The latest North Bay Business Journal research (Lists.NorthBayBusinessJournal.com) focuses on companies that oversee commercial construction projects under prime or direct contracts with the owner.

The list of commercial general contractors is ranked by North Bay commercial project revenues. Other information provided includes companywide annual revenue, number of full time and year round North Bay employees, largest commercial project under construction, notable local commercial projects in 2020, areas of specialization, licenses held, LEED-certified projects, and name of top local executive.

Detailed information from the list is available for purchase as a spreadsheet via the links above.

Want to have your company surveyed for this and other lists? Contact Research Director Michelle Fox at michelle.fox@busjrnl.com or call 707-526-8682.

The post Industrial normal contractors in San Francisco North Bay appeared first on DAILY SAN FRANCISCO BAY NEWS.

Forget about bank doom loop stories over residential mortgages. Instead put the spotlight where it belongs.

Not Residential!

A reader asked me to comment on Peter Schiff: Banks Have a Bigger Real Estate Problem Today Than They Did in 2007.

Banks are more vulnerable to the housing market now than they were in 2007.

Most people in the mainstream will scoff at that statement. They’ll tell you that the situation is very different today. After all, we don’t have a big problem in the subprime mortgage market. We’re not seeing a big spike in defaults. That’s true. The problem is different this time. And it’s actually worse.

So, what’s the problem?

As Peter Schiff explained in a recent podcast, the problem this time is the mortgages themselves.

As Peter points out, a 3% mortgage is a huge asset for the borrower. But it’s a huge liability for the lender. So, defaults would benefit the banks. They could theoretically repossess the home and resell it to somebody else and write a mortgage at a much higher rate.

So, this is a very different crisis. But it’s worse because they’re losing money on every single mortgage they have whether or not they go into default. … So, this is bigger. It is a bigger problem for the banks. They’re losing more money, and they will lose more money now than they did in 2008. That means we’ll need an even bigger bailout. All these ‘too big to fail’ banks have an even bigger problem now than they did then, and it’s going to take an even bigger round of QE to bail them out. The problem is how’s the Fed going to do that when inflation is as high as it is and going higher?

Total Silliness

For starters, banks tend to securitize mortgages they originate or dump them on Fannie Mae.

Second, few will be walking away. There is too much equity for a default crisis as happened in 2007.

Third, the Fed has a liquidity program (BTFP explained below) to help banks paper over losses.

Runs on banks have stopped. If bank runs start again, it will not be due to residential mortgages.

Fed’s Emergency Liquidity Program

BTFP funding data from the St. Louis Fed

The Fed started the BTFP program in the wake of the collapse of Silicon Valley Bank.

Small regional banks overleveraged in long term treasuries and were clobbered by paper losses and then bank runs.

In response, the Fed agreed to shield the banks from losses by offering swaps at par value, ignoring the losses.

BTFP Terms

• Eligible Collateral—Direct obligations of certain U.S. government agencies, including the U.S. Department of the Treasury, government-sponsored enterprises such as Fannie Mae and Freddie Mac, and the Federal Home Loan Banks. In addition, mortgage-backed securities issued and/or fully guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac are eligible.
• Loan Terms—Institutions may borrow up to the value of eligible collateral pledged. Collateral is valued at par, i.e., with no haircuts. Loans can be prepaid at any time without penalty. The rate is fixed for the life of the loan (up to one year) and is calculated by adding 10 basis points to the overnight index swap rate. The rate is published daily on the Discount Window website. Advances will be available until March 11, 2024, or longer if the program is extended.

Liquidity, Not Solvency Issue

This is a liquidity issue, not a solvency issue. The US is not going to default and the treasuries are not worthless. The Fed wanted to stop bank runs and did so by a method that hides losses.

However, the paper losses are still real, even if hidden in reports. This has an impact on banks willingness to make loans in a rising interest rate environment.

For further discussion, please see The Fed’s Emergency Liquidity Program, BTFP, is Over $100 Billion, What’s Going On?

Commercial Real-Estate Doom Loop

The Wall Street Journal reports Real-Estate Doom Loop Threatens America’s Banks, but the loop is commercial.

Bank OZK had two branches in rural Arkansas when chief executive officer George Gleason bought it in 1979. The Little Rock lender today has billions of dollars in commercial real-estate loans, including for properties in Miami and Manhattan, where it is helping fund the construction of a 1,000-foot-tall office and luxury residential tower on Fifth Avenue.

Regional banks across the country followed a similar playbook, gorging on commercial real-estate loans and related investments in big cities over the past decade.

With the commercial real-estate market now in meltdown, those trillions of dollars in loans and investments are a looming threat for the banking industry—and potentially the broader economy. Banks’ exposure is even bigger than commonly reported. The banks are in danger of setting off a doom-loop scenario where losses on the loans trigger banks to cut lending, which leads to further drops in property prices and yet more losses.

The doom-loop scenario is starting to play out in big cities where office vacancies have soared. Real-estate investors that are unable to refinance their debt, or can only do it at high rates, are defaulting. The lenders, no longer getting the debt payments, often have to write down the value of those mortgages. Sometimes the bank ends up owning the property.

“The plumbing is clogged right now,” said Scott Rechler, chief executive of real-estate investor RXR. “And that is going to create a backup that will eventually overflow on the commercial real-estate markets and on the banking system.”

US Regional and Small Banks’ CRE Exposure Could Pressure Ratings

Fitch reports US Regional and Small Banks’ CRE Exposure Could Pressure Ratings

U.S. banks with less than $100 billion in assets are more susceptible to deteriorating commercial real estate (CRE) fundamentals than larger banks, which could add to ratings pressure, given their higher relative exposure as a percentage of assets and total capital, Fitch Ratings says.

The tight monetary environment has placed pressure on most CRE properties’ collateral values and transaction volumes while structural changes in demand for office space have adversely impacted occupancy for that asset class. These factors increase credit risk for banks that have CRE loan concentrations, and are expected to have an impact on asset quality in CRE loan portfolios of U.S. banks.

Banks with more concentrated CRE exposure to office markets, particularly those with much weaker vacancy trends, face moderate stress over the near- to medium-term. For example, larger cities, including San Francisco, Houston, Dallas/Ft. Worth, Washington DC and Chicago had high office vacancy rates as of 1Q23.

BTFP Eligible Collateral

Look again at the BTFP eligible collateral. It includes Fannie Mae, Freddie Mac, Ginnie Mae. It does not include commercial real estate, or any other kind of bank loans.

CRE and other types of bank loans are solvency issues.

By shielding mortgages and Treasuries, the Fed contained any residential mortgage crisis.

The big problem for banks is commercial but the residential housing market is in shambles.

How the Fed Destroyed the Housing Market and Created Inflation in Pictures

The Fed has a big problem of its own making on its hands that will make inflation harder to control.

For discussion, please see How the Fed Destroyed the Housing Market and Created Inflation in Pictures.

The Fed destroyed the housing market, but this will have minimal impact on banks. Commercial real estate is the key issue.

The post Banks Have a Large Actual Property Drawback However It’s Business, Not Residential – MishTalk appeared first on DAILY SAN FRANCISCO BAY NEWS.

Providing financial assistance or incentives for housing projects to materialize must be considered by city officials to break through the pending doom loop cycle. The City of Los Angeles has an opportunity to partner with the private sector to contribute to the regrowth of the city. It’s not a new idea, but one that — in these times — would avoid a downward spiral of disinvestment and flight from Downtown Los Angeles if approached more aggressively.

Without debate, downtowns are crucial in the ecosystem of society. Historically, people have converged in cities to find employment, attainable housing, access to mass transit, and to make social connections. As found in the Gensler City Pulse Survey from 2021, people are looking to downtowns for a vibrant and mixed-use environment rather than just a place to work.

Urban centers across the country are suffering from a slow return to the office, and from workers and residents leaving downtowns in search of less congested spaces and more affordable lifestyles. In turn, municipalities are reeling from reduced real estate tax bases, as well as fewer transit occupancy taxes and property taxes. According to CoStar, the average price per square foot for commercial office space in Downtown L.A. is currently $242 per square foot, down over 50 percent from $523 in 2020. 

Many U.S. city centers are suffering from housing shortages that drive up costs for residents and force many to move to suburbs, which creates traffic-heavy commutes, mental health stressors, and additional financial strains. Los Angeles alone has a deficit of over 500,000 affordable housing units, making it one of the least affordable places to live in the U.S.

With many office tenants vacating or downsizing their spaces, the possibility of converting those offices to housing or other uses becomes an attractive alternative that could ease housing shortages that drive up the cost of living. Based on numerous recent studies, we know that there are large financial gaps between the cost of a building conversion and the market value of converting office towers to housing. Ultimately, conversions trend toward not making financial sense to pursue. In Downtown L.A., costs of a full conversion can range between $350 and $460 per square foot, which is higher than ground-up construction. These numbers pose an unfinanceable risk for developers. California’s strict requirements around seismic upgrades, exterior wall upgrades for acoustics and operable windows, and new mechanical, electrical, and plumbing systems are expensive to achieve. While buildings and land costs have decreased, we cannot rely on those prices dropping to zero to bridge the gap.   

In downtown, the city has a responsibility to explore every avenue to promote its economic and social resilience. The City of Los Angeles is pushing to ease the approval process and provide zoning incentives for developers through the Adaptive Reuse Ordinance 2.0, currently under review. Provisions like easing parking requirements, allowing greater square footage, waiving minimum unit size requirements, and increasing open space requirements are steps in the right direction, but are very unlikely to be enough to make projects viable.

In Canada, Calgary faced a similar challenge, and in response has implemented a bold and successful program where developers are granted $15 per square foot for demolition and $75 per square foot for construction to help make deals feasible to deliver the additional residential units that are needed. Developers seeking to provide more housing complete an application to request funds and, if eligible, the city then provides the requested funding.

Cities like San Francisco, Boston and Los Angeles have an opportunity to implement similar programs. From Gensler’s study of hundreds of buildings in 25 U.S. cities, we have found that only 20 to 30 percent of high-rise office buildings are potentially feasible to convert to housing without financial assistance from the city. Economic impact studies show that investments from the public sector paired with private sector investments will create a larger tax base and revitalize our urban cores through an upswing in residents who will subsequently contribute to the regrowth of businesses that represent a thriving downtown. If the City of Los Angeles embraces partnerships with private entities like developers and banks, downtown’s revitalization can have a viable pathway to a vibrant future.  

John Adams is regional managing director at architecture firm Gensler.

The post Viable Future for L.A. Begins With Public-Non-public Partnerships – Industrial Observer appeared first on DAILY SAN FRANCISCO BAY NEWS.

Meeting building and plumbing codes, the Swash Thinline T22 reduces toilet paper use—saving money, decreasing environmental waste, and enhancing the public restroom experience

SAN FRANCISCO


,


Aug. 22, 2023


/PRNewswire/ — Brondell, an innovator of health and personal care technologies in

North America

, is proud to release the

Swash Thinline T22 Bidet Toilet Seat with Open Front Less Cover

—the first of its kind. Give any public bathroom a hygienic and luxurious upgrade with a commercial bidet designed to reduce toilet paper usage (and the eco-waste it takes to produce it).

Previously, a commercial bidet toilet seat that met Uniform Plumbing Code (UPC) requirements for public restrooms didn’t exist. Now, thanks to the open front, lidless design, businesses can elevate their bathrooms while meeting the International Association of Plumbing and Mechanical Officials (IAPMO) standards.

At just 99 millimeters (3.90 inches) in height, this advanced commercial bidet maintains a slim, modern appearance for public restrooms in any space—municipal facilities, office buildings, hotel lobbies, spas, restaurants, and more.

Top features include:

• Reinforced internal construction:

  Sleek yet durable, the seat is built to last and to handle the stress of daily public usage.

• User-friendly, side-arm controls:

  Boost comfort and luxury with a full array of customizable features, including instant and continuous warm water washes, and adjustable water temperature.

• Quick-release seat and self-cleaning nozzle:

  Facility teams will love its hygienic features that make upkeep a breeze.

The Swash Thinline T22 Bidet Toilet Seat with Open Front Less Cover is the newest addition to Brondell’s commercial lineup, which includes

air purifiers

,

water filtration systems

, and

showers with patented spray technology

. This industry-leading commercial bidet provides a sustainable solution for private and publicly-owned businesses and buildings.

Commercial bidet benefits include:

• Prioritize bathroom hygiene

  : Gentle, warm water washes leave users feeling fresh and clean.

• Enhance toileting experience:

  Enhance comfort for staff and customers with luxury features, like a heated seat.

• Reduce toilet paper usage:

  By minimizing the need for toilet paper, organizations can preserve the Earth’s precious resources—like water, trees, and energy—and potentially lower overhead expenses.

The Swash Thinline T22 Bidet Toilet Seat with Open Front Less Cover will be available on Brondell.com early next year, listed for

$1632.00

.  For wholesale pricing and availability contact Brondell’s sales department at

commercial.team@brondell.com

.

About Brondell:

With 20 years in the industry,

Brondell

is known for developing products that provide welcome relief, long-term health benefits, and a more sustainable footprint. The company focuses on customer wellness, harnessing cutting-edge technology to improve health within the home, office, and beyond.

Each product in Brondell’s ecosystem of solutions is crafted to fit seamlessly and sustainably into everyday life, so that the things we do every day—like breathing, drinking, bathing, and flushing—are better for both people and the planet. In addition to creating eco-friendly products, Brondell donates 1% of sales of select bidet attachments to environmental nonprofits with its

1% for the Planet product partnership

.

Media Contact:


Geoff Dunlop


geoff@brondell.com

View original content to download multimedia:

https://www.prnewswire.com/news-releases/brondell-makes-business-more-sustainable-with-the-first-ever-commercial-bidet-toilet-seat-301906019.html

SOURCE Brondell Inc.

The post Brondell makes enterprise extra sustainable with the first-ever business bidet rest room seat appeared first on DAILY SAN FRANCISCO BAY NEWS.

Meeting building and plumbing codes, the Swash Thinline T22 reduces toilet paper use—saving money, decreasing environmental waste, and enhancing the public restroom experience 

SAN FRANCISCO, Aug. 22, 2023 /PRNewswire/ — Brondell, an innovator of health and personal care technologies in North America, is proud to release the Swash Thinline T22 Bidet Toilet Seat with Open Front Less Cover—the first of its kind. Give any public bathroom a hygienic and luxurious upgrade with a commercial bidet designed to reduce toilet paper usage (and the eco-waste it takes to produce it).

Brondell’s Swash Thinline T22 Bidet Seat with Open Front Less Cover is the newest addition to its commercial lineup

Tweet this

Brondell Swash T22 Open Front Less Cover Luxury Bidet

Previously, a commercial bidet toilet seat that met Uniform Plumbing Code (UPC) requirements for public restrooms didn’t exist. Now, thanks to the open front, lidless design, businesses can elevate their bathrooms while meeting the International Association of Plumbing and Mechanical Officials (IAPMO) standards. 

At just 99 millimeters (3.90 inches) in height, this advanced commercial bidet maintains a slim, modern appearance for public restrooms in any space—municipal facilities, office buildings, hotel lobbies, spas, restaurants, and more.

Top features include:

• Reinforced internal construction: Sleek yet durable, the seat is built to last and to handle the stress of daily public usage.
• User-friendly, side-arm controls: Boost comfort and luxury with a full array of customizable features, including instant and continuous warm water washes, and adjustable water temperature.
• Quick-release seat and self-cleaning nozzle: Facility teams will love its hygienic features that make upkeep a breeze.

The Swash Thinline T22 Bidet Toilet Seat with Open Front Less Cover is the newest addition to Brondell’s commercial lineup, which includes air purifiers, water filtration systems, and showers with patented spray technology. This industry-leading commercial bidet provides a sustainable solution for private and publicly-owned businesses and buildings.

Commercial bidet benefits include:

• Prioritize bathroom hygiene: Gentle, warm water washes leave users feeling fresh and clean.
• Enhance toileting experience: Enhance comfort for staff and customers with luxury features, like a heated seat.
• Reduce toilet paper usage: By minimizing the need for toilet paper, organizations can preserve the Earth’s precious resources—like water, trees, and energy—and potentially lower overhead expenses.

The Swash Thinline T22 Bidet Toilet Seat with Open Front Less Cover will be available on Brondell.com early next year, listed for $1632.00.  For wholesale pricing and availability contact Brondell’s sales department at [email protected].

About Brondell: 

With 20 years in the industry, Brondell is known for developing products that provide welcome relief, long-term health benefits, and a more sustainable footprint. The company focuses on customer wellness, harnessing cutting-edge technology to improve health within the home, office, and beyond.

Each product in Brondell’s ecosystem of solutions is crafted to fit seamlessly and sustainably into everyday life, so that the things we do every day—like breathing, drinking, bathing, and flushing—are better for both people and the planet. In addition to creating eco-friendly products, Brondell donates 1% of sales of select bidet attachments to environmental nonprofits with its 1% for the Planet product partnership.

Media Contact:
Geoff Dunlop
[email protected]

SOURCE Brondell Inc.

The post Brondell makes enterprise extra sustainable with the first-ever business bidet bathroom seat appeared first on DAILY SAN FRANCISCO BAY NEWS.

By Chris Zarpas, Zenger News

Commercial real estate investors face a lot of headwinds these days — remote work emptying downtown offices, ravaging inflation, rising interest rates, shrinking family sizes — but they may not be hedging for another “Great Migration.Of course, commercial estate investors see their business as cyclical, managing costs as markets bottom and bullishly chasing them when they climb. Real estate markets crash at varying velocities, and return, often with even greater vigor than before, as if by some natural law. But another “Great Migration” would be outside the natural swing of real estate markets.

A rapid decline in quality-of-life is draining American cities of its people and bleeding the revenue of both governments and investors. There are many reasons to leave major U.S. cities: surging violent crime, failing schools, climbing taxes, soaring housing costs, a sidewalk-occupying army of homeless.

The pandemic opened the door for remote work, which got many office workers asking “Why do I have to live within commuting distance?” Brooklynites have discovered that when they move to the Hudson Valley that they no longer have to pay New York City income tax, Manhattanites have discovered that sheltering in a Bucks County farmhouse means that honking horns no longer burst through their bedroom windows. Many more have discovered Florida, where they can trade away snow and state income taxes for humidity and hurricanes.

wearing a protective face mask walks by a going out of business sign displayed outside a retail store in midtown as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 8, 2020 in New York City. The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production. (Photo by Noam Galai/Getty Images)Getty Images

All of these revelations have produced the greatest exodus from America’s declining “super-cities” in more than 50 years. Fifty-four of the 88 largest-population U.S. cities reported population losses between 2020 and 2021, according to Brookings Institution data. By the end of 2022 only 37 of the largest cities reported ongoing losses, but among them were Los Angeles, Portland (Oregon), Seattle, and every major Northeast city — from Philadelphia to Boston, according to the Economic Innovation Group. City centers have hollowed out, with half-vacant hotels and acres of empty offices and storefronts. Offices now lead the distressed property category, surpassing even enclosed malls and suburban hotels. A new “Great Migration” is now underway.

Investors and mayors can debate who should worry more. Hundreds of billions in property value is being lost, as is tens of billions in tax revenue as city assessments are recalculated downward. Experienced investors, foreseeing this calamity, have amassed billions of dollars earmarked for acquiring mortgage notes secured by these declining properties. It’s a dangerous game because no one knows where the market’s bottom is, but fortunes can be made by the bold.

Some scholars refer to the “urban doom loop.” That’s when declining property and income tax revenue leads to reductions in city services — fire, police, water, sewers, and schools — which prompt a new wave of departures, further squeezing city revenues, starting the cycle again. At the end of the road is Detroit, 1989.

Cities lost some $360 billion due to lost tax revenues from 2020 to 2022, according to the National League of Cities. If the exodus of wealth continues, lower municipal bond ratings could escalate financial pressure on major cities, leading to default, according to credit analyst Merrit Research Services.

Consider the last “Great Migration.” Almost 30 million poor, rural — black and white — citizens from 1910 to 1970 fled the segregationist South and rural Appalachia to Northern industrial cities in search of a better life. That plentiful pool of labor fueled unprecedented prosperity for decades after World War II, much of which was concentrated in the Northeast and the midwestern heartland. As people moved, the fortunes of regions flourished or withered.

Now, in an ironic reversal, over two million Americans have relocated to the Southern U.S, most from the North, according to data from the U.S. Census Bureau, and the Economic Innovation Group. The Internal Revenue Service reviews tax returns annually to determine when and where taxpayers move. From 2020-2021 alone, Northeast states lost $60 billion in income tax revenue, while Florida, Texas, Georgia, the Carolinas, and Tennessee, gained $100 billion according to recent Internal Revenue Service wealth migration data. New York State alone lost 468,200 people, $24.4 billion, and one seat in Congress.

While some commercial real estate investors are betting on legacy city recovery, busily acquiring distressed assets, others are looking South for new opportunities. Of the top ten markets attracting the most commercial real-estate investment, eight are in Florida, Texas, Georgia, North Carolina, and Tennessee, according to Urban Land Institute and Price Waterhouse Cooper.

U.S. 1 on March 15, 2023 in Miami, Florida. As more people move to the Miami area, traffic gridlock is a source of frustration for drivers. According to a report released by INRIX’s 2022 Global Traffic Scorecard, Miami is ranked the fifth-most congested urban area in the U.S. (Photo by Joe Raedle/Getty Images)Getty Images

For the first time ever, in 2022, the GDP of those six southeastern states (23.8 percent) exceeded that of Washington, D.C. and all northeastern states from Maryland to Maine (22.4%).

Notably, three of those southern states- Florida, Texas, and Tennessee – have no state income tax, and all six have less burdensome regulatory environments than those up North.

Corporations have followed. Since 2020, Texas has gained more relocations than any other state except Florida, landing Tesla, Oracle, Caterpillar, and Hewlett Packard. Their workers who can do the math are eager to go. The standard of living that requires a $250,000 salary in New York City, requires only $94,603 in Houston according to financial services marketplace, NerdWallet.com.

For those who dismiss the idea of an urban doom loop caused by another “Great Migration” as pop culture nonsense, remember the urban doom loop has happened before. As the post-war American service economy grew, there began a slow-motion collapse of American manufacturing from 1950 to 1980, and urban devastation ensued. Between 1970 and 1980, New York City and Its suburbs lost 1.6 million people, 10% its population. The other cities of the Northeast corridor from DC to Boston, saw similar declines. Or, from another perspective, the seeming prosperity of Northeastern cities from 1990 to 2020 was an aberration and now those cities are returning to the earlier trend line.

Urban consultant Bruce Schaller recalls that period of urban decline from 1970 to 1980 when drugs, violent crime and poverty emptied city centers of those with the resources to flee, in a recent report titled “Boom Times or Doom Loop – America’s Future Post- Pandemic.” By 1974, New York City’s annual deficit had reached $487 million, its outstanding debt topped $13 billion, and the city was on the verge of bankruptcy. Every single day between 1970 and 1980, an average of 6 people were murdered and almost 250 assaulted and robbed, a rate 500% higher than that in 2022. If those crime rates return, cities would empty and investors would lose.

During that dark period, commercial real estate values collapsed. Thousands of owners of urban apartments, offices and retail spaces were wiped out. In the Bronx, perhaps the most devastated urban landscape in America, some landlords set fire to their properties to collect insurance money. Seven census tracts in the Bronx, between 1970 and 1980, lost more than 97 percent of their buildings to fire and abandonment, Schaller writes.

office building, Midtown Manhattan, New York. (Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)UCG/Universal Images Group via Getty Images

The hoped for “full return to work” has failed to materialize, The result has been devastating. A report by researchers at NYU and Columbia– “Work From Home and the Office Real Estate Apocalypse;” sums up the damage. Soon after the pandemic began in 2020, office occupancy collapsed to 20% in major office markets. Occupancy has slowly recovered but is now stalled at 49.9%. Decreased daytime population coincided with increased crime. Compulsory pandemic face masks enabled a crime wave of shoplifting, carjacking, armed robbery, and burglary that is ongoing. In Metro DC, 1000 people were carjacked in 2022, a rate of almost three per day.

Brazen, organized gangs of shoplifters led essential retailers like CVS, Target, Walgreens, and Walmart to shutter stores, and lock up laundry detergent, toiletries and even ice cream.

Cities including DC, Philadelphia and New York have no cash bail policies that return recidivist criminals to the streets hours after an arrest, demoralizing shrunken police forces. The lawful became fearful, the lawless, fearless.

A 2021 study by Howard Chernick, at City University of New York’s Hunter College calculated the commercial real estate tax revenue of eight major cities. Including Atlanta, Chicago, Los Angeles, New York and San Francisco. In these cities, commercial real estate accounts for an average of 37% of these property taxes ranging from 26% in Los Angeles to 56% in Atlanta.

The future of America’s largest cities depends on the tax revenue paid, directly and indirectly, by commercial real estate investors. If those investors decide to invest more in the Sun Belt, the future of Northeastern cities will go south too.

Follow me on Twitter. Check out my website. 

Zenger is the world’s first digitally native newswire. We are restoring the public’s trust in news media by strictly prohibiting the use of anonymous sources and by verifying everything that’s verifiable in the stories we distribute. America’s newsrooms are shrinking, but Zenger is putting jobless journalists back to work, providing wire stories to news outlets with no up-front cost and sharing advertising revenue with both. Our reporters, editors, photojournalists and videographers work in more than 110 countries—and we’re always searching for new talent.

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The post For Business Actual Property Buyers, “City Doom Loop” Is Each Disaster And Alternative appeared first on DAILY SAN FRANCISCO BAY NEWS.

When it comes to real estate, every city and property type is different. What might happen in the San Francisco market is not necessarily the same in Atlanta. The forces acting on the office do not affect the industrial market. However, there are trends that are so big that they impact the entire industry, regardless of the market or property type. Such “metatrends” are so influential that they will likely change the real estate industry forever.

These big trends are forces of nature. And like nature, the complex interactions that make it up are not always easy to understand. “When someone tugs at a single thing in nature, they find that it is connected to the rest of the world,” John Muir once said.

But we have to stick to these trends. That’s why each year we challenge our writers to write an essay asking tough questions about what we think are the biggest and overarching trends. These questions and the answers to them can impact the entire industry and the rest of the world that connects to it.

decarbonization

PROPMODO METATRENDS 2023

Climate change caused by greenhouse gases is no longer a theory. We have already seen that the weather becomes more extreme as CO2 levels rise. However, although there is a general consensus among the world population about the need for CO2 reduction, this proves to be extremely complicated. One of the focal points of global decarbonization efforts are our buildings, which are of course among the largest energy consumers. Pressure from regulators, investors and tenants has already begun to push buildings in a more sustainable direction, but we can expect only limited action from building owners and operators. Because it is not the building itself that consumes energy, but the people in it.

Actually decarbonizing our buildings will require a team effort between the real estate industry, governments, utilities, financiers and occupiers. The task (and price) of reducing the carbon footprint of buildings around the world to the level we need to prevent climate catastrophe is monumental. There will be no path to our carbon targets without teamwork and sacrifice.

Accessibility

PROPMODO METATRENDS 2023

Creating a more inclusive environment is a hot topic right now. From protests to boycotts to corporate mandates, the inclusion movement has gripped every aspect of business. One aspect of inclusion where building plays a critical role is accessibility for people with disabilities. Disability rights may seem like a marginal idea until you learn that one in four Americans will be diagnosed with a disability at some point in their lives. The Americans with Disabilities Act is nearly 35 years old, but many say it’s not doing enough. We will likely see a renewed push to make buildings accessible to people with disabilities.

Offices are at the forefront of the shift towards a more accessible world. Getting people back into the office has proven difficult. Creating safe, accessible spaces will be paramount to the comeback of the office. What if offices could not only be accessible to people with disabilities, but could also serve them? Offices of the future must be designed for everyone, regardless of their physical or mental abilities.

office conversions

PROPMODO METATRENDS 2023

The return to the office is just around the corner, but even the most optimistic about the role of a physical workplace in our organizations will concede that some offices are likely to struggle with vacancy. Empty offices help nobody. The investors and drafters of the buildings are threatened with a loss. The areas surrounding them are losing valuable foot traffic. The municipalities that administer them lose out on tax revenue.

Many are proposing converting offices into apartments to reverse the trend of declining office occupancy. But these conversions are not as easy as many might think. In addition to the obvious obstacles such as plumbing and HVAC, office buildings have larger floor slabs and a lack of windows. We will certainly see a number of office buildings converted into residential buildings, but this will not solve some of the larger problems of unused space and empty inner cities.

Housing affordability

PROPMODO METATRENDS 2023

Housing costs have risen in most American cities. On the surface, it might appear to benefit the real estate industry; Higher rents and real estate prices create added value for real estate owners. But the reality is much more complicated. The strain that unaffordable housing places on our cities will create long-term problems that will eventually undermine the economies that need real estate to be valuable.

So how does the real estate industry relate to housing affordability? Is there a way for real estate owners and developers to use public opinion about affordable housing to transform our cities for the better?

The post Deciphering the Metatrends Shaping the Way forward for Business Actual Property appeared first on DAILY SAN FRANCISCO BAY NEWS.

KAPELLENHÜGEL – Der jüngste Rückgang der Bewertungen von Gewerbeimmobilien – teilweise aufgrund höherer Zinssätze und eines Rückgangs der verfügbaren Kredite – hat einige dazu veranlasst, sich Sorgen um die Zukunft der Branche zu machen. Diese Bedenken sind angesichts der Revolution der Fernarbeit während der COVID-19-Pandemie von besonderer Bedeutung, die zu einer Neubewertung der Art und Weise geführt hat, wie Arbeitsplätze und Unternehmen physische Standorte nutzen. Um diese Fragen genauer zu untersuchen, sprachen wir mit Jacob Sagi, Professor für Finanzen an der UNC Kenan-Flagler Business School, der die Herausforderungen erörterte, vor denen CRE stehen – und wie man die Trends entwirren kann, die den Sektor erschüttern.

Gibt es eine Krise bei Gewerbeimmobilien?

Jacob Savi (UNC-CH-Foto)

Jakob Sagi: Der Bürosektor steht vor einer drohenden Krise, aber sie ist bei weitem nicht repräsentativ für das, was in CRE insgesamt vor sich geht. Es ist wichtig zu verstehen, dass CRE nicht monolithisch ist. Laut einer aktuellen Studie der National Association of Real Estate Investment Trusts beläuft sich der Bestand an Gewerbeimmobilien in den Vereinigten Staaten auf über 20 Billionen US-Dollar. Büroimmobilien machen davon rund 15 % aus. Zu den verbleibenden Nutzungen von CRE-Immobilien gehören Wohnen (z. B. Wohnungen), Einzelhandel (z. B. Einkaufszentren und Einkaufszentren), Industrie (z. B. Fulfillment-Lagerhäuser), Hotels und eine Vielzahl von „Spezial“-Nutzungen (medizinische Einrichtungen, Seniorenpflege, Rechenzentren, Mobilfunkmasten, Jachthäfen und die Liste geht weiter). Der CRE-Immobilienmarkt ist hinsichtlich seiner Flächennutzung diversifiziert, und die Nachfrageprofile variieren je nach Standort. Beispielsweise ist die Flächennachfrage unabhängig von der Nutzung in wachstumsstarken Städten im Sonnengürtel anders als beispielsweise in San Francisco (ein Markt, der sowohl von COVID-19 als auch von der Tech-Rezession hart getroffen wurde). Mit anderen Worten, es ist wichtig, nicht in die Falle zu tappen, den großen und vielfältigen nationalen CRE-Markt mit breiten Pinselstrichen zu malen.

Riesige Herausforderungen: Der Gewerbeimmobiliensektor von Triangle steht vor „sehr realem“ Gegenwind

Mehr sehen

Vor welchen Herausforderungen steht der CRE-Markt und welche Märkte sind am stärksten herausgefordert?

Jakob Sagi: Wir alle wissen, dass die Zinsen in die Höhe geschossen sind und damit auch die Preise von Anlagewerten wie Aktien und Anleihen eingebrochen sind. Um zu verstehen, wie der gleiche wirtschaftliche Druck auf Gewerbeimmobilien ausgeübt werden sollte, bedenken Sie, dass die typische Gewerbeimmobilien-Hypothek für begehrte Immobilientypen im April 2021 einen Zinssatz von etwa 3,5 % geboten haben könnte. Spulen Sie zwei Jahre vor und der Zinssatz für dasselbe Darlehen ( bei gleichem Beleihungsauslauf) würde höchstwahrscheinlich über 6 % liegen. Unter Verwendung der CRE-Preise von Anfang 2022 sind die heutigen Hypothekenzinsen höher als das, was viele Immobilien an Nettoeinkommen erbringen können. Angesichts der Tatsache, dass die Zinssätze 2019, geschweige denn 2021, wahrscheinlich nicht wieder auf ihr Niveau sinken werden, könnten nur zwei Dinge einen rationalen Käufer dazu bringen, angesichts der heutigen viel höheren Finanzierungskosten solch hohe Preise zu zahlen:

1. Überzeugen Sie den Käufer davon, dass die Einkommensrenditen schnell und heftig steigen werden, um die niedrigeren Hypothekenzinsen auszugleichen.
2. Senken Sie den Preis … sehr!

Die gute Nachricht ist, dass laut Green Street Advisors für fast alle CRE-Immobilientypen ein gewisses Einkommenswachstum prognostiziert wird. Die schlechte Nachricht ist, dass mit einigen bemerkenswerten Ausnahmen (z. B. Industrielager und Vertriebszentren) nur wenige Immobilienarten ein Wachstum prognostizieren, das die Inflation um mehr als ein paar Prozentpunkte übersteigt. Damit die meisten CRE-Immobilien für aktuelle Käufer attraktiv sind, müssen die Werte im Vergleich zum Niveau von 2021 sinken, und zwar in einigen Fällen erheblich. Warum sind die Preise nicht schon gesunken? Das liegt daran, dass die meisten Eigentümer nicht verkaufen müssen. Infolgedessen haben wir gesehen, wie Verkaufstransaktionen im ersten Quartal 2022 und 2023 von einer Klippe gefallen sind. Um ein Gefühl für die Kluft zwischen den Preisen zu bekommen, zu denen Anleger bereit sind zu kaufen, und den Preisen, die Eigentümer zahlen wollen, bedenken Sie, dass öffentlich gehandelte Immobilienportfolios, deren Aktien täglich gehandelt werden, von der Börse mit bewertet werden ein durchschnittlicher Rabatt von fast 25 % im Vergleich zu dem Wert, zu dem private Markteigentümer sie schätzen würden. Die Geschichte zeigt uns, dass irgendwann die Realität einsetzt und private und öffentliche Märkte zusammenlaufen. Die Frage ist, wann und was die Auswirkungen sein könnten.

„Wann“ kann niemand mit Sicherheit sagen. Um die Auswirkungen einer Abrechnung auf den Gewerbeimmobilienmarkt zu verstehen, kann man zwei Fälle untersuchen, in denen das zukünftige Einkommenswachstum die derzeit hohen Preise der Eigentümer für die durchschnittliche Immobilie wahrscheinlich nicht rechtfertigen wird: Büro- und Mehrfamilienimmobilien. Auch wenn beiden das Risiko eines deutlichen Kursverfalls droht, sind die Folgen für Eigentümer und Kreditgeber sehr unterschiedlich. Mehrfamilienhäuser erlebten in den letzten zwei Jahren einen so phänomenalen Mietanstieg, dass Eigentümer, die vor Mitte 2021 gekauft oder refinanziert wurden, im Vergleich zu ihrer ursprünglichen Kauf- (und Finanzierungs-) Basis kaum oder gar keinen Verlust erleiden würden. Darüber hinaus hat der Markt für Mehrfamilienhäuser Zugang zu Finanzierungen von staatlich geförderten Agenturen wie Fannie Mae und Freddie Mac und wird in der Lage sein, eine Refinanzierung zu finden, selbst wenn die Kreditmärkte bei Fälligkeit ihrer Kredite angespannt bleiben. Mit anderen Worten, der Markt für Mehrfamilienhäuser als Ganzes kann wahrscheinlich jeden drohenden Schlag einstecken und weitermachen.

Der Büromarkt ist nicht so glücklich. Zwischen Anfang 2017 und Ende 2022 verzeichneten die Büromärkte in den US-Innenstädten insgesamt einen anämischen Wertzuwachs von 3 % pro Jahr. Ein Eigentümer und sein Kreditgeber werden erheblichen Risiken ausgesetzt sein, wenn ein Großmieter seinen Mietvertrag nicht verlängert oder sich verkleinert, und die Arbeit von zu Hause aus wird als einer der Gründe dafür angesehen. Offene Stellen in allen außer den besten Büroflächen sind schwer zu besetzen. Um diesen Schmerz noch zu verstärken, muss der Eigentümer für viele Kredite, die zur Finanzierung und Neubewertung in den heutigen angespannten Kreditmärkten fällig werden, erhebliches zusätzliches Eigenkapital aufbringen, oder der Kreditgeber muss möglicherweise einen Teil des Kredits umstrukturieren und/oder abschreiben (oder in einigen Fällen , ausschließen).

Zusammenfassend: Der CRE-Markt insgesamt steht sicherlich vor Herausforderungen, aber es wäre übertrieben zu behaupten, dass sich dieser gesamte Markt in einer Krise befindet. Viele Segmente entwickeln sich gut, und einige (wenn nicht die meisten) sind gut positioniert, um einer Korrektur standzuhalten. Eine Ausnahme bildet der Bürobereich. Es ist in Schwierigkeiten, aber es ist auch ein relativ kleiner Teil eines großen Ganzen.

Können Büroimmobilien an neue Nutzungen angepasst werden?

Jakob Sagi: Dies ist eine der am häufigsten gestellten Fragen im Zusammenhang mit Problemen im Bürosektor von CRE. Es ist viel darüber geschrieben worden. Der offensichtliche Anwärter auf die adaptive Wiederverwendung ist das Wohnen. Schließlich haben wir so viel über die Immobilienkrise gehört, also könnte dies eine Win-Win-Situation sein, oder?

Die kurze Antwort lautet: „Vielleicht ein bisschen, aber nicht viel und nicht in absehbarer Zeit.“ Hier gibt es zwei große Herausforderungen: physische und finanzielle. Auf der physischen Seite hat die Mehrheit der modernen Bürogebäude in den USA, die nach 1950 gebaut wurden, Bodenplatten, die zu groß für die Umwandlung in Wohnzwecke sind. Letzteres erfordert einen Zugang zu Fenstern, und das bedeutet, dass Wohnungen nur um den Umfang der Bodenplatte herum angeordnet werden konnten. Dies hinterlässt in vielen Fällen einen riesigen unerwünschten oder unbrauchbaren leeren Raum (außer vielleicht für den Aufzugsschacht) in der Mitte der Bodenplatte. Nicht ideal.

Zweitens ist es teuer, den Umbau durchzuführen und die Standardbauvorschriften für Wohngebäude zu erfüllen. Sanitär, HVAC usw. müssten alle erneuert werden. Um wirtschaftlich sinnvoll zu sein, würde die Gebäudeerwerbsgrundlage (was ein Bauträger dem Bürogebäudeeigentümer zahlen müsste) die Hälfte oder weniger des Wertes der meisten Schätzungen betragen. Das liegt daran, dass Büroimmobilien in der Vergangenheit teurer im Bau waren und für mehr (pro Quadratfuß) vermietet wurden als Mehrfamilienhäuser. Eine Studie von Moody’s Analytics aus dem Jahr 2022 kam kürzlich zu dem Schluss, dass nur 3 % der Bürogebäude in NYC für die Umwandlung in Wohnungen geeignet wären. Dies könnte sich ändern, wenn die Preise deutlich sinken und die Städte Umstellungsanreize und Subventionen einführen – beides ist im Gange, aber immer noch auf einem viel zu bescheidenen Niveau, um eine signifikante Wirkung zu erzielen.

Kann eine Krise im Bürosektor von CRE auf den Rest der Wirtschaft übergreifen? Kann es zum Beispiel eine Bankenkrise auslösen?

Jakob Sagi: Lokal, ja. Bundesweit wahrscheinlich nicht. Betrachten wir dazu ein paar Fakten und Statistiken. Der offensichtlichste Kanal, durch den Immobilienprobleme auf den Rest der Wirtschaft übergreifen können, ist das Finanzsystem. Das geschah Ende der 1980er Jahre mit der Spar- und Kreditkrise und mit der Finanzkrise Mitte der 80er Jahre. Der Mechanismus ist inzwischen bekannt: Angeschlagene Immobilienunternehmen zahlen massenweise keine Kredite mehr, was die Bilanzen der Finanzinstitute verstopft, und diese Institute beginnen zu scheitern oder müssen die weitere Kreditvergabe einschränken. Die anschließende Kreditklemme führt zu einer weit verbreiteten finanziellen Notlage, die sich auf die Finanzinstitute auswirkt. Wie wir wissen, kann dies ein staatliches Eingreifen erfordern, um eine außer Kontrolle geratene Spirale zu verhindern.

Wie ich bereits ausgeführt habe, liegen die Probleme bei Gewerbeimmobilien hauptsächlich im Bürosektor. Es gibt nur wenige Anzeichen dafür, dass Eigentümer von Nicht-Büroimmobilien generell Gefahr laufen, Schlüssel an ihre Kreditgeber zu übergeben. Es gibt jedoch Anzeichen dafür, dass einige der finanzkräftigsten Eigentümer (z. B. Blackstone und Brookfield) tatsächlich bereit sind, dies bei Bürogebäuden zu tun. Kann der Bürosektor allein das Finanzsystem zu Fall bringen? Das bezweifle ich. Um zu sehen warum, lassen Sie uns die Quellen der CRE-Kreditvergabe analysieren.

Laut der Mortgage Bankers Association verteilt sich die Kreditvergabe von Wirtschaftsimmobilien auf Banken (40 %), Versicherungsgesellschaften (15 %), spezialisierte private und öffentlich gehandelte Fonds (11 %) und Wall-Street-Investoren in hypothekenbesicherte Wertpapiere, die von staatlich geförderten Agenturen ausgegeben werden (20 %) und Investmentbanken (14 %). Systemrelevante Institute scheinen kein erhebliches Engagement in riskanten Gewerbeimmobilienkrediten zu haben, aber es stimmt, dass kleine und regionale Banken proportional zu ihrer Größe mehr Kredite gegen Gewerbeimmobilien vergeben.1 Angesichts der jüngsten Insolvenzen von SVB und Signature Bank ist dies der Fall Klasse von Finanzinstituten, die angesichts ihres Engagements in Wirtschaftsimmobilien die größte Sorge verdient. Nach Angaben von Trepp werden etwa 545 Milliarden US-Dollar an von Banken bereitgestellten CRE-Krediten in den Jahren 2023 und 2024 fällig und müssen refinanziert werden.2 Davon entfallen etwa 30 % (oder etwa 161 Milliarden US-Dollar) auf Büroimmobilien. Ausgehend von der Tatsache, dass rund 80 % der Bankkredite an Gewerbeimmobilien über kleine und mittelgroße Banken vergeben werden, könnte man die potenzielle Größe „angeschlagener Gewerbeimmobilien“ in den Bilanzen anfälliger Institute auf 130 Milliarden US-Dollar schätzen.3 Dies entspricht weniger als 2 %. ihrer Gesamtbilanz, laut einem FDIC-Bericht von 2023. Das Bankensystem als Ganzes sollte in der Lage sein, einer solchen Belastung standzuhalten. Bankinstitute sind jetzt viel besser kapitalisiert als während der vorangegangenen Krisen.4 Darüber hinaus hat die Bundesregierung ihre Bereitschaft gezeigt, Einleger zu unterstützen und anfälligen Instituten Liquidität gegen das Versiegen kurzfristiger Finanzierungsquellen bereitzustellen.

Dass Wirtschaftsimmobilien und insbesondere der Bürosektor wahrscheinlich keine nationale Finanzkrise auslösen werden, sollte nicht als Bagatellisierung des Schmerzes oder der Auswirkungen des Stresses in dieser Anlagekategorie angesehen werden. Laut dem Community Banking Research Program der FDIC für Ende 2022 sind etwa 27 % der Klein-/Gemeinschaftsbanken (typischerweise mit Kreditbilanzen von 2 Mrd. USD oder weniger) „CRE-Spezialisten“, deren Kredite 30 % oder mehr ihrer Bilanz ausmachen Blätter. Einige dieser Institute könnten scheitern oder ihre gesamte Kreditvergabe einschränken müssen, und dies könnte einigen Gemeinschaften schaden – insbesondere denen, die von größeren Bankinstituten unterversorgt sind. Darüber hinaus werden angespannte Immobilien mit wachsendem Leerstand wahrscheinlich einen Rückgang der Grundsteuer (und damit der lokalen Dienstleistungen) und das Risiko wachsender städtischer „Wüsten“ bedeuten. Es wird Schmerzen geben, aber es ist wahrscheinlich, dass sie lokal zu spüren sind, wobei einige Gemeinschaften mehr leiden als andere. Anstatt dass CRE eine Krise verursacht und uns in eine Rezession führt, könnte es sein, dass eine Rezession, die hauptsächlich durch andere Einflüsse ausgelöst wird, die Probleme im Bürosektor weiter verschärfen und den Schmerz in einigen Gemeinden verstärken wird.

(C) Kenan-Institut

The post What’s up with business actual property? It’s a problem, not a disaster says UNC finance professor appeared first on DAILY SAN FRANCISCO BAY NEWS.

To update: This post will be updated with the latest Walmart Black Friday video.

Office Space is back in the office water cooler discussion.

23 years after becoming a cult classic about frustrations at work, Walmart’s ever-current Office Space crew has been brought back to life.

In a promotional campaign leading up to Black Friday on November 25, Walmart revived the 1999 film with Initech regulars.

There’s the smug Gary Cole back in his role as Bill Lumbergh, manager of Initech. Frustrated programmer Samir Nagheenanajar (Ajay Naidu) also returns. There’s also Michael Bolton – the real character, not the character played by David Herman – and there’s Lawrence (Diedrich Bader), the craftsman known for installing the dry stone walls at Las Colinas.

Best of all is Nina (Kinna McInroe), who puts callers on hold with her cheeky “Thanks for calling Initech, Nina is speaking, hold on a minute.” And the overly cheeky female temp (Jennifer Jane Emerson) offers, “Oooh! Looks like someone has a case of Monday!”

Walmart is expanding its Black Friday approach, reminding shoppers that many of its deals and bargains appear online early in the week instead of Wednesdays and Black Friday. The ads are shown in episodic form every Monday in November. Here they are in order:

2 Nov

https://www.youtube.com/watch?v=zw4_fxkkRbc

Nov 7

https://www.youtube.com/watch?v=29nO4cQLECI

Nov 14

Nov 21

“What could be better than putting the spotlight on the Film Office Space and drawing attention to Monday,” said Lea Ciskowski Shackelford, Walmart’s senior manager of global communications.

The film has strong ties to Texas. Former Garland resident Mike Judge directed and filmed portions of Office Space in Dallas and Austin. Judge also played the role of Stan, the flair-obsessed manager at Chotchkie’s.

Jennifer Aniston and former Garland resident Mike Judge share a scene in Office Space.(20th Century Fox / 20th Century Fox)

Judge was inspired by animated shorts he saw at the Inwood Theater, he said in a 2015 interview with Sportsradio 96.7 FM/1310 The Ticket (KTCK-AM). He went to the Richardson Public Library and looked at books on animation.

“The first thing I ever finished animated was called Office Space, and it was Milton with a stapler,” said Judge. “I animated it right there in Richardson. I did all this in my house with a small Bolex film camera.”

The post Handyman Lawrence returns in Walmart’s newest ‘Workplace Area’ business appeared first on DAILY SAN FRANCISCO BAY NEWS.

Office Space is back in the office water cooler discussion.

23 years after becoming a cult classic about frustrations at work, Walmart’s ever-current Office Space crew has been brought back to life.

In a promotional campaign leading up to Black Friday on November 25, Walmart revived the 1999 film with Initech regulars.

There’s the smug Gary Cole back in his role as Bill Lumbergh, manager of Initech. Frustrated programmer Samir Nagheenanajar (Ajay Naidu) also returns. There’s also Michael Bolton – the real character, not the character played by David Herman – and there’s Lawrence (Diedrich Bader), the craftsman known for installing the dry stone walls at Las Colinas.

Best of all is Nina (Kinna McInroe), who puts callers on hold with her cheeky “Thanks for calling Initech, Nina is speaking, hold on a minute.” And the overly cheeky female temp (Jennifer Jane Emerson) offers, “Oooh! Looks like someone has a case of Monday!”

Walmart is expanding its Black Friday approach, reminding shoppers that many of its deals and bargains appear online early in the week instead of Wednesdays and Black Friday. The ads are shown in episodic form every Monday in November. Here they are in order:

2 Nov

Nov 7

Nov 14

Nov 21

“What could be better than putting the spotlight on the Film Office Space and drawing attention to Monday,” said Lea Ciskowski Shackelford, Walmart’s senior manager of global communications.

The film has strong ties to Texas. Former Garland resident Mike Judge directed and filmed portions of Office Space in Dallas and Austin. Judge also played the role of Stan, the flair-obsessed manager at Chotchkie’s.

Jennifer Aniston and former Garland resident Mike Judge share a scene in Office Space.(20th Century Fox / 20th Century Fox)

Judge was inspired by animated shorts he saw at the Inwood Theater, he said in a 2015 interview with Sportsradio 96.7 FM/1310 The Ticket (KTCK-AM). He went to the Richardson Public Library and looked at books on animation.

“The first thing I ever finished animated was called Office Space, and it was Milton with a stapler,” said Judge. “I animated it right there in Richardson. I did it all in my house with a small Bolex film camera.”

The post Handyman Lawrence returns in Walmart’s newest ‘Workplace House’ business appeared first on DAILY SAN FRANCISCO BAY NEWS.