2005 mid-year investment report. expect a strong & sustainable real estate market through 2006...
TRANSCRIPT
![Page 1: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/1.jpg)
2005 Mid-Year
Investment Report
![Page 2: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/2.jpg)
Expect a Strong & Sustainable Expect a Strong & Sustainable Real Estate Market Through Real Estate Market Through
20062006 Waikiki Gentrification and InvestmentWaikiki Gentrification and Investment Sustainable Military SpendingSustainable Military Spending Safe HarborSafe Harbor Geographic DiversificationGeographic Diversification Institutional Capital: Hawaii is a Sweet Institutional Capital: Hawaii is a Sweet SpotSpot Baby Boomers Investing in Hawaii Baby Boomers Investing in Hawaii Lifestyle InvestmentLifestyle Investment Low Interest RatesLow Interest Rates International Buyers: Cheap U.S. International Buyers: Cheap U.S. DollarDollar
![Page 3: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/3.jpg)
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Euro U.K. Pound Canadian Dollar German Deutsche
Dollar’s Devaluation Helps International Dollar’s Devaluation Helps International BuyersBuyers
2001-2005 Dollar Slides @ 20%2001-2005 Dollar Slides @ 20%
Source: exchangerate.com
![Page 4: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/4.jpg)
Historical Interest Rate Trend1-Month LIBOR vs. 10 Year Treasury
0123456789
Jan-
92
Jan-
93
Jan-
94
Jan-
95
Jan-
96
Jan-
97
Jan-
98
Jan-
99
Jan-
00
Jan-
01
Jan-
02
Jan-
03
Jan-
04
Jan-
05
Inte
rest
Rat
e 1-Month LIBOR
10 Yr. Treasury
Source: Fannie May & Economagic.com
![Page 5: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/5.jpg)
![Page 6: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/6.jpg)
Recent Trends in Office Capitalization Rates
6
7
8
9
10
Offic
e Cap
italiz
ation
Rate
(%)
![Page 7: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/7.jpg)
CBD Spread Between Treasury & Cap Rate
2
3
4
5
6
7
8
9
10
Perc
enta
ge R
ate Office Cap. Rate
10 Yr. Treasury
![Page 8: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/8.jpg)
2005 2nd Qtr Median Sales Price of Existing Single-Family Homes
$450,000
$500,000
$550,000
$600,000
$650,000
$700,000
$750,000
Orange County Honolulu Los Angeles San Diego San Fransisco
![Page 9: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/9.jpg)
5150
6611
8687
94058893
55195206
5545
37394125
5127
6151
71077667
9312
11326
12590
12242
3902
5326
9572
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
13000
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
Total Annual Home SalesTotal Annual Home SalesOahu MLS – 1985 to June 2005Oahu MLS – 1985 to June 2005
Information obtained from the Honolulu Board of Realtors MLS Service. Information is deemed reliable but not guaranteed.
![Page 10: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/10.jpg)
Total Monthly Inventory of ListingsTotal Monthly Inventory of ListingsOahu MLS 1987 – June 2005Oahu MLS 1987 – June 2005
Information obtained from the Honolulu Board of Realtors MLS Service. Information is deemed reliable but not guaranteed.
1000
2000
3000
4000
5000
6000
7000
8000
Ja
n-8
7A
ug
-87
Ma
r-8
8O
ct-
88
Ma
y-8
9D
ec
-89
Ju
l-9
0F
eb
-91
Se
p-9
1A
pr-
92
No
v-9
2J
un
-93
Ja
n-9
4A
ug
-94
Ma
r-9
5O
ct-
95
Ma
y-9
6D
ec
-96
Ju
l-9
7F
eb
-98
Se
p-9
8A
pr-
99
No
v-9
9J
un
-00
Ja
n-0
1A
ug
-01
Ma
r-0
2O
ct-
02
Ma
y-0
3D
ec
-03
Ju
l-0
4F
eb
-05
Se
p-0
5
![Page 11: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/11.jpg)
Percent Homes Sold Above List Price Percent Homes Sold Above List Price Oahu MLS 2000 – June 2005Oahu MLS 2000 – June 2005
Information obtained from the Honolulu Board of Realtors MLS Service. Information is deemed reliable but not guaranteed.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Jan
-00
Ap
r-00
Jul-0
0
Oct
-00
Jan
-01
Ap
r-01
Jul-0
1
Oct
-01
Jan
-02
Ap
r-02
Jul-0
2
Oct
-02
Jan
-03
Ap
r-03
Jul-0
3
Oct
-03
Jan
-04
Ap
r-04
Jul-0
4
Oct
-04
Jan
-05
Ap
r-05
Jul-0
5
SF SAL
CND SAL
![Page 12: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/12.jpg)
0%
20%
40%
60%
80%
100%
Houston LA Miami Oahu San Diego SanFransisco
Tampa
Hotel Occupancy Index – July 2005Hotel Occupancy Index – July 2005
Source: Smith Travel Research
![Page 13: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/13.jpg)
$0
$20
$40
$60
$80
$100
$120
$140
$160
Houston LA Miami Oahu San Diego SanFransisco
Tampa
Average Daily Rate – July 2005Average Daily Rate – July 2005
Source: Smith Travel Research
![Page 14: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/14.jpg)
Hotel Condominium ConversionsHotel Condominium Conversions
![Page 15: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/15.jpg)
Office Vacancy Index
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Vaca
ncy
Rate
%
![Page 16: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/16.jpg)
Industrial Availability Index
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Perc
enta
ge R
ate
![Page 17: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/17.jpg)
0
1
2
3
4
5
6
7
Self Storage Market Supply (SF/Capita)
Hawaii is Undersupplied
Source: Mini Storage Association
Ren
tab
le S
F/C
apit
a
![Page 18: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/18.jpg)
0
500
1000
1500
2000
2500
3000
Assisted Living Assisted Living Plus Dementia
DemandSupply
No.
of
beds
Assisted Living MarketAssisted Living Market
![Page 19: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/19.jpg)
![Page 20: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/20.jpg)
![Page 21: 2005 Mid-Year Investment Report. Expect a Strong & Sustainable Real Estate Market Through 2006 Waikiki Gentrification and Investment Waikiki Gentrification](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649e915503460f94b963bf/html5/thumbnails/21.jpg)