Yesterday, we took a look at the office and capital markets panels at the CBRE and Allen Matkins Real Estate 360 in 60 commercial real estate outlook. Here are the remaining panels. Moderated by Allen Matkins' Pam Andes, the industrial panel included CBRE's Dan de la Paz, who says e-commerce and efficiency are driving a trend toward 36-foot clear heights on new spec warehouses in the Inland Empire. (You'll have to hold onto your balloons a little bit tighter, because you'll never get them back in there.) Kurt Strasmann says SoCal has the best fundamentals in the nation, including three of the four lowest vacancy rates. Underscoring the broad-based recovery, he says for-sale product up to 200k SF is in demand. While there's not a lot of development in the land-constricted South Bay, Tres Reid says 2014 will be strong—good absorption and prices clicking up.
On the retail panel, moderated by Allen Matkins' Pete Roth (far right), CBRE's Dan Riley sees a healthy investment market with both local and international money coming into California. A foreign investor recently bought the Gucci building on Rodeo Drive for over $8k/SF. According to Rich Rizika, major new developments are blending value and specialty retailers to create unique shopping destinations. SoCal's better regional malls are being repositioned to make them more compelling. Jeff Moore notes 2013 was the first time since pre-recession to see positive rent growth and net absorption. Luxury retail sales in gateway cities and on high streets are strong; value retailing is active as well. One trend to watch: supermarket industry consolidation from three major companies to two.
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