Chris Haedrich and I had a wonderful time at the recent ICSC event in Oakland. The event called the Idea Exchange for Northern California was held in Oakland on November 4th of this year. As always there was a buzz of activity in the entry to the meeting hall, which was the first sign that the economy is doing very well for retail commercial.
The first panel of speakers discussed the innovations and challenges in the current market place for tenants and developers of retail buildings. The one discussion that stood out was the ever changing landscape of city culture and development. Cal Inman, the developer of the Container Retail Project, discussed his recent container development in Oakland. This development was built out of shipping containers and is occupied by smaller boutique tenants, to which there are quite a few. The suites are 150-200 sq. ft. and there is strong interest from jewelers and other artisans. He explained that much of the traffic to the development consists of cyclist and pedestrians, and he continued to comment on the future predictions that parking concerns may be eliminated due to driverless cars. Will future parking garages be located in one area with the car dropping off the shopper then parking itself somewhere besides the retail development?
As always we had a wonderful lunch and were able to gather valuable information from Emily Washcovick from Yelp, Inc. She discussed the benefits of managing a business Yelp account and the recommendations in managing reviews. In addition, we were able to hear from the Mayor of Oakland, Libby Schaaf. Very impressive woman with a wonderful presentation and was able to express the heart and energy she is using to lead the City of Oakland. After lunch, the Retail Market Update occurred with brokers from five different areas discussing the market conditions and future projects. The Bay Area was ablaze as always and the rents of $50-$60+ per year were unbelievable. It was apparent that it is much harder to develop in the City and this isn’t changing. We listened intently to the Sacramento update by Josh Schmidt from CBRE, which was one of the more well prepared presenters. The new Kings Arena is generating strong commercial real estate growth in the City of Sacramento. Asking rents are around $60 annually, but they are receiving about $40 per year for this area. I know this is hard to imagine in our Northern California market, however it is great news to hear that the economy and market for retail commercial is so strong, and hopefully headed north. Many projects are being entitled and retailers are filling the spaces before breaking ground. Let’s continue to hope we see the continued growth in our area with appreciating rents.
Overall we had a wonderful and educational experience as always. Can’t wait for the next ICSC event!
About Ryan Haedrich
In 2006 Ryan Haedrich joined Haedrich & Co., Inc. after working for three years in the commercial lending industry. He is a graduate of the California Bankers Association Commercial Lending School. Ryan is knowledgeable about all areas of commercial financing, commercial appraisal reviews, and title and escrow. He is an alumnus of University of California, Santa Barbara and received a B.A. in Business/Economics with an emphasis in accounting. Go Gauchos! Ryan holds the Certified Commercial Investment Member designation (CCIM), which recognizes him as an expert in the commercial and investment real estate industry. Aside from exceeding clients' expectations in commercial real estate, he loves to spend time with his wife and two little boys, which is most important.