The RealShare Conference Series returned to Southern California last week for its annual National Investment and Finance series at the California Club in downtown Los Angeles.
Many Westside companies attended the two-day event that began with a networking reception on the evening of Tuesday, June 24. A full line-up of panels followed all day Wednesday.
The hand picked group of panelists shared their knowledge on recent trends and the state of the market, also offering a glimpse of their projections for the future.
During the early bird panel “Institutional Investment Insights,” speakers agreed that last year’s market observed increased value and cap rate suppression, while interest rates remained at historically low levels. Rents also continued to climb.
When the moderator asked Kevin Shields of Griffin Capital what he predicted moving forward, he pointed to his belief in increased interest rates paired with increased cap rates.
Panelists also identified the notable influences driving modern day investment strategies.
One such trend dominated all chats, as many were quick to discuss the (slow, but steady) infiltration of technology into today’s real estate world.
At one point, speakers pointed to the tremendous demand for acquisitions of industrial buildings, yet recognized the limited availability for the product type.
This phenomenon could easily be explained by online shopping trends and retailers’ resulting hunger for distribution centers.
“You’re seeing the impact of e-commerce, and it’s not helping retail,” Eric Paulsen of Auction.com asserted.
Rodney Richerson of KBS Realty Advisors discussed the effect tech companies have had on the River West region in Chicago. He highlighted this “dynamic area” had continued to bloom as the presence of tech giant’s Facebook and LinkedIn had paired well with mass transit and residential development.
Akin to the River East area and Arts District in downtown Los Angeles, time will only tell if this Mid-West river tale will translate the same way in SoCal.
With a potential Arts District metro stop and dozens of new housing developments and creative office conversions sprouting up, the region could easily make for a more than comfortable landscape for a Silicon City.
“The way you recruit this crowd is by recruiting talent,” said speaker Chris Cooper during the “Town Hall: Economic Outlook” panel as he shared his observation of the recent big migration from Silicon Valley to Silicon Beach.
It’s about “attracting the newer wave of tenants with more creative design,” he said.
In a later panel, speakers also assembled to address investment real estate crowdfunding that has become available through numerous tech platforms.
These websites have created a more even playing field for investors, presenting many with the opportunity to throw their hat in a rink which was traditionally only reserved for those already equipped with mile long reserves.
“Where we see the world going, there’s a sector in the market for this,” Ryan of Rising Realty partners said.
Aside from creating a greater transparency in the investment pool, technology brings accountability, the panelists explained.
With greater data on each sponsor and means of conducting heavy background checks, the potential result could signal less fraud.
As a closing thought, Elizabeth Kulik of Pro Hatch summed it up succinctly: “This is the juncture where we’ll all need to sit back and adapt to technology.”
