Retail, Build-to-Suit Office Sectors Hot

IRVINE, CA-Now that the housing recovery is well on its way, the commercial real estate industry is eyeing new sectors that will drive Orange County’s economy. According to speakers at RealShare Orange County here yesterday, in addition to the continuing strength of the multifamily market, those driving sectors are retail and office—particularly build-to-suit office.

Calling retail “the caboose on the recovery end,” Chris Hite, president and founding principal of Coreland Cos., said this sector is “just feeling the effects of the rising housing market.” He pointed out that while the 10-year T-bill—which, as Kurt Strasmann, senior managing director of CBRE, pointed out, has risen 110 basis points in the last 120 days—has some industry experts worried about a potential slowdown, it doesn’t seem to be affecting net-lease retail investments.