Market Watch January 2012

Marcus & Millichap, Real Estate Investment Services

Jeff Mueller

Senior Associate

303.328.2049

303.328.2010 Fax

Jeff.Mueller@marchusmillichap.com

https://www.marcusmillichap.com/

Market Watch January 2012 

COLORADO 

Decreasing unemployment rates and an improving housing market to help shape Metro Denver economy in 2012 

The final months of 2011 showed signs of improvement-such as a drop in unemployment to 7.7 percent and an increase in home sales and residential building permits-in the Metro Denver economy. However, indicators such as the still-stabilizing commercial real estate market and an unchanged hiring outlook in the first months of 2012 continue to keep the economy from recovering at a rapid pace, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for January 2012.

Economist Goss' Colorado business index rises for 3rd month; 'healthy' job growth expected 

For the third straight month, an index of expected business activity in Colorado, issued Tuesday by Denver economist Ernie Goss, rose in December. 

Metro Denver unemployment 7.9% 

Metro Denver's unemployment stood at 7.9 percent in November, down from the 9 percent rate in the same month of 2010, according to unadjusted county jobs data. 

Mountain states end 2011 on strong growth pace

Economic growth in the Mountain States region has exceeded that of the national economy yet again. For the past two years, economic indicators have been higher than the national average, according to the Goss Institute for Economic Research. And in Colorado, the state’s economic indicators also advanced thanks to new orders, delivery lead time and employment.

Sun Communities, Inc. Announces Acquisition of Three Recreational Vehicle Communities 

Sun Communities, Inc. (NYSE: SUI - News) (the "Company"), a real estate investment trust ("REIT") that owns and operates manufactured housing and recreational vehicle communities, today announced that, on December 16, 2011, it acquired three recreational vehicle communities, personal property and other associated intangibles from Club Naples RV Resort LLC, Kountree RV Resort LLC and North Lake RV Resort LLC (the "Sellers"), and entered into customary non-competition agreements with the principals of the Sellers, for an aggregate purchase price of $25.0 million.

How to Really Fill your Vacant Lots

Written by Frank Rolfe and Dave Reynolds, MobileHomeParkStore.com, LLC So how do you fill vacant lots in your community? Well, a lot differently than you did in the past � and it takes a whole lot more effort. But you'll find that once you put your program together, it will turn your life and spirits around to see new homes coming in to those old, dusty lots.

 If you have been reading this magazine at all for the last seven or eight years, you are pretty familiar with the industry "chattel crisis". Basically, it was the sub-prime mess of today, only fully focused on manufactured homes. People bought homes they could not afford, and they went back to the lenders in record numbers. 

U.S. unemployment nears 3-year low 

The U.S. unemployment rate fell another notch in December, to 8.5 percent, as the nation's economy added 200,000 nonfarm payroll jobs.

Multifamily delinquency rate in CMBS falls to 15.6% in December 

Despite projections showing increased demand for apartments will spur multifamily growth in 2012, analysts viewing December data on commercial mortgage-backed securities say multifamily loans are the worst performing mortgages.

Bernanke calls for nationwide REO rental program 

The government should consider helping the nation's vacant, unsold stock of foreclosed properties by supporting initiatives to occupy. 

Federal Reserve Chairman Ben Bernanke believes that one aspect should be a government support program that allows renters to move into those houses.