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California Retail Investors Head Out of State

Better yields and more opportunities are attracting retail investors to trade out of California into Texas, Florida and Washington.

Eric Carlton Eric Carlton

California retail capital is heading outside of the state in search of single-tenant opportunities. That isn’t to say this capital doesn’t want to be in California. The strong dynamics in the California markets has driven prices to all-time highs, making it difficult to invest. The chief issue, however, is the limited opportunities for investment: no one wants to sell their product. The trend is driving investors, especially investors completing 1031 exchanges, out of California into markets like Texas, Washington and Florida.

“Inventories are down, and there isn’t a lot of product here,” Eric Carlton, EVP of retail services at Colliers International, tells GlobeSt.com. “California money is heading to other markets, even markets on the other side of the country. In L.A. and Orange County, there hasn’t been a lot of turnover of product. This is really the place where people want to be, but there is very limited product. It has been a seller-friendly market. This is the top of the market.”

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Kelsi Maree Borland

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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