Industry Insights

“The 2016 Winter/Spring Allen Matkins/UCLA Anderson Forecast Commercial Real Estate Survey signals continued confidence among developers through 2018–indicating both the probability of new supply and of opportunities for new investment. The biannual survey projects a three-year-ahead outlook for California’s commercial real estate industry and forecasts potential opportunities and challenges affecting office, multi-family, retail and industrial sectors.”

The Survey, taken by California’s commercial real estate industry leaders in December 2015, indicates a favorable commercial construction outlook. “The favorable outlook is supported by job and income growth on the demand side and a lack of sufficient building on the supply side.” The results of the surveyed panelists signal a continuation of the growth of non-residential construction at or above previous peak levels.

Survey higlights include:

• Office Development Sentiment Positive with Southern California in Spotlight
• Ecommerce Has Unlikely Impact on Retail Development
• Multi-family Construction to Hit 25-year High
• Industrial Sector Grounded by Strong Fundamentals

View the full survey here: http://www.allenmatkins.com/ucla

Published on January 27, 2016

High-profile commercial real estate projects scheduled to open for business in 2016 include mixed-use and residential skyscrapers in China, India and South Korea as well as Apple’s futuristic “spaceship” campus in Cupertino, California. These projects and more are featured in the JLL “Real Views” infographic below.

See the eight most notable 2016 deliveries below:

• Agora Garden, Taiwan
• World One Tower, India
• Lotte World Tower, South Korea
• Hotel Cresent, Azerbaijan
• CTF Finance Centre, China
• Dawang Mountain Resort, China
• Ping an International Finance Centre, China
• Apple Headquarters, U.S.

Take a look at the high-profile projects which are set to become new landmarks for their cities in 2016.

Eight of the Biggest, Boldest Buildings Opening in 2016

Originally published in NAIOP Source on January 12, 2016.

Downtown San Diego currently has 63 real estate projects underway that are expected to be completed within the next four years. Ultimately, this will mean more jobs, residents, and excitement in the downtown market. In the meantime many of the investors, developers, operators, and contractors involved in these developments are hiring

Take a look at these exciting career opportunities and become a part of these growing companies today.

Read the full article here: Projects in Downtown San Diego’s Pipeline Valued at $6.4B

Originally published in Bisnow by Patricia Kirk on January 6, 2016.

The 3M SF Navy Broadway Complex redevelopment will dramatically change San Diego’s marina landscape, with an anticipated delivery date in 2019. It is exciting to be in a city that is growing to the point where the city can absorb such a significant redevelopment.

This approval will bring a significant amount of jobs to the region, not just in the next few years while the project is underway, but in the commercial office and retail space that is produced. Keep your eye on San Diego as America’s Finest City continues to grow.

Read more about it here: Civic San Diego Approves the Navy Broadway Redevelopment

Originally published by Lou Hirsh in the San Diego Business Journal on December 11, 2015.

Interesting insight into the US’s economic future at NAIOP San Diego’s economic breakfast. Knowing what may be coming down the pike in a few years can help you make smarter business decisions now. Get the right people in place now to carry your company into the future.

Dr. Alan Beaulieu warns of a slight recession in 2019 and a larger depression 15 years from now. However, his message was not all gloom and doom. He highlighted all of the opportunities there are to prosper in down economies if you keep your eyes out for arbitrage situations and position yourself and your company accordingly. Read the summary of Dr. Alan Beaulieu’s presentation here: Economic Forecast.

Originally published by Carrie Rossenfeld in Globe Street on November 24, 2015.

Industry experts have opinions across the board on where the industry is and where is it going. The facts are that the commercial real estate market is hot and companies are scrambling to get a piece of it. The market is conducive to development, value-add, and really creating communities through their investments. Companies are capitalizing on this revitalization through diversification and smart asset management.

From a recruiter’s perspective, talent is getting swooped up left and right as companies continue to grow. Right now is a very exciting time to be involved in the industry.

Check out some future predictions from former NFL star turned real estate investor, Emmitt Smith. https://lnkd.in/by8F8Rn

Originally published in GlobeSt.com by John Salustri on October 15, 2015

Here are the Top 10 Coolest Offices in the World according to Inc.

1. Airbnb, San Francisco. Each conference room at the company’s newly expanded, 107,000-square-foot San Francisco office is decorated to resemble an actual Airbnb listing. The company’s new space in the 96-year-old former warehouse building also provides employees with more opportunities for small meetings and better acoustics within an open office setting.
2. Bluecore, New York. Workers at this email marketing startup can enjoy the view from a tiny “eagle’s nest” overlooking a high-ceilinged lobby and meeting area. The office is set in a three-story Lower Manhattan building that was used as a liquor storeroom during Prohibition.
3. Ekimetrics, Paris. The marketing and consulting firm occupies 10,000 square feet in a classic office building on the Champs Elysees. Three freestanding wooden structures crafted of unfinished timber serve as a boardroom, a two-person office and a gallery — and provide a dramatic contrast to the “chandelier-adorned and gilded open office block.”
4. Kickstarter, New York. The crowdfunding company’s headquarters, located in a former pencil factory in Brooklyn’s Greenpoint neighborhood, has a sustainable focus, with plenty of natural light and recycled or reused materials. The 29,000-square-foot office’s three floors are centered around an open-air courtyard, a second-floor garden and a rooftop deck.
5. iHeartMedia, New York. Formerly known as Clear Channel Communications, this company moved its headquarters from San Antonio to what was once a satellite office. The 75,000-square-foot futuristic, mostly grey-and-white open plan space features colorful freestanding pods that serve as conference rooms and a kitchen.
6. SoundCloud, Berlin. The audio platform company’s approximately 200 employees enjoy 16 mini conference rooms named after neighborhoods in San Francisco, London and Berlin, as well as an indoor garden, a cafe and small “nap pods.” The 17,000-square-foot office overlooks the Berlin Wall Memorial and has a minimalist, industrial feel.
7. Harry’s, New York. The men’s razor startup retailer partnered with furniture designer Herman Miller to create a collaborative, flexible work environment in its 26,000-square-foot space, with sit-stand desks, movable walls and conference rooms named after the colors of the company’s razor handles.
8. Salt Co-working, Yekaterinburg, Russia. When small teams began dominating the common spaces in this coworking center, Salt added mini offices by installing sliding doors off a main corridor. The space also includes a recreation zone, a kitchen, a coat room and showers.
9. Warner Music UK, London. Dubbed HQ Music House, the 67,000-square-foot headquarters, which consolidated six offices, has a huge central atrium that gives every floor a view of the office’s cafe area. Edison light bulbs hung together with old-school microphones, black window frames and black-stained timber floors create a “subtle rocker vibe.”
10. Atlas Holdings, Greenwich, Connecticut. The hedge fund office, designed by the same firm that created Google’s New York offices, features a “floating” conference room that hangs above a communal kitchen and cafe area, as well as smaller, private spaces.

Originally published by Christine Lagorio-Chafkin in Inc.

View the top 30 offices here: http://www.inc.com/worlds-coolest-offices-2015.html

This article is timely as a lot of the conversations that I have had with job seekers lately stem from frustration around the gap between San Diego’s cost of living and salaries that companies are offering. Even more interesting is the salary gap between the San Diego market and our Orange County neighbors to the north. Depending on the position, salaries in Orange County can range up to 30-40% more than what employers are willing to pay in San Diego where the cost of living is arguably on the same level. It seems as though local companies are stuck in 2009 target salary ranges even though there are signs that our economy is heading the right direction. Just look around at the amount of development, redevelopment, and real estate transactions taking place in our own San Diego backyard.

The high scores that San Diego received regarding taxes and electric bills were slightly surprising, but with the cost of living so high, it makes sense that San Diegans are great budgeters.

Not much else on this list of what makes San Diego a desirable city to live in should shock you. The culture, amenities, access to healthy food and outdoor activities, not to mention the beach, all make for a city that has seen a massive influx of people in the recent years. The abundance of young people perpetuate the city’s energy, and there is never a shortage of new restaurants or breweries to explore.

Check out the article here: Secrets to San Diego’s Urban Appeal

Originally published by Carrie Rosenfeld in Globe St. on August 12, 2015

Check out National Geographic’s documentary on San Diego here:

World’s Smart City – San Diego

A newly published Commercial Real Estate Survey and Index has been published with the goal of better predicting future California commercial rental rates and vacancy rates.

Senior economist with the UCLA Anderson Forecast Jerry Nickelsburg says continued optimism is supported by job and income growth and a lack of sufficient building supply. While the outlook remains positive through 2018 with no weakening in occupancy rates, he does caution, however, that some panelists are concerned about the next stage of the commercial real estate building cycle.

Overall, available financing, low cap rates, an increasingly high demand from tech, advertising, media and information companies, and a shortage of multifamily housing have helped sparked the industry boom.

View the full reports and videos here: Allen Matkins and UCLA Anderson Forecast

Originally published in Bisnow’s August 18, 2015 e-blast.

Talent is Calling the Shots in Office

by Carrie Rosenfeld in GlobeSt.com with CBRE’s SVP Matt Carlson

“GlobeSt.com: What is driving current Downtown San Diego activity?

Carlson: The first thing is, on a more global scale, all the new and exciting projects delivering or getting ready to deliver Downtown. There’s a ton of residential being delivered—almost 6,000 units are coming online in the next five years. There are a couple of big holes in the ground—the East Village has the Pendry Hotel going in, a four-star version of the Montage, and cranes are starting to come out; on the west side, the Broadway area, Bosa has a high-end residential tower going in that’s going to be one of the top residential towers on the entire West Coast; and you’ve got the office market itself—all the office tenants looking at Downtown and all the fun people are having…

Ten years ago, offices were located where the CEO or partners lived and where it’s most convenient for them. If you were at the top of the pyramid or organization, you called the shots about where the company would be. But we are in an age of war for talent, particularly with these fast-growth tech companies. Their resources are in the employee—you get the edge from having the best talent. It’s really shifted. The last cycle, the person who ran the real estate wasn’t in the C suite—now that person is in the C suite because they’re driving the culture for the whole company.”

Read the full article here: Talent is Calling the Shots in Office