Positivity expected at April 11 Real Estate Forecast

Source: The Business Journal

Experts painted a positive real estate picture at last year’s Real Estate Forecast titled “Looking Up.” Real estate is expected to continue on an upward growth curve and this year’s speakers, besides forecasting new opportunities, will look into the nuts and bolts of succeeding in today’s real estate market. They will address this year’s theme, “Unlock the Mystery.” The forecast, presented by the Economic Development Corporation serving Fresno County, is set for 5:30 p.m. April 11 at the Radisson Conference Center in Fresno. A lot of changes have taken place in real estate since the big bubble burst of 2007. So knowing today’s market and how to benefit from it is key for buying, selling or leasing real estate in the home, office, industrial, apartment, farm and retail markets. A select group from the real estate and finance industries will address the changes and discuss upcoming opportunities. Bobby Fena, senior vice president of Central California Colliers International Office Properties Group and Phil Souza, senior vice president of Grubb & Ellis/Pearson Commercial, will serve as masters of ceremonies. Speakers include: Stewart Randall, senior vice president of Central California Colliers International, addressing industrial real estate; Tony Cortopassi, senior associate with Cushman & Wakefield, looking at office real estate; John M. Shamshoian, broker and owner at Realty Concepts Ltd., discussing residential real estate; Andrew Hansz, professor and Gazarian Real Estate Center director at Craig School of Business, Fresno State, providing insight into finance and real estate; Robin Kane, senior vice president of Hendricks & Berkadia Apartment Real Estate Advisors, addressing multi-family real estate; Stanley Kjar, senior sales associate for Pearson Realty, digging into agriculture real estate; Doug Cords, real estate broker with Commercial Retail Associates, looking at retail real estate; Matt Renney, associate with Mohr-Rurik Capital Group Inc., discussing real estate finance. Randall will highlight the potential for a solid comeback in the industrial building market. Local industrial construction was almost non-existent for five years coming into 2013. But new warehouses are taking shape including a 96,000-square-foot industrial building in the 230-acre North Pointe Industrial development just south of E. North Avenue and just west of freeway 99 in south Fresno. Meanwhile, plenty of space exists in south and north Fresno for companies seeking to rent industrial space. When it comes to the office market, vacancies are forecast to continue their decline, especially in north Fresno. “The Herndon north submarket for office has improved the most over the last 12 months and seems to have an increased activity, which should continue to decrease vacancy in 2013,” Cortopassi said recently. The housing market will continue somewhat frustrating in that despite all the foreclosures in recent years, inventory remains very tight. Traditional sales are on the increase and that is good news for home shoppers seeking to move quickly into a Fresno-area home. Shamshoian is expected to address the declining home inventory and the rise in home prices. Home prices have risen more than 7 percent from last year. Sales happen much quicker than they did in 2012. Kane will report on an especially brisk apartment real estate market. Apartments and other multi-family housing are said to be renting 10 times faster now than they were two years ago. In a recent interview, Kane said that apartment buyers are looking for larger properties to invest in. He said low-income apartments sell extremely well, but buyers normally need incentives or a tax break to profit from them. Faced with higher payroll taxes and soaring gasoline prices, lower priced apartments are attractive to families, Kane said. That has bolstered demand among investor-buyers, he said. Looking at agricultural real estate, an abundance of buyers are in the market for prime farmland. “Demand is very high,” Kjar said recently. “With most farmers making a decent return in farming, there is little to no motivation to sell.” That has driven land prices up, he said. But water availability could play a role. “Demand could soften if water allocations don’t increase this year for areas on the westside,” Kjar said. Demand will also be affected by interest rates and the value of the dollar in other parts of the world. “If interest rates continue to rise and the dollar gets stronger in other parts of the world, it will affect the export market, which drives local agriculture,” Kjar said. “This could lead to a softening in demand and land prices.” Addressing retail real estate, Cords will report that the retail market is showing sings of resurgence. Newer shopping centers like the Clovis Crossing Shopping Center have plenty of potential. In a recent interview, Cords said shopping centers with good tenants in good locations within Fresno and Clovis are doing well. Older shopping centers are having a tougher time, Cords said.

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