GlobeSt.com: What is driving retail demand in this market?

Sachse: Several factors are driving retail demand: (1) housing and creative office boom, (2) growing nightlife and dining scene Downtown – now one of the most popular places in Greater Los Angeles to dine with places like Factory Kitchen, Bestia and Faith & Flower putting DTLA on the map, (3) Downtown's overall buzz factor. The Live-Work-Play trend is driving demand for retail in urban environments. DTLA has a great buzz happening between the nightlife, arts and culture. This is most prominent in the entertainment district, where LA LIVE, Nokia Theatre and Staples Center are bringing more than 10 million people a year to those venues. Adjacent to Staples Center, the Oceanwide Plaza project, with its planned 166,500 square feet of retail and restaurant space as well as 183-room five-star hotel and 504 luxury condominiums, is uniquely positioned to capture this demographic and elevate the approach to retail and restaurant services downtown.

GlobeSt.com: Your firm was recently hired to handle the retail leasing efforts of Oceanwide Plaza. What types of tenants are you looking for to fill the space, and what type of interest have you received from potential tenants?

Sachse: Once completed, Oceanwide Plaza will have a strong local identity as well as global appeal. The targeted tenant mix is designed to not only meet the needs of those visiting the area – with approachable luxury and specialty stores – but will also include a wide variety of eateries and convenience uses. We're looking for the best of LA tenants to service the 14 million visitors, which include conventioneers, Staples Center and LA LIVE visitors, but also residential populations of the DTLA suburbs, including Echo Park, Hancock, Silver Lake, Los Feliz and Highland Park. Also on the list of targeted tenants are entertainment and sport-related apparel retailers that will cater to Staples Center visitors and DTLA's demographic of the active, urban residents. Oceanwide Plaza will offer unique, high profile large block space that can accommodate a flagship location for a global retailer right across from Staples Center and adjacent to the metro stop.

GlobeSt.com: This is a large mixed-use facility with a significant retail component. Although not as large, there have been more and more of these types of projects popping up in downtown. Is a mixed-use-type property the place where retailers are now looking to be, rather than a shopping center or stand-alone store?

Sachse: Yes, I believe that in urban markets retailers do understand the value of mixed-use and the benefit to being close to the customers. Ralphs Fresh Fare was really the first major national retailer to open at the base of a mixed-use project on 9th and Flower in DTLA. Its success played a major factor in opening tenant's eyes to the demand for retail services in DTLA. When shopping, the customer is typically concerned about location, quality of service and ease of access, not necessarily about the store being located in a mixed-use or a standalone building. People looking to rent an apartment downtown often weigh their decision to move into certain apartment buildings based on the amenities offered on the ground floor. The live-work-play desire drives this demand for retail in mixed-use, and retailers are taking notice.

GlobeSt.com: This is a new development project, but there has also been a lot of adaptive reuse downtown. Give me a snapshot of new development in retail, and how does it compare to existing or adaptive reuse projects in terms of demand, occupancy and rental rates?

Sachse: New developments such as Oceanwide Plaza will attract corporate retailers and popular restaurants looking for larger space and incredible synergy created within the entertainment district of South Park. The new developments also provide space, flexibility, new structure and all pre-approved uses and utilities. Many adaptive reuse projects lack this flexibility. Tenants have to adapt to a fixed floor plan layout. National retailers, like the Gap Outlet on South Broadway, have had success opening stores in DTLA's adaptive reuse projects, but many national retailers have found it difficult to find space that works for their layouts. Tenants with flexible footprints that cater to the millennial demographic tend to be attracted to adaptive reuse because of the buildings' avant-garde architecture and appeal.

The foregoing is the sole opinion of Ed Sachse and does not reflect the views or opinions of Kennedy Wilson or GlobeSt.com.