Autonomous Vehicles and Their Effects on the Economy and Commercial Real Estate

Advancements in technology continue to reshape the world we live in at an unparalleled pace. At Rising, we embrace change and leverage technology to develop and provide better real estate services as a result. One technological advancement we are watching in particular is how artificial intelligence will affect the “single occupant” car culture in areas where we invest. The “autonomous vehicle” is quickly becoming reality. Companies like Google and Tesla may have technological and jurisdictional challenges to overcome, but the past few years has shown a marked acceleration of investment by every major automobile manufacturer. The impact of autonomous vehicles will be felt in our society. It becomes quickly evident the commercial real estate sector will be greatly affected when the single occupant vehicle is no longer the primary mode of transportation to and from the workplace. We’ve identified several potential impacts:

5 Ways We Invest In Health & Wellness

5 Ways We Invest In Health & Wellness

By Chris Rising

At Rising, we believe that office space is a place to creatively solve problems and a place that supports a team. This also makes it a prime opportunity to integrate health and wellness. We offer amenities in our buildings that make health and wellness accessible to our tenants and by doing so, we are also investing in their long term health and productivity. Healthy employees means fewer sick days used, which ultimately has a positive effect on a company’s success. Here are a few ways that Rising adds value to our tenants and investors.

Construction Progress & Historic Preservation at The Trust Building

By Chris Rising & Adam Lev

The real estate business lends itself to risk takers and dreamers because building something requires vision. Most developers relish in looking at a piece of raw dirt and imagining what could be built. Over the last decade, however, some developers have pivoted away from developing raw land and instead have found that redeveloping something with a history, with character and architectural relevance could offer a new canvas. Rising Realty Partners has a strong track record of restoring existing historic buildings (links to PacMutual & The CalEdison, looking at old, empty buildings as the 21st century canvas for development. We also take pride in turning 100-year-old structures into buildings that compete for modern-day tenants.

Nelson Rising Recognized with Lifetime Achievement Award at Connect LA

Nelson Rising Recognized with Lifetime Achievement Award at Connect LA

By Dennis Kaiser | Connect Media

Connect Los Angeles brought together more than 450 CRE leaders for an information packed conference June 21st at the Hotel Indigo DTLA. During four panel discussions, top CRE leaders shared insights about the future of Los Angeles CRE, including how neighborhoods are being transformed, investment and development opportunities, CRE investment strategies and capital markets. Connect Media will be sharing more in-depth reports of each panel over the coming days, but here’s a few key takeaways and highlights that stood out from yesterday’s conversations.

Long Beach Civic Center, Queen Mary Project Expected To Bring More People Downtown

Many are anticipating the construction of the new Long Beach Civic Center.

When it is built, it will mark the first time a U.S. municipal government will deliver a city asset under a performance-based “design-build-finance-maintain” structure, according to Plenary Concessions Executive Chairman Dale Bonner.

Why There Is A Renaissance In DTLA

By Karen Jordan | Bisnow

There were nearly 30 cranes in DTLA at the close of last year, placing the city in third nationwide, with Seattle at No. 1, according to a report by Rider Levett Bucknall. LA now has 36 cranes, the firm reports.

Those cranes in the air are an indicator of what developers know — LA is drawing in people and businesses, and DTLA is giving them reasons to stay.
 

People want to walk to work, something DTLA increasingly offers, according to Sonnenblick Principal Bob Sonnenblick.

"The ability to walk to work is huge," he said.

Parks also add to the appeal, and renovating Pershing Square would be a game-changer, according to CBRE Senior Vice President Anthony Gatti.

A plan to reno Pershing Square made headlines last year when a French firm, Agence Ter, won a competition organized by LA City Councilman Jose Huizar and the nonprofit Pershing Square Renew.

The project could include replacing concrete with grass and opening up the park more to the sidewalks around it, the LA Times reports.

The increasing number of restaurants from other parts of the country opening up outposts is also contributing to a booming DTLA, Gatti said.

"The restaurants in downtown LA are off the charts," he said. "They're the best restaurants in Los Angeles."

Those coming into DTLA find that the historic buildings that have yet to be renovated offer the opportunity to create new spaces that will bring in more tenants.

Rising Realty Partners Senior Vice President Matthew Ahrens said he does not see a better submarket across the nation for office.

Sonnenblick said he is convinced opening public transportation that connects downtown LA to Santa Monica will really energize DTLA.

"This is experiencing this wonderful renaissance, but it can only work if we support it, and we're passionate about it," Gatti said at Bisnow's LA Downtown Renaissance event.

As the former Central City Association CEO, Carol Schatz said she is proud of how the organization helped shape the DTLA renaissance, coming up with the concept of the adaptive reuse ordinance.

"Building and safety grabbed it and made sure it was actually developed," Schatz said. "We didn't know whether the departments would support it or not. So that happened. It was passed in 1999, and then Staples opened a few months later, and that was it. Those two things are what set off the renaissance."

She also started the Downtown Center BID.

The developers in the room were encouraged to think of their projects not as stand-alone developments but as extensions of their communities, LA Police Commission Vice President Steve Soboroff said.

MWest Holdings Chief Investment Officer Matthew Ellis and Oceanwide Plaza Senior Manager Public Relations Daniel Atwater said it is important to think of ways to serve those communities.

"We have to do more for the community," Atwater said. "It has to be ingrained."

Oceanwide Plaza is a 4.6-acre project east of Staples Center that will have a Park Hyatt, 160k SF of retail, 504 condos, a 700-foot-long LED screen and a two-acre park.

Oceanwide is establishing a community relations program to look at education, jobs and the homeless and find ways to provide programs in those areas, according to Atwater.

 

Private Sector Filling The Void Created By Paris Agreement Pull Out

By Chris Rising

President Trump’s decision to pull out of the Paris Climate Agreement has, not surprisingly, invited strong vocal criticism from many leading voices around the world. Under the Paris Climate Agreement, the United States had pledged over $1 billion dollars to support global reduction of carbon emissions. Now these funds must be found elsewhere.