NEWPORT BEACH, CA-With the service-provider market uncrowded there, RiverRock Real Estate Group's Steve Core sees untapped opportunity in Arizona, he tells GlobeSt.com. As GlobeSt.com reported earlier today, Core was recently promoted to president of the firm and, despite its volatility, is looking at a major push into the Arizona market.
“I like the opportunity out there,” says Core. “Investors are still selective, and there's a favorable business market in Arizona. We plan to continue to be a player out in that area.”
Core adds that RiverRock is focused on taking advantage of the uptick in leasing and construction activities in major West Coast CBDs, including San Francisco, the Silicon Valley and Downtown L.A.
“There's been phenomenal growth over the last year in the Silicon Valley--we're close to doubling our portfolio out there in the last 12 months.”
The Orange County leasing market remains soft, says Core, with the big issue being what will draw tenants into the county. “Industrial is strong, big box as well, multifamily is a challenge, but leasing is picking up there as well.”
RiverRock's construction division has been very busy, working on an increased number of jobs over 2012, says Core. “Tenant improvements are up, which pays off from the increase in leasing, and we're seeing an increase of capital infusion into the buildings.” The firm is working on several large-capital projects and lobby renovations, including a $1-million renovation project here in Orange County. “The investment side is beginning to flow back into the properties.”
Overall, Core is cautiously optimistic about the condition of West Coast leasing and construction. “I'm not saying we're out of the cellar yet, but there's been a lot of positive absorption, and activity is picking up on all product types. Leases remain unchanged—there's not too much uptick—but activity is up. We are seeing incentives kind of die down, though—the days of the broker bonus are fading a bit.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
