Belisle: In recent years, Los Angeles has experienced the emergence of a research-led economy composed of technology, biomedical and clean-tech companies aided by leading universities located in Southern California. Also, entertainment remains a focal point for the region and one its leading drivers of space demand. Southern California is also home to one of the largest manufacturing centers in the country supported by a vast intermodal network. Recent increases in local port volumes have directly translated into strong warehousing demand and an accelerated pace of recovery in the industrial property sectors. We are lucky living in Southern California for so many reasons—one being our diversified work force. Companies like doing business in the region for that reason. And, being home to many high-level institutions, the region continues to breed emerging companies led by young entrepreneurs with real estate needs.

GlobeSt.com: What business areas and markets are you looking to grow in the next five years?

Belisle: Los Angeles is a top market for us, and we’ll continue to grow that region. Specifically, retail, hotels and public institutions are areas where we continue to see incredible demand. Property management and project and development services are also areas where we believe that we can add value for clients. JLL is also looking to expand its healthcare group on the West Coast. The team is advising stand-alone and large healthcare systems how to best plan, manage and develop their real estate portfolio to maximize efficiencies and profitability. Because of the external forces hospitals are facing (i.e., national healthcare reform, reduced reimbursements, aging population and increased operating costs), we’re showing hospital executives how to incorporate their acute and outpatient facilities into their larger system strategy to maximize occupancy costs, capital investments and equipment purchasing, reduce energy costs and keep their credit ratings healthy.

GlobeSt.com: The economy has certainly changed the way service companies meet their clients’ needs. How has client service changed for Jones Lang LaSalle during this challenging time?

Belisle: The commercial real estate sector continues to evolve with clients wanting specialized experts for different facets of their business. With brokerage consolidation comes an opportunity for firms like Jones Lang LaSalle who provide a full spectrum of services and vertical expertise to assist companies regionally, nationally and globally. The challenging and fluctuating economy has made flexibility a key commodity. It’s hard for businesses to predict where they’ll be in five years, much less in the next 10 to 15. They are looking for experts like JLL to help them best negotiate flexibility clauses in their leases.

GlobeSt.com: What needs to happen before we see an improved Southern California office leasing market?

Belisle: The key to an improved Southern California office-leasing market is jobs, jobs, jobs! The Los Angeles unemployment rate remains above the national unemployment rate of 8.3%. However, we are seeing significant improvement. As of December 2011, the Los Angeles unemployment rate stood at 11.6%, a 160-basis-point improvement since July 2011. The Inland Empire is also showing signs of improvement, with San Bernardino County at 11.9% and Riverside County at 12.5% unemployment as of December 2011, a 240-basis-point and 250-basis-point improvement, respectively, since July 2011. We expect that the largest employment gains in 2012 will come in the health services, education, information and leisure/hospitality/entertainment sectors.

GlobeSt.com: What does the future hold for the Southern California commercial real estate investment market?

Belisle: The Southern California office investment market continues to lag behind New York, Washington, D.C., San Francisco and Seattle as far as recovery and deal flow. The exception is investment demand for Southern California multifamily land infill industrial, as those two sectors remain very strong. Well-located “core” office investments are very much in demand, but obviously very limited in number. Traditional suburban office markets are showing renewed strength now that employment growth has picked up a bit. Increased competition from CMBS conduits, large commercial banks, insurance companies and international banks has injected liquidity into the debt markets and loosened underwriting standards. While the bid-ask spread widened considerably in third-quarter 2011, we are seeing signs of stability return as optimism in the US economy improves.