December 31, 2013 on 10:51 pm | In Bravo, Investment Opportunities, Market Snapshot, Office Fodder, Statistics, Trends, Uncategorized | 3 Comments

by Jodi Summers

2014 brings big news! Los Angeles County is expected to exceed 10 million residents in 2014, taking the prize for the most populous county in the nation. L.A. County population is larger than that of 42 states. If it were a country, it would have the 21st largest economy in the world, just ahead of Iran, and just behind Switzerland. The L.A. business motor continues to power forward.

Los Angeles County carried momentum from a strong second half of last year into this year, with year-to-year percentage job gains that outpaced the nation and the state. In 2013, the unemployment rate dropped into single-digit territory for the first time since late 2008 – ending the year under 9.5%.

As you all know, only a smattering of office markets are performing strongly, the last three years have been an arduous ride for the office sector. But, the payoff is coming. In 2014, the experts say we are firmly into recovery. Leading submarkets remain clustered in global gateway metros and locations with tech- and energy-rich economies. Yeah L.A.!

Although the office recovery is not yet widespread, recovering markets feature strong technology, energy, education and healthcare components. Investment capital has been focused on primary central business districts in key suburban and secondary markets. Los Angeles, Orange County and San Diego are sited as promising investment areas, as our SoCal metros currently have vacancies higher than the national average, with occupancy gains predicted to climb faster than the U.S. average through 2017.

Also expected to thrive are mixed-use environments that are well-served by public transport. Experts point to West Los Angeles, and the corridor from Miracle Mile to Santa Monica in Los Angeles; North Cities like University Town Center, in San Diego; and Irvine/Newport Beach in Orange County.

A local investor describes the office climate by stating, “Out in Los Angeles, things are going very well; we are seeing the housing market rebound and the office sector is coming along—not great, but steady; we haven’t seen a lot of new construction. Rental rates in L.A. haven’t moved much, so we likely won’t see too much new supply here.”

Those in the know agree that success and profits in 2014 will come to those with real estate operating and management skills.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – or 310.392.1211, and let us move forward together.



December 23, 2013 on 9:37 pm | In Bravo, Funny...Money, Uncategorized | 1 Comment


December 16, 2013 on 8:11 pm | In Fascinating Information, Government, Statistics, Uncategorized, World | 1 Comment

by Jodi Summers

Metro Los Angeles has an economy larger than Saudi Arabia.

California has a larger economy than Brazil Russia India and Canada

The New York City area has a bigger income than New York State. How does this happen you ask? The economic juggernaut that is metro New York includes Northern New Jersey, Long Island and parts of Pennsylvania, while abandoning much of upstate New York.)

Same with Metropolitan Washington, D.C., whose economy alone – measured in gross annual product – is larger than both the states of Maryland and Virginia that contain parts of it.

In fact, if metros were states, five of the 15 largest economies in the U.S. right now would belong to metropolitan regions. Add up the 10 highest-producing metros in the country, and together they have more economic might than the 36 least-producing states in America.

Our Los Angeles, along with metro New York and Chicago is among the top 25 economies in the world (this exercise conveniently only compares U.S. cities to countries, not international cities)- better than Sweden, Norway, Poland, Belgium, and Argentina.

In our Los Angeles metro, the seasonally adjusted unemployment rate in October edged down to 9.7% from 9.8% in September, notes the Employment Development Department. A year ago, the unemployment rate stood at 10.5%. In October, total nonfarm employment (not seasonally adjusted) in Los Angeles County increased by 48,000 jobs over the month and by 56,600 jobs over the year to October, an increase of 1.4%.

Total California nonfarm employment increased by 39,800 jobs over the month in October measured in seasonally adjusted (SA) terms. The non-seasonally adjusted figure was a gain of 120,200 jobs.

The year-over-year change showed an increase of 207,300 jobs (SA), which equates to a growth rate of 1.4%, slightly below the national rate of 1.7%. California’s private sector added 210,600 jobs over the year, while employment in the public sector declined by 3,300 jobs.

Nearly every private industry sector added jobs over the year: mining and logging; construction; trade; transportation and utilities; information; financial activities; professional and business services; educational and health services; leisure and hospitality; and other services for a collective gain of 216,400 jobs. Leisure and hospitality posted the largest gain on both a numerical basis (75,100 jobs) and on a percentage basis (up by 4.6%).

California’s unemployment rate was 8.7% (SA) in September and October. The unemployment rate was 10.1% a year ago October.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – or 310.392.1211, and let us move forward together.


WHERE THE BUSINESS IS…Check Out This US Economic Map

December 1, 2013 on 3:07 am | In Fascinating Information, Office Fodder, Statistics, Uncategorized | 1 Comment

Want do know what’s going on in the country? Here’s a map that pretty much sums up everything going on in every major region of the U.S. economy courtesy of Deutsche Asset & Wealth Management.


November 15, 2013 on 2:10 pm | In Bravo, Fascinating Information, Green, Historic Properties, Investment Opportunities, New Developments, Property Maintenance, Solutions, Trends, Uncategorized, Winning Properties | 3 Comments

Edited by Jodi Summers

Bravo to the City of Los Angeles. Through innovative public policy and creative private development, demonstrating how older buildings can be repurposed and repositioned for the new economy while reducing carbon emissions.

Believe it or not, Downtown Los Angeles contains one of the nation’s finest collections of early 20th century architecture. Most of these buildings sat vacant for decades, until a carefully targeted Adaptive Use Ordinance (ARO) removed regulatory barriers, provided incentives, and helped make it possible to repurpose more than 60 historic buildings over the past 14 years as new apartments, lofts, and hotels.

But many more buildings remain empty or underused in the downtown area and nearby commercial districts.

A recent report from the Urban Land Institute and the National Trust for Historic Preservation’s Green Lab concludes that more than 10 million square feet of space in the city’s urban core is currently vacant. The report, Learning from Los Angeles, was presented to Mayor Eric Garcetti this morning, at an event organized by the ULI Los Angeles District Council. It describes strategies that build on the success of the ARO to unlock the economic and community development potential of underused older buildings. The report documents demolition, building, and vacancy trends throughout the city and recommends strategies for removing regulatory barriers, streamlining approvals, and providing incentives to make building reuse easier to accomplish.

Conversations organized by the Preservation Green and ULI Los Angeles identified key barriers to building reuse and recommend solutions to overcome these obstacles. The Los Angeles Conservancy, a key partner in this effort, served on the project Advisory Committee along with practitioners in real estate development, planning, design, construction, community revitalization, and local government.

Learning from Los Angeles is the first in a new series of research and policy reports being developed by the Preservation Green Lab through the Partnership for Building Reuse, a joint effort of the National Trust and ULI. Launched in Los Angeles in 2012, the Partnership for Building Reuse is designed to foster market-driven building reuse in major U.S. cities through dialogues with community stakeholders about building reuse challenges and opportunities.



October 31, 2013 on 8:54 am | In Bravo, Fascinating Information, Green, Historic Properties, Investment Opportunities, Market Snapshot, Property Maintenance, Solutions, Trends, Uncategorized, Winning Properties | 2 Comments

by Jodi Summers

You’ve heard about all of those fabulous loft conversions in downtown Los Angeles – old office buildings and factories that have been renovated into apartments and condos. That’s what’s happening with a lot of that extra office space…that’s in cool buildings.

In 2012, nationwide, office stock shrunk in a third of the 54 top U.S. markets. Buildings worth saving are being converted, while lesser buildings are being demolished. The result is that the net inventory has dropped by about 21.6 million square feet > or 0.3% of inventory. In Los Angeles, available office space has declined by -16.2% according to Loopnet.

Over the next four quarters, approximately 11 of the top 54 U.S. metros and almost half of the 1,400 submarkets in those metros will have a net loss of inventory.

Conversion to residential usage is the most prominent reason that an office building is removed from inventory. Condo and apartment conversions comprise 34% of the lost office space, according to CoStar. Additionally another 13% of office space has been demolished to make way for new residential construction.

In high density urban areas where housing is needed, multifamily repositionings benefit both owner and user. The ideal conversion candidate – transit-accessible office structures built circa 1930 with 22,000-square-foot floor plates.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – or 310.392.1211, and let us move forward together.



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