UPDATED GUIDANCE FOR COMMERCIAL REAL ESTATE — SEPTEMBER 16, 2020
Governor Inslee’s office recently announced an important change to COVID-19 protocols for Phase 2 counties.
In-person activities including showings, inspections, appraisals, and final walk-throughs may now include up to five (5) persons (including the broker).
The prior Phase 2 restrictions limited the number of persons on site to three (3) persons (including the broker).
Please note: Open houses are still NOT permitted in Phase 2 counties.
The other protocols for in-person activities must continue to be followed in all counties, including:
In-person activities must be by appointment only;
Face coverings are required to be worn at all times by real estate brokers, their clients, and industry partners (e.g. appraisers, inspectors, photographers, stagers, etc.). Brokers may not provide services to any client who does not wear a face covering.
The persons on-site must strictly follow social distancing guidelines by remaining at least six feet apart at all times; and
The protocols for Phase 1 and 1.5 counties and Phase 3 counties have not changed. Please note that no more than two (2) persons, including the broker, are permitted on-site in Phase 1 and 1.5 counties.
As of September 16, 2020:
Phase 1 and 1.5 counties include: Benton, Franklin, Yakima, Chelan, and Douglas.
Phase 2 counties include: Adams, Clallam, Clark, Cowlitz, Grant, Jefferson, King, Kitsap, Klickitat, Okanogan, Pierce, San Juan, Skagit, Snohomish, Spokane, Walla Walla, and Whatcom.
Phase 3 counties include: Asotin, Columbia, Ferry, Garfield, Grays Harbor, Island, Kittitas, Lewis, Lincoln, Mason, Pacific, Pend Oreille, Skamania, Stevens, Thurston, Wahkiakum, and Whitman.
If you do not know your county’s current status, please check the County status and Safe Start application process website.
WE’VE UPDATED OUR
PURCHASE & SALE SUITE ON LEGAL LIBRARY PRO
We’re pleased to announce that we’ve updated our Purchase & Sale Suite in Legal Library PRO to make the forms more useful, usable, and flexible in response to requests from the CBA member community.
CBA’s forms have been reviewed and revised to ensure they meet all legal criteria and best practices. We also changed the format to make filling them out easier.
We’ve produced a video with our legal counsel, Hunter Jeffers from Stoel Rives, to clearly explain the changes that have been made.
CLICK HERE TO WATCH OUR VIDEO
The revised forms include the following:
17 – Seller Disclosure Statement-Improved Property
17C – Seller Disclosure Statement-Unimproved Property
22E – Certification Under the Foreign Investment in Real Property Tax (“FIRPTA”)
BB-1 – Buyer’s Agency Agreement
BU-A – Back-Up Addendum to Purchase and Sale Agreement
CDF – Commission Disbursement Form
EMN – Earnest Money Promissory Note
FMA – Force Majeure Addendum
LOI-PSA – Letter of Intent
LP-LS – Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards
LPB-20 – Short Form Deed of Trust
N-1A – Promissory Note
OTB – Option to Buy Real Estate
PS-1A – Commercial and Investment Real Estate Purchase & Sale Agreement
PS-AS – Assignment and Assumption Agreement
PS-D – CBA Defeasance Addendum
PS-FIN – Financing Addendum
PS-TEC – Tenant Estoppel Certificate
PSA – Addendum/Amendment to Purchase and Sale Agreement
PSR – Rescission of Purchase and Sale Agreement
RC – Recorder’s Cover Sheet
SS – Short Sale Addendum
UA – Utility Charges Addendum
VLA – Vacant Land Addendum
XA – Exclusive Agency Sale Listing Agreement
XS – Exclusive Sale Listing Agreement
IMPORTANT NOTE: When adding documents to your transactions, members will receive the newest version(s). This will not affect open transactions, and all of CBA’s previous forms are still valid and legal.
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NOW AVAILABLE TO MEMBERS: CBA’S 1ST HALF 2020 VS 1ST HALF 2019 CMA SALES OVERVIEW AND FULL RESEARCH REPORT
CBA’s latest CMA Sales Report analyzes monthly and quarterly commercial real estate sales activity and trends at the market and submarket levels through the first 6 months of 2020. We are pleased to offer this detailed analysis and report for your use and interpretation.
With the rush of commercial property sales in 2019 to beat Washington’s increased Real Estate Excise Tax (REET) taking effect in 2020, in addition to the restrictions on Commercial Real Estate activity due to COVID-19 concerns, CBA anticipated that 2020 sales activity would be negatively impacted. We started a running tally from our database to compare same-month sales by asset class and county from 2019 to 2020.
Same month comparisons in the 2nd quarter from 2019 to 2020 showed even bigger declines than in the 1st quarter. April transaction counts from 2019 to 2020 were down 57.9% with sales dollar volume down 76.8%. May showed the biggest drop in transactions year to date, as numbers were down 69.3% compared to May 2019. May 2020 dollar volume received a slight boost from two key deals, Waterscape Juanita Village in Kirkland and Everett 4 Corners Plaza, putting the decline at 62.8%. June 2020 transactions fared better than April or May, showing only a drop of 48.5% compared to June 2019. However, sales dollar volume was the biggest slide of the year, showing an 81.8% decline compared to June 2019.
Year to date, Multifamily (-80.2%) and Office (-78.1%) continue to show the biggest drops in sales volume, while Retail (-31.9%), Land (-30.4%), and Industrial (-41.2%) are comparatively less impacted. All researched counties except Thurston are down a considerable amount. Thurston is holding onto a positive 12% increase in sales volume compared to the same timeframe in 2019, mainly propped up by a strong January and April.
CBA researches office, retail, industrial, and land sales, $250,000 or more, in King, Snohomish, Pierce, Spokane, Kitsap, and Thurston counties. Multi-family sales of $250,000+, and 5-units or more are researched in King, Pierce, and Snohomish counties. All the raw data provided is pulled directly from the CBAcma database.
CLICK HERE TO VIEW OUR FULL SALES REPORT
CBA BOARD MEMBER CANDICE CHEVAILLIER HONORED AS ONE OF 48 GLOBEST. REAL ESTATE
FORUM’S WOMEN OF INFLUENCE
We’d like to congratulate CBA Board Member Candice Chevaillier, Principal at NW Multifamily Team at Lee & Associates, on being named as a top CRE Consultant/Advisor in GlobeSt. Real Estate Forum’s Women of Influence edition. Honorees are recognized as outstanding women leaders in the commercial real estate industry.
OUR NEW SEARCH PLATFORM IS LIVE!
We’re pleased to announce that Phase 1 of our NEW search platform is now available! This phase includes the searching, reporting, and demographic features our members have requested.
Throughout the upcoming phased transition, CBA will run the new Catylist-powered search platform in parallel with our existing platform throughout all three phases to allow you sufficient time to be trained and make full use of its powerful tools.
Rest assured that regardless of how you choose to search our listings during our transition period, you’ll see the exact same data and search results across both the new and legacy platforms.
BENEFITS OF THE NEW PLATFORM INCLUDE:
Powerful, Easy-to-Use Technology
CBA’s new, mobile-friendly platform works seamlessly on all browsers and devices, so you can access your listings and marketing tools anytime, anywhere! The platform provides all of the functionality our members have requested and come to expect with a streamlined, intuitive, easy-to-use interface.
Local Understanding, National Exposure
By partnering with Catylist, we can give you the best of both worlds: a local service specifically tailored to the needs of your markets, with the benefits of exposure on Commercial Exchange, Catylist’s nationwide network.
SEARCH OUR NEW PLATFORM NOW!
WEBINAR TRAINING DATES:
Our new search platform is incredibly intuitive and easy to use, but if you’d like a little help getting started, or want to learn about some of the more sophisticated search tools and functionality, sign up for training!
Over the next few months, we’ll be providing online webinars on Tuesday’s from 10-11 a.m.
If you need training for your brokerage, we are happy to provide group training for 15 people or more. Please contact us at [email protected] to schedule a time that meets your needs.
NEW ENHANCEMENTS MADE TO LEGAL LIBRARY PRO!
Based on member feedback and requests, we’re pleased to
announce that we have made several enhancements to the functionality of Legal Library PRO.
These upgrades are designed to help you search for transactions, create custom templates, fill out and edit forms, and invite users to collaborate more quickly and easily.
These NEW enhancements Include:
Auto-Fill Document Content: Auto-filled content (including Buyer, Seller, Property Address) now displays in both fill out and edit modes.
Quickly Add Documents: You can now select documents and hit “Done” to add them to your transaction without first having to click “Add Documents.”
Add Additional Transaction Details: A new “Document Note” field has been added so you can easily differentiate between forms of the same name — which is particularly helpful with multiple addendums.
Search Transactions Faster: Hitting “Enter” will now execute a search, whether you’re searching for a transaction or searching for a form.
Invite Users to Collaborate More Easily: Changes have been made to provide additional clarification about access levels for Transaction User and Document User.
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UPDATED GUIDANCE FOR COMMERCIAL REAL ESTATE — JUNE 19, 2020
Today, King County officially moved into Phase 2 of Governor Inslee’s county-by-county based “Safe Start” reopening plan for resuming recreational, social, and business activities. Several other counties have also moved into Phase 3.
If you do not know your county’s current status, please check the
County status and Safe Start application process website.
Based on the information provided by our friends at Washington REALTORS® and the Northwest Multiple Listing Service, we have created a quick reference chart that outlines the activities that are allowed in each phase of opening.
VIEW CBA’S “SAFE START” CRE PHASE CHART
Gov. Jay Inslee and Secretary of Health John Wiesman announced a statewide mandatory face-covering order that will take effect Friday, June 26.
Beginning June 26, every Washingtonian in an indoor public space, or in an outside public space when unable to physically distance from others, will be legally required to wear a face covering.
NOW AVAILABLE TO MEMBERS: CBA’S CMA 2020 VS 2019 DETAILED SALES OVERVIEW AND FULL RESEARCH REPORT
CBA’s new CMA Sales Report analyzes quarterly economic and commercial real estate activity and trends at the market and submarket levels. We are pleased to offer this detailed analysis and report for your use and interpretation.
With the rush of commercial property
sales in 2019 to beat Washington’s increased Real Estate Excise Tax (REET) taking effect in 2020, in addition to the restrictions on Commercial Real Estate activity due to COVID-19 concerns, CBA anticipated that 2020 sales activity would be negatively impacted. We started a running tally from our database to compare same-month sales by asset class and county from 2019 to 2020.
The number of transactions from January 2020 compared to 2019 was down 18.7%, and dollar volume was down 69%. February transactions had a 7.8% drop and saw the same drop of 69% in dollar volume. March transactions were down 14.1%, but dollar volume was softened by the retail sale of the former Macy’s department store in downtown Seattle for $68.7m, which made for a more modest decrease of 42.2%. On March 15th, the state-wide COVID-19 shutdown and reduced sales
leading up to and throughout April
made for the biggest drops to date.
April transactions were down 57.9%, and dollar volume was down 76.8%.
Overall, the biggest discrepancies in volumes were seen in the Office (-76.3%) and Multi-family (-78%) classes, while the smallest declines in volume were Retail (-14.1%) and Land (-15.2%). Multiple large deals in 2019 greatly affected sales volume disparities, which are listed throughout the report as notable sales.
In comparison, 2020 has had only one
nine-figure deal with the office sale of Tower 333 in downtown Bellevue for $401.5m. 2020 vs 2019 transactions and dollar volume are negative across all asset classes and counties so far, with the exception of Thurston County, which shows a net positive in sales volume of 38.3%.
CLICK HERE TO VIEW OUR FULL SALES REPORT
GOVERNOR INSLEE EXTENDS MORATORIUM ON EVICTIONS
On June 2, Governor Inslee extended the Moratorium on Evictions until August 1, 2020. Under the extended moratorium, it is unlawful for a landlord to evict a tenant or deliver any notice of termination. However, a critical exception was included in the June 2 extension order. Effective immediately, a landlord may: “…provide at least 60 days’ written notice of intent to (i) personally occupy the premises as a primary residence, or (ii) sell the property.”
As a result of this language included in Governor Inslee’s moratorium extension, a landlord may deliver notice to a tenant whose lease is expired or will expire in the next 60 days, that the tenant’s lease rights will terminate at the end of the 60 day notice period so long as landlord intends to personally occupy the property or sell the property at the end of that 60 day notice period. Thereafter, if the tenant does not vacate the unit, the landlord may evict the tenant.
NEW! EXCLUSIVE SUBLEASE AGREEMENT ADDED TO LEGAL LIBRARY PRO
In response to our rapidly changing commercial real estate market and in anticipation of shifting member needs, we’ve added an Exclusive Sublease Agreement to Legal Library PRO.
Developed by top commercial real estate experts, Legal Library PRO’s contracts are recognized as the industry standard and are the fastest and easiest way to close a deal.
CBA members can instantly access and edit any of Legal Library PRO’s 100+ copyrighted contracts and forms for Washington and Idaho. Forms include Purchase and Sale Agreements for Commercial Properties as well as Business Opportunities and Lease Agreements.
CBA DATA FEATURED IN PSBJ
CBA’s CMA data and analysis on commercial property sales over the past 10+ years was recently featured in the Puget Sound Business Journal’s Real Estate section. This underscores the quality of our data and terrific work done by the entire staff. Watch for additional data and analysis from our team in future editions!
The numbers highlighted are for King, Pierce, and Snohomish counties. To see a more in-depth version that also contains Kitsap, Spokane, and Thurston counties, click here.