SoCal BUZZ
Covering Los Angeles, Orange County, San Diego and Inland Empire
LOS ANGELES
Forecast Predicts Faster Recovery for Downtown Los Angeles
Downtown LA could start its recovery from
the recession sooner than other parts of
the county, the state and the nation,
thanks to its transportation links, the new
Los Angeles Convention Center hotel and
its stable commercial real estate markets.
That is the gist of a recent forecast by Jack
Kyser, founding economist for the Kyser
Center for Economic Research at the LA
County Economic Development Corp.
400,000 in 2010 from 245,000 in 2009
with the opening of the JW Marriott and
the Ritz Carlton, which will make Downtown more competitive for major business
shows and conferences. The hotels will attract business visitors as well as their families, Kyser notes.
Kyser cites the 1.1% vacancy rate in
the Central LA industrial market and the
county’s overall 2.2% industrial vacancy
Schatz, president and CEO of the Central
City Association, says that the factors he
outlines show that Downtown LA is “
creating a strong and diverse economy.” The
Downtown renaissance is creating jobs
and business opportunities as well as new
housing, entertainment venues and options for shopping and dining, she adds.
—Bob Howard, GlobeSt.com
Los Angeles, CA
Kyser says that Downtown is uniquely
positioned to come out of the downturn
for a number of reasons. For one, upcoming events like the opening of the
Gold Line rail extension from Union
Station into East LA and the opening
early next year of the LA Convention
Center hotel will bring more people to
and from the city.
Kyser estimates that the number of
room nights Downtown will climb to
as evidence of its strength. He points out
that the office market, although it has
weakened with office markets around the
country, has not been hit as hard as many
others. Downtown didn’t have the exposure to the subprime lenders that caused
such havoc in the Orange County office
market, nor did it depend on the financial
companies like those on the Westside of
LA, he explains.
Commenting on Kyser’s forecast, Carol
Webinars: Sovereign Wealth Funds
Look Inward; Brokers Seek Solutions
Shifting focus and seeking solutions were
key themes echoed at two of GlobeSt.
com’s recent webinars. Tackling different topics—one on how brokers can
make money, and the other focusing on
sovereign wealth funds—both webinars
addressed different ways to survive in today’s economy.
Commercial brokerage is headed toward emphasizing comprehensive client
solutions rather than focusing solely on
transactions, said Jim Dieter, executive
managing director of CB Richard Ellis’
industrial service group. Dieter’s observation summed up the advice he and his
fellow panelists offered during the previous hour. Danielle Douglas, managing
editor of Real Estate Forum, moderated
the discussion.
“Brokers can make themselves indispensable by broadening their skill sets”
and tapping into all that their firms can do
for clients, said Vik Bangia, VP of national
accounts at CresaPartners LLC. Greg Ma-loney, CEO of Jones Lang LaSalle Retail,
urged brokers to “think outside the box.”
Richard Kimball, GVA Worldwide’s president and CEO, said this is a great time to
expand existing client relationships and
