As San Diego developers, landlords, tenants and others in the commercial real estate industry strategically look toward 2014, Jones Lang LaSalle has launched a new video series that recaps market performance of the past year in various sectors and provides guidance as to where the industry is heading.
The videos are presented in three main categories that reflect important industry sectors in San Diego – capital markets, healthcare and development – and feature Jones Lang LaSalle brokers in the firm’s local office.
The first capital markets video features Jones Lang LaSalle broker Darcy Miramontes, Executive Vice President, with a specialty in multifamily capital markets.
According to Miramontes, “investors are very bullish” on San Diego’s multifamily opportunities as that sector has one of the strongest fundamentals of any commercial sector in San Diego. Rent growth is expected to be 3 – 5 percent through 2017. Vacancies across the county are upwards of 5 percent, while in some submarkets they are as low as 2 – 3 percent. In Miramontes’ view, San Diego’s positive job growth projections and the high cost of owning a home locally have helped buoy the multifamily market. For investors, low interest rates and access to capital continue to be important factors in driving value. Her advice for clients is to stay current on market drivers, such as employment numbers and market fundamentals such as construction pipeline and on the buy side, be aggressive. “San Diego isn’t a market that has a large downside so if you buy right or buy slightly aggressive, you’ll be fine in the long run,” she states in the video.
You can view the videos here. The Capital Markets videos are the first to be featured in the series. The Healthcare and Development videos will be featured in coming weeks.