Western Real Estate Business

DEC 2015

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/608847

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THE NEXT INSTITUTIONAL ASSET CLASS The West's multi-tenant industrial market is poised for recovery, presenting a great opportunity for savvy investors. By Brian Malliet, CEO and Co-Founder, BKM Capital Partners M ulti-tenant industrial might not be the sexiest product type out there, but it is the next important institutional asset class, as these properties present tremendously lucrative opportunities for yields over the next two to three years. We will see increasing institutional inter- est in multi-tenant industrial assets as 2016 approaches that will be based on three pri- mary factors, outlined below: 1. Timing Multi-tenant industrial has lagged behind the rest of the industrial sector. This is ex- tremely good news for investors. While big box industrial product bot- tomed out years ago and has now made more than a full recovery, rents in multi-ten- ant industrial didn't hit bottom until about W hat do you call a co-worker who has no co-workers? A freelancer, or solopreneur. What do you call a company owner who has few employees, but lots of co-workers? If you're in the ofce space game, you'd call them the next savvy real estate investors. The latest technologies have allowed employees to remain connected 24/7. Pair that with a general downsizing in ofce space by many companies, and you have the recipe for many Mil- lennials' dream job: one with ample freedom, that can be accomplished on their own schedule thanks to mobile technologies. While working from home in one's pajamas is wonderful, many telecommuters can fnd that be- ing home all day sometimes breeds less than desirable habits. Namely, sit- ting around in one's pajamas all day. Thus, a new type of ofce space has formed. Co-working spaces ofer pro- fessionals the same ofce environment and sense of accomplishment many traditional ofce settings provide, but also give them the freedom to come and go as they please without a boss looking over their shoulders. Though the trend is currently in its infancy, about 40 percent of the workforce will be composed of freelancers, temps, independent contractors and solopre- neurs by 2020, according to a study produced by Ofcevibe, an employee engagement software company. Cornering the Urban Cores Many co-working companies are scouting sites in the most bustling INDUSTRIAL OPPORTUNITIES Two WREB experts believe the West's industrial sector points to the next big value play. see INDUSTRIAL, page 30 see CO-WORKING, page 29 As someone who worked from home, Kenny opened Co-Merge in Downtown San Diego in 2011 to provide this community with the same resources offered to Fortune 500 in-offce employees. THE CO-WORKING TREND TAKES OFF IN THE WEST An unconventional type of company is snatching up offce spaces in some of the West's burgeoning downtowns. By Nellie Day What millennials want (in their hotels). page 26 Inland Empire Market Highlight page 18 page 25 Spotlight on Seniors Phoenix Market Highlight page 22 INSIDE THIS ISSUE www.REBusinessOnline.com December 2015 • Volume 13, Issue 4 BKM recently acquired the 225,435 square-foot Koll Cotton Center in Phoenix. The frm plans to use its operator model to turn the asset around and lease up the available space, resulting in strong profts upon stabilization.

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