LOS ANGELES | METRO Project Rundown 2.0 (non-downtown)

[LAisthePlace]

Originally Posted by Zapatan

I'm amazed how quickly the office tower is going up.

I imagine what having it nearly fully preleased will do for ya

[citywatch]

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[Illithid Dude]

I've heard that Century City is the best performing office market in California. I wouldn't be surprised to see other office towers, like the one proposed for the Fox lot, go up soon.

[LAsam]

Originally Posted by Illithid Dude

I've heard that Century City is the best performing office market in California. I wouldn't be surprised to see other office towers, like the one proposed for the Fox lot, go up soon.

If they can get pre-leased I could see them getting financed and built. Otherwise, don't see it happening in the current market.

[craigs]

Originally Posted by Illithid Dude

I've heard that Century City is the best performing office market in California. I wouldn't be surprised to see other office towers, like the one proposed for the Fox lot, go up soon.

That would make sense, considering CC is the only place in California that I can think of where a developer is constructing a new office skyscraper.

[Doctorboffin]

Originally Posted by Illithid Dude

I've heard that Century City is the best performing office market in California. I wouldn't be surprised to see other office towers, like the one proposed for the Fox lot, go up soon.

Hopefully the D line will only make its performance better.

[SoCalKid]

Originally Posted by Illithid Dude

I've heard that Century City is the best performing office market in California. I wouldn't be surprised to see other office towers, like the one proposed for the Fox lot, go up soon.

It might be the best office submarket in the country outside of Manhattan. Absolutely booming. It's crazy what a tale of two cities it is with Century City vs everywhere else in LA, especially DTLA. That being said, it's tough to build anything now without pre-leasing, which is almost unheard of in LA before construction starts - the CAA tower is the notable exception. High interest rates don't just increase financing costs, they also increase cap rates, which in turn lowers building valuations. Lower valuations means it's harder to build - you have to sell the final product for a profit over your cost to build. But if interest rates come down, new office towers in Century City should be very in demand from investors. The biggest hurdle will be lack of available land (and of course Measure ULA, if it still exists by then)!