INTERVIEW WITH MARK CAFFERTY, San Diego Regional Economic Development Corporation
Are you familiar with San Diego’s key industries that drive our region’s economy and shape demand for both commercial and residential real estate? Mark Cafferty, President & CEO of the San Diego Regional Economic Development Corporation (SDREDC) joined the program for an in-depth discussion of our region’s markets and the long-term impact we’ll see from COVID-19.
The SDREDC is funded by San Diego area businesses with a goal of growing the region’s economy and assisting our businesses export their products and services internationally. Mark discussed the competitiveness of the San Diego region, which is largely driven by San Diego’s colleges and university providing businesses access to a highly educated workforce. This has helped to support what Mark says is one of the more diverse economies in the nation.
Mark highlighted the impact of scientific research, which facilitated the growth of our biotechnology and life science industry and created what he described as a “Silicon Valley" of defense technology. He also discussed how some companies are rethinking their office space needs as many employees are fully capable of working virtually. Coupled with the growth of online commerce, Mark predicts that we’ll see “seismic shifts” in the use of office space.
RESOURCES:
San Diego Regional Economic Development Corporation
COMMERCIAL INDUSTRY LEADER PANEL
Are you familiar with the various segments of commercial real estate? SDAR President Mike Mercurio, and SDAR Past President Mark Marquez interviewed three representatives of the region’s premier commercial real estate firms who focus on varying segments of the commercial market. This includes:
Steve Avoyer, President & Founder, Flocke & Avoyer (flockeavoyer.com)
Specializing in leasing retail office space, Flocke & Avoyer is the largest retail platform in San Diego County with transactions exceeding $5.5 billion. Specializing in the sale and leasing of shopping centers, Steve discussed the impact of COVID-19 on several industries, such as restaurants, that face an uncertain future. Steve shared that it’s too early to determine the full impact on retail space and laid out the challenges for both tenants and landlords in this space.
Brian Mulvaney, Senior Vice President & Partner, Voit Real Estate Services (voitco.com)
Specializing in the sale and leasing of R&D, industrial, office and high tech / life sciences, Brian has managed transactions totaling more than $900 million. He discussed the growing footprint of big name market entrants Apple (196,000 sq. ft) and Amazon (533,000 sq. ft). Brian also shared that the industrial market remained strong with only a 4.9% vacancy rate. Flex/R&D also has a low vacancy rate of only 8.53%, indicating a tight market in both segments. While some companies have tried to renegotiate deals in response to COVID-19, this is not a common occurrence and the region remains a premier location for businesses in this sector.
Morgan Reno, Associate, Cushman & Wakefield (cushmanwakefield.com)
Specializing in multi-tenant office leasing, Morgan represents tenants and landlords throughout central San Diego and downtown submarkets. She also serves on the Board of the Commercial Real Estate Alliance of San Diego (CRASD). Morgan shared that rent collection remains well above 90% and landlords at this time are not reducing rates. Overall, Morgan remains positive on the outlook for this sector.
COMMERCIAL REAL ESTATE ALLIANCE OF SAN DIEGO (CRASD) UPDATE
Whether you’re looking to grow your career in commercial real estate or are considering a transition from residential real estate, the Commercial Real Estate Alliance of San Diego (CRASD) can be a valuable resource. Jen Schmidt, the 2020 President of the CRASD joined the program to share about CRASD, which is part of he Greater San Diego Association of REALTORS (SDAR) and offers a number of services to its members:
- Updates on Commercial Real Estate (CRE) issues and trends
- Serves as an advocate by staying at the forefront of legislation affecting CRE
- Holds networking events (public health circumstances permitting) for CRE professionals
- Offers resources for professional development
- A Quarterly Commercial Real Estate Report, highlighting local market trends, legislation of interest to CRE practitioners, and professional development / educational opportunities
- Coming soon: A bulletin board -- or MLS-type platform -- dedicated to CRE
For further information, please visit www.crasd.com.
Special Offer for New Members Who Join CRASD by July 1, 2020
Join by July 1 and enjoy all these benefits at no charge for the remainder of this calendar year. Plus, SDAR/CRASD will also offer financial support to new members who complete the Commercial Brokers Association's Commercial Real Estate Certification program in 2021. Join CRASD today - click here.
Q&A
We received some great questions from participants, and the experts gave honest and informative answers. To view these now, click here.