LOS ANGELES—This summer, despite muchopposition, the L.A. City Council gave its final approval to a newzoning code that could dramatically change the appearance andgeneral feel of the city's neighborhood landscape. The HollywoodCommunity Plan, approved on a 13-0 vote, changes somefloor-area-ratios that will allow for taller buildings. So, shouldwe expect skyscrapers to soon dominate the area?

Holly Schroeder, the executive officer of the L.A./VenturaChapter of the Building Industry Association, tells Real EstateForum that "The plan serves the city's overall goal of addressingdensity near transit areas." In a positive way, she says, "the planwill provide increased certainty about how future development willbenefit both builders and the community."

According to David Simon, EVP of Kilroy Realty, the increaseddensity will not necessarily accelerate growth, but he does pointout that for certain sites within the market, it will allow forbetter and more flexible master planning. He explains that in termsof development for the area, "multifamily continues to be strongwith many new units planned." Office rents are improving slightlyas betterquality space commands higher rents. "Given therequirement to build underground parking with most new officedevelopments, only select sites in the coming years will be able tojustify new product."