Western Real Estate Business

JUN 2018

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

Issue link: https://westernrealestatebusiness.epubxp.com/i/993830

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Page 3 of 50

L os Angeles' office market is be- ginning to look a lot like the area's housing market. Newer models, the latest amenities and an impressive roster of neighbors are what's en vogue among the city's lat- est batch of creative tenants. In true LA form, many owners and renters are shirking price. They're happy to pay for what they want — if they can find it. This increased competition and capital is causing a bifurcation within the city's office market. One tale involves practical (by LA stan- dards, anyway) rents for traditional industries in already-established sub- markets. An entirely different narra- tive exists, however, just a few miles up the road in the new and emerging tech hubs. "Compared to prior years, 2017 showed a much greater variance due to the emergence of the tech industry in select cities," says Keith DeCoster, director of U.S. real estate analytics for Savills Studley. "In tech centers... companies are pursuing talent and space to house them almost with less concern for the cost. In contrast, tradi- tional professional/business services T he industrial market is enjoying a moment in the sun throughout the West. Much of this is due to the retail sector's continued techno- logical advances, which have placed increasing demand on speedy deliv- ery as manufacturing, distribution and warehousing needs are more im- portant now than ever. "The market fundamentals for in- dustrial properties are the best they have ever been," says Bob O'Neill, senior vice president of acquisitions at CapRock Partners in Newport Beach, Calif. "Industrial absorption, lease rates and sales prices are at all- time highs, while market vacancies Ring.com will relocate from Santa Monica to a new 62,000-square-foot headquarters in Hawthorne by the end of the year. IN LA'S OFFICE MARKET, IT'S ALL ABOUT THE NEW NEIGHBORHOOD The adage of "it's not what you know but who you know" is particularly relevant in LA's office market, where the prestige of a new space and household name neighbors are all the rage among the creative sect. By Nellie Day see LA OFFICE, page 46 see INDUSTRIAL, page 44 Essendant Co. signed a built-to-suit lease for 405,299 square feet at Wonderful Industrial Park. The business product wholesale distributor plans to use this space for its local and regional fulfilment, ecommerce and distribution needs. RETAIL DRIVES INDUSTRIAL THROUGH MUCH OF THE WESTERN U.S. The continued uptick in ecommerce has trickled down the supply chain, creating a large need for last-mile logistics centers up and down the Western U.S. By Nellie Day Technology And The Modern Workspace page 34 Las Vegas Market Highlight page 22 page 28 Fannie Mae DUS Lenders Guide Safety First: Construction Site Safety page 42 INSIDE THIS ISSUE www.REBusinessOnline.com June 2018 • Volume 15, Issue 10

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