As I
sit here wondering what, in my world, is worthy of a column, my mind keeps wandering.
Artificial intelligence. Advanced manufacturing. The seemingly remarkable
strength of the industrial real estate market. Training the next generation of
commercial real estate professionals. The economy. Interest rates. Foreign
wars. Supply chains. It is enough to make anyone’s head spin.
Normally,
I would pick one subject, dig into it, and share my thoughts. This week,
however, I have decided to do something different. Instead of grabbing a shovel
and digging one deep hole, I am reaching for the roto tiller. I am going to
stir up several patches of soil and see what grows.
Artificial
intelligence is no longer something on the horizon. It has arrived. Every week
another platform promises to make us more productive, more informed, and more
efficient. I have embraced it as a tool, not a replacement. It helps me
organize thoughts, summarize information, and even challenge my own
assumptions. What it cannot do is replace experience, judgment, relationships,
or trust. Those qualities are still earned the old fashioned way.
Speaking
of change, manufacturing continues to surprise me. For years we heard about
factories leaving the country. Today I see companies investing in automation,
robotics, and advanced production techniques. Many manufacturers are expanding
because they want greater control over their supply chains and want production
closer to their customers. That trend has created opportunities throughout
Southern California’s industrial market.
The
industrial real estate market has also shown remarkable resilience. While
headlines often focus on office vacancies or uncertainty in other property
types, industrial space continues to benefit from strong underlying demand.
Yes, tenants are becoming more selective. Yes, some markets are seeing more
available space than they did a year ago. Even so, well located industrial
buildings continue to attract attention from both users and investors.
One
topic that has become increasingly important to me is training. After more than
four decades in commercial real estate, I have learned that experience is
valuable only if you are willing to pass it along. Watching younger
professionals develop confidence and competence may be one of the most
rewarding parts of this business. Knowledge does little good if it stays locked
inside one person’s notebook.
Then
there is the economy. Depending on which report you read or which television
channel you watch, everything is either wonderful or headed for disaster.
Reality usually lives somewhere in the middle. Business owners are still making
decisions. Companies are still expanding, consolidating, buying, selling, and
leasing. They simply want more information before making those decisions.
Uncertainty has not stopped activity. It has simply lengthened the decision
making process.
Finally,
there is the rest of the world. International conflicts, changing trade
policies, and political uncertainty remind us that commercial real estate does
not operate in a vacuum. Decisions made thousands of miles away often find
their way into conversations around conference tables here at home. Markets
dislike uncertainty, but they also have an incredible ability to adapt.
Perhaps
that is the common thread running through all these seemingly unrelated topics.
Adaptation. Whether it is technology, manufacturing, commercial real estate, or
our personal careers, those who continue learning and adjusting are usually the
ones who thrive.
Sometimes
it is healthy to put away the shovel and pick up the roto tiller. You may not
dig as deeply, but you uncover a lot of interesting ground.
Allen C. Buchanan,
SIOR, is a principal with Lee
& Associates Commercial Real Estate Services in Orange. He can be reached
at abuchanan@lee-associates.com or 714.564.7104. His website
is allencbuchanan.blogspot.com.
