The Cachet of Historic Properties Hits Retail

Historic properties in Los Angeles are getting a new life. Tenant demand for renovated historic properties is high, especially in the office market. In Downtown Los Angeles, there are numerous historic buildings in redevelopment. The trend isn't reserved for office properties, however. Retailers are also attracted to historic spaces for their charm and individuality—and their customers are too. Unfortunately, historic retail properties are rare in Los Angeles, so when product does become available, competition is high.

“The trends change so often in retail, and in office it doesn't change as frequently,” Gabe Kadosh, VP at Colliers International, tells GlobeSt.com about the trend for historic office properties in retail. “Historic spaces tend to be larger. In office, you can cut spaces down and still have a cool, open space. In retail, there is no perfect size, and retail has so many caveat that it can be tricky to do. The infrastructure that is involved with plumbing and electrical is also so expensive, so to turn an older building into a restaurant or retail space is a really risky move.”

Kadosh recently negotiated a lease on behalf of Clarion Partners for the historic Formosa Café, a restaurant space in the West Hollywood Gateway shopping center. The property got tremendous attention from restaurateurs, and Kadosh was able to fill the space with 1933 Group, a seasoned bar and restaurant operator that has revived other historic properties in the city, including the Highland Park Bowl. “When you have a unique situation like this, you are able to select from the most exciting tenants. Seeing what they did with Highland Park Bowl was incredible, and I think they are going to do a great job with the Formosa,” says Kadosh.

The new retail development under construction in Los Angeles is overwhelmingly in mixed-use properties, and while there is retailer demand for these spaces, they don't get the same attention as historic properties. “I work on a lot of mixed-use, and I talk to a lot of different groups for those projects and they just aren't as sexy as these historic projects,” says Kadosh. “Restaurant groups really soar to these projects. That is happening now more than ever because so much new product is being built. When there is a historic property, more prominent restaurant group rush to the property.”

Historic properties in Los Angeles are getting a new life. Tenant demand for renovated historic properties is high, especially in the office market. In Downtown Los Angeles, there are numerous historic buildings in redevelopment. The trend isn't reserved for office properties, however. Retailers are also attracted to historic spaces for their charm and individuality—and their customers are too. Unfortunately, historic retail properties are rare in Los Angeles, so when product does become available, competition is high.

“The trends change so often in retail, and in office it doesn't change as frequently,” Gabe Kadosh, VP at Colliers International, tells GlobeSt.com about the trend for historic office properties in retail. “Historic spaces tend to be larger. In office, you can cut spaces down and still have a cool, open space. In retail, there is no perfect size, and retail has so many caveat that it can be tricky to do. The infrastructure that is involved with plumbing and electrical is also so expensive, so to turn an older building into a restaurant or retail space is a really risky move.”

Kadosh recently negotiated a lease on behalf of Clarion Partners for the historic Formosa Café, a restaurant space in the West Hollywood Gateway shopping center. The property got tremendous attention from restaurateurs, and Kadosh was able to fill the space with 1933 Group, a seasoned bar and restaurant operator that has revived other historic properties in the city, including the Highland Park Bowl. “When you have a unique situation like this, you are able to select from the most exciting tenants. Seeing what they did with Highland Park Bowl was incredible, and I think they are going to do a great job with the Formosa,” says Kadosh.

The new retail development under construction in Los Angeles is overwhelmingly in mixed-use properties, and while there is retailer demand for these spaces, they don't get the same attention as historic properties. “I work on a lot of mixed-use, and I talk to a lot of different groups for those projects and they just aren't as sexy as these historic projects,” says Kadosh. “Restaurant groups really soar to these projects. That is happening now more than ever because so much new product is being built. When there is a historic property, more prominent restaurant group rush to the property.”