July 24, 2017
By Dennis Kaiser
The summer’s hottest CRE event, Connect Orange County, is just around the corner on July 27th at the Balboa Bay Club in Newport Beach. Connect Media caught up with Buchanan Street Partners’ Robert Brunswick, one of the market’s leading CRE investment management firms, for an advanced peek into some of the biggest trends. Follow this link to get more information and register: Connect Orange County.
Q: What are the biggest trends impacting the market?
A: From our vantage point and a capital markets perspective, the biggest trend impacting the market is the depth and breadth of the capital flow. Many investors, specifically foreign capital, are seeking investments that provide a safety of geography and credit, with less prioritization of yield. Separately, and from a property operations standpoint, technology and property use is changing in all sectors, creating both opportunity for adaptive reuse and property repurposing, and driving paradigm projections for the next chapter.
Q: What are the prime opportunities and toughest challenges you face?
A: It remains challenging to judiciously put capital to work with an appropriate risk return adjusted analysis, given the flush and abundant worldwide capital markets. Today’s market is probably one of the most efficient and stabilized markets we have seen in many years: the banks are more disciplined and are not overleveraging their loan portfolio, causing less distress and in turn opportunity for the discerning buyer. Having said that, we continue to differentiate ourselves within secondary and tertiary markets, and middle market pricing where less institutional capital reigns and we are able to add value with capital and professional operations. Further, many of these markets are experiencing the greatest employment growth as their jurisdictions continue to provide corporate and infrastructure incentives.
Q: What are the best solutions you’re seeing come to market?
A: The user, be it within residential or commercial space, is benefiting from the many advances brought on by energy efficiency, space usage, technology and broad creativity that are being applied to real estate. The inclusion of many added amenities, including concierge services, abundant shared and unique space within building repurposing programs, as well as new workout facilities, electric car parking, dog care, etc. are creating an environment that is not only meeting today’s demand, but shaping the future of real estate in Orange County.
For comments, questions or concerns, please contact Dennis Kaiser