GLOBEST.COM: Are Rooftops Coming Back in OC?

By Carrie Rosenfeld | Orange County

ORANGE COUNTY, CA—Residential construction has been picking up in Orange County, and some say that the deliveries this year will have a significant impact on the region’s commercial real estate. Others, however, are still on the cautious side.

“We are starting to see the rooftops come back,” Matt Hammond, director of retail brokerage for Coreland Cos., tells GlobeSt.com. “Shea Baker Ranch in Lake Forest is bringing 2,800 homes on board, and out in the Inland Empire, a lot of homebuilding is kicking off and under construction. It’s a good sign; everybody is pretty optimistic.”

Hammond points out that the deliveries are a positive indicator for the retail sector. He adds that his biggest concern is that retail deals will slow down because there’s not a lot of space to lease. A lot of deals are getting done, but now it’s harder to find quality space so tenants can grow. They’re doing it cautiously. There’s not a lot of low-hanging fruit to lease, so we have to create opportunities.”

As Hammond told GlobeSt.com recently, “We’re seeing some clients who have relationships with tenants like Dunkin’ Donuts, Starbucks, Chipotle or grocery stores looking to buy the centers where those tenants want to be. They may redevelop that center, but they have tenants in tow. Some of the current owners of these centers may not have the money or aren’t sophisticated enough to deliver space to large grocers.”