NAIOP SoCal President’s Message
“The best thing about the future is that it comes one day at a time.” Abraham Lincoln 
Recently, I had the privilege of participating in a roundtable discussion with seasoned real estate executives. Of the topics discussed, one overriding concern regarded job creation, a key driver for commercial real estate occupancy. In reflecting on the conversation and resulting somber mood that is reflective of the current sluggish economy, I am inspired by the pageantry of the college football season.
A new season brings hope, optimism, camaraderie and celebration. Inspiration is found in colorful stadiums, tailgate parties, bands, cheerleaders and mascots. The loyalty and sense of collegiality brings celebration over wins and solace following a loss.
As we turn to our industry it is illustrative to discuss how we celebrate wins and endure losses. Certainly we are not one brand or institution, however ‘united we stand or divided we fall’ has never been truer. The need to celebrate, publicize and understand the core strengths and importance of our industry is as important now as it has ever been. The need to be inspired and led by pageantry leads me to take quick stock of positive attributes in Southern California:
- LAX handled almost 30 million passengers in the first six (6) months of 2011 solidifying its ranking as the fifth busiest airport in the world. Van Nuys is the world's third busiest general aviation airport, another home town win.
- Together the ports of LA and Long Beach comprise the fifth busiest port in the world and the most significant port in the Western Hemisphere assuring vital trade within the Pacific Rim.
- Richard Florida in his books on the Creative Class captured one of the true strengths of California with its higher education system and industry clusters in technology, medical devices and entertainment that are the envy of the world.
We surely have had setbacks and the challenges are immense for commercial real estate. Employment is down significantly in our industry, particularly in construction jobs. We bear the burden of climbing out of this cycle because so much and so many depend on it. All the more reason to celebrate and highlight our wins while we prepare for another phase of the cyclical industry that we choose.
I’d also like to point out that despite these ongoing challenges, our chapter continues to retain and gain the sponsorship support of great local, regional, and national real estate companies. Some of these sponsors represent brand new companies in our marketplace. I’m honored that these firms recognize the value of supporting and being part of this chapter, and want to thank all of our 2011 sponsors for their continuing support.
This economy will recover; development will be required as proven by the return of new distribution centers; and there is demand as illustrated by the competitive and spirited bidding occurring on multi-family and other assets.
I started with a quote, it seems appropriate to end with one as well by Thomas Jefferson:
“I like the dreams of the future better than the history of the past.”
Thank you for allowing me the privilege to serve as 2011 President of NAIOP SoCal and, as always, I invite any comments.
William H. Flaherty
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