Earlier this month, real estate magazine, The Registry,
hosted its 2016 “Silicon Valley Market Perspectives” event,
highlighting some of the region’s biggest real estate players. Several
of the featured panelists are active in the Fremont market, including
Orchard Commercial’s Joe Lewis, who moderated a panel on residential
development. We recently caught up with Joe to help us flesh out the
event’s prevailing themes and to get his outlook on the state of Silicon
Valley real estate.

1. Orchard Commercial
has been a leading player in Silicon Valley real estate for over 40
years — tell us more about Orchard and new projects you have on the
horizon.

Orchard Commercial provides comprehensive
commercial real estate expertise and services throughout Silicon Valley,
operating a portfolio of 14 million sq. ft. with about 100 employees.
We are on a continual search for new clients and projects that can use
our expertise, experience, and efforts.

2. The
recent Registry event included two great panels with deep expertise in
the Valley’s real estate dynamics. What remarks struck you most?

The
residential panel focused on solving Silicon Valley’s housing crisis.
It is a very challenging proposition, but I was inspired by the
thoughtful efforts of Summerhill and Sares Regis. What they attempt
every day is complex and very important to the health of our region.

The
commercial panel focused on finding a yield. Commercial real estate
competes in financial markets for investment dollars. Anybody with money
in a savings account knows that yields are very low (less than 2
percent). Quality commercial investment real estate, even with historic
low yields (4 to 6 percent), looks great alongside. Also, much of the
money in real estate is made in the “buy low-sell high” side of the
investment. That makes market timing and “what’s going on” such an
important part of the skill set for investors.

3. What do you see as the Valley’s a) most serious challenge and b) best opportunity when it comes to real estate?

The
biggest challenges of the Valley are traffic and housing. Knowing the
biggest opportunities in real estate is why so many people attend these
events! “Better lucky than smart” is a common joke among real estate
investors. “Excellence of execution” would be a better philosophy to
follow. Skill and diligence in your area of studied expertise will make
the most difference over the long haul. Your best opportunity is what
you know.

4. Orchard
Commercial has invested in Fremont with its successful Pacific Plaza
shopping center. What attracted you to the Fremont market?

Fremont
is an idea whose time has come. In the Bay Area, Fremont is the
affordable, opportunistic, and diverse alternative for business,
housing, and manufacturing. The Dumbarton Bridge, restored wetlands, new
houses, Tesla, and other factors all play a role in this remarkable
renaissance. In so many ways, it is the new place to be.