Top takeaways: california mba’s 2022 western states cref

Top Takeaways: California MBA’s 2022 Western States CREF

September 8, 2022

The following are Slatt Capital’s primary takeaways from this week’s California MBA’s 2022 Western States CREF Conference held at the Aria Hotel & Casino in Las Vegas, Nevada.

  • Attendance was over 800 people, up from approximately 600 in 2021. The attendees were positive about the commercial real estate space despite uncertainty in the market. The mood/energy at the conference as a whole was great.
  • Interest rates are still quite a bit below the long-term average.
  • US employment has recovered all pandemic losses—and some. The unemployment rate is currently floating around 3.7% (considered full employment).
  • The commercial real estate vacancy rate is decreasing across the board except for office (which is also starting to improve).
  • The average price is up—and rising—across the board on all commercial real estate property types.
  • Frozen for much of the COVID pandemic—the hospitality space has thawed out and many lenders are now looking at deals.
  • ​​​​​Bridge lending is becoming increasingly competitive.
  • Less than 10% of companies believe that full-time (5 days/week) work will be their plan going forward. Hybrid work is here to stay.
  • Commercial real estate yields are still a leading investment advantage

We would like to thank everyone at the California MBA for hosting such a wonderful event, and we look forward to seeing everyone next year.