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As the recession devastates the banking, brokerage, retail and automobile industries, landlords and commercial real estate brokers in lower Fairfield County ponder when and if the office market will be the next victim.

The region could be vulnerable because financial service companies rent much of the office space in Greenwich and Stamford. Greenwich has been called the nation’s unofficial hedge fund capital.

“We are still in a very good market. However, a lot of our clients are financial services companies,” said Jim Fagan, senior managing director of the Westchester County, N.Y., and Connecticut operations of New York City-based Cushman & Wakefield Inc. commercial real estate. “They include everything from hedge funds to reinsurance companies to investment banks, not to mention advertising agencies and other professional services companies.”

Those former mainstays in the office market will be shrinking, he said.

“As tenants try to lower their fixed costs, they are slimming down their commercial real estate exposure, where it is practical and pragmatic,” Fagan said. “The market is going through an adjustment. While it was white hot in July of 2007. It certainly is less than that now.”

John Hannigan, principal of Choyce Peterson commercial real estate in Stamford, said, “The quantity of tenants looking to grow has decreased precipitously.”

Reported office vacancies are not really bad - yet.

In the third quarter, 17 percent of the 14.5 million square feet of office space in Stamford was available for lease or sublease, up slightly from 16.4 percent at the same time last year, according to an average taken from five real estate firms. Available space are locations that are empty or slated to become vacant soon.

The numbers do not include large, single-occupant buildings such as the main UBS AG investment bank and trading floor in downtown Stamford.

But vacancy reports might not tell the whole story, said Jeff Gage, executive managing director at the Stamford office of Chicago-based Jones Lang LaSalle commercial real estate. Some companies have space they are not using but will not admit it unless a broker approached them about subleasing, Gage said.

Sublease space, that which is leased but currently unused, is rising in Fairfield County, he said.

“We are going to see vacancy rates going up to 25 percent or higher (countywide),” Gage said. “My guess is that 40 percent of that will be sublease space.”

The big subleases include 112,000 square feet that UBS put on the market at 201 Tresser Blvd. in Stamford at Purdue Pharma’s headquarters. Others in the city are 50,000 square feet from Legg Mason at First Stamford Place and 120,000 square feet at 290 Harbor Drive.

Greenwich has smaller office vacancies, but its 4.8 million square feet of office space depends largely on financial services, hedge funds and private equity firms. About 9.3 percent of the town’s office space was available in the third quarter, which was unchanged from the same time last year.

“Greenwich and Stamford are not immune from the downsizing and reorganization from a new model of doing business,” said John Goodkind, managing principal at the Greenwich office of New York City-based Newmark Knight Frank commercial real estate. “The days of abundance are gone.”

“Large users are unlikely to make decisions on space unless they have to,” he said, referring to lease expirations.

On the positive side, Goodkind said many people who had worked for hedge funds, financial institutions and banks will be looking for office space in which to start their own companies.

“We have already seen significant numbers of new companies looking for smaller spaces,” he said. “That will be the mode for the next 12 to 18 months.”

But Gerald Celente, a trends forecaster known for gloomy predictions, said the downturn in the retail sector will affect office space because fewer customers will exist for service firms such as ad agencies.

“In 2009, the focus will broaden to include a range of calamities that will leave no sector unscathed,” Celente said in a report issued by his Rhinebeck, N.Y.-based Trends Research Institute. “Next in line is retail, which accounts for some 70 percent of consumer spending, 26 percent of which is holiday sales.”

“Add to the (retail) empties the commercial space vacated by defunct financial firms and an array of troubled businesses from restaurants to architectural firms, to high-tech operations, to offset printers, etc.,” the report said. “The inescapable result (that we predicted over a year ago and is only now being discussed in the business media) is a commercial real estate bust that will be costlier, wreak greater havoc and prove more intractable than the residential market decline.”

Local landords, by contrast, are more optimistic.

“We have been here before (in a recession), and we will get through it,” said Jo Ann McGrath, director of leasing for the Merritt 7 Corporate Park in Norwalk. “We just have to stay positive.”

She said the 1.4 million square feet of office space in Merritt 7’s six buildings is 95 percent occupied.

A 51,000 square feet sublease might occur in the complex’s 301 Merritt 7 building. Applied Biosystems is moving out of 301 Merritt 7 in July because it merged with Invitrogen Corp.

Applied Biosystems’s lease expires in 2011, and it has an option to sublet the space, McGrath said.

Margaret Carlson, director of leasing for New York City-based RFR Realty’s seven office buildings in downtown Stamford, said the market is slowing, but not to a crisis stage.

“We are still continuing to sign deals, and we are starting to see concessions for tenants creep in,” Carlson said. “Velocity is slowing down, but we remain optimistic. There are a lot of deals out in the marketplace, and we do not have a lot of sublease space in our portfolio.”

RFR’s Stamford buildings are 90 percent leased, she said.

Another landlord representative, Jeff Newman of W&M Properties, said the recession offers a chance to recruit new tenants. W&M manages First Stamford Place and Metro Center office complexes in Stamford and the MerrittView office building in Norwalk.

“We are well-positioned to ride out a down market,” Newman said. “We always have more than enough cash flow to cover debt service and operating needs.”

Gage of Jones Lang LaSalle predicted rents will drop 20 percent to 30 percent during the recession, which offers local companies a chance to move into better buildings.

In March, Stamford-based Choyce Peterson began telling its clients to pursue renovation subsidies and lower rent from landlords.

The average asking rent for Class A office space in downtown Stamford is $48 per square foot per year, according to Cushman & Wakefield.

“We have been out there ahead of this (recession) news and have been meeting with many area companies to help them navigate these tough economic times, with regard to their office space,” said Hannigan of Choyce Peterson.

“The smart landlord are the ones who will lead the market in (lower) pricing,” Gage said. “If you follow the market, you are already too late.”

- Staff Writer Peter Healy can be reached at peter.healy@scni.com or at 964-227
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By J.W. ELPHINSTONE and ADRIAN SAINZ – 1 day ago

When mortgage rates dropped to the lowest levels in almost a year, Warren Zeger seized the opportunity to slash $720 off his monthly mortgage payment by refinancing his home in Potomac, Md.

Just don’t expect him to spend the savings.

“I’d love to tell you I’m going to spend it to help prop up the economy, but we’ve tightened our belts,” said Zeger, 61, a retired attorney. “I plan on holding on to it.”

Zeger echoed homeowners The Associated Press interviewed nationwide who have taken advantage of lower rates since Nov. 25th. They planned to stuff the money they saved under the mattress or pay off bills. Refinance activity has surged as interest rates tumbled about 1 percentage point to around 5.5 percent in response to the Federal Reserve’s plan to scoop up $600 billion of mortgage-related securities.

“We’ve had a lot homeowners waiting for some time” for this drop in rates, said Ritch Workman, co-owner of Workman Mortgage in Melbourne, Fla.

The Fed’s move was the latest in an unprecedented series of actions to help stabilize the housing and credit markets as well as the broader economy. However, pushing down mortgage rates may only have a muted effect on the economy. That’s because more than a quarter of homeowners with a mortgage can’t qualify for a new loan, and many who can are so financially stretched that little of the money they save will end up in store cash registers.

“If you’re worried about making it month to month and your mortgage is your biggest payment you’re not going out to buy a car and a lot of Christmas gifts,” said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication in Bethesda, Md.

Stuart Cassell in Sarasota, Fla., is putting his $80 monthly refinance savings into his nest egg, while product development manager Subash Ramnani in Chicago is using the extra $300 a month from his refinancing to pay for graduate school. Jennifer Burke and her husband in Bel Air, Md., are saving the additional $240 a month as they wait out the recession and raise a one-year-old daughter.

Marcus Leef’s $150 monthly savings is going to daycare costs and personal savings. Leef, a consultant in Hartford County, Conn., has seen his stock portfolio plummet 40 percent, his retirement savings plunge by half and his corporate stock tumble by 60 percent this year. He’s not optimistic.

“My view is the economy is in the toilet. It’s going to get worse before it gets better,” he said. “If rates drop another point tomorrow, I’ll (refinance) again the day after.”

Those are the luckiest homeowners. Les Berman, a mortgage broker in Encino, Calif., said most borrowers contacting him have interest-only mortgages and they want to lock into a fixed-rate loan. They’re not saving any money each month if they do that; instead, they’re taking higher payments to get out of riskier loans.

“They want that security. They want to protect themselves against the future,” he said, even if it means shelling out more each month.

Other borrowers, like Eric Dudek in Grand Rapids, Mich., are waiting to see if rates drop further after hearing reports that the government is considering a proposal to lower the rate on 30-year home loans to 4.5 percent by buying more mortgage-backed securities.

“I’m thinking maybe I should hold off, you know?” said Dudek, who would use the savings from a refinancing to pay off student loans.

But he could be waiting in vain because the plan is only expected to apply to purchase loans, not refinance loans. Either way, most borrowers will need more than just lower interest rates to solve their problems.

Brokers are turning away thousands of borrowers because they just won’t qualify for a refinancing. Pava Leyrer, president of Heritage National Mortgage in Michigan, said about 40 percent of the homeowners calling her likely won’t get a refinance because of falling home values, credit issues and job loss.

Likewise, Brad Cohen, vice president of Mason Dixon Funding in Rockville, Md., said as many as two-thirds of borrowers he’s talked to don’t qualify because they owe more on their mortgage than their house is worth.

An estimated 12 million U.S. homeowners are in that situation and declining home prices only exacerbate their situations. Low interest rates won’t be enough and if they fall into default or foreclosure, that will only make the current financial crisis worse.

“There’s no plan in place to help them right now,” Cohen said.

AP Real Estate Writer Alan Zibel in Washington, D.C., contributed to this report.
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by Asdfasd Maakusd
Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this.

The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer’s credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to severe insurance losses.

Many insurance companies still use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.

The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your car insurance.

Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair credit-reporting act says “Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title.” This can be found at http://www.ftc.gov/os/statutes/fcra.htm

If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.

Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an “insurance credit score.” An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated losses. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.

Insurance companies use many factors in determining your credit score. Here are some examples of those factors:

. Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.
. Past payment history: the number and frequency of late payments and the days between the due date and late payment date.
. Length of credit history: the amount of time you have been in the credit system.
. Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts.
. Number of open lines of credit: the number of credit cards, whether you use them or not.
. Type of credit in use: major credit cards, store credit cards, finance company loans, etc.
. Unused credit: how much you owe compared to how much credit is available to you.

Read full article: Understanding How Your Credit History May Affect Your Car Insurance Coverage

The main opinion considering taxes and American expatriates is that there is no need to worry about paying any more dues to the government. However, the meaningfulness is not that simple, and it is vital that you understand exactly the facts concerning the matter to keep yourself from getting into any legal complications.

The following are the facts involving the Internal Gross income Service and the tax liabilities of an American expat:

The Foreign Earned Income Exclusion

This of obviously, refers to any amount that you may have, or have earned from working in another country besides the US. It includes not just your salary but also any allowance that you may receive as compensation.

To avail of the revenues exclusion, you must meet the following requirements: the first is that you must have lived in that foreign country for at least full year, or have spent at least 330 days from a 12 month epoch. The amount that you can take advantage of can reach up to $80,000. You must, however, file all the necessary papers to the IRS to be a part of this program.

Expats and Self Occupation Tax / the US Social security and Medicare

If you are an expatriate who is employed by a company in the United Sates, it is almost always the case that your proprietor will hold back any Meficare or Social Security.

For those that are their own employers (self employed in other words), you will need to pay up to whatever amount you owe the gate service. Moreover, there is a self employment tax that you will have to pay so that you will be entitled to both Social Security and Medicare.

American Expats Employed by ForeignersIn the mainIf you are working for a corporation in another country, you will not, except in special cases, pay anything to the Internal Revenue Service with respect to your Social Safe keeping, and instead will be covered by that country’s own laws concerning taxation.

Read full article: What US Expats Need to Know About Paying Taxes

JOHANNESBURG (Reuters) - South Africa’s rand recovered some ground against the dollar on Thursday after a battering overnight that took it to new 6-1/2 year lows, but generally remains on the backfoot as global economic worries hit markets.

At 0637 GMT the rand traded 2.08 percent firmer at 11.32 against the greenback, compared with Wednesday’s close at 11.56 in New York. The local currency went as low as 11.88 against the dollar overnight, its weakest level since March 2002, Reuters data shows.

The rand’s latest gains were due to some profit taking after its heavy losses overnight and in Asian trade earlier on Thursday, a Johannesburg trader said.

“But it still looks quite horrible. There’s lack of liquidity, especially during New York trade, although it seems as though during local (Johannesburg) time we have two-way flows,” the trader said.

“All emerging market currencies are under immense pressure. To be honest it can go any way, but we’re still of the view that there could be some more rand weakening.”

Government bonds were also firmer, and yields fell in turn. The benchmark 2015 bond yield dropped 6.5 basis points to 9.89 percent, while that for the 2036 note was down 7 basis points at 9.215 percent.

Read full article: S.Africa rand recovers vs dollar