Real estate firm celebrates 25 years in business
By MARGO MATEAS Sentinel correspondent CAPITOLA — Ron Hirsch is a man with seemingly opposing visions.	Ron Hirsch, founder of one of they county's most successful commercial real estate firms, says quality of life is one of the Santa Cruz area's major selling points. (Shmuel Thaler/ Sentinel)

For Hirsch, it’s part of an overarching desire to truly be part of his community. In the ‘70s, Hirsch worked in Los Angeles as an economic research analyst for the state. He hated the lack of natural beauty and the disconnect he felt working in one area and living in another part of the city.

In 1975, he visited Santa Cruz and saw a world of commercial opportunity nestled in the natural beauty. Despite naysayers who insisted he couldn’t make a living selling commercial real estate here, in 1978 he opened a firm specializing in tax-deferred exchanges on income property including office buildings, apartment complexes, medical buildings and industrial parks in Santa Cruz and Monterey counties.

The advantage Santa Cruz has over San Jose and other cities is quality of life, Hirsch believes.

"People don’t want to be more than 15 minutes away from their properties. Here, you’re never more than a few minutes away from your investment," he said.

Hirsch says that many investors appreciate the sense of community they get from living and working in Santa Cruz.

"One of the advantages of being a local entrepreneur is that the tax base stays here. We’ve got it all — gorgeous surroundings, little commute time and a true sense of community."

Hirsch’s firm recently celebrated its 25th anniversary and counts Cabrillo College, Comerica Bank, Dominican Hospital, Pillsbury/Green Giant, Granite Construction, Santa Cruz County and Watsonville among its clients.

Hirsch admits Santa Cruz can be a tough sell, thanks to escalating costs of housing and living. He sees Santa Cruz becoming more of an exclusive area, known more as a resort than a viable commercial area.

Low-income housing and multiresidential units are also on the rise, fueled by the need for affordable housing, he says.

In contrast to residential housing growth, Hirsch says that commercial properties are on the wane, due to lower rate of returns. In fact, he has the lowest inventory he’s ever had.

"Five years ago an average rate of return on a property was 9 percent. Now, it’s gone down to between 5 and 7 percent," he said. "It’s all fueled by supply and demand. Right now there’s very little available in the county for commercial development, because the county is very strict in terms of growth control. So that makes it a great time to sell, because commercial property is at a premium right now."

Contact Margo Mateas at jcopeland@santacruzsentinel.com.

Hirsch and Associates
WHAT: Commercial real estate brokers.
WHO: Ron Hirsch.
WHERE: 4375 Capitola Road, Capitola.
INFORMATION: 476-8194; www.ronhirschandassociates.com.

Contact us