LOS ANGELES-Mixed-use development is on the rise throughout out the county as retailers embrace a new model vs. traditional storefront models, Gabe Kadosh tells GlobeSt.com. As GlobeSt.com reported earlier today, Kadosh was recently hired as Stream Realty Partners' new VP of retail, and we chatted with him about trends he's noticing in the market.
“I'm seeing growth right now, as tenants are less cautious, actually less scared, and are expanding,” says Kadosh. “National retailers were on hold for a while but are now making offers and deals, particularly the larger banks like Chase. I'm also seeing generally more excitement and a lot of restaurant groups looking to expand in the L.A. market.”
As for product type, mixed-use is all the rage. Kadosh has seen several new mixed-use projects break ground since the end of last year—apartment complexes with a retail component. “Projects scale from 500 units with 25,000 square feet of retail, up to some with 50,000 square feet of retail. “We used to see this model only cities like New York and San Francisco, and now we're seeing it in L.A.—restaurants and shops downstairs and apartments upstairs.”
Kadosh adds that there's a more lively and energetic vibe emerging in L.A., from Santa Monica to West Hollywood to Pasadena to parts of the San Fernando Valley. “No one walks in L.A., except for a few thoroughfares like Santa Monica's Third St. Promenade, but people are now looking to have those cool and fun amenities [like restaurants, shops and gathering spots] downstairs from them, and they're excited.”
While Downtown L.A. is “its own deal,” Kadosh says he's seeing Downtown growth on an incline. Downtown is a separate region, but there are quite a bit of new projects coming up Downtown in the coming years. You have to do things differently because there's no parking Downtown, so projects are designed very differently than the ones in our area.”
The largest growth Downtown is being seen in the Hollywood area. On Hollywood and Vine across from the W Hotel and along La Brea from Wilshire to Hollywood Blvd., there are currently seven new projects in-the-works. “There are 2,000-plus apartment units going in Downtown. Some were industrial-type properties, former production space or dilapidated retail that had been there a long time.”
While many retailers still look for traditional models that include parking in front, more tenants are looking to do something unconventional here, Kadosh says, stepping away from their model and interfacing with the mixed-use environment. BRE and other developers have acquired and put together these mixed-use projects. They're maximizing on that, and the returns are tremendous.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
