See photos from the event below.
SAN DIEGO-Investment activity is strong across most product types in San Diego's commercial real estate market, according to panelists at a recent NAIOP event here at the Marriott San Diego Del Mar. Among observations were that San Diego is seeing a lot of money chasing a limited amount of deals.
As panel moderator Nick Psyllos of HFF LP pointed out, “You get a sense that a switch has been turned on and that things are very, very busy.” Panelist Allen Staff of Bank of America Merrill Lynch agreed, noting that “Big financial institutions are feeling very good about business,” but he noted that underwriting is still “tight-reined.”
The biggest challenge for investors, as panelist Dennis Cruzan of Cruzan Monroe pointed out, is “just finding deals,” adding that “we are selective in what we're looking for.” Psyllos highlighted another challenge—that the distressed properties everyone thought would hit the market did not materialize, and “given the current market strength, that isn't going to happen.”
Panelist Dean Rostovsky with Clarion Partners said that tech, biotech and healthcare are all performing well in this real estate cycle and will continue to do so, making them desirable tenants for would-be investors and capital providers.
The same sentiments were noted in a recent San Diego skyline report from Jones Lang LaSalle. According to the report, investment activity in 2012 began slowly but finished with a bang with more than $303 million in property trading hands with even more in the pipeline in 2013 in pending or potential sales.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
