Jones Lang LaSalle's Project and Development team is currently and has been involved in projects with several firms including the 836,000-square-foot tenant improvement project for DIRECTV; studio and retail work for Time Warner Cable; tenant improvement and Glendale headquarters relocation for Avery Dennison; project management across Southern California to complete dine-in theatres for AMC; multi-site project management work for J.C. Penney; and project management of public spaces and room renovations for the Anaheim Marriott.

GlobeSt.com: How has the slow economy affected project management?

Serra: With the slowing in the economy many projects have been delayed, cancelled or have experienced issues during the design and development phases. Because we are managing the projects and processes, our business has actually expanded in the last few years as clients increasingly rely on experts to help navigate them around these delays, construction issues and to provide tangible solutions. Similar to many service related industries in a downturn economy, the market for project management has become increasingly competitive; however, clients are now more focused on maximizing the value of their projects and the return on their investment rather than engaging companies for the lowest fees. This is an important difference since the fees for project management are negligible compared to the financial and time risks and exposure associated with a poorly managed project.

GlobeSt.com: How is the project management industry changing?

Historically, many clients would retain a project management group in-house; however, over recent years, businesses are looking to focus on their core business only and prefer to outsource such services where they can obtain independently skilled resources in varying jurisdictions as well as giving them added flexibility without the financial burden of an in-house team. Collaboration and a more integrated approach have become more prevalent in the industry. Rather than approaching the project with an adversarial attitude towards the general contractor or their sub-contractors, it is imperative that we engage all of the key stakeholders and contractors. Ultimately, this helps generate more transparent forms of communication to the benefit of the client.

GlobeSt.com: How does project and development management in the Southwest compare to the rest of the nation? And Southern California specifically?

The basic principles of project and development management are ubiquitous in that clients are typically focused on cost, time and quality of the product, regardless of the location. That said, there are a number of nuances particular to certain geographical regions including California. As an example, this may include seismic considerations, Office of Statewide Health Planning and Development regulations for healthcare related projects and other niche areas of expertise that a project manager would be required to develop as part of their skill set in addition to the basic requirements. Conversely, working in other locations also requires additional knowledge such as Chicago and New York where weather related issues are critical. (i.e. Wind conditions affecting crane usage and productivity for high rise developments, or winter conditions affecting the timing of concrete pours etc.)

GlobeSt.com: Which markets in the Southwest are experiencing increased development activity, and what are some of the reasons why, in your opinion?

Hospitality is expanding rapidly in this region. This market had been extremely dormant for a number of years; however, credit, particularly on the debt side, is slowly becoming more accessible to developers and owners as well as other forms of financing including EB-5 funding, which has again become more prevalent in this market. Other influencing factors include the ongoing potential for an NFL team in Los Angeles, which will likely affect the convention center and the levels of demand for this market.

In the Healthcare market we are seeing a convergence of medical disciplines and consequently healthcare providers are looking to provide flexible new space or retrofit their existing spaces to accommodate the newest technologies. The residential market continues to improve with many ground-up developments, particularly in multifamily and, to a lesser extent, single family. The continuing difficulties in obtaining mortgage financing continue to drive these markets, though in recent months we are starting to see more potential for condominium developments as the inventory levels start to reduce.

In addition, there has been a shift from ownership to rental where it is now seen as a more flexible option over ownership. This may also be a consequence of businesses looking for increased flexibility in their workforce. Although not prevalent in today's market, we anticipate more activity in the public private partnership market. As government entities are forced to cut their costs, this method of procurement allows the public sector to transfer the development burden over to the private sector, which then allows the public sector to distribute the costs over a longer period of time—20+ years. Public private partnership development has successfully been implemented in both Europe and Canada and will likely gain traction over the coming years.