July 15, 2014 on 9:27 pm | In Bravo, Fascinating Information, Green, Office Fodder, Solutions, Trends, Uncategorized, Winning Properties | 3 Comments

by Jodi Summers

Office space has changed drastically in the past decade. Gone are cubicles and forced air. What’s hot are bright and breezy multiuse open spaces which use less square footage than their predecessors. Allow us to share with you some cutting edge concepts in office design.

Google’s stimulating new workspace in Tel Aviv. Google creates environments to allow creative ideas to easily flow.









92% of young professionals interviewed said they would be more inclined to work for an environmentally-friendly company.







Office space abundant in light with inspiring design.
















Three complementary design firms have joined together to share a loft office space.




Shared office or executive office suites.




The office barns the workspace is completely open, without partitions and without hierarchy. Desks and local storage are mobile and a system of power distribution drops power and network down to the desks from over head. It’s unlike any corporate office space that came before it and in fact has many of the characteristics of smaller businesses.








Open office space circa 1923












July 1, 2014 on 8:49 pm | In Fascinating Information, Green, Market Snapshot, Office Fodder, Trends, Uncategorized | 4 Comments

by Jodi Summers

Corporations are learning that their employees are happier if they work at home at least one day a week. Going one step beyond, for some careers and small business owners the home office and related tax deductions have become a legitimate tax deduction.

According to data from the Survey of Income and Program Participation, in 1997 7% of workers (9.2 million individuals) reported working at home at least one day a week. By 2010, that total had grown to 9.4% (13.4 million), an increase of more than four million or 35%.

The geographic distribution of those workers who primarily work at home (most days) shows interesting geographic clustering. Using data from the 2012 Census Bureau American Community Survey, the map above charts the share of the workforce (age 16 and over) who report working at home. The highest shares are found in the West, the Northwest, the Upper Midwest and New England. The state of Vermont has the highest share (7.1%), followed by Montana (6.5%), Colorado (6.5%), and Oregon (6.3%). Louisiana has the lowest share at 2.3%.







June 15, 2014 on 4:26 pm | In Fascinating Information, Funny...Money, Investment Opportunities, New Developments, Uncategorized, Winning Properties | 1 Comment

by Jodi Summers

Looking for your fantasy Beverly Hills mixed use development project? One of the most desirable pieces of real estate in the country —9900 Wilshire Blvd., is for sale again. Price in the mid-$300-million range for the 8-acre parcel.

“A truly rare circumstance in the highly regulated and supply-constrained city of Beverly Hills,” note the experts.

The site of the former Robinsons-May department store in Beverly Hills has been vacant for more than a decade and has changed hands a number of times. The current sellers, Hong Kong private equity firm Joint Treasure International, intended to complete an existing plan to build 235 condos on the site.

They had already navigated Beverly Hills’ arduous city planning process and were successful is getting approval on a mixed use complex design by Richard Meier, architect of the Getty Center.

“Upon transfer of ownership, the incoming buyer will leverage the value already created and be able to immediately commence construction — a truly rare circumstance in the highly regulated and supply-constrained city of Beverly Hills,” the selling brokers said in a statement.

The Meier plan includes 876 underground parking spaces and almost 21,000 square feet designated for office space, shops and restaurants.

The property at 9900 Wilshire Blvd. is, “one of the most desirable pieces of real estate in the country,” the L.A. Times writes. The paper notes that the property, located along Merv Griffin way, “has seen multiple owners who have so far been unable to bring a condominium complex designed by a famous architect to life.”

In 2010, Hong Kong private equity firm Joint Treasure International bought the parcel for $148 million. In 2007 the parcel sold for $500 million in one of the largest transactions in the history of Los Angeles County. The company that purchased it subsequently went bankrupt, which is how Joint Treasure International acquired the property.

Will you be the next owner developer for 9900 Wilshire?

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













June 1, 2014 on 1:07 pm | In Bravo, Fascinating Information, Investment Opportunities, Market Snapshot, New Developments, Office Fodder, Property Maintenance, Solutions, Trends, Uncategorized, Winning Properties | 2 Comments

by Jodi Summers

Originally built exclusively for business, office parks are evolving into vibrant multipurpose campuses. We all know the office market has been stagnant since the great rise is gas prices and the plummet of the Great Recession. Instead of wallowing in their empty suites, investors and developers from El Segundo to Warner Center are adding value through redevelopment. The result is a re-envisioned business campus where people can dine, shop, and live – all within walking distance of work.

The reinvention of the office complex has had a very positive impact on the lagging office market in 2014. According to Loopnet, office sale prices in metro Los Angeles jumped 12.5% in the first quarter and a total of 17% since 1Q 2013.

The market is finally grabbing how office space needs to be reinvented. Our new generation of young professionals have no interest in working in the same dull McOffice Park that their parents did. So, in addition to reinventing the size and configuration of the workspace, office real estate entrepreneurs are also reconsidering the environment.

To recruit and retain top talent, cutting-edge employers are eager to give millennials a walkable live-work-play-dine environment.

“It’s the new norm,” offers Anjee Solanki, national director of retail services with Colliers International in San Francisco. “People are expecting it.”

The reinvention of the office space is pushing lease rates up. According to Loopnet, average asking rental rate per sq ft/year for Office properties in Los Angeles, CA as of Apr 14 was $25.11. This is an increase of 0.8% compared to the prior 3 months, and an increase of +4.5% year-over-year. County-wide, average rental rates in Los Angeles are +0.9% higher at $24.21 per sq ft/year for Office properties currently for lease, a rise of +3.3% since 1Q 2013.

Want to see fine office retrofit? Check out the 86-acre Times Continental Park in El Segundo. Once and aerospace complex with each building occupied by single large tenants, “we had to rethink what to do with the property,” shares Alex Rose, senior vice president of Continental Development Corp.

Continental Development steadily began retrofitting the buildings to fit multiple tenants. Then it began adding restaurants, shopping, hotels, fitness centers, and a movie theater—all served by a light rail stop. “Once you get the cycle going, it feeds on itself,” Rose says. With 3 million square feet of mixed-use space and an office vacancy rate below 5%, Continental Park found the right strategy to turn things around. “By taking a mixed-use approach, we think we did a good job of listening to our market,” Rose says. “We’ve been able to keep our rents up, keep occupancy up, and attract tenants that perhaps our competition can’t.”

Continental’s approach was so successful, that others wanted in. Invesco Real Estate and SSV Properties of Ontario, subsequently bought four office buildings in Continental Park totaling 540,000 square feet for an undisclosed amount last year. One building was fully leased, but the new owners chose to spend an estimated $75 million to convert the other three to open floor plans that support workplace collaboration.

Continental Park’s mixed-use environment was a key factor in the decision to buy the buildings as a long-term investment,. “The way officing is going right now, folks want the [mixed-use] environment and amenities,” observes Peter Cassiano, director of acquisitions for Invesco.

Many underperforming office parks can’t afford mixed-use makeovers because the owners don’t have the capital. They don’t have the capital because the property is underperforming. The only escape from this Catch-22 is acquisition by new owners with deeper pockets. Looking to get sell an underperforming office park? We have the buyers.

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










May 15, 2014 on 12:10 am | In Fascinating Information, Market Snapshot, New Developments, Office Fodder, Trends, Uncategorized | 2 Comments

by Jodi Summers

The feeling in the office leasing market is that there is an ongoing trend to get more productivity and efficiency out of office space. It’s on ongoing process of more people being put in less space.

Just as offices are changing, employees are changing as well. Global competition and the increasing role played by computers and other advanced technologies have reduced the need for mid-level workers with no special skills. The elimination of middle management has had some economists to rethinking the assumption that full employment means no more than 4% or 5% joblessness.

Companies are learning to get by with fewer employees while taking up less space per employee as they allow more employees to work at home and squeeze others into denser office layouts.

One of the most dynamic areas for business growth in Los Angeles County is the professional, scientific, and technical services industry – which is currently the fifth largest employment sector in the county. Firms in this industry employ a wide array of professionals, including architects, engineers, and attorneys. It is an important but often overlooked source of highly compensated jobs in the local economy. Industry employment stood at 267,000 in 2012, up 3.5% from a year earlier. Growth is expected to continue in this sector over the next two years, with projected gains of over 9,000 jobs this year and nearly 12,000 jobs next year.

The technology sector, which includes manufacturing and service industries in aerospace, information technology, electronics, and biomedical technology, employed 184,000 workers in 2012, up 2.4% from a year earlier. Like the professional, scientific, and technical services industry, it is a source of highly compensated jobs in the local economy. From January through May of this year, average employment in this sector rose 1.8% and is expected to post modest gains this year and next.

These business areas will expect state-of-the art workspace efficiencies. One local office developer offers that “there will continue to be a relentless pursuit of more efficiency in utilities, quality of mechanical systems, and LEED certification. It is just a matter of time before the same thing happens with LEED that happened with ADA requirements, which used to be voluntary. But now you can’t get a building permit without meeting those criteria. We will migrate toward ‘not a choice anymore,” when it comes to office efficiency.






http://www.uli.org/wp-content/uploads/ULI-Documents/Emerging-Trends-in-Real-Estate-Americas-2014.pdf http://images.smh.com.au/2013/02/26/4064789/ZAH_hub_LW-20130226215837481767-620×349.jpg http://myturnstone.com/files/kapost/google.jpg https://d26f1zbt4c3e98.cloudfront.net/wp-content/uploads/2013/05/collaborative-work-space.jpg http://hbrblogs.files.wordpress.com/2011/11/richardson_photo1.jpg?w=575&h=383


April 30, 2014 on 1:56 pm | In Bravo, Fascinating Information, Market Snapshot, Office Fodder, Statistics, Trends, Uncategorized | 4 Comments

by Jodi Summers

Bravo! The pundits are predicting that the Los Angeles office market will make some headway this year after lollygagging for the previous four years. Even formerly quiet office zip codes like 90025 and 90034 are picking up steam as the Silicon Beach coastal office market of Venice, Santa Monica, Marina del Rey, Mar Vista, Playa Vista and Culver City continues to see shrinking vacancy rates.

Let us look at Marcus & Millichap’s 2014 Market Outlook; it’s full of good news for the Los Angeles Real Estate market for a change.

◆ 2014 National Office Performance Index Rank for Los Angeles is 5 – up 3 places from last year. Our rise is attributed to strong rent gains and high absolute job growth.

The Employment Development Department (EDD) notes that in Los Angeles County, the seasonally adjusted unemployment rate in March was 8.7% – down from the year ago rate of 10.1%.

◆ Employment Forecast: Employers will create 81,000 jobs this year, expanding payrolls by 2.1%. Office-using employment will grow 2.6% as 26,000 positions are generated.

In California, nearly every major private industry sector added jobs over the year: construction; trade, transportation and utilities; information; professional and business services; educational and health services; leisure and hospitality; and other services. Professional and business services posted the largest gain on a numerical basis, adding 88,100 jobs over the year (up 3.8%). Construction increased the number of payroll jobs by 5.9% (adding 37,100 jobs).

◆ Investment Forecast: The potential for rising interest rates and an increase in the number of CMBS loans that are coming due should encourage more buyers to deploy capital in office assets.

As Loopnet notes, Current Los Angeles market trends data indicates an increase of +4.9% in the median asking price per sq ft for Office properties compared to the prior 3 months, with an increase of +12.8% compared to last year’s prices. County-wide, asking prices for Office properties are 4.4% higher at $283 per sq ft compared to the current median price of $321 per sq ft for Office properties in metro L.A.

◆ Vacancy Forecast: Light construction will facilitate a dip in vacancy to 14.2%.

◆ Rent Forecast: After a 3.9% rise in 2013, average full-service rents will climb another 3.9% in 2014 to $30.86 per square foot.

As Loopnet notes, the average asking rental rate per sq ft/year for Office properties in Los Angeles as of Mar 14 was $25.05. This represents an increase of 0.8% compared to the prior 3 months, with an increase of +4.7% year-over-years. County-wide, average rental rates in L.A. County are +1.1% higher at $24.17 per sq ft/year for Office properties currently for lease.

◆ Construction Forecast: Only 550,000 square feet of office space will come online in 2014, down from 1.2 million square feet last year.

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





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