ORANGE COUNTY, CA—Customers seeking the full array of development services, from construction and project management to investment sales and beyond, are looking to full-service brokerages to provide them, JLL's SVP Martin Potts tells GlobeSt.com. As we recently reported, in order to meet the demand of increased development and redevelopment activity in California, JLL has entered into an agreement to acquire Martin Potts & Associates Inc., a leader in project and construction-management services for retail, hospitality, healthcare and office properties. We spoke exclusively with Potts about the increase in Orange County and Southern California construction and what the acquisition of his firm by JLL says about the industry.

GlobeSt.com: What is driving the uptick in construction in Orange County and Southern California?

Potts: Several years of no construction/supply followed by an improving economy is the primary reason for the uptick. Moreover, rising employment opportunities, the low cost of money and tenant demand in support of population growth and jobs in urban and suburban markets are all strong indicators and contributors to the increasing construction activity in Orange County. In the retail sector, the movement toward entertainment and dining is at an all-time high. We experienced this recently in El Segundo, where we worked closely with Federal Realty Investment Trust in developing the Point at Sepulveda and Rosecrans. The healthcare crisis, where patients outnumber the doctor's capacity to administer, has resulted in the need for more outpatient medical-office buildings, which is also fueling construction in the medical-office sector.

GlobeSt.com: How is this construction growth impacting the project- and construction-management-services industries?

Potts: As the cost of employment continues to rise and the need for project managers and construction managers increases, more and more companies are seeking talent vis a vis outsource companies like JLL.  The outsourcing option provides an immediate qualified talent pool of professionals, avoiding the cost and time related to the hiring process and subsequent management of the new hire. The outsource manager works with a multitude of development companies and therefore has a vast experience in solving complex entitlement and project program challenges. The value creation related to maximizing entitlements, project programs and value-engineering exercises cannot be duplicated without decades of individual experience. While we are minimizing the customer's labor cost, we are maximizing his development value. This combination is very attractive to our customers.

GlobeSt.com: What property sectors are experiencing the most construction growth? Why?

Potts: For a few years now, we have seen considerable growth in all sectors including office, healthcare, industrial, retail and residential. We see a significant growth cycle continuing into 2016 and beyond.   We believe the growth is generated via the combination of the uptick in the current economic cycle and three or four years of virtually no new supply as a result of the Great Recession. Outsourcing plays a major role during those lean years as development companies seek to lower their cost of labor. 

GlobeSt.com: What does it say about the industry when a major services firm like JLL is purchasing a development services firm like yours?

Potts:Like MPA, JLL's project and development-services (PDS) platform provides development services across all product types. Our depth of experience in retail will help JLL meet the opportunities that Orange County's growth presents for that project management sector in particular. JLL is a one stop shop for a customer seeking the full array of development services from construction and project management to leasing, investment sales and beyond. Our expertise in Orange County, combined with our relationships, has expanded and bolstered JLL's expertise, positioning us to serve all of our customers' needs.

GlobeSt.com: What does the future hold for construction in Orange County in 2016 and beyond?

Potts: Well, not to sound like a cliché, but none of us has a crystal ball. I probably speak for the masses in our industry when I say that I hope Orange County will remain a strong player in the development landscape in Southern California for years to come. Our clients are bullish, so we are, too!!