The Plan to Save a California City... Governor Proposes Changes to CEQA... and Economists Nervously Watch Commercial Real Estate
Market and local news
The Plan to Save Adelanto
- Adelanto, California was facing economic collapse with a third of its residents living below the poverty line due to lack of tax revenue
- Cannabis cultivation brought economic change to the city thanks to the efforts of Johnny Bug Woodward Jr.
- The City is the subject of a new podcast.
California Governor Proposes Sweeping Reforms to Streamline Environmental Review Law
- Governor Gavin Newsom proposes a set of reforms to reform the California Environmental Quality Act (CEQA) as part of the state's upcoming fiscal year budget
- Business groups support reforms, arguing they can speed up construction, permitting, and court review, while environmental leaders raise concerns that changes could pose risks to residents and wildlife
North Palisade Partners to Replace Southern California Water Park with Industrial Warehouse
- Development and investment firm purchases 17-acre site of defunct Splash Kingdom for $44.5 million
- Plans to transform the Redlands, CA property into Class A industrial warehouse to meet strong demand for functional industrial space in the Inland Empire with a 1.7 percent vacancy rate.
Related:
North Palisade Partners acquires 17-acre site in Redlands for $44.5 million (Source)
Landsea Homes and KB Home Building 668 New Homes in Inland Empire
- Landsea Homes and KB Home are constructing 668 new homes in Ontario and Fontana in Inland Empire.
- Landsea Homes expects to begin courtyard-style townhome sales at Eave II, part of the Neuhouse community, by the end of the year.
Disney faces criticism over proposed development in Rancho Mirage
- Disney's 1-square mile Storyliving development faces city board review
- Critics argue water usage for proposed lagoon is inappropriate given persistent drought in Southern California, while supporters argue it will use less water than an 18-hole golf course.
Federal Reserve Views Commercial Real Estate as Potential Risk to U.S. Economy
- Federal Reserve survey identifies commercial real estate as one of the top five potential risks to U.S. financial stability in the next 12-18 months
- Concerns are growing due to the impact of the pandemic on the sector's ability to generate income and repay loans, as well as potential oversupply in certain markets
Related:
Sharp Downturn in Commercial Real Estate Could Affect Banking Sector but Not Destabilize Financial System, Says Economist (Source)
Consumer Prices in Southern California Rise at Slowest Pace in 26 Months: Is Inflation Nearly Over?"
- Southern California sees slowest consumer price increase in 26 months
- Question arises on whether the Federal Reserve should end campaign of high-interest rates to control overheated economy
San Manuel Band of Mission Indians buys 40% stake in Waldorf Astoria Monarch Beach Resort & Club
- The San Manuel tribe has bought a 40% stake in the luxury Orange County resort owned by Ohana Real Estate Investors
- The Waldorf Astoria Monarch Beach Resort & Club is a 400-room five-diamond hotel campus on 162 acres, including a six-acre private beach club, three swimming pools and its own 18-hole golf course.
John Wayne's Former California Ranch Sells for $11.25 Million
- The California ranch owned by actor John Wayne during his most famous western film era has sold for $11.25 million.
- The a sprawling property known as Rancho Pavoreal and was a scenic getaway for Wayne, featuring flat land for horse riding and is considered one-of-a-kind in Riverside County.
Report identifies five trends to revitalize shopping centers and adapt to changing consumer preferences
- Near Intelligence Inc. released a report on commercial real estate trends to revitalize shopping centers
- The report identifies five top trends to help shopping centers draw in more visitors and adapt to changing consumer preferences, emphasizing the importance of offering unique experiences to shoppers.
Homebuilding Stocks Outperform S&P 500 Despite Cooling Housing Market
- Lennar (NYSE: LEN) and KB Homes (NYSE: KBH) are outperforming the S&P 500 despite rising mortgage rates and a cooling housing market.
- Positive earnings results from Redfin (NASDAQ: RDFN), Toll Brothers (NYSE: TOL) and D.R. Horton (NYSE: DHI) and modest improvements in housing market conditions have buoyed the sector, with investors expecting strong reports from Lennar and KB Homes in June.
Purchase Credit Scores Reach Highest Level Since 2000 While Lock Volumes Decrease
- Purchase locks dropped 11% between late March and mid May, during prime spring buying season, indicating persistent affordability and inventory pressures.
- Higher credit scores for purchases suggest tightening standards that may leave some hopeful buyers unable to enter a gridlocked housing market.
Southern California Home Sales Decline in April Due to High Mortgage Rates
- House and condominium sales in Riverside and San Bernardino counties declined by 12% from the previous month and 41% for the year, with only 4594 properties sold.
- High mortgage rates that have reduced purchasing power by 14% and economic uncertainty are to blame for the poor sales, with a 30-year mortgage averaging 6.34% in April compared to 4.98% a year earlier.
Related:
US Residential Property Mortgage Origination Hits Lowest Point Since 2000 (Source)
Homebuilders use incentives as mortgage rates spike, but new home sales rebound (Source)
Cities Show Signs of Recovery as Residents Flock to Walkable Neighborhoods (Source)
Schneider National Opens Large-Scale Electric Charging Depot in California for Nearly 100 Battery-Powered Trucks
- Schneider National has opened a charging depot in Southern California designed to power its fleet of nearly 100 Freightliner eCascadia battery electric trucks, which will be one of North America's largest zero-emission fleets.
- The charging site features 16 dual-corded dispensers, allowing the carrier to charge 32 trucks simultaneously, with each eCascadia able to achieve an 80% charge of its 220-mile range within 90 minutes.
Goldman Sachs Analyst Softens Home Price Decline Call As Shortage Supports Market
- Analyst now predicts a 2.2% decline in home prices for 2023, down from previous estimate of 6.1%
- Shortage of homes for sale expected to help keep a floor under prices, but poor affordability may push prices down in 2023