IRVINE, CALIF. (February 20, 2013) – Real estate leaders representing the retail, office, industrial and multifamily markets discussed the current state of commercial real estate at the annual Institute of Real Estate Management (IREM) Market Forecast on February 20. Coreland Companies Director of Retail Brokerage Matt Hammond represented retail markets, alongside Joe Leon of Capital Markets (multifamily), Stacy Garcia of Travers Realty (office) and Kevin Turner of Voit Real Estate Services (industrial).
Moderated by Kurt Strasmann of CBRE, all panelists agreed that although the outlook is positive for 2013 and the emphasis is a “flight to quality” for tenants.
“We’re not putting a Band-Aid on properties anymore by just trying to fill spaces with any tenant available,” shared Hammond. “Owners are now focused on the quality of tenants for the long-term sustainability of their properties.
“Owners understand that tenants will compete for Class A locations, and are even willing to pay pre-recession rents. However, there is a flight to quality. If a deal cannot be reached at those locations, the retailer is more likely not to do a deal, than settle for an inferior location within a trade area.
“Another positive change is that tenants now have specific growth plans. As opposed to the last few years when they felt that there was no need to expand and would only consider the perfect deal. Retailers are focused again on modest expansion.”