Growing up in the open space of Texas and building things with her step dad formed the foundation for Kellie Hill entering into the construction field.
Attempts at the federal level to stem commercial real estate loan problems and subsequent fallout will be met with both applause and skepticism, if conversations with local industry players are any indication.
San Diego's commercial real estate markets, like commercial real estate markets across the country, are suffering from low levels of demand. Leasing values continue to decline across all product types and concessions are abundant, in the form of generous tenant improvement allowances and free rent.
To say that commercial real estate and capital markets are in disarray is understating the obvious.
More than 400 financial and commercial real estate experts from around the country recently convened in San Diego for the annual Trigild Lender Conference, reaching the consensus that there is one key to recovery in today's dismal economy: jobs.
While the commercial real estate market sags, more real estate professionals are considering beefing up their resumes by pursuing graduate school so that they can be better positioned when the economy recovers. Admissions counselors at the University of San Diego's Burnham-Moores Center for Real Estate, which offers a master's degree in real estate, say that numbers are up for 2010 applications, and apparently not despite current economic woes, but because of them.
While management has been shown to have a greater impact on worker productivity than any environmental factor, environment does matter. In May 2009, a team from CBRE and the University of San Diego's Burnham-Moores Center for Real Estate conducted a survey to examine the impact of green buildings on productivity. All told, 154 buildings containing more than 2,000 tenants -- which were deemed green by virtue of either the Energy Star label or LEED certification at any level -- were surveyed. Forty-four percent of the buildings were located in the central business district, while 56 percent were midtown or suburban. Ninety-four percent of the buildings were multitenant. Most were Class A or A-.
A recently released Cushman & Wakefield third-quarter 2009 report shows that tenants are driving the San Diego County industrial market as landlords focused on occupancy continue to write aggressive leases including free rent and generous tenant improvements to attract new tenants and retain current ones.
It seems to occur once or twice a decade. Free-flowing capital leads to overbuilding, leaving vast quantities of empty office space during a downturn. It has happened again.
This is a very different commercial real estate market than just three years ago, but there is no clear consensus as to how long the downturn will last.
BioMed's still doing well but the life science industry as a whole keeps giving back space.
New commercial permit activity is running at about a third of what it was a year ago, commercial additions are off, and industrial construction continues to check in with dismal totals in San Diego County.
