As a recruiter I’m exposed to many markets,
product types, personalities and cultures. We all know Austin Texas is
the progressive Mecca of Development. Young and seasoned professionals
alike are flocking in droves. Candidly, it’s a great place to be. What
other city could possibly be on the same level of growth? Well, it’s not
a just a city! It’s the 3rd largest and most populous state in the
Nation; California. The West Coast, in general, possesses a progressive
forward thinking mentality. Ultra-luxury goods and need for
high-amenities has long been the norm in the West Coast. Recently, I had
the opportunity of recruiting and placing a head of construction and
development for a several billion dollar real estate fund. Between
acquisition /rehab and new development that group alone has $500 million
under construction, just in SoCal.
I’m not sure if the real-estate industry is simply overlooked on the West Coast or it’s a well kept secret hidden by the people and its real-estate tycoons of the West. My guess is the latter. It occurred to me the other day that most development /construction companies in California generally stay relatively secluded to the West Coast market. Very rarely do you see outside developers penetrating this market as well. Is this because of the stringent zoning regulations or are local companies land-banking and keeping pay dirt for themselves?
One thing is certain, development is alive and well on the West Coast. Traditionally, real-estate goes through a predictable cycle. Old school thinking would put the current market at the beginning of the “4th quarter” to quote a sports analogy. I have a hunch this market has its eyes set on overtime. There’s no reason for real-estate companies to be hiring executive level construction and development positions this late in the cycle, right? You would think there would be an increase in say, Asset Managers? Wrong! This past quarter we have seen a surge in demand for executive level development positions. To piggy-back off of that trend, I recently placed a President of Construction in the West – all for new product that is still early in the design phase and a huge pipeline still in the early stages of development. This group historically has developed throughout California for several decades. They decided to bring construction in house and capitalize on the high demand for reputable GC’s by pure development companies.
Long story short, the West Coast is alive and well. If you are a professional practicing real estate there – enjoy! If you want to recreate the “Gold Rush of ‘49” – head West!
-Ian
I’m not sure if the real-estate industry is simply overlooked on the West Coast or it’s a well kept secret hidden by the people and its real-estate tycoons of the West. My guess is the latter. It occurred to me the other day that most development /construction companies in California generally stay relatively secluded to the West Coast market. Very rarely do you see outside developers penetrating this market as well. Is this because of the stringent zoning regulations or are local companies land-banking and keeping pay dirt for themselves?
One thing is certain, development is alive and well on the West Coast. Traditionally, real-estate goes through a predictable cycle. Old school thinking would put the current market at the beginning of the “4th quarter” to quote a sports analogy. I have a hunch this market has its eyes set on overtime. There’s no reason for real-estate companies to be hiring executive level construction and development positions this late in the cycle, right? You would think there would be an increase in say, Asset Managers? Wrong! This past quarter we have seen a surge in demand for executive level development positions. To piggy-back off of that trend, I recently placed a President of Construction in the West – all for new product that is still early in the design phase and a huge pipeline still in the early stages of development. This group historically has developed throughout California for several decades. They decided to bring construction in house and capitalize on the high demand for reputable GC’s by pure development companies.
Long story short, the West Coast is alive and well. If you are a professional practicing real estate there – enjoy! If you want to recreate the “Gold Rush of ‘49” – head West!
-Ian
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