
Q&A: CBRE’s Kurt Strasmann Summarizes Orange County Market
Connect Orange County is just around the corner. In case you didn’t know, it is just about the biggest CRE gathering in SoCal. You can still register and get the Early Bird Rate on this link: Connect Orange County.
As we gear up to meet at Trammell Crow Company’s newest office development, The Boardwalk in Irvine on Sept. 25th, Connect Media asked one of the key speakers slated to participate in the conference to share insights about the market. Check out CBRE’s Kurt Strasmann’s synopsis of Orange County in our latest Q&A.
Q: What are the top Orange County market trends you are tracking as we head into the end of the year?
- A: Office: Labor/wage inflation, Co-working space, absorption of reposition assets/new developments and lease rate appreciation.
- A: Industrial: lease/sale pricing, new developments, last mile ecommerce; institutional investors/capital, labor.
Q: What are you seeing in terms of tenant demand in the market?
- A: Industrial: exceptionally strong in multiple sectors;
- A: Office: still very busy, technology driving lots of demand; co-working operators taking on lots of space, progressive office projects – Boardwalk project.
Q: What is investor demand like now for Orange County assets?
- A: Super-strong in most all sectors, access to capital is abundant. Both institutional and private.
Q: What do you see ahead for the balance of 2018?
A: 2018 will close out strong. Lease rates continue to escalate and sale prices are increasing. The economy remains consistent, strong and diverse. Labor is an issue with Orange County’s 2.6% unemployment, it makes it challenging to grow when it’s difficult to hire people. The result is wage inflation.
For comments, questions or concerns, please contact Dennis Kaiser