California Real Estate Market Remains Strong
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California Real Estate Market Remains Strong


(upbeat music) – In spite of all the economic
mess and the turbulence in markets today, we don’t really
see a change in the trends. – Office is holding. There’s a lot of new development
leases getting signed, they’re being signed
at higher rental rates, and we’re seeing the tenants
pay the rental rates. – Tenants that are tied
to Tech Entertainment are demanding a new product,
and we don’t have enough of it right now. – Industrial remains the brightest star. It’s harder sometimes to
find that cheaper dirt, which constrains supply, and the demand continues to boom. – We have had the largest rent
growth in my 40-year history. We’ve seen rents grow
from five to 10 percent really over the last five years. – In Retail, in California,
we see a continued reassessment by owners of retail projects as to whether or not they
should repurpose the sight for a new higher and better use. – The good parts of
retail are the retail that is positioned to draw
people that have a purpose for being at the retail that isn’t just to do
something they can do online, or cater to customers who
don’t like to be online, high and luxury customers, for instance. So that retail’s fine, and the rest of the retail
has to repurpose itself. – The majority the building is going where the high-paying jobs are being sent. We need to find a way
to solve the problem, which is build more housing,
so that it’s not too expensive to live here so the
corporations aren’t leaving. – All of California’s still as
healthy as it was a year ago. We don’t know when that will end. No one’s predicting it’s
going to end right now. We’re on the ninth inning, we’re in the third inning of the second
game of a double-header. So we’re off to the next game.

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