Next Investment Hot Spot?

Areas around Tier 2 like Walnut Creek and Marin could see a boost as investors look for lower prices, says Prudential Mortgage Capital’s Jaime Zadra (shown speaking at last week's Bisnow event). Most don't like paying over $400/SF, but financing via the CMBS market is available (even if it's fairly volatile). But there's reason for caution: Jaime sees very little demand for new office space in most submarkets, leading to double-digit vacancy.
With tech-driven markets thriving, other cities are attempting to model themselves after San Francisco. Mark Halloran of sponsor GRS Group asked the panel: how can this be accomplished?
Mesa West Capital’s Ronnie Gul says tech companies want to locate near colleges with good engineering departments (for recruiting, we assume, and not the parties). As a value-added lender, he’s trying to find deals where there will be absorption, which often means flocking to areas like Sunnyvale and Santa Clara.
Redwood Trust’s Natalia Todorov says she hasn’t redlined any second-tier markets yet, even though a submarket's strength depends on the asset class.

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