LOS ANGELES—Redevelopment could cost as much as ground-up new construction, according to Robert Paratte, EVP of leasing and development at Kilroy Realty. Redevelopment is often perceived as less expensive than new construction, while bringing the asset up to market value—but Paratte says that isn't always the case. Paratte is lending his market expertise to the Reuse and Redevelopment: Reinventing Space panel at the upcoming RealShare Los Angeles conference in Downtown Los Angeles on March 19, but sat down with us for an exclusive interview before the main event.

“Depending on the type of property, redevelopment can be every bit as expensive as ground-up development, because you may be working with a historic property or a landmark,” Paratte tells GlobeSt.com. He also warns that redevelopments can have the same entitlement issues that new construction has as well, if you plan to change the core use of the building. Kilroy did this with its recent Columbia Square project in Hollywood, which in addition to office space also has apartments and retail.

At the conference, Paratte says that he wants to “focus on urban redevelopment, and areas that have either taken a long time to get to where they are or that have not yet been discovered.” When looking for an emerging urban area, he looks at everything from the demographics, including an educated workforce, to the availability of housing and transit to determine if the area will be a “desirable place for people to live.” While he notes that yields are important, they are not a defining factor. “We are looking for certain yields, but any profit-motivated entity will look for certain yields. It is one of many factors that we look at,” he adds.

The marker of redevelopment, though, is what you do to transform the space and attract tenants. In the office sector, where Kilroy specializes, outdoor space and common areas play a significant roll in attracting quality tenants. “It is really about providing common areas outside of the workspace, where employees can stay on campus and still conduct their work, but in a variety of different environments. Similarly, it is important to provide opportunities in a space that has typically been under utilized, such as a mezzanine space or large lobbies,” says Paratte. “We are creative about how to take that space and convert it so that it still serves as a lobby but is also an area to have a small meeting and to get out of the office and work privately.”

To hear more of Paratte's thoughts and about the redevelopment market and trends in reinventing space, join us for RealShare Los Angeles on March 19 in Downtown Los Angeles.