts and entertainment. Mobile is a fantastic city for families, with many beaches, parks, art museums and theme parks.

With time, endurance and a honest Mobile, Alabama realtor, individuals looking for housing in Mobile will be one stop closer to pursuing the home of their dreams.

Posted by Kelby Linn on December 31st, 2007 9:17 AMPost a Comment (0)

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Golfing in Mobile Alabama
December 28th, 2007 9:30 AM

Sweet Golf Alabama - Part 3

By: David Wood
Alabama is a gold mine of golf nuggets with glimmering courses awaiting you - from the foothills of the Appalachian Mountains in the north to the Gulf of Mexico on its southern shores. With such an embarrassment of riches there are multiple permutations for a joyous golf vacation in the Yellowhammer State. Just pick a few courses, any courses really, and you won't go wrong. That's how good it is.

Here's how this traveling golfer went about it. After flying into Birmingham via Memphis from the Pacific Northwest, I broke up my trip into three hubs: Birmingham/Tuscaloosa, Montgomery/Prattville, and Mobile. Any of those three could be a golf trip all by itself. Here is Part Three (of three installments) - golf in Mobile.
Mobile

Alabama doesn't have all that long of a coastline stretch on the Gulf of Mexico - just 32 miles. However, that stretch of seascape contains some of the most wildly gorgeous sandy shores a traveler will find. Beachfronts with sugar-white sand as soft and fluffy as freshly fallen snow give way to pastel sunsets out on the Gulf that will have your blood pressure free-falling. Throw in a bunch of wonderful golf courses, laidback Southern charm, smiling hospitality, heaping mounds of delicious seafood, and one of the finest hotels I've ever stayed at - The Battle House - and I can't figure out for the life of me why I haven't moved there yet.
Alabama’s Gulf Coast golf is high level. On a previous trip, I had played Kiva Dunes - a Jerry Pate masterpiece abutting the shores of the Gulf - and now having added Magnolia Grove and TimberCreek to my Mobile (www.MobileBay.org) golfing resume, I can tell you pointblank that this is one locale not to be missed.     
With its 54 holes as part of the Robert Trent Jones Trail, Magnolia Grove (www.rtj.com, 251/645-0075) sports two championship 18s - the Crossings and Falls courses - as well as a short track (named one of the best par-3s in America) that is aptly named the "Short Course." The Falls and Crossings were been recognized in Golf Digest’s "Best Places to Play" guide. The entire complex is a big testament to clever course design which follows the natural cut of the land. Like most Robert Trent Jones courses, if they choose the correct tees, golfers of all skill levels will enjoy hitting that little white ball in this neck of the Alabama woods.     
Mr. Jones was given a full palette on which to ply his trade as the rolling topography contains thick patches of hardwoods and pines as well as meandering creeks, serene lakes, and marshland chockablock with fauna and flora on which to frame one fine hole after another. As most every hole throughout is secluded by trees, the feeling is one of supreme solitude. Jones certainly gives the golfer much to contemplate during the round.

The Crossings Course - so named as railroad tracks are traversed twice -occupies the highest ground of the property. Several greens, horseshoed by thickets of the aforementioned trees, are perched well above fairway levels and require high shot values (and extra club selection!) for a hope of par. The terrain is surprisingly hilly and the greens often have a diabolical slope that bring into play numerous chances for three-putts (or worse!) if you've approached the wrong side of the flag. Full attention must be paid on where you'd like your shot to finish. This is indeed superlative golf, and it's not even thought to be the main track at Magnolia Grove.

That distinction goes to the Falls and its 7,239 yards of perfectly groomed fairways. Enormous cloverleaf bunkers lurk around the property, silently waiting to dole out a bit of golfing misery for the wayward shot or perhaps one attempting too heroic a line. Contoured greens with more slants than a political operative require a clear mind and deftness of touch to negotiate with any degree of acumen. The Falls is a full examination on the state of your golfing prowess (or lack thereof, as was my case).
Magnolia Grove offers all the golf you'll ever need to scratch your itch - especially with such reasonable green fees. Both the Falls and Crossings have been in America's Top 50 Affordable Courses with green fees as low as $40 in the winter. You're just not going to find golf of this quality for such prices. Do you need anymore convincing to pack your clubs and get to Mobile forthwith? Let me further my argument.
Once in Mobile, go to TimberCreek (www.GolfTimberCreek.com, 877/621-9900) in nearby Daphne. A 27-hole championship layout designed by Earl Stone, TimberCreek offers roomy, rolling fairways carved from flowering dogwoods, Augusta-like magnolias, and the ubiquitous pines in the region. Many holes flank a wetland preserves teeming with birds and who-knows-what-the-heck-else types of critters hidden from view. TimberCreek offers a welcoming public course with country club amenities and ambience, and is well worth a side excursion.     
In addition to the beaches, two non-golf activities are a must in Mobile. The first is a stay (or at least a visit) to The Battle House (www.RSABattleHouse.com, 251/415-3086) - a Renaissance Hotel in downtown Mobile. The Battle House is Mobile’s most historic hotel and is as European as pâté. With grand staircases, cathedral ceilings, and hushed splendor, the elegant hotel could just as easily be on the Champs-Elysées in Paris rather than North Royal Street in Mobile. Forget Alabama, this hotel would stand out anywhere on Earth. The building and accommodations are as grand as Alabama’s golf is plenty and excellent. And that’s saying something.     
Also not to be missed is lunch or dinner at Wintzell’s Oyster House (www.WintzellsOysterHouse.com, 251/432-4605) in the old quarter of Mobile. With heaping mounds of oysters and crabs being brought to your table - this is the good life Gulf Coast style! Just like having the delightful dilemma of whether to play the Falls or Crossings at Magnolia Grove, I was torn between ordering blue crab claws or Oysters Rockefeller both of which I had spied as the wait staff brought huge platters out to smiling hungry customers at nearby tables. Taking the coward’s route, I ordered both. What the heck? Why choose when you can eat (and play!) them all. Life and golf are sweet in Alabama.    
David Wood - writer, corporate speaker, and humorist - is the author of the soon-to-be published book "Around the World in Eighty Rounds." With several appearances on "Late Night with David Letterman," Wood combines humor with his love for golf and adventurous travel. For comments or inquiries on having him speak to your group, contact David at David@DavidWoodSpeaking.com. His website address is www.DavidWoodSpeaking.com.

Posted by Kelby Linn on December 28th, 2007 9:30 AMPost a Comment (1)

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Mobile named Carnival's Port of the Year
December 14th, 2007 12:33 PM
Friday, December 14, 2007
By KAIJA WILKINSON
Business Reporter

Mobile's cruise port has received the top national customer service award -- Port of the Year -- from Carnival Cruise Lines, based on feedback from customer comment cards.

The award recognizes, at least in part, the work of Cruise Services USA Inc., a shore services company with 35 to 50 employees in Mobile, who serve at the Alabama Cruise Terminal downtown.

The Charleston, S.C.-based company has been under contract with Miami-based Carnival for almost two years, Walter Thorn, president of Cruise Services, said Thursday. Thorn said he's proud of reaching the top during the company's first full year in Mobile.

The Holiday, though one of Carnival's oldest and smallest ships, has been popular since making Mobile its home port in 2004.

The ship's capacity, based on double-occupancy of cabins, is 1,452 passengers, but it left Mobile on Thursday with 1,625 passengers, a typical load, said Sheila Gurganus, general manager at Alabama Cruise Terminal.

Gurganus said that on cruise days, about 100 people work the terminal.

Snagging the top award among Carnival's 11 year-round home ports is a team effort, involving everyone from terminal staff to the longshoremen who load and unload luggage, Thorn said.

"It only takes one person to tick off a guest, and they remember that all the way through their cruise," he said. "Cruisers expect a good time from the time they get out of their car at the terminal to the time they leave."

Vance Gulliksen, Carnival spokesman, said Mobile's embarkation team "gives new meaning to the term 'Southern hospitality.'"

The Holiday has since Oct. 18 sailed from Mobile without a contract between the cruise line and the city.

Al St. Clair, director of the Alabama Cruise Terminal, along with city leaders, has been negotiating a new agreement with Carnival. That deal, which would be back-dated to Oct. 18, will go before the City Council on Tuesday.

The new agreement includes three one-year contracts, with the first running through the end of 2008.

Both the old and proposed contracts give Carnival the right of first refusal should another cruise line want to set up shop in Mobile. City and terminal leaders have been courting a second or larger cruise ship for at least a year and have said that strong demand for Holiday cruises bodes well for making that happen.

The customer service award can only help, Gurganus said. "It lets (cruise lines) know we can take care of guests," she said. "We want a bigger ship, and this is one more thing that shows that we can do it."

(Business reporter Jeff Amy contributed to this report.)


© 2007 Press-Register

Posted by Kelby Linn on December 14th, 2007 12:33 PMPost a Comment (0)

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Dauphin Island proposes tourist developments
December 5th, 2007 9:33 AM

 

Wednesday, December 05, 2007
By KATHERINE SAYRE
Staff Reporter

DAUPHIN ISLAND -- Tourists could park at the western end of Bienville Avenue, board a boat to cross the island's breach, and listen to a concert in a palm tree-lined pavilion on the beach there.

That was one of several proposals pitched to islanders Tuesday during a "Virtual Dauphin Island" presentation, part of the Town of Dauphin Island's efforts to revive the local economy after Hurricane Katrina's destruction two years ago.

Liberty Duke, a Montgomery-based economic development consultant, used digital maps and other data to show how new projects -- such as an aquarium or an entertainment pavilion -- could draw tourists and more revenue to the island.

Under one plan, the town would purchase and lease undeveloped land on the western end of the island, where Hurricane Katrina carved a breach separating the western end from the rest of the island.

A boat would ferry visitors across the breach. Booths for retailers and an entertainment pavilion would be built on the other side, Duke said.

The town would also operate a public beach on the eastern side of the breach, with parking for a fee.

"(Tourists) spend money, but they do not impact your quality," Duke said of the plan.

The "Sunset Beach" development would cost an estimated $2 million, with $300,000 for building facilities and $1.7 million for land, officials said.

Duke said it could be completed by April, before next year's tourist season.

According to Duke, other proposals include:

Purchasing land near DeSoto Avenue for outdoor recreation, such as canoeing, kayaking, fishing or hiking, for an estimated $4 million, creating public access to the bayside waterfront. That project could be ready by next fall, if funding is available.

Building an aquarium for an estimated $12 million to $15 million, possibly paid for with the help of corporate funding.

Creating a park near the entrance to Dauphin Island with benches and tables. A private landowner has agreed to lease the land for five years at no cost, with the park estimated to cost between $7,500 and $10,000, officials said.

Several of the projects have been submitted to state authorities for federal funding under the Coastal Impact Assistance Program, Duke said. Town officials are waiting for the state's decision about which plans, if any, will be funded through the program.

The town could also issue bonds to generate funding, officials said.

The island should attract visitors ages 25 to 40, especially parents, who want vacation activities beyond going to the beach, Duke said this week.

Mayor Jeff Collier said town officials will examine the costs of the projects before deciding which projects to fund.

"Maybe the town of Dauphin Island has to take a more active role in stimulating the economy, so we can get on our feet and get back to where we need to be," Collier said.

The town hired Duke, of ERIS Inc. for one-year at a cost of $125,000 to initiate new economic activity, part of the town's long-term strategic plan developed this year.

Tuesday's presentation used a Web site called Virtual Alabama, a government site developed by the state Department of Homeland Security. The site combines maps, photographs and other data with Google Earth technology.


© 2007 Press-Register

Posted by Kelby Linn on December 5th, 2007 9:33 AMPost a Comment (0)

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