Bisnow OC Summit Highlights
At the OC Multifamily Summit, our panelists said that for those Class-A infill properties that do trade, cap rates are in the 4s, and there's no immediate evidence they're moving up. Interest rates are the wild card, but even so investors are still chasing Class-A properties and value-adds as well because they believe the underlying fundamentals will support rent growth. Panelists included Mill Creek senior managing director Samuel Simone, Berkadia VP/mortgage banker Jackson Cloak, UDR Co managing director Don MacKenzie, and CBRE SVP Ray Eldridge.
At the Orange County Development & Construction Summit, we heard that SoCal industrial development is on fire, with 20M SF recently finished, underway, or in the pipeline, according to the panel. Most of that's in the Inland Empire--but at least 1M SF of new industrial development is coming to OC, squeezed in wherever possible. (Got any room for forklifts in your backyard?) Snapped: Aventine Development CEO Chad Hagle, who's developing in SoCal again after pursuing opportunities elsewhere, and CBRE senior managing director Jeffrey Moore, who's involved in a number of OC deals, including the development of the Advanced Technology Education Park in Tustin.
At our OC Healthcare Real Estate Summit, Newmark Grubb Knight Frank executive managing director-global healthcare service Garth Hogan said healthcare leasing is on the rise in California, with hospital groups taking as much 100k SF at a time. (After the 25k SF deductible.) That's in anticipation of consolidation of hospitals and new constellations of affiliations with physicians groups. There's an element of chaos to the changes in healthcare, he says, but that also means opportunity for real estate specialists who can get hospitals the space they need to compete.