Strasmann: Orange County is a terrific place to invest and develop in for a variety of reasons. OC has one of the lowest unemployment rates in the nation, superior quality of life, a diverse and deep business infrastructure, high household income levels, low vacancies in all product types, barriers to entry, lack of housing and more. All real estate fundamentals in this region are exceptionally strong and make the Orange County market one of the most sought-after in the nation.

GlobeSt.com: Which are the strongest submarkets for development now?

Strasmann: All submarkets remain exceptionally well positioned for any type of development. The biggest issue is lack of opportunities for new construction or major repositions. I believe we will see an ongoing increase in mixed-use developments. Additionally, there will be more and more creative adaptive reuse of assets for a more evolved use that provides maximum returns, such as converting commercial to residential, retail to medical and mixed-use and industrial to last mile.

GlobeSt.com: Which submarkets show potential for future growth and development?

Strasmann: Growth will occur in all submarkets. We have a shortage of quality industrial product, a shortage of housing and a great expanding office market. Orange County, for the most part, has some of the lowest vacancies in the nation across all real estate product types. One particular area of interest will be retail and the evolution of the sector and the hard assets themselves.

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NEWPORT BEACH, CA—Orange County's non-existent mass-transportation system is an issue for CRE development long term, but there is still unstoppable investor demand for developments throughout the OC region, CBRE senior managing director Kurt Strasmann tells GlobeSt.com. Strasmann will be speaking on the panel “Orange County Development: Getting Ahead by Building an Active Pipeline” during RealShare Orange County on Aug. 24. We caught up with him to talk about some of the topics that will be discussed during the session.

GlobeSt.com: How much do issues like no transportation system and slow permit processing affect Orange County development?

Strasmann: The transportation system is an issue long term, but right now it doesn't really affect things much due to the unstoppable investor demand for developments throughout the OC region. The slow permitting process, on the other hand, has had an effect, since it drives up costs and makes things more challenging for buyers to execute, from escrow all the way through the completion of the project. We don't see this changing much in the future. Buyers need to be aggressive, have a specific plan the city will buy into and then have the internal infrastructure to be able to execute on time.

GlobeSt.com: Why is the county seeing an increase in major project development now?

Strasmann: Orange County is a terrific place to invest and develop in for a variety of reasons. OC has one of the lowest unemployment rates in the nation, superior quality of life, a diverse and deep business infrastructure, high household income levels, low vacancies in all product types, barriers to entry, lack of housing and more. All real estate fundamentals in this region are exceptionally strong and make the Orange County market one of the most sought-after in the nation.

GlobeSt.com: Which are the strongest submarkets for development now?

Strasmann: All submarkets remain exceptionally well positioned for any type of development. The biggest issue is lack of opportunities for new construction or major repositions. I believe we will see an ongoing increase in mixed-use developments. Additionally, there will be more and more creative adaptive reuse of assets for a more evolved use that provides maximum returns, such as converting commercial to residential, retail to medical and mixed-use and industrial to last mile.

GlobeSt.com: Which submarkets show potential for future growth and development?

Strasmann: Growth will occur in all submarkets. We have a shortage of quality industrial product, a shortage of housing and a great expanding office market. Orange County, for the most part, has some of the lowest vacancies in the nation across all real estate product types. One particular area of interest will be retail and the evolution of the sector and the hard assets themselves.