The FORT Podcast: Shiloe Bear – Principal @ Creek Development – RE Development Lessons, Converting Industrial to Lab Space & Bay Area Market
As the founder of Creek Development, Shiloe has completed 63 commercial redevelopment projects and 5 land entitlement plays in the San Francisco Bay Area. Leveraging her deep construction expertise, she challenges project assumptions and incorporates impactful design to achieve remarkable outcomes for her clients and investors.
On this episode, Chris and Shiloe discuss:
– How Shiloe built Creek as an outsourced developer
– How Creek converts Industrial space for biotech labs
– A deep dive into the Bay Area RE market
– Why design is such an important aspect of development
(00:04:37) Shiloe’s upbringing and journey to doing development in the Bay Area
(00:11:34) What are the projects you work on the most?
(00:14:03) Why is there such a demand for outsourced development?
(00:14:44) What makes your firm different?
(00:18:09) Tenants not paying rent
(00:19:49) Minimum Viable Projects
(00:24:27) How early in a project do you need to be brought in?
(00:27:48) What are some obvious parts of a project where you can save money?
(00:30:05) How would you describe the Bay Area market right now?
(00:35:48) Office to Residential
(00:39:48) What’s the environment like for Oakland?
(00:44:45) How Shiloe is planning to pivot her business into doing their own developments
(00:50:19) How important are the relationships you’ve developed in The Bay over the past 10 years?
(00:54:51) The BioTech market and development strategy
(01:02:19) Why design matters
(01:09:50) How far out are labs looking for space?
(01:11:02) Lenders, Leases, and hold periods
(01:13:48) Why did this become your niche?
(01:15:27) Shiloe’s bird-watching skills & long-distance running
With a storied history managing construction projects, from small residential remodels to grand ventures, Bear’s expertise is both varied and extensive.
The episode commenced with Bear sharing her professional evolution, emphasizing her transition to the construction facet of real estate. Her career trajectory, shaped by hands-on experiences, has enabled her to navigate the intricate terrains of biotech, life science, and advanced manufacturing within the property sector. A notable revelation was her approach to managing both small and larger projects, shedding light on the scalability of construction endeavors.
Diving deeper, Bear touched upon the challenges tenants often face, especially regarding their inaugural rental obligations. She offered a panoramic view of the current lending landscape, underscoring the tightening reins on construction lending—a development that has palpably influenced the dynamics of broker activities in the market.
Investment appetite, a recurring theme, was meticulously dissected. Brokers, equity holders, and developers often find themselves at crossroads, necessitating strategic deliberations. Bear emphasized the pivotal role of brokers, noting their profound impact on shaping investment trajectories. With a penchant for bridging gaps between diverse asset classes, she also elaborated on her endeavours in construction consulting—a niche yet indispensable domain.
A focal point of the discussion was the unique needs of industrial tenants. Bear’s philosophy hinges on understanding the distinct requirements of biotech entities, ensuring that properties are tailored to their operational nuances. She provided a lucid breakdown of biotech construction costs, reinforcing the importance of effective space utilization, especially when catering to multiple tenants.
The human-centric approach adopted by Bear became evident when discussing biotech individuals as tenants. Recognizing their need for tailored spaces, she underscored the significance of customization in properties. Furthermore, the evolving innovation landscape within biotech was highlighted, offering listeners an insight into the sector’s dynamism.
Transitioning to the realm of tenant management, Bear elucidated the intricacies of navigating non-credit tenants. The sale of intellectual property emerged as a dominant theme, with Bear emphasizing its strategic importance. The overarching narrative revolved around the merits of investing in the biotech sector, underscoring its potential to reshape the real estate industry.
The FORT is produced by Johnny Podcasts