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LVM + BisNow OC Construction and Development Conference

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La Voz Marketing recently attended BisNow’s 3rd Annual OC Construction and Development Conference.  The event attracted industry leaders and newcomers alike, all ready to discuss what it takes to get a new project off the ground in the current market.  The panelists shared insights on unique strategies behind creative renovation and repositioning of existing assets.

Here are some of the key takeaways:

  • Creativity is being rewarded in the current market, whether for design or how a deal is structured. The best marketing for a project is the quality of its design and brand.
  • From a demand standpoint, there are large differences in the tenant/buyer mix between the current cycle and the last cycle. From 2004 to 2007 most of the industrial development projects in Orange County were smaller buildings driven primarily by SBA financing. During the recovery and expansion cycle, however, demand has been most prominent in larger buildings.
  • Developers have to pay close attention to their basis to generate their desired return. Ever-increasing land costs, higher fees and an increase in construction costs leave developers with no other option. Many new projects require substantially higher equity contributions for the investor/developer to get started during the last cycle.
  • Investment capital is coming from overseas and from other sources. Investors are competing with users for small or large vacant buildings. Chinese business owners and investors are buying most of the industrial buildings.

Just as creative design is being rewarded, creative branding for properties and developments helps drive demand as well.  La Voz Marketing specializes in creative branding and marketing for office, retail, commercial and industrial properties.  Contact us at info@lavozmarketing.com for more information on our real estate specific services.

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