Disclaimer: H.W. Holmes, Inc. curates this monthly summary of commercial construction and development news in and around Los Angeles, Ventura, and Santa Barbara, CA. We have no association with any of these developments unless specifically stated.
BISNOW PANEL LOOKS AT THE STATE OF LOS ANGELES RETAIL MARKET
BISNOW hosted a Los Angeles State of the Market event this month. Everything from the struggles of shopping malls to pressures from e-commerce was discussed. Panels included Alain R’bibo of Allen Matkins, Patrick McRoskey of CBRE, Greg Whitney of Wilson Meany, Matthew Ahrens of Rising Realty Partners and Kim Synder of Prologis.
R’bibo asked about e-commerce’s impact on retail and other sectors. Snyder suggested that e-commerce has cannibalized a bit of the retail space – noting the large box retailers in particular have been beaten up by sites like Amazon. However, while storefront retail has been negatively hit, industrial in L.A. may be positively impacted by e-commerce.
All things considered, storefront retail is still viewed as an anchor for mixed-use developments. Retailers blending a personalized element with online shopping are also thriving in today’s market.
100-YEAR-OLD FASHION DISTRICT BUILDING GETS CREATIVE OFFICES & ROOFTOP RESTAURANT
The Norton Building at 755 S. Los Angeles Street is getting a makeoever. The five-story structure, which sits at the edge of the Fasion District between that and the Historic Core, dates back to 1914. It’s currently the home of garment and manufacturing companies.
According to property records, west L.A. creative office developer Urban Offerings purchased the structure for $17.55 million in September of 2016. Their intent from the beginning has been to transform the unassuming space and the area in which it sits.
Those plans are now in motion. Urban Offerings is partnering with Omgivning – an architecture and interior design firm based in Downtown L.A. – to redevelop the space to include 60,000 square feet of offices with another 43,000 square feet set to include shops and eateries. The retail and restaurants will be spread throughout the building’s ground floor, basement, and rooftop.
CLICK HERE TO READ “CENTURY-OLD FASHION DISTRICT BUILDING BECOMING OFFICES” BY STEVEN SHARP AT URBANIZE.LA
VENTURA COUNTY COMMERCIAL REAL ESTATE MARKET FULL OF OPPORUNITY
While minimal Ventura commercial construction is expected in 2017, speakers at the 21st annual CBRE Ventura County & Conejo Valley Commercial Real Estate Symposium & Economic Forecast believe the region is ripe for commercial real estate investment.
In 2016, Ventura commercial real estate sales in the region totaled $855 million. Those sales came in the form of $140 million in industrial, $265 million in office space, and $450 million in retail.
Citing high vacancies, cheaper land values, and available space for development in Ventura County, speakers believe the retail and office market upswing seen in 2015 and 2016 will continue in 2017. More affordable housing and companies expanding and relocating to the area would certainly help.