LOS ANGELES—Industrial investors at yesterday's RealShare Industrial West conference in Long Beach were cautiously optimistic about the year ahead. "We are cautious about a possible recession. We think the fundamentals are good, but we aren't going to keep our head in the sand," Don Ankeny, president and CEO of Westcore Properties, said on the Investment Leaders panel.

The Investment Leaders panel included moderator David Stone, partner at Allen Matkins, and speaker Michael Boss, director of global real estate at TIAA-CREF, and Alan Carmichael, VP of investments at Alere Property Group. The remainder of the panel agreed that the cycle is mature, and while there is still opportunity, they are cautious. "No one is immune to downturns. We are affected by the global economy," Boss added to the discussion.

As a result, the panelists were focused on very specific primary markets. "Our capital source is very focused on primary markets and markets that have an advantage," said Carmichael. "We have focused our Southern California business to OC Los Angeles and the Inland Empire. I think it is safer to be in those markets rather than going out to Phoenix or Vegas. We aren't jumping into those at this point." The other two panelists are also focused on primary markets, especially infill properties where you can get away with a lower quality product, class-B or even C assets, because the vacancy rates are so low.