FOOTHILL RANCH, CA—High Desert is no longer considered a secondary market due to Inland Empire absorption and scarcity of development opportunities in the “near to port” locations, Stirling Development's Gordon Cope tells GlobeSt.com. As we previously reported, Cope recently joined the firm as director, financial planning and accounting; prior to joining Stirling, he served as a tax manager with Haskell & White LLP, a Southern California public accounting firm specializing in real estate.

In his new role, Cope will work closely with Stirling's executive team on all finance, accounting, treasury, tax and administrative functions. Reporting to Brian Parno, Stirling's COO, he will also be responsible for budgeting, tax planning, and financial review of all of Stirling's overall business activities and active projects including the Southern California Logistics Centre project in Victorville, Ocean Ranch Corporate Centre in Oceanside, as well as analyzing and forecasting potential new projects.

We spoke with Cope about his new role with the firm and the unique quality of financing and investing in California-based industrial properties.

GlobeSt.com: A significant part of your new role at Stirling will be to expand relationships and new opportunities. Can you elaborate on what that will encompass?

Cope: Executing a successful development plan requires support from city and county leadership and involvement from a wide variety of disciplines. I will be working to expand our network of investors and financiers so that we are constantly in an optimal position to execute on new development opportunities as they are identified at Stirling's Southern California Logistics Centre. I will also be involved in bringing a finance perspective to our development process as we continue to cultivate relationships with our growing base of tenants that are actively working to improve their business operation through thoughtful use of real estate.

GlobeSt.com: What is unique to financing/investing in industrial properties today in California?

Cope: There is a global appeal to invest in the Southern California industrial real estate market. Although the market is very competitive, there continue to be attractive investment opportunities, especially as development pushes further inland. What is unique is that the High Desert is no longer considered a secondary market due to Inland Empire absorption and scarcity of development opportunities in the “near to port” locations. Cities like Perris, Moreno Valley and Victorville are now competitive players in the main mix of viable investment options and are viewed positively by mainstream financial institutions.

GlobeSt.com: How does financing play a part of the development process?

Cope: There are often multiple options for financing available for a development project including debt, equity, municipal bonds, cost sharing arrangements, trade work, etc. It is important for a developer to be proactive in reviewing the options, exercising creative thinking and problem solving when it comes to financing, and in my experience, this often plays a role in improving the financial viability and driving value for the developer and end user.

GlobeSt.com: What do tenants need to know from development teams today?

Cope: In the California real estate market today, land availability is the key. Fully entitled land is extremely scarce, so a tenant's ability to plan long term is very important. Tenants who have the ability to work within a long-term plan will have the most success providing support to their overall business strategy. Due to the abundance of land for development, our Southern California Logistics Centre development provides tenants with flexibility to expand in place or create a corporate campus.

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What's Unique to SoCal Industrial Investment

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