Valley Forum: How’s the Real Estate Market? During the past four or five years, commercial real estate brokers in the San Fernando Valley have been busy. Activity may have slowed a bit in 2001, but there were still substantial deals made. So, a month and a half into the new year, the San Fernando Valley Business Journal asks: What is your outlook on the Valley commercial real estate market in 2002? Jeffrey Schick Vice President North American Title Co. Glendale From what I’ve been gathering, commercial real estate in the San Fernando Valley will see a very good, if not great, 2002. Other than the tech corridor on the far west and Burbank on the far east end of the Valley, there will probably be only small apartment development outside of Legacy’s Warner Ridge. But investment sales, especially for apartment buildings, should be very robust. There are some new purchasers of low to mid-rise suburban office buildings out here now. For example, Lennar Properties at the Warner Center. So, even if rental rates for office remain flat, I expect to see good sales activity for Valley office buildings. Industrial is likely to be flat. Rates are still low, so refinancing will continue strong. I look forward to a very good year. Arthur Arejian Senior Investment Broker RE/MAX on the Boulevard Sherman Oaks 2002 will be a strong seller marketplace for apartment owners in the San Fernando Valley, with many investors seeking opportunities to place their funds. This is a market with very low inventory. 2002 will be a year of low supply and high demand. Low interest rates, low vacancies, upside in rents and the shortage of on-market product have been key factors in increasing values for sellers. The number of transactions will most likely decrease from 2001, indicating that sellers have fewer reasons to sell, with many reasons to hold. Chris Jackson Senior Associate Grubb & Ellis Sherman Oaks I look for the activity in 2002 to pick up in the third quarter of this year. Sale activity is strong due to low interest rates, but once interest rates start to rise buyers will go back to leasing. Kevin Tamura Executive Vice President Daum Commercial Real Estate Services Woodland Hills Activity remains brisk and I am looking forward to stable pricing and strong demand from the industrial and commercial marketplaces. As long as interest rates remain constant, we expect the emphasis to remain on sales versus leasing.
