Southwest Region: 2024 Q2 Insights from SVN’s Regional Experts
If you’re wondering where the smart money is heading in commercial real estate, look no further than the Southwest Region. From the tech boom in San Diego to the resurgence of Las Vegas, and Denver’s growth spurt to the ever-evolving Los Angeles landscape, this region is buzzing with opportunity. But with so much happening, how do you separate the hype from the real deals?
That’s where our SVN Southwest Region team comes in. With boots on the ground in every key city—San Diego, Denver, Las Vegas, Los Angeles, Orange County, Inland Empire, Phoenix, Fort Collins, Albuquerque, Dallas Fort Worth, and Houston —we don’t just watch the market; we live it. Our local experts are quick in catching the latest trends, shifts, and opportunities before they hit the headlines. So, whether you’re an investor, developer, or just a real estate enthusiast, grab a cup of coffee (or maybe something stronger) and let’s dive into what’s happening right now in the Southwest Region commercial real estate market.
The Southwest Region: A Powerhouse of Diverse Real Estate Markets
Los Angeles and Orange County lead the way with their robust economies driven by tech, entertainment, and a resilient industrial sector. The tech and biotech industries continue to fuel growth in San Diego, while the Inland Empire keeps it position as a key logistics and distribution hub, powered by e-commerce. Meanwhile, Las Vegas is redefining itself beyond tourism and becoming a major player for innovation, logistics, and entertainment.
Heading east, we have Phoenix and Denver who are emerging as the top-tier choices for businesses and residents alike, thank to their competitive costs, lifestyle appeal, and growing job markets. Fort Collins, known for its high quality of life and emerging tech sector, complements the Denver market, while Albuquerque offer affordability and growth potential in market that is often overlooked.
Dallas-Fort Worth and Houston are both experiencing rapid growth, with DFW’s thriving corporate relocations and tech startups, while Houston has its diversified economy and its strong industrial / office demand.
As these cities continue to evolve, the Southwest Region presents an abundance of opportunities with each market offering a unique dynamic and potential for growth. It’s a region where staying ahead means staying informed , and any of our SVN® teams are here to provide you with the best advice and market information you need to navigate the commercial real estate world.
June 26, 2024 – 2024 Southwest Region Meeting – Del Mar Races
The SVN Vanguard Southwest Region Conference delivered a day filled with valuable insights, networking opportunities, and a deep dive into the latest trends and developments in the commercial real estate industry. Here’s the breakdown of emerging topics covered throughout the conference.
Breakfast by Rise Southern Biscuits and Righteous Chicken
The day kicked off with a delicious breakfast courtesy of Rise Southern Biscuits and Righteous Chicken. This gave our SVN advisors the perfect opportunity to get to know each other and network within SVN’s Southwest Region circle.
This was a key part of the day because it opened up the opportunity for brokers to team up with others and close deals across state lines to utilize our national network in the future.
A special thanks to all the SVN branches who made it out to San Diego:
Joe Bonin, Managing Director, San Diego led the opening remarks, introducing the other SVN Managing Directors and setting the stage for the day’s events, providing an overview of the conference’s objectives and the value it offers to its attendees.
Managing Directors:
Joe Bonin on QSR Business Automation
The first conversation consisted of Joe Bonin (Managing Director, SVN San Diego) explaining the importance and intricacies of Quick Service Restaurants (QSRs) and how their pivoting business model can have a future impact on the employment industry.
The main QSR discussed during this conversation was about the quick rise to popularity of Rise Southern Biscuits and Righteous Chicken. If you haven’t tasted it, we suggest you do! Ever since 2020, the restaurant scene has been ever changing and Rise is ahead of the curve on this drastic change. By implementing technology to streamline the ordering and pickup process for customers, Rise has been able to severely cut down operational costs and increase profitability of their restaurant.
By having customers simply order through Rise’s app, they are able to cut down waiting times substantially and collect valuable marketing information that can be implemented into their advertising systems and automations for each individual customer. Will QSR’s become the new norm within the service industry due to their low cost of operation and lower liability risks?
What do you think? Are QSRs the future?
Ryan Ward on How to Set Up Buildout Grids
The next speaker was Ryan Ward, a seasoned Senior Advisor for SVN Vanguard and a well-respected multifamily broker within the San Diego market. Ryan provided valuable insights into the challenges advisors face in the multifamily industry, particularly highlighting the complexities involved in evaluating and underwriting multifamily properties.
Ryan emphasized the shift away from traditional methods, such as meticulously crafted Excel sheets, which have long been the standard for property valuation. He introduced a new, innovative approach on Buildout’s platform that streamlines the evaluation process, making it more efficient and accurate, while having the ability to implement real-time numbers your client might suggest. Ryan’s method leverages advanced technology and data analytics to assess the value of properties, providing a more comprehensive and nuanced understanding of the market.
By adopting this new methodology, advisors can now evaluate properties with greater precision and confidence, considering factors that might have been overlooked in the past. This approach not only saves time but also enhances the accuracy of valuations, ultimately benefiting both advisors and their clients. Ryan’s presentation underscored the importance of embracing modern tools and techniques in a rapidly evolving industry, paving the way for more informed decision-making and better client outcomes.
Patrick Millay on the Impact of Insurance Changes to Both Tenants and Landlords
Patrick discussed the recent changes in insurance policies and the implications for both tenants and landlords. This conversation explored how these changes could affect businesses and how SVN can offer strategies to navigate the evolving insurance landscape.
One of the key highlights of Patrick’s presentation was the introduction of SVN Vanguard’s Master Insurance Program. This innovative program is designed to assist brokers within the Southwest Region in providing substantial cost-saving solutions to business and property owners. By consolidating vetted property owners into a portfolio of assets, the Master Insurance Program enables these owners to benefit from reduced insurance costs.
The program works by leveraging the collective strength of multiple properties, allowing participants to access more favorable insurance rates and terms that might not be available to individual property owners. This not only helps lower the overall insurance expenses but also offers comprehensive coverage tailored to the specific needs of the included properties.
This program represents a significant opportunity for our Advisors to pitch SVN Vanguard’s services (property management and brokerage) to potential clients, positioning the firm as a valuable partner in managing and optimizing insurance costs. The Master Insurance Program exemplifies SVN Vanguard’s commitment to providing innovative and practical solutions supporting the financial well-being of their clients.
Product Breakout Session
Attendees participated in four breakout groups, each focused on a different asset type: Office, Retail, Industrial, and Multifamily. These breakout sessions provided a platform for in-depth discussions about the unique challenges and opportunities associated with each asset class across various markets, including San Diego, Las Vegas, Phoenix, and Orange County.
Across all breakout groups, there was a shared understanding of the importance of adapting to market changes and leveraging local market knowledge to capitalize on opportunities. The sessions provided valuable insights and actionable strategies for participants to apply within their own markets, reinforcing SVN Vanguard’s commitment to fostering collaboration and innovation in the commercial real estate industry.
“SVN Vanguard is pleased to announce the opening of the Nativity Prep Academy STEM center and Commercial Kitchen. SVN Vanguard has been responsible for the initial school site acquisition, project design, project management, tech, and landscape. SVN Vanguard was also responsible for the space layout, interior design, and tech buildout of the STEM. Congratulations to Nativity Prep!!!“
– Joe Bonin, Managing Director
At SVN Vanguard, we believe in the power of community and the importance of education. Our commitment to these values is exemplified by our Managing Director, Joe Bonin, whose dedication extends beyond the boardroom and into the heart of San Diego. Joe has been actively involved in supporting Nativity Prep Academy, a Catholic middle school. Located at 4463 College Ave, San Diego, CA 92115.
This year, Nativity Prep Academy has taken a monumental step in advancing educational opportunities with the inauguration of a state-of-the-art STEM Center. This innovative facility offers a cutting-edge learning environment designed to inspire and equip students with the skills needed for the future.
The STEM Center boasts a variety of specialized spaces:
STEM workers drive our nation’s innovation and competitiveness with the creation of new ideas, new companies, and new industries. However, children from underserved communities, particularly girls and students of color, are vastly underrepresented in the STEM industry. Providing our students with opportunities to pursue — and thrive in STEM careers will help to create social mobility, enhance economic security, and ensure a diverse and talented STEM workforce.
We envision our programs building a pipeline for future employees and entrepreneurs in STEM fields and invite you to partner with us to make this a success. Designed as an early-intervention program, we aim to introduce STEM concepts to middle school students, enabling them to continue their learning in STEM fields throughout high school and college.
The curriculum at the STEM Center is not only focused on academic excellence but also on career exploration, helping students to envision and work towards their future careers. With the addition of more classroom space, Nativity Prep Academy can now welcome even more students into its programs, providing them with the resources and support they need to succeed.
The new STEM Center also introduces sustainable revenue streams to support the Academy’s annual operating budget. By renting out the kitchen, labs, and classrooms, Nativity Prep ensures a steady flow of income to maintain and enhance its educational offerings. The upgraded kitchen facilities will significantly improve daily nutrition services for students, ensuring they have the energy and focus needed for their studies.
Furthermore, the enhanced parent education program will provide valuable resources and support to families, fostering a stronger community bond. The shared STEM programming opportunities extend beyond the school, supporting the local community and nurturing a culture of learning and innovation.
At SVN Vanguard, we are incredibly proud of Joe Bonin’s involvement with Nativity Prep Academy. His dedication to supporting educational initiatives aligns with our company’s values and our commitment to making a positive impact in the communities we serve. The new STEM Center is not just a facility; it is a beacon of opportunity, empowering students and enriching our community.
Join us in celebrating this remarkable achievement and supporting the future leaders of our community. To learn more about Nativity Prep Academy and how you can get involved, visit their website or view our non-profit real estate page. Let’s cultivate curiosity together and build a brighter future.
NBC San Diego:
https://www.nbcsandiego.com/videos/nativity-prep-academy-gets-new-stem-center/3527180
