ORANGE COUNTY, CA—Property management continues to evolve as owners' strategies shift and users' needs in all sectors continue to evolve. GlobeSt.com spoke exclusively with Michael Brown, division VP of Camden Property Trust and 2015 IREM Orange County president, about this sector and some of the issues to watch for this year, including the importance of flexible leases as Next Gen enters the workforce.

GlobeSt.com: How would you describe the state of the Orange County property-management industry?

Brown: The property-management industry is as strong and as viable as ever. New construction continues to add product in all property types, with an emphasis on industrial and multifamily. With job recovery still strengthening year-over-year at about 28,000 jobs as of Q3 2014, demand is still present for product. This calls for an increase in professionals in the field to provide optimal results. More universities are starting to add property management into their curriculums, seeing this as a necessary component in the field of real estate study and practice. IREM is presently actively working with Cal State Fullerton on its new property-management class offering this year and has donated all the books for the students. Other colleges and universities are moving in the same direction. This brings Millennials into the field who are brighter than ever, which is continuing to raise the bar for industry employment.

GlobeSt.com: What are some of the issues in OC property management to watch for in 2015?

Brown: Property values have and will continue to rise with rent and median home prices out of reach for many. However, declining fuel costs, if sustained, will potentially bring enhanced demand and consumer spending in Orange County, which could drive vacancy rates down further and rents up in all sectors. Additionally, with graduating Millennials and Gen Z-ers coming into the workforce who are not buying homes or having children as early as their parents did, we will see a need for more flexible leasing, space and lease terms to enable individuals and companies the ability to expand and contract more easily. In part, this is due to the nature of this growing work segment, which is ready to move to wherever the growth is and will do what it takes to maintain that edge. I would not be surprised if we see this rising in 2015 and become a continuing trend.

GlobeSt.com: How is OC property management continuing to evolve?

Brown: I believe the level of sophistication is increasing. More use of software for pricing and modeling is being used than ever before, and this serves to make leasing and management much more commodity based in nature. And, with more college graduates flooding the workforce, competition for the best will rise. As a result, properties will be run more efficiently.

The need to be green is also a driving force in California, and Orange County is on board. LEED Certification is a sought-after designation; however, the costs are something to reckon with by many. To that end, other levels of certification are starting to rise up to demonstrate to consumers the programs and dedication to manage in a green format. IREM has partnered up with Green Per Square Foot to develop the IREM Sustainability program, which is seeking to provide a smaller-scale alternative, yet maintain a focus on being environmentally conscious.

GlobeSt.com: How are technology and ecommerce changing the role of a property manager in OC?

Brown: Today's property manager needs to be involved in the changing environment or they will be left out in the cold. Far gone are the days when social media could be set off to the side as a playful add-on or when time permitted. Now, those who are savvy are on Facebook, Twitter, Pinterest and similar sites not only to increase identification with their tenants, but also for the successful use and sale of their tenants' products. This also reaches and engages the community and employees, which gives each a stronger sense of corporate culture and citizenship. With ecommerce volume skyrocketing, transportation and shipping are on an ever-increasing rise. This presents challenges for industries such as multifamily, whereby a site property manager used to provide package acceptance as a courtesy service, but is now being inundated with the storage, logging and security associated with this service. Being up to speed with the best software and practices that deal with such dramatic and fast-paced change is necessary to stay ahead of the curve and provide desired services.

GlobeSt.com: What changes do you see in OC property management over the next five years?

Brown: Not only in Orange County, but in most of the US, the changing weather patterns are going to be something to keep a close eye on for changes to construction practices, claims management and overall property-management practices. Warmer sustained weather in some locations or stronger winters, sudden downpours and even tornadoes can wreak havoc on the unprepared.

With continuing construction and product coming online, competition for strong employees will rise. However, with more graduates hitting the workforce, this may flatten out the income level in Orange County in leasing, sales and management. There also seems to be a trend of a shortage of maintenance engineers in all product types, which may very well help increase outsourcing of such services, at least in the short run. Overall, change is occurring more swiftly than before as technology serves to add efficiency to property management. Organizations that remain nimble and posed to accept, if not lead, change will be the successful players. Those who dig their heels in the sand and remain with outdated practices, software and employee sophistication will be left in the dust.