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He also pointed out that the low-interest yield of United States Treasury bonds, of which China is the largest holder, is making investors in that Asian nation seek out other opportunities. “So they are looking for something stable, and real estate seems to be a good bet nowadays,” he said. When these investors do their market research, the Bay Area consistently pops up as one of the best regions in which to delve.[contextly_sidebar id=”955687c167572b838414f40d37a1b060″]Indeed, the San Jose-Sunnyvale-Santa Clara and San Francisco-San Mateo-Redwood City MSAs are among the top economic and workforce regions in the U.S. They rank second and 21st, respectively, in the latest annual list of 380 MSAs compiled by Area Development, a publication focused on corporate site planning.
But the East Bay is also beginning to attract big outside investors. A group formed by Dubai-based Hayah Holdings and Colony Capital, a private real-estate investment company in Santa Monica, plans to build the Coliseum City project, touted as what would be the largest transit-oriented development in California. This multi-billion dollar effort would integrate sports, retail, entertainment, housing and hotels all within an 800-acre district. It would be completed in phases over the next 10 years.
In this new booming construction environment, Hoopes said, Swinerton’s keys to success include being selective in the projects the company chooses and focusing on building repeat, happy customers.
Like Transwestern, Swinerton has also been diversifying its business, doing work in office space, apartments, retail and even renewable energy. “Markets come and go,” Hoopes said, “and in order to continue through these cycles, we always have stayed diversified.”
But for now, he predicts the growth in office and apartment building lasting over the next three years. In fact, the San Francisco apartment market continues to be one of the most robust in the country with more than 4,700 rentals due to be completed through 2016, according to recent research from the commercial real-estate brokerage firm Marcus & Millichap.
With prospects like those, the Bay Area will continue to attract investment and talent from around the globe for the foreseeable future.
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