Anti-Development Legislation Slows New Construction

This is the 4.6-acre site in Downtown Los Angeles that Malick sold.

LOS ANGELES—Developers may be slowing down on new construction projects until after the Neighborhood Integrity Initiative vote in March of next year. The initiative would halt any developments that are an exemption to the current masterplan, and with an outdated masterplan, that would include a majority of the development projects that are underway and in the pipeline. While the vote is still months away, it is causing a panic in the development community.

‘Dealing with the March ballot development moratorium initiative next year could be another headwind,” Mike Malick, VP of investments at Marcus & Millichap, tells GlobeSt.com. “Because it is a blanket moratorium on development that requires any kind of conditional use permit or zoning change, we are looking at a big question market. There was a frothiness a couple of years ago, but these factors are causing developers to rethink what they will be allowed to develop, and that is going to have an impact.”