Chris Stephens

CHRIS STEPHENS

New construction affirms city's economic growth

New buildings seem to be popping up all over town. They're physical proof of the strength of the Anchorage economy. New construction, particularly speculative construction, happens when an economy is growing, as ours is.

CHRIS STEPHENS

Commercial real estate turns corner in '11

2011 was a year of increased commercial real estate activity in Alaska, and 2012 appears likely to continue that improvement.

Energy authority moves a step forward on Susitna dam

The Alaska Energy Authority has taken the next step toward construction of a major hydroelectric power plant at Watana on the upper Susitna River by filing a license pre-application with the Federal Energy Regulatory Commission.

REAL ESTATE

It's time to move ahead with the new land code

If you haven't heard about the proposed changes to Title 21 of Anchorage's municipal code, you soon will. Title 21 is a section of the city code that regulates land use and development.

CHRIS STEPHENS

Bad national forecast; better news for landlords

This column covers two topics: a pessimistic outlook for commercial real estate nationally, and an update on the proposed change in accounting rules for leases, a subject I wrote about earlier this year.

CHRIS STEPHENS

Property investing can enhance retirement

Time is not as consistent as it appears. When you first get out of school, land your first job as an adult, and start a family, you see a long working life ahead that seems to stretch forever. You stay busy with family, children and work.

CHRIS STEPHENS

Grasping differences key to communication

I recently saw how culture affects our outlook and expectations and, as a result, our ability to communicate and negotiate agreements, a critical part of commercial real estate negotiations.

CHRIS STEPHENS

Win-lose attitude rules US budget debate

As a commercial real estate broker I make my living negotiating transactions, so I've found the current debt-ceiling negotiations between President Barack Obama and the Republican majority in the House of Representatives both mind-boggling and fascinating to watch, especially as the president has shifted his negotiating strategy.

CHRIS STEPHENS

Local commercial real estate holds steady

While the national commercial real estate market is showing slight improvement, the Anchorage market continues to hold steady.

CHRIS STEPHENS

Lawmakers turned down sure-thing gas line

We got some bad news the other day. The Denali Gas Pipeline project, a joint venture of BP and Conoco Phillips, announced it was throwing in the towel on its proposed natural gas pipeline from Prudhoe Bay to the Lower 48 because it cannot make the project work.

CHRIS STEPHENS

New rules for leases will have serious effects

Big changes are coming for companies with leases. Rules that govern how businesses record leases in their financial books are being rewritten. These accounting changes could affect financial statements by as much as a trillion dollars and have a major effect on commercial real estate.

CHRIS STEPHENS

Letters behind name signify level of expertise

The other day I was asked about the meaning of the letters CCIM behind my name. Commercial real estate, like most professions, has a number of designations obtained through study, examinations and demonstration projects.

Alaskans have a lot to be confident about

Just two months ago, I wrote we needed to keep in mind that the Anchorage economy was doing quite well, despite the subprime problems of the Lower 48. That was then. Now we have a world financial crisis not seen since the Great Depression of the 1930s. How is this affecting our commercial real estate market?

Commercial real estate season?

Summer is over, such as it was, and hopefully we can get back to business. I say that because it seems a lot of folks have been taking vacations from the commercial real estate market. There is less activity than our active economy should create, although the market is more active than last year.

Anchorage market surprisingly good

Among the things we import from the Lower 48 are attitudes about the economy, which extend to the commercial real estate market. It is easy to get discouraged when national news is full of stories about difficulties in the financial markets due to subprime lending, problems of major investment banks, rising unemployment and a national election where the economy is a major issue.

Calais buildings firsts for Midtown

I am not sure which property in Anchorage's history ranks as the most successful commercial real estate development, but the Calais Office Center in Midtown has to be near the top of the list, if not at the very top.

CHRIS STEPHENS

Commercial property market here isn't that bad

The Anchorage commercial real estate market is slow and level, but compared with the rest of the country, it is an oasis of prosperity.

CHRIS STEPHENS

Uncertain cap rates disruptive

Determining the value of commercial real estate right now is very difficult.

CHRIS STEPHENS

Commercial real estate market flat, but that's OK

This year the commercial real estate market in Anchorage has been flat, with activity off about one-third from last year. In comparison to the national economic problems, flat is pretty good.

CHRIS STEPHENS

Rational plan in place to retain, develop wetlands

I recently met with an expert on development and preservation of wetlands. Wetlands are protected under federal laws because they are important for flood control, water quality, recreation and animal habitat.

CHRIS STEPHENS

Letters of Intent vital in property deals

Offers for commercial leases and oftentimes for purchase of commercial properties are made through what is called a Letter of Intent (LOI).

CHRIS STEPHENS

Land use changes need more review

The city is about to pass new land use regulations that have been in the works for years. Revising these regulations has been a huge and extremely difficult, contentious undertaking.

CHRIS STEPHENS

Office 'hoteling' provides desk only as needed

Several weeks ago, KTUU television featured a Wasilla businessman whose home-based business had grown enough that he needed an office outside his home. Rather than rent an office, he started a company that leases a desk for a day or longer. This service is proving popular for workers who occasionally need a brick and mortar office.

CHRIS STEPHENS

Assessment appeal not always good

The green property-assessment cards have just arrived in the mail, showing the Municipality of Anchorage assessed value of your property. You have until Feb. 14 to appeal if you think the assessment is wrong.

CHRIS STEPHENS

Determine value of property from cash flow

A friend recently told me he could project the cash flow for his small investment property, but he did not know how to find the value of the property from the cash flow.

CHRIS STEPHENS

Anchorage economy mostly steady

The end of 2010 marks the second year with uncertainty hampering the Anchorage commercial real estate market.

CHRIS STEPHENS

Cash-flow forecast can help predict investment income

As a real estate investor, you need to know how to make a cash-flow projection for a property. A cash flow projection shows the likely financial performance of a property and allows you to analyze and compare properties.

CHRIS STEPHENS

Choosing a business partner a serious business

Real estate investing often means having partners. By pooling resources, investors have more money to work with, more skills to benefit the partnership and greater sharing of responsibilities. Having a successful partnership means choosing good partners.

CHRIS STEPHENS

Before delving into real estate, learn discounting

The most important concept for real estate investing, or any investing, is this: Investing is essentially buying a future stream of income. To invest well, you need to know how to evaluate and compare future streams of money.

CHRIS STEPHENS

Buy when no one else wants to

If you are a younger person who wants to get ahead financially, things might look pretty gloomy. The stock market is scary, and lots of uncertainty exists in the national and Alaska economy. But you can still start to build a substantial nest egg with small investment properties.

CHRIS STEPHENS

Retirees should reassess their real estate partnerships

Baby boomers are heading for retirement age, and those with investments in real estate partnerships need to carefully review those investments. Dealing with partnership interests during retirement has a host of issues to be considered.

CHRIS STEPHENS

Envision future realistically

Five years ago when the national real estate market was in the midst of rapidly increasing prices and demand, I wrote a column describing two outlooks on the future of real estate. One outlook saw the boom as a permanent change in the market; the other thought things had gone crazy and the market was going to crash.

CHRIS STEPHENS

Decide if you should sell now

Owners of investment properties in Anchorage are reluctant to sell and, as a result, fewer investment properties are on the market.

CHRIS STEPHENS

Highest, best use concept drives city development

Anchorage is a comparatively young city that has experienced a lot of new construction over the past 10 years. It has been interesting for me to see how this development has improved the city and demonstrated the concept of "Highest and Best Use."

CHRIS STEPHENS

Lenders delay, problems stay

The latest catchwords in the national commercial real estate market are "extend and pretend" and "delay and pray." This refers to lenders' current practice of extending maturity dates for troubled loans, rather than working out a solution, recognizing the problem loan and hurting their financial statements.

Warehouse lease is the most costly here

Anchorage warehouse lease rates are so high compared to the rest of the nation that many companies decide it is cheaper to warehouse elsewhere, such as Seattle, and ship their goods here.