Western Real Estate Business

JUL 2018

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

Issue link: https://westernrealestatebusiness.epubxp.com/i/1001516

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Page 17 of 32

M A R K E T H I G H L I G H T: O R A N G E C O U N T Y www.REBusinessOnline.com Western Real Estate Business • July 2018 • 17 ORANGE COUNTY RETAIL REIGNS SUPREME Only few markets truly compare to Orange County when it comes to re- tail in Southern California. The OC is packed with nearly 100 million square feet of retail space — including nu- merous creative and new retail con- cepts — popular tourist destinations and affluent communities. In this, it represents a unique commercial and cultural mix that has helped support a thriving retail sector. Much of the retail leasing activity in the OC (as well as throughout much of Southern California and across the nation) has been in the food and bev- erage sector, grocery stores, health and fitness users, discount and value retailers and furniture. Food and beverage typically plays an especially important role. Accord- ing to a new report from CBRE, res- taurants and coffee shop chains were the segment that increased their lead as the most active retail category for international expansion. They have capitalized on a global effort by land- lords to make their shopping centers more inviting by adding more experi- ential, Internet-proof uses. Orange County retail dynamics are strongest in the northern submarket. This is contrary to past historical ac- tivity that focused more on the coastal or South Orange County submarkets. Yet, lower vacancies and higher rents in these areas have made it harder for retailers to find appropriate space Northern Orange County's proxim- ity to Los Angeles, as well as tourist and entertainment destinations in the area like Disneyland and Knotts Berry Farm, have also attracted additional traffic, making the area even more ap- pealing for retailers. The general strength in Orange County's retail sector is evident through its new developments. Pure retail-focused construction has been challenged for a number of reasons, including rising construction and la- bor costs, the high price of land, the impact on retailer expansion plans due to e-commerce and changing con- sumer shopping dynamics. However, strong demand exists for mixed-use developments that either include or create a destination and an experi- ence. Demand is also there for as- sets already located in a high-traffic, densely populated trade areas. These mixed-use projects may include a multifamily residential component, office or medical office and even a ho- tel in addition to the retail. Some of these projects may be new develop- ments while others are repurposing an existing project with new uses, a new look and brand. There are several retail develop- ments underway in Orange County. The Link OC is a prime example, il- lustrating these latest retail construc- tion trends. The project's existing office building and parking lot will be demolished to make way for a mixed-use building with 400 rooms, office and retail space. Similarly, at the Brea Mall, the former Sears build- ing is being replaced by a mixed-use property with a massive fitness ten- ant, residential units, and restaurant and entertainment offerings. The Five Lagunas project currently underway in Laguna Hills will include a diverse tenant mix and luxury apartment component. The region's strong retail market fundamentals are expected to persist throughout this year. Recent U.S. em- ployment numbers support this out- look. The nation added 223,000 jobs in May, beating consensus expectations and continuing the longest streak of job growth on record. Hence, we ex- pect the overall outlook in Orange County to remain positive among oc- cupiers and landlords for the months to come. Jeffrey Moore Senior Managing Director, Orange County and Head of Retail Services for Southern California, CBRE Texas Real Estate Business and Western Real Estate Business magazines along with the InterFace Conference Group will host the 10th annual InterFace Healthcare Real Estate, a national information and networking conference focused on healthcare and medical office real estate, on September 27th in Dallas. The conference agenda and speaker line-up will include leading owners, investors, developers, lenders, operators and brokers, as well as hospital and healthcare system executives. T o p N at i o n a l H e a lt h c a r e / M O B R e a l E s tat e C o n f e r e n c e C o m i n g i n S e p t e m b e r I f y o u a r e i n v o lv e d i n h e a lt h c a r e a n d M O B r e a l e s tat e , o r w a n t t o l e a r n m o r e a b o u t t h e s p a c e , d o n ' t m i s s t h i s e v e n t ! i n t e r f a c e c o n f e r e n c e g r o u p . c o m / h c r e 2 0 1 8 Alicia Turlington 404-832-8262 aturlington@francemediainc.com R E G I S T R A T I O N & G E N E R A L I N F O : S P O N S O R S H I P & S P E A K I N G I N F O : Rich Kelley 914-468-0818 rkelley@francemediainc.com E a r ly B i r d R e g i s t r at i o n R at e i s $ 3 5 9 U N T I L A u g u s t 1 7 t h G O L D S P O N S O R S S I L V E R S P O N S O R S P L A T I N U M S P O N S O R S T E N T H A n n u a l I N T E R F A C E HEALTHCARE REAL ESTATE A N a t i o n a l I n f o r m a t i o n & N e t w o r k i n g C o n f e r e n c e S e p t e m b e r 2 7 » D a l l a s

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