At Avanath, we focus on acquiring and rehabilitating existing affordable-housing stock. The affordable-housing sector provides an opportunity for investors to generate risk-adjusted returns through higher occupancies and lower operating costs. For example, affordable apartment communities have much lower turnover than market-rate apartments, which results in lower operating costs and stabilized cash flow. This asset class also provides downside protection since it is less likely to be impacted by economic shifts compared to market-rate apartments and other asset classes.

As the incoming chairman for ULI Orange County/Inland Empire, I see this sector as a valuable investment, as well as an opportunity to improve the economic vitality of communities by preserving affordability.

GlobeSt.com: What are your goals for the organization over the next two years?

Williams: My first goal is to improve the education and understanding regarding the feasibility and benefits of affordable and workforce housing. ULI already provides comprehensive resources and educational opportunities on urban land use, but coming from a background in affordable housing, I hope to educate the community further about the preservation of affordable housing.

It is my goal to educate property owners, cities, local communities and investors on the benefits from an investment perspective, as well as a social-improvement perspective. There are economically viable solutions to delivering affordable environments that improve the quality of life for residents without sacrificing affordability and still generate strong risk-adjusted returns.

Diversity in real estate and within ULI itself is also extremely important to me. Diversity within real estate is an attractive investment that can provide organizations with tangible returns. It is my belief that companies must look like the customer they represent, which involves the inclusion of minority groups.

Finally, increasing public and university outreach is a major goal. ULI has already implemented initiatives that work to promote responsible land use; however, it is essential that the organization work together with the public and with the universities that are a part of land-use decisions. By increasing outreach, we can educate the public on best practices and provide leadership and guidance throughout Orange County and the Inland Empire.

GlobeSt.com: What is your outlook for the Orange County market and beyond?

Williams: Historically, Orange County has always outperformed the countrywide statistics in the commercial real estate sector. With median prices for homes at $635,000, homes in the area are unaffordable for most households. Therefore, multifamily properties absorb a majority of the workforce in the Orange County market.

The asking rent growth in Orange County is significantly higher than the national average; however, despite these extremely high rental costs, many renters have not been deterred from the area. The Orange County market will likely continue to experience low vacancies and above-average rent growth over the next several years.

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IRVINE, CA—Affordable and workforce housing, diversity and public and university outreach are among the topics of focus for ULI Orange County/Inland Empire, Avanath Capital Management's president and chief investment officer John Williams, incoming chairman for the district council, tells GlobeSt.com. We spoke with Williams about district council's primary areas of focus for CRE and his goals for the organization over the next two years.

GlobeSt.com: As incoming Chairman of ULI Orange County/Inland Empire, what do you see as primary areas of focus for the commercial real estate industry in the current market?

Williams: Affordable housing is certainly something I see as a primary focus for the commercial real estate market. There is no doubt that the nation is currently entrenched in an affordable-housing crisis, especially in areas across California and Orange County.

Rents throughout the state have continued to rise at a rapid rate, while incomes have failed to keep up. Rents in Orange County have more than doubled since the year 2000; local rents have increased by an average of 4.2% annually during that same period, while local income growth has only seen an estimated 3.5% per-capita increase. This gap between rental rates and incomes continues to widen, creating a significant need for affordable housing. This strong demand, coupled with the lack of supply in this sector, presents a strong opportunity for investors.

At Avanath, we focus on acquiring and rehabilitating existing affordable-housing stock. The affordable-housing sector provides an opportunity for investors to generate risk-adjusted returns through higher occupancies and lower operating costs. For example, affordable apartment communities have much lower turnover than market-rate apartments, which results in lower operating costs and stabilized cash flow. This asset class also provides downside protection since it is less likely to be impacted by economic shifts compared to market-rate apartments and other asset classes.

As the incoming chairman for ULI Orange County/Inland Empire, I see this sector as a valuable investment, as well as an opportunity to improve the economic vitality of communities by preserving affordability.

GlobeSt.com: What are your goals for the organization over the next two years?

Williams: My first goal is to improve the education and understanding regarding the feasibility and benefits of affordable and workforce housing. ULI already provides comprehensive resources and educational opportunities on urban land use, but coming from a background in affordable housing, I hope to educate the community further about the preservation of affordable housing.

It is my goal to educate property owners, cities, local communities and investors on the benefits from an investment perspective, as well as a social-improvement perspective. There are economically viable solutions to delivering affordable environments that improve the quality of life for residents without sacrificing affordability and still generate strong risk-adjusted returns.

Diversity in real estate and within ULI itself is also extremely important to me. Diversity within real estate is an attractive investment that can provide organizations with tangible returns. It is my belief that companies must look like the customer they represent, which involves the inclusion of minority groups.

Finally, increasing public and university outreach is a major goal. ULI has already implemented initiatives that work to promote responsible land use; however, it is essential that the organization work together with the public and with the universities that are a part of land-use decisions. By increasing outreach, we can educate the public on best practices and provide leadership and guidance throughout Orange County and the Inland Empire.

GlobeSt.com: What is your outlook for the Orange County market and beyond?

Williams: Historically, Orange County has always outperformed the countrywide statistics in the commercial real estate sector. With median prices for homes at $635,000, homes in the area are unaffordable for most households. Therefore, multifamily properties absorb a majority of the workforce in the Orange County market.

The asking rent growth in Orange County is significantly higher than the national average; however, despite these extremely high rental costs, many renters have not been deterred from the area. The Orange County market will likely continue to experience low vacancies and above-average rent growth over the next several years.