LOS ANGELES—Regulations are still the biggest concern from developers, according to experts on the Development in Los Angeles County: Where are the New Opportunities for Each Sector panel at RealShare Los Angeles this week. Kevin Farrell, president of Fifield Realty Corp.; Dan Gura, director of business development at MVE Partners; Jerold Neuman, partner of land use and development at Liner LLP; Kitty Wallace, EVP at Colliers International; and panel moderator Sharon Carz, senior advisor at Sperry Van Ness, said that despite voters striking Measure S at the ballot box earlier this year, developers are still concerned about potential regulations and the effects of Measure JJJ, which passed earlier this year.
“Measure S was going to bring everyone to hault,” said Wallace, adding that it did bring attention to the city's outdated maps, which are from World War II. With Measure JJJ, developers are still at risk for extra restrictions and regulations. “If you play by the rules, you are in great shape, but if you want any changes at all—a foot, anything—you now have to abide by Measure JJJ,” she said.
Regulations aside, panelists said that there are still opportunities for development in Los Angeles. Transit-Oriented Development was the most popular among the group, with Wallace saying, “In my opinion, you should be running across the street from transit,” and Gura adding, “Cities around L.A. are also really encouraging development around transit.” In addition to transit, certain markets, like Downtown Los Angeles, the neighborhoods South of the 10, which Curbed ranked as the biggest area for development, and Downtown adjacent neighborhoods, like Boyle Heights, were mentioned as places where there is development opportunity.
The developers may have a reason to be concerned. The real estate market in general lagged in the first quarter, but Wallace called it a blip. “I am looking in every sector, and thinking that we should all be buying,” she said. “A lot of the markets still have a lot of legs.”
Developers have done well. Farrell says that his firm has seen 5% rent growth every year. “You can't underwrite for that, but we have seen it.”
LOS ANGELES—Regulations are still the biggest concern from developers, according to experts on the Development in Los Angeles County: Where are the New Opportunities for Each Sector panel at RealShare Los Angeles this week. Kevin Farrell, president of Fifield Realty Corp.; Dan Gura, director of business development at MVE Partners; Jerold Neuman, partner of land use and development at
“Measure S was going to bring everyone to hault,” said Wallace, adding that it did bring attention to the city's outdated maps, which are from World War II. With Measure JJJ, developers are still at risk for extra restrictions and regulations. “If you play by the rules, you are in great shape, but if you want any changes at all—a foot, anything—you now have to abide by Measure JJJ,” she said.
Regulations aside, panelists said that there are still opportunities for development in Los Angeles. Transit-Oriented Development was the most popular among the group, with Wallace saying, “In my opinion, you should be running across the street from transit,” and Gura adding, “Cities around L.A. are also really encouraging development around transit.” In addition to transit, certain markets, like Downtown Los Angeles, the neighborhoods South of the 10, which Curbed ranked as the biggest area for development, and Downtown adjacent neighborhoods, like Boyle Heights, were mentioned as places where there is development opportunity.
The developers may have a reason to be concerned. The real estate market in general lagged in the first quarter, but Wallace called it a blip. “I am looking in every sector, and thinking that we should all be buying,” she said. “A lot of the markets still have a lot of legs.”
Developers have done well. Farrell says that his firm has seen 5% rent growth every year. “You can't underwrite for that, but we have seen it.”
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