The Cassidy Turley San Diego president and CEO said his offices’ sales and leasing volume exceeded $1.25 billion last year, and the figure should be exceeded in 2012.
Daniel Broderick added he is hopeful about 2013.
“Our capital markets' activity has been steadily growing and 2013 could be an exciting year for us given the pipeline,” Broderick said. “However, capital markets depend greatly on the global financial stability, and I don’t think anyone knows at this moment what 2013 has in store.”
Cassidy Turley’s leasing volume amounted to about $750 million of the $1.25 billion total, and following a deep and difficult recession, Broderick is cautiously optimistic by what he sees.
“We expect (leasing) to be flat or up by year end 2012, as there are a number of large year-end transactions pending," he said. "While leasing activity has been persistent in 2012, the extremely large transactions have been fewer this year, except for some notable transactions in the life science and technology sectors. The 2013 projections are to remain stable in 2012, given no new development is slated to come online except for build-to-suit developments.”
Broderick said he does expect lease rates to rise in 2013, but as of this writing, the fiscal cliff issues had yet to be resolved, uncertainty could be a major problem at least at the beginning of the year.
“We expect lease rates to continue to rise in the core Class A markets," Broderick said. "Given San Diego’s economy is heavily weighted towards defense, education, tourism, technology and life science it is imperative that our fiscal issues are prudently and quickly resolved to give clarity around defense spending, tax treatment for the investors in the start-up sectors, and taxes on discretionary income. Tenant leasing activity will be heavily influenced by decision maker confidence levels and the health of our interwoven global and local economy.”
Assuming the fiscal cliff issue is resolved, Broderick likes what he sees.
“The state of the current real estate market in San Diego is healthy. There are still opportunities to find attractive and creative deals if you are a user or an investor. Capital is extremely cheap and available for qualified investors,” Broderick said.
Broderick oversees more than 100 licensed sales professionals across its Southern California locations.
“Our largest office in UTC with 55 sales professionals, and we also have offices in Carlsbad, El Cajon, Otay, downtown San Diego and Irvine," Broderick added. "We have more than 65 professionals and management supporting our brokerage operations, along with over 20 professionals in our property management and corporate services lines.”
Broderick was appointed to head Cassidy Turley San Diego in March 2011.
Broderick joined Cassidy Turley from Eastdil Secured -- a wholly owned subsidiary of Wells Fargo Bank and the nation's largest investment bank that is exclusively focused on commercial real estate -- where he was senior vice president in the Equity Sales Division.
In the past six years, Broderick’s team had closed transactions valued at more than $8 billion.
Earlier, Broderick was associated with Burnham Real Estate Services (now Cushman & Wakefield) in the area of office leasing and sales.
"Our growth in 2013 will be focused on a few key areas of opportunity," he said. "On a net basis we expect to be flat for the year."