As a seasoned commercial real estate practitioner with over four decades of experience in Orange County and the Inland Empire, Allen C. Buchanan shares insights on the current market activity in the region. He reflects on past market swings, such as the dot-com bubble burst and the financial crises of the early 2000s, and highlights the current lack of demand caused by uncertainty in 2020-2022.
Buchanan introduces the “Sentiment Index,” a method he uses to gauge the balance of power between owners and occupants in the market. He notes that subtle shifts in conversations with landlords can indicate broader trends before they are reflected in the numbers. For example, a shift in tone from assertive to inquisitive among owners may signal a cooling market.
By observing changes in sentiment and conversations in the market, Buchanan predicts a shift in favor of occupants due to uncertainty and flexibility among owners in lease terms and concessions. He emphasizes the importance of listening closely to these cues to understand where the market is headed.
Overall, Buchanan suggests that paying attention to sentiment and conversations in the market can provide valuable insights into future trends and behaviors of owners and occupants. By staying proactive and responsive to these shifts, practitioners can better navigate the evolving commercial real estate landscape in Orange County and the Inland Empire.
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