LOS ANGELES—East Coast developer Boston Properties is setting roots down in Los Angeles. Raymond Ritchey, senior EVP at the firm, spoke at the recent Allen Matkins View from the Top conference in Los Angeles to share its development vision and plans for the city. “Money is coming back to the West Coast, and we are being out performed by the West Coast,” he said in his speech. “If you can't beat them; join them.”
The firm is focused on ultra amenitized projects, and plans to bring the same concept to Los Angeles. Ritchey was clear that fitness centers and a few retail shops were not the firm's idea of amenities, but rather they want to create a community feel with a true live-work-play environment. He pointed to a recent project in Washington DC that the firm redeveloped. In the surrounding market, properties have an average 18% vacancy with $28 to $32 per square foot rents. In Boston Properties' building, there is a 1% vacancy rate with $47 to $55 per square foot rents. “When we created a live-work-play environment and brought in amenities, people came,” said Ritchey.
In addition to Los Angeles and Washington DC, the firm has brought the concept to Boston, New York and San Francisco, with a special focus on the CDB and Reston areas of each city, and on transit-oriented development. In fact, nearly all of the firm's projects are located near transit. That is a concept that is just now taking off in Los Angeles, but one that still needs to grow. Comparing DC to L.A., Ritchey said that L.A. had twice the population of DC but half the metro ridership. “Millennials are against car ownership, and in 2015, 85% of all leasing activity was within 1 mile of a Metro station,” he said, stressing the importance of public transit.
Nationally, Boston Properties currently has 4.6 million square feet under development.
The Allen Matkins conference also included economic updates and investment sales trends.
LOS ANGELES—East Coast developer Boston Properties is setting roots down in Los Angeles. Raymond Ritchey, senior EVP at the firm, spoke at the recent
The firm is focused on ultra amenitized projects, and plans to bring the same concept to Los Angeles. Ritchey was clear that fitness centers and a few retail shops were not the firm's idea of amenities, but rather they want to create a community feel with a true live-work-play environment. He pointed to a recent project in Washington DC that the firm redeveloped. In the surrounding market, properties have an average 18% vacancy with $28 to $32 per square foot rents. In Boston Properties' building, there is a 1% vacancy rate with $47 to $55 per square foot rents. “When we created a live-work-play environment and brought in amenities, people came,” said Ritchey.
In addition to Los Angeles and Washington DC, the firm has brought the concept to Boston,
Nationally, Boston Properties currently has 4.6 million square feet under development.
The
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Kelsi Maree Borland
