Orange County continues to draw investor interest, but those investors are cautious as the county faces challenges that include a lack of affordable housing and rising borrowing costs.
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International, national and regional funds like to invest in Orange County, Berkadia managing director Jackson Cloak said. But, while the county is positioned well, it faces particular challenges.
"The lack of affordable housing and the recent accelerated growth from foreign investors that may not be sustainable could both create issues," he said.
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The Koll Co principal Scott Lanni sees 2017 as being a cautious year for most real estate investors in Orange County.
Lanni said the "economic and political landscape will be evolving throughout the year and the new administration in Washington, DC, will be addressing trade agreements and the tax code.”
Bellwether Enterprise senior vice president Jason Krupoff also said the presidential election is having an impact. Since the election, borrowing costs, through higher U.S. Treasurys, have increased by more than 0.75%, he said, which is beginning to affect cap rates.
To hear more from Cloak, Lanni and Krupoff, join us for Bisnow's Orange County State of the Market event at 7:30 a.m. Feb. 28.
