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Redevelopment Costs Match New Construction

LOS ANGELES—In this EXCLUSIVE interview, Kilroy Realty's Robert Paratte talks about the redevelopment market and what trends are attracting office tenants.

By Kelsi Maree Borland | Updated on March 11, 2015

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.

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