NEWPORT BEACH, CA—A “forest for the trees” mentality, in addition to seeking yield for investors, is causing firms based in other markets to expand to the West Coast, creating more demand for talent in a tight market, RETS Associates principal Kent Elliott tells GlobeSt.com. Elliott says that there are a lot of out-of-region and foreign companies that are moving to California and the West Coast in general to open new offices and take advantage of the strong market fundamentals here. Naturally, this is having an impact on the hiring landscape. We spoke with Elliott about that impact and what it means for CRE professionals.

GlobeSt.com: What are you noticing about real estate companies with footprints in other markets—both domestically and internationally—expanding to the West Coast?

Elliott: They're seeking a broader geography in which to place their capital in order to achieve the yield requirements that they're seeking. Take a New York-based company that feels like they're in the forest in New York but can see a vision for a property in Downtown L.A. that the local players inside the forest can't see. If that property will achieve the yield requirements of a New York firm, they'll go after it. These could be acquisitions of existing assets, ground-up development or redevelopment opportunities. With that, some of them are then setting up shop here so that they can take that initial investment and expand upon their footprint in that geographical area.