Lack of Available Land Will Spur Infill Retail and Rehabbed Multifamily Projects

ORANGE, CA-Like with office and industrial property, Grubb & Ellis’ forecast for retail and multifamily product for 2001 is optimistic, yet conservative due to a dwindling supply of developable land around the county.

Next year, however, retail activity will slow, so owners will be seeking ways to increase their bottom lines with a more creative mix of tenants. That, combined with residents’ concern regarding development expressed in 2000 with the passage of slow-growth initiatives in some key cities–most notably Newport Beach–will contribute to limiting construction of new product in 2001. For what will be built, location and product type will differentiate the market, the report notes.

Infill opportunities will still exist in older, more urban areas like Garden Grove and Fullerton. Converting existing industrial product into retail will add somewhat to retail availability in the central, west and north county submarkets.