Stan Johnson Co.continues its Southern California expansion with the launch of itssecond Los Angeles office. Net lease expert PatWeibel has joined the firm as director to help open thenew location. He brings 15 years of experience to the firm, and hasrepresented clients in $5 billion worth of real estatetransactions.

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"Our clients are driving our expansion, and it's important thatwe continue to grow in those markets that are in close proximity toour clients," Weibel tells GlobeSt.com. "Our goal is to selectivelyhire talented advisors in strategic markets, which will helpfacilitate communication and long-term relationships, and allow usto provide our clients with the services they need, even beyond thenet lease market."

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The net lease market is also on fire in Southern California,helping to drive expansion for the firm. "The combined markets ofLos Angeles, Orange County, and San Diego saw their strongest yearever, with more than $7.4 billion in single-tenant net leaseinvestment sales volume reported in 2019," says Weibel."Furthermore, third quarter 2019 was the most active quarter onrecord with more than $2.5 billion reported across these threemetros."

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What asset classes have been most popular for net leaseassets?

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Overall, investor interest has really spanned the spectrum ofthe three main product types, with retail and industrial being mostprominent. On the private capital side, we are seeing retail –particularly the QSR and grocery categories – generate a great dealof activity, primarily driven by a robust 1031 exchange market. Onthe institutional side, industrial has been the darling of theinvestment community, and we continue to see downward pressure oncap rates for high quality assets in superb locations. With thecontinued success of e-commerce, we expect this trend tocontinue.

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This year, Weibel expects the momentum to continue with strongnet lease activity in Southern California. "Southern Californiaspecifically, and the greater net lease market in general, ispoised for another great year," he says. "The fundamentals inSouthern California are tremendous and the demand is greater than Ihave seen in a long time. However, we are experiencing an assetshortage, as a lot of the trophy and other high-quality net leaseassets have already traded in this cycle and have been put awayinto investors' long-term portfolios. This scenario hasled to fierce competition for high-quality assets as investorscontinue to seek well located, strong credit net leaseopportunities in the region."

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Fueled by the strong market, Stan Johnson will also continue tostrategically expand. "Our future growth across the nation willconsist of the continued selective hiring of strong advisory talentas we build our market share," says Weibel. "And the West regioncontinues to be a very important area of focus for us."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.