California, having to deal with still another budgetary crisis, has put 24 state office buildings on 11 sites up for sale. The buildings involved include the San Francisco Civic Center and the Ronald Reagan State Building (shown above) in Los Angeles.
The state, struggling in the recession and looking for ways to bolster its budget, hopes to rake in as much as $2 billion with the sales. CB Richard Ellis notes that despite the economy, the sale should be a safe investment.
The reason it makes that statement is because the state has promised to lease back the office space, for 20 years. The state legislature and Governor Arnold Schwarzenegger approved the sale last June.
Of course, these sales come at possibly the worst possible time for commercial real estate. Commercial property values have fallen as much as 40 percent from their 2007 peak. However, at the same time, rents are depressed as well, which may also help as California negotiates rent when it leases back the buildings.
Written by Michael Santo
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
- Can a Low-Carb Flaxseed Meal Muffin Really Taste Good? YES!
- Edible life on Mars? NASA explores 3-D pizza printers
- 20 Exciting Ways to Use Eggshells For Home and Garden
- Carlos Santana's $65 Supernatural Napa Valley wine
- Operation BBQ dishes up good food to Oklahoma tornado victims
- Cake mix recall, Eco-Cuisine self reports
- Regrowing Foods from Kitchen Scraps Can Save Money Year-Round
- HGTV Memorial Day Cocktails Liven Up Summer Parties
- Four foods a day to keep the doctor away
- Apples to Whole Grain: why and how these 17 foods fight cancer
- Good Eggs Needed for the Chief Egg Officer Search Contest
- Meatless Monday's 10 Hot Tips For Tasty Summer Grilling That'll Get You Fired Up For A Healthy BBQ Season
- Totally loco number of Doritos Locos Tacos sold in just over a year will blow your mind
- Crazy liquored-up ice cream collection captures 'free spirit' of F. Scott Fitzgerald's muse
- An American original: Oscar Mayer introduces the first bacon hot dog: The Bacon Dog