IRVINE, CA—Being creative about space use will be the name of the game in all of Orange County's property sectors next year as space continues to tighten, Allen Matkins partner Drew Emmel tells GlobeSt.com exclusively. We sat down with Emmel to discuss what his firm will be focusing on next year and some of the most significant changes the Orange County commercial real estate market will see in 2015.
GlobeSt.com: What do you feel will be the most significant changes the Orange County commercial real estate industry will see in 2015?
Emmel: 2015 will be the year that's all about location and availability. Some of the markets are tightening, especially the industrial market around the airport, with limited availability. If you are an industrial developer or need an industrial building, it will be tougher to find land. In the retail sector, the Orange County market is going to be strong, but that will be about location. You will need development in the right location, notwithstanding the pressure of online shopping we're hearing. Clients are demonstrating that if you can find a location for retail use and match that location to the proper use, a retailer can have a successful store and the developer a successful project.
In office, my expectation is that the market is going to continue to tighten. There are several large users looking in the Orange County Airport market for significant office space, and the office market will continue to tighten in 2015. Medical will continue to grow, and from what I understand, medical-office buildings will continue to pop up throughout Orange County. Multifamily is still going to continue to be busy, but at a much slower pace than the last few years. An interesting dynamic is the conversion from industrial to multifamily, which will continue to accelerate and put pressure on industrial developers from multifamily developers who want their land.
GlobeSt.com: Are there any emerging Orange County markets?
Emmel: Within Orange County, the central business district will continue to grow. It's interesting that there's more residential development going on in the Airport Area than industrial or office.
GlobeSt.com: What will be your firm's focus in 2015 for the Orange County market?
Emmel: We've been really busy over the last year and expect to continue to be busy on all the fronts I just mentioned: office, industrial and retail. We're also involved in the Five Points residential development in Tustin, and we're touching on all the major product types in Orange County.
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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.
