People able and qualified to purchase investment property often do not because the idea of having to deal with the property is disdainful. My father, for instance, hated the notion of having to rent out vacant apartment units, repair broken garbage disposals, and resolve tenant disputes, evictions, and other issues. He actually held back from making an investment in real estate until I was of age to get involved.

Unfortunately, others today share the same concerns about becoming a landlord. Many people, not unlike my Dad, prefer to deposit money in their bank rather then to invest their money in rental property. Even when it means less of a yield, they prefer to pigeonhole their money because they have no stomach for the investment alternative. The “dirty work” of hassling with the tenant and property-management issues inherent to real estate investing is simply not their cup of tea.

Fair enough. Investment real estate does present management challenges and becoming a landlord may not be a bed of roses. Fortunately, it is also true that property management companies can be hired to help run the property. Real estate investors who do not want to be bothered with the day-to-day activities can own investment property without having to deal directly with the unpleasant and tiresome details associated with rental-property management with the help of professional property management.

A smart real estate investor will factor in the cost of professional property management, and seek a trusted local property management company, but it is not beyond reach and certainly worth considering.

Having your money working for you in a real estate investment certainly beats what a bank pays you. Now that you know the hassles can be avoided, why not do yourself a favor and at least explore the option.

Dear Customer,

ProAPOD Real Estate Investment Software has made some major changes to its software and website. This is an Update notice, but it also intends to bring you up to date on some other matters as well.

If you purchased ProAPOD Real Estate Software prior to 1/24/08 there is an update. If you purchased on or after 1/24/08 you may disregard this notice (you have the most current version). Moreover, please disregard this notice if you just own our Mortgage Calculator Software (there are no updates for the Mortgage Calculator).

For our longer term customers, please note that our platinum-grade solution (with tax elements) has become ProAPOD 10.0. If you are using this version (previously named 7.0) you might want to preview the new version on the website at www.proapod.com.

We also just implemented a new database system Thursday so you will notice some changes to your Account Page after logging in. To login open the website and click Customer Login in the left menu under Login and then login as before, using your email and password. Since this is a brand new system, we would appreciate feedback if you encounter problems.

After logging in, you should see one of three results. (1) The Update software downloads, (2) No software updates, because you already have the most current version, or (3) No software updates, because your membership has expired (you can renew your membership and get the updates for your real estate software if you choose).

Please login and check your account. Just remember, that this is a new system for us. Our web guy is certain there should be no problems, but just in case, let us know if there are. While you’re at it (just in case you haven’t visited our site for a while), you might want check it out. Thank you.

To Your Success,

James R Kobzeff

ProAPOD Real Estate Software would like to share excerpts of the Salem/Keizer Office & Retail Survey published recently by C. Spencer Powell, MAl and his associates at POWELL VALUATION INC located in Salem, Oregon. We believe that readers who might have an interest in investing in real estate here Salem will find this helpful. Others might find it helpful as a comparison to other real estate market areas. This is not the complete survey. If you are interested in reading the entire survey, including all comments, charts and tables, please visit the website for POWELL VALUATION INC posted below.

2007 OFFICE SURVEY

The 2007 office survey compiled data from 113 properties totaling 2,462,701 square feet. As in years past, office space is adjusted to reflect an annual full service rent structure. Under these terms, the tenant’s rent is a composite of all expenses (including parking) related to office space operation. Overall, office vacancy rates have decreased, while all surveyed sectors have shown office rental rate increases since 2006…

OFFICE VACANCY

Overall, office vacancy totaled 8.06% in 2007. This reflects a significant downturn since last year, continuing the decreasing trend seen since 2005. The decrease from 9.30% seen in 2006 may be an indication that overall office vacancy rates are stabilizing…The South Salem submarket reflected a large decrease in office vacancy, while vacancy in West Salem and Keizer increased. East Salem only shows marginal change since last year…The larger submarkets all reflected a decrease in office vacancy from last year except for medical. The largest decrease was seen in Class C space, with a decrease of 4.39 percentage points…

OFFICE RENTAL RATES

Overall, rental rates for office properties in Salem and Keizer saw an increase from 2006, resulting in a weighted average annual rent per square foot of $19.43. The overall rental rate in the office sector remained fairly constant from 2002-2005. This year, the market has experienced record highs. All sectors, including all suburban submarkets, experienced rental rate increases from last year. These increases are reflected in the overall office rental rate, which indicates market stabilization. The largest annual increase was seen in the CBD-A sector at a $1.05 per square foot increase. This trend in CBD rents further illustrates the CBD revitalization. Suburban office space also experienced a significant increase of $0.69 per square foot on an annual basis.

2007 RETAIL SURVEY

The 2007 Retail Survey included 88 properties totaling nearly 4,000,000 square feet. As in years past, we have adjusted the retail rent to reflect an annual triple net rent structure in which the tenant is responsible for all expenses associated with the operation of the space, whether charges are billed directly or passed through as a pro rata share of leasable area. Common Area Maintenance (CAM) and triple net expense pass through charges continue to vary widely from property to property.

RETAIL VACANCY

Overall, vacancy decreased slightly in retail properties during 2007 (0.56 percentage points), indicating overall retail vacancy of 8.03%. The 2007 retail vacancy rate is nearly equal to that of last year, suggesting a leveling off after the downturn experienced in 2002-2004. The CSD has returned to its previous high vacancy rate after a two year lull…North Salem and Keizer have decreased in vacancy 5.62 percentage points, bringing total vacancy to 8.73%. This is the largest decrease in retail vacancy in this market. One property in this sector accounts for nearly half of all North Salem/Keizer vacant retail space, thus the large decrease in vacancy rate. West Salem saw an increase in vacancy from last year; however, the rate remains below the accepted stabilized level (5%).

RETAIL RENTAL RATES

Overall. rental rates for retail properties increased from last year to $17.69 per square foot, NNN. When looking at the overall retail rents since 1999 the Previous 2004 high of $17.06 has been surpassed in 2007. However, with the exclusion of regional malls, which represent a different market than most retail locations, the overall retail rental rate decreases to $13.72…Since 1999, rent in West Salem has fallen 45%, but now has since regained ground with the addition of multiple buildings. North Salem saw a significant increase in rental rates, possibly due to the large decrease in vacancy. East Salem saw an increase in rental rates as well from including additional properties. Overall, the Salem/Keizer retail market reflects stable to increasing rents with an 8% vacancy.

POWELL VALUATION INC
VOICE: 503.371.2403/ Fax: 503.371.2613
EMAIL: spowell@pvinc.us
WEB: www.powellvaluation.com
MAIL: 3220 State Street, Suite 100, Salem, Oregon 97301