Future of Southland Development Slower than Expected

NEWPORT BEACH, CA-An overtone of cautious optimism dominated the talk as The Wharton Club of Southern California and the UCLA-Anderson Club of Southern California hosted a real estate panel breakfast at the Pacific Club earlier this week. The breakfast kicked off with an economic overview from Stephen Cauley, associate director of research for the Ziman Center, who maintains that although California will see significant population growth, it will not reach the predicted 30% increase over the next 30 years, but rather see growth of approximately 15-20%. Unaffordable housing, increasing taxes and high gas prices will most likely hinder the state’s economic growth. The discussion, “The Changing Real Estate Landscape of Southern California: Developing Up and Out over the Next Decade,” was moderated by Jack Kappe, vice president of Buchanan Street Partners. Besides Cauley, the panelists were Timothy Ballard, co-founder of Buchanan Street Partners; Edward Cook, co-president of McCarthy Cook & Co.; Brian Judd, director of community planning and design at The Planning Center; Don Knabe, supervisor of the County’s fourth district; Mike Lowe, executive vice president and CIO of Lowe Enterprises; and William Wittie, president and managing partner of The Related Companies of California. During the discussion, Cauley also noted that although infill in Downtown LA will bring a little relief to the state’s housing prices, the most important trend Southland is sure to see is more expansion into the suburbs. “We don’t need less sprawl; we need more sprawl,” Cauley said. “What’s going to happen is, work is going to be moving to places where people can afford to live.” Other topics touched upon were “the lack of governmental leadership,” traffic congestion, fiscal zoning, and California’s lengthy entitlement process, which deter institutional investors and developers from undertaking new projects in the Southland. Such roadblocks result in communities suffering from a lack of infrastructure and dilapidation, according to Ballard. “It’s important we have community leadership that can push forward with political will to get these things done for the community,” Ballard said.