Are Moratoriums the Best Way to Handle Growth?

LOS ANGELES—Carson is halting industrial growth in response to negative impacts from the market growth, such as congestion and infrastructure deterioration. The city had placed a 45-day moratorium on industrial growth, and has now extended the bas through the year. Industry experts are saying that a moratorium is not the answer. According to Jodie Poirier, the managing director of CBRE's South Bay office, at the RealShare Los Angeles conference last week, the moratorium is hurting the market and stalling new leases.

“We are nervous on the industrial front,” she said on a panel focusing on the state of the industry in Los Angeles. “Right now there is a 45 day moratorium to halt industrial growth in Carson. We are in the middle of four leases that are pending, they are sitting there because they have to be approved.

Poirier adds that she believes that money is the motivation to stop industrial growth in the market. “The mayor and the city council need more roads, and supposedly, the roads are getting chewed up,” said Poirier. “I don't think the answer is to halt the market.” When Poirier spoke, the ban was nearly expired; however, the ban has been extended through March 2018 and focuses on heavy industrial development. During this time, the City is planning to rules to protect against heavy traffic and to protect residents.

Porier says that updating infrastructure and providing affordable housing are great efforts that the City should make; however, she doesn't think stopping growth in the city is reasonable or effective. She advises the city to turn to other metros, like Boston, to look at their model. “We are worried that other cities will follow suit. We need all levels of employees and we need affordable housing, and there are some goods things in JJJ. I think it is remarkable,” she said.

The new moratorium is extended for 10 months and was passed with a 5-0 vote.

Poirier spoke on the panel with Adam P. Christofferson, SVP of the Southern California Division at Marcus & Millichap; Jim Wiegandt, director of retail property lending at Luther Burbank Savings Bank; and moderator James Malone, VP of leasing at Brookfield Property Partners.

LOS ANGELES—Carson is halting industrial growth in response to negative impacts from the market growth, such as congestion and infrastructure deterioration. The city had placed a 45-day moratorium on industrial growth, and has now extended the bas through the year. Industry experts are saying that a moratorium is not the answer. According to Jodie Poirier, the managing director of CBRE's South Bay office, at the RealShare Los Angeles conference last week, the moratorium is hurting the market and stalling new leases.

“We are nervous on the industrial front,” she said on a panel focusing on the state of the industry in Los Angeles. “Right now there is a 45 day moratorium to halt industrial growth in Carson. We are in the middle of four leases that are pending, they are sitting there because they have to be approved.

Poirier adds that she believes that money is the motivation to stop industrial growth in the market. “The mayor and the city council need more roads, and supposedly, the roads are getting chewed up,” said Poirier. “I don't think the answer is to halt the market.” When Poirier spoke, the ban was nearly expired; however, the ban has been extended through March 2018 and focuses on heavy industrial development. During this time, the City is planning to rules to protect against heavy traffic and to protect residents.

Porier says that updating infrastructure and providing affordable housing are great efforts that the City should make; however, she doesn't think stopping growth in the city is reasonable or effective. She advises the city to turn to other metros, like Boston, to look at their model. “We are worried that other cities will follow suit. We need all levels of employees and we need affordable housing, and there are some goods things in JJJ. I think it is remarkable,” she said.

The new moratorium is extended for 10 months and was passed with a 5-0 vote.

Poirier spoke on the panel with Adam P. Christofferson, SVP of the Southern California Division at Marcus & Millichap; Jim Wiegandt, director of retail property lending at Luther Burbank Savings Bank; and moderator James Malone, VP of leasing at Brookfield Property Partners.