What area is your expertise? The west Los Angeles office market. What trends do you see presently in office development in your area? There is a dramatic tightening of the market, with rents in some specific market areas jumping by 50 percent in the last 12 months. Who are the active office developers in your area? Legacy Partners, Blackstone, Lincoln Property, and Tishman Speyer. Where is the majority of development taking place? In and around Playa vista (the Howard Hughes project) Why is this area doing well? This is not only where the greatest amount of vacant developable land is, but it is also near to LAX, as well as being central to the residential communities of both West Los Angeles, Marina del Rey, Beverly Hills, the Palos Verdes Peninsula and the beach communities. What area do you expect to be the next big development market? This market will be strong for the next 10 years because there is a sufficient supply of vacant land. What areas are doing well in terms of office leasing? The whole West Side. Which areas are struggling with office leasing? Downtown Los Angeles Please give a measure of office vacancy rates. The vacancy rate …
California
What area is your expertise? I currently have listings throughout the greater Sacramento area including Elk Grove, Power Inn, South Sacramento, West Sacramento, Northgate/Natomas and Rancho Cordova. What trends do you see presently in industrial development in your area? The most prevalent trend in industrial development is not to develop on speculation. Since 1999 we have averaged at least 1.9 million square feet of product in the pipeline at any given time. The current decrease in industrial development is certainly benefiting existing landlords during this time of economic softness and is playing a major role in suppressing vacancy levels. This trend was set in motion long before the economic downturn, marking the sixth consecutive quarter in which the pipeline has shrunk. What type of industrial product is doing well in your area? Second and third generation industrial properties are doing well during this downturn in the marketplace. Investors are looking for distressed properties while users are concerned with the bottom line. The price of industrial land coupled with high construction cost has made it very difficult for newer developments to pencil. Who are the active industrial developers in your area? Cable & Kilpatrick, Massie, Harsh Investments, Jackson Properties, Buzz Oates …
What area is your expertise? My specialty is in the sale of multifamily in the North Bay region San Francisco Bay Area (Marin, Sonoma, Napa and Solano Counties). What trends do you see presently in multifamily development in your area? Developers for the most part have pursued condo development in lieu of apartment development on land zoned high density residential. This is due to the huge economic value advantage condos offered over apartments. The apartment development we have seen has been concentrated in either a few very large Class A apartment assets, or affordable (tax credit and bond enhanced) or senior living. Who are the active multifamily developers in your area? Spanos, Fairfield Residential and DR Horton Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? The Moore Building (79 units in Downtown Santa Rosa) and Water Street North (107 entitled apartment units in Downtown Petaluma) are two interesting projects. Neither project has or will have a significant impact on the supply of units. What is more interesting is that both projects are victims of the same problem: projects getting entitled without a market to support them. In the …
Submitted by Kitty Wallace, senior vice president with the West Los Angeles office of Sperry Van Ness. What area is your area of expertise? My area of expertise is Southern California, but for the purpose of this interview I will focus on Los Angeles County. What trends do you see presently in multifamily development in your area? The rapid escalation of construction costs has subsided and in some cases is even coming down and labor is more widely available and less expensive. Despite reduced costs, land costs have started to come down. As demand for luxury condos wane, many development sites that were once slated for condo-construction will most likely be redirected to multifamily apartment buildings or mixed-use buildings. Who are the active multifamily developers in your area? A few major multifamily developers in the area are Legacy Partners, Related Development Company, NMS Properties, JPI Development, Lowe Enterprises, Fifield Company, and JSM Development. Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? One significant multifamily development is the $600 million mixed-use development on Hollywood and Vine by Legacy Partners. This project is comprised of a hotel, retail space, condominiums, …
What area is your expertise? Office / San Diego/ Submarket: Kearny Mesa What trends do you see presently in office development in your area? Once known primarily as an industrial market Kearny Mesa continues to add new office buildings to its inventory. The market currently consists of approximately 9.4 million square feet of office space of which only 13.8 percent is Class A space. Recent development projects support an increased movement toward new Class A office buildings. Two brand new Class A developments underway in Kearney Mesa include the Sunroads Centrum (273,468 square feet) and the Terraces at Copley Point (380,000 square feet). These two projects together will add an additional 653,468 square feet for a total of 1.3 million square feet of Class A office space in the Kearny Mesa market. Who are the active office developers in your area? Sudberry Properties, Sunroads Enterprises, the County of San Diego, Badiee Development Inc., and The Ghianni-LaRussa Group. Please name one or two significant office developments in your area. What impact will these projects have on the market? Sunroad Centrum: The Sunroad Centrum is a 273,468-square-foot, Class A office tower in Kearny Mesa designed by Brian Paul & Associates, which is …
What area is your area of expertise? My area of expertise is Southern California, but for the purpose of this interview I will focus on Los Angeles County. What trends do you see presently in multifamily development in your area? The rapid escalation of construction costs has subsided and in some cases is even coming down and labor is more widely available and less expensive. Despite reduced costs, land costs have started to come down. As demand for luxury condos wane, many development sites that were once slated for condo-construction will most likely be redirected to multifamily apartment buildings or mixed-use buildings. Who are the active multifamily developers in your area? A few major multifamily developers in the area are Legacy Partners, Related Development Company, NMS Properties, JPI Development, Lowe Enterprises, Fifield Company, and JSM Development. Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? One significant multifamily development is the $600 million mixed-use development on Hollywood and Vine by Legacy Partners. This project is comprised of a hotel, retail space, condominiums, and 375 luxury apartments. It is scheduled for completion in 2009. Another major development is the NoHo …
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