The American Institute of Architects did a survey and rated the most popular kitchen features by subtracting the number of survey respondents who say a feature is decreasing in popularity from the number who say it is increasing.

In the kitchen, buyers want:

Ø  Upper-end appliances: 65%

Ø  Increased pantry space: 64%

Ø  Renewable flooring material: 53%

Ø  Wine refrigerators/wine storage: 53%

Ø  Integration with living space: 53%

Ø  Recycling center: 48%

Ø  Island work areas: 43%

Ø  Natural stone countertops: 42%

Ø  Drinking water filtration systems: 37%

Ø  Duplicate appliances: 34%

In the bathroom, buyers want:

A desire to incorporate green features into kitchens and bathrooms is also growing.  According to architects, the consumer is demanding renewal flooring material, such as bamboo or concrete, and drinking water filtration systems.

A sales transaction volume of over $157 billion in the first four months of 2007, the year is starting out with a bang.  More than 60% of this transaction volume is from trades within the office sector.  In April alone, more than $14 billion of the former Equity Office Properties’ portfolio was spun off by the Blackstone Group.

The $157 billion transaction volume is significant, when compared to previous years.  In all of 2006, nearly $307 billion of real estate traded hands and nearly $268 billion in 2005.  An ever-increasing sales volume goes hand-in-hand with rising per square foot prices and falling cap rates when examined over the last few years.

The NATIONAL ASSOCIATION OF REALTORS® forecasts that the flow of capital (both equity and debt) will continue to be strong throughout 2007.  Large portfolio transactions and privatizations of Real Estate Investment Trust (REITs) could make 2007 a major year for investment transactions.  Concerns by regulators about risky levels of lending in commercial real estate by some banks, could have an impact on capital flow, but should not deter large institutional investors, investment banks and foreign investors from seeking price appreciation and income-streams from commercial real estate investments.

In the office sector, NAR is forecasting that the level of new supply is expected to be twice what it was just two years ago and is not surprising that rent growth is less than in previous years.  Almost 78 million square feet of new space will be added to the nation’s office market by the end of 2007.

Warehousing and distribution space will continue to drive the U.S. industrial market.  The demand for manufacturing facilities will trail this sector.  With tight office markets, some office users will continue to consider flex space – space that could be used for light industrial/office purposes.  The industrial vacancy rate will remain under 10% in 2007.

One of the most noticeable trends so far this year has been the increased appetite for retail investment by institutions and foreign investors, especially the Australians.  These two investor groups have actually accounted for 60% of all retail property transactions (over $5.0 million in value) in the first four months of this year.  Real Estate Investment Trusts (REITs) were once a major player when it came to retail real estate acquisitions.  NAR forecasts that with many public REITs going private, foreign investors and institutional equity funds will assume the dominate role in retail real estate investments.

The first San Bernardino County Water Conference is to be held at the Ontario Convention Center on August 9^th from 8 a.m. to 2 p.m.  Senator Bob Dutton and San Bernardino County Supervisor Brad Mitzelfelt will be bringing in water experts from around the state and country for this event.  The conference is open to the public.  If you would like more information about this conference you can visit www.sbc.water.com or call (866) 737-4880.