When it comes to Southern California—“there are no markets better than that,” Will says. However, it’s a region with high barriers to entry and a tighter labor market—which could translate into higher rents that can be justified to higher-end tenants. Rothschild singles out San Diego, with its ideal location on the coast and near other top communities, as a strong market. While it can take years before construction can start on a development there, it is that difficulty that can make it more attractive. “Because of that, it’s a good marketplace,” he says. Further north, San Francisco is a city that is always in strong demand—if there is space available. “If you have a piece of dirt or if you have a building, you can get a deal done,” Rothschild says. NIC ranks San Jose as having the highest occupancy in the country.