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David Answers “The Big 3” Questions About the State of the Market

By March 12, 2018 March 25th, 2019 One Comment
Each month, we’ll bring you a closer look at one of our member companies, and ask them three questions about the state of the industry – “TheBig 3”
If your company would like to know how you can be featured, please contact Dustin Hobbs, California MBA Communications Director.
This week we spoke with David McAlister, Principal at McAlister GeoScience, one of the California MBA’s associate member companies.  We spoke with David about the state of the market and what to look forward to in the future.
About McAlister GeoScience:
McAlister GeoScience is an effective and results-focused firm leveraging extensive experience with the successful design and implementation of Phase I and II Environmental Site Assessments and Geotechnical Investigations.
McAlister GeoScience possesses extensive experience in activities associated with the implementation of remedial action including agency interaction and all aspects of project management.  McAlister GeoScience personnel have also proven to be effective project managers and technical specialists performing data analysis and reporting, remedial action, and compliance activities obtaining regulatory closure at numerous facilities located in Southern California. McAlister GeoScience has proven to be an industry leader in geotechnical investigations regarding subsurface conditions prior to ground-up development on a very competitive cost-basis to clients.
California MBA: What do you see in your crystal ball for 2018?
McAlister: From a property acquisition perspective, it’s no surprise that all the easy deals are done at this time.  All the Class A and Class B properties out there have been spoken for or an attempted purchase would be very competitive.  This leaves the Class C and below properties as the real place for purchasers to find value.  Many times these properties present several challenges that can be turned into upside for the investor / owner with a strong stomach.  We see more deals coming across our desks recently that need significant environmental investigation and / or remediation.  Now is the time to get your team and processes in place for these types of properties.
California MBA: Tax reform, unwinding QE and rising rates?  What challenges should secondary managers expect?
McAlister: I see the tax reform really benefiting property owner-users and small- to medium-sized businesses.  That likely means a few more SBA loans, and more owner-occupied properties coming down the pike.
California MBA: How is technology impacting pipeline management?
McAlister: The speed of information has increased the speed of transactions tremendously, but we still stick with the traditional 30-60 day escrow periods for good reason.  When evaluating Class C and below properties, we need to resist the urge to move quickly with the new speed of information.  There are still a lot of details to go through; especially when we need to involve public agencies or resolve environmental issues with a property.
Turn-key solutions for complex sub-surface challenges