Terry Moore and Gregory Peer Explore Terry’s recent participation in the San Diego “State of the Market”
Packing the space available to them at the Crown Plaza hotel, real estate professionals and investors from around the San Diego area gathered to hear the elites in their field weigh in on the ever changing financial market. This was the atmosphere at the San Diego Real Estate “State of the Market”, an event that brought together seasoned brokers and real estate investors for a rousing multiple hour event. The event, now entering its 16th year, was made possible in conjunction with Real Estate News Television and Real Estate Communication Group and brought together more than 100 principal lenders and brokers for a keynote presentation, panel discussions, and networking.
To help provide some context for the audience before their panel preceded, Apartment Consultants Inc.’s own Terry Moore, CCIM began the discussion by explaining that San Diego is more economically diversified than most other major metros.
“We have nine economic drivers not three or five like many cities” Moore explained to the crowd that had gathered within a converted ballroom within the Plaza itself. He pointed to the acquisition of apartment properties as being one of the best ways to invest. “Supply and demand makes apartments low risk escalator to wealth” adding for his argument of longevity, “there are more than 100,000 landlords of houses and condos, when they sell their rentals, they will consider buying apartments rather paying a third of their profit for taxes.”
To further his position, Moore also pointed to recent analytic data that shows North Park and Normal Heights, two neighborhoods in San Diego, have seen values grow 30- 50% over the last five years. Moore also noted that there are typically 400 apartment sales annually in San Diego and suspected that volume would be in that range again this year. Handouts of ten of Mr. Moore’s San Diego Daily Transcript and Rental Owner articles were distributed to the attendees.
During the panel, many questions were also raised about financing and rates in the foreseeable future. All panel participates implied that they expect rates will lend the year no more than half a percentage than now.
Dan Feder, a major rehabilitator and new developer identified a 30-year horizon for his acquisitions and renovations. He also pointed out that despite rent control and high development fees claiming that they will help tenants, such endeavors only restrict fresh construction. In response, Terry Moore pointed out many people want the “eat ice cream-lose weight-do no exercise-gain muscle” health program. “Such fantasies do not exist” he stated, “Our society of conflict and government behavior has unintended consequences. Not everyone can afford to live in paradise.”
Panel participants and organizers were pleased with the turnout of the event. Early buzz suggest that a full day program focusing specifically on the multifamily sector and related topics could be in the works within the coming year. Organizers, such as Real Estate News Television offer similar programs in 20 other major metros nationally throughout the year.
