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California  + Retail  | 

California Commercial Real Estate Market Trends Hold Steady

Despite tax cuts and incentives, tariffs, higher interest rates, higher cap rates, and slowing employment growth, the outlook for California commercial real estate looks much the same as it did six months ago. Those were the key takeaways from the Summer/Fall 2018 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey.

The latest survey confirmed that the apex of the market has been reached for this cycle. This is true in both the Bay Area and the three Southern California markets, where survey participants say that office rental rates are as high as they will be for the foreseeable future on an inflation-adjusted basis.

The industrial market data is better than ever before. The trend has improved for industrial in the East Bay, as its ports have benefited from the increased demand for online shopping, requiring distribution centers to serve Bay Area residents.

SoCal warehouse demand is predicted to be just as strong in the next three years, if not better than, today. Despite rising cap and interest rates, very low vacancy rates are driving the development of new projects in Los Angeles, Orange County, and the Inland Empire. Driving this demand is an increase in both imports and online shopping, which could potentially be disrupted by future trade wars.

Retail continues to be the weakest sector in commercial real estate. Developer expectations in the multifamily market have remained steady since the last report in January.

For comments, questions or concerns, please contact Dennis Kaiser

Connect

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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