Despite the opportunities, the market is fiercely competitive. Speer said that navigating competition, for his firm, means being more creative by learning to look at a deal 10 different ways. Wenger added that rigorous analysis is also important in qualifying a potential opportunity. Her firm looks at trends over 20 years, public support, and the surrounding market trends to determine if an asset is a good investment opportunity. It really means, in any market, not letting go of fundamentals. If you stick to the core fundamentals, you buy property that has staying power, according to Speer, who says that in markets like L.A. and San Francisco, values will go up over time, even if you have a bad year here or there.

Investors are also finding opportunities in poorly managed properties. “We have had some value opportunities just because of bad management,” said Jacobs. Sischo also said that could mean that expenses are too low and ownership isn't maximizing the value of the property. “We have acquired properties where the expenses are too low, and you need to add more expenses or more staffing, security or property management staff to attract the kind of tenants that we are looking for,” he explained.

LOS ANGELES—L.A.'s top investors expect to be net buyers in 2017, according to panelists at the Investment Outlook panel at RealShare Los Angeles this week. Mark Jacobs, managing director at Oaktree; John Sischo, managing principal at Coretrust Capital Partners, Michael Speer, SVP at Brookfield Property Group; Sondra Wenger, managing director of investments at CIM Group; and panel moderator Marc Renard, executive vice chairman of the capital markets group at Cushman & Wakefield, spoke about their investment outlook for the upcoming year and why they remain bullish on the L.A. market.

“We were attracted to L.A. because you can buy below replacement cost,” said Sischo on the Investment Outlook Panel at Real Share Los Angeles. Jacobs was the only panelist that said he expected to be a net seller this year, but quickly followed his comment, saying, “We said the same thing last year though, and we were wrong.”

The panelist were excited about the opportunities in the L.A. market, particularly in Downtown Los Angeles, where Jacobs said, “ I'll bet on Downtown L.A. any day of the week. I am a big believer in DTLA.” Speer agreed, “DTLA has been a big focus for us. We see it as a value play for the rents and price per square foot. What you can buy in DTLA for what you can't buy for in other major markets around the country. We are excited about what the growth is going to mean for us and other investors.”

Despite the opportunities, the market is fiercely competitive. Speer said that navigating competition, for his firm, means being more creative by learning to look at a deal 10 different ways. Wenger added that rigorous analysis is also important in qualifying a potential opportunity. Her firm looks at trends over 20 years, public support, and the surrounding market trends to determine if an asset is a good investment opportunity. It really means, in any market, not letting go of fundamentals. If you stick to the core fundamentals, you buy property that has staying power, according to Speer, who says that in markets like L.A. and San Francisco, values will go up over time, even if you have a bad year here or there.

Investors are also finding opportunities in poorly managed properties. “We have had some value opportunities just because of bad management,” said Jacobs. Sischo also said that could mean that expenses are too low and ownership isn't maximizing the value of the property. “We have acquired properties where the expenses are too low, and you need to add more expenses or more staffing, security or property management staff to attract the kind of tenants that we are looking for,” he explained.