Vice Chairman, Newmark Knight Frank
Luchs has been in the business for more than 18 years. In 2018, his team completed $1 billion in retail transactions in L.A.
What’s the next big trend?
Anchors of shopping malls and shopping strips are having a much bigger focus on fitness, health and lifestyle. The coffee tenant and smoothie tenant are as important as a huge tenant in the property. It sets the tone for the rest of the leasing as people want to see people. It’s important that fitness, food and an environment are present in a retail property.
What do buyers want now?
Buyers still want credit tenants to sign long leases they don’t have to worry about. Smart buyers care about current tenants, hip brands and brands that are different than the mall tenants that are in every city in America. To be the best buyer and owner today means you need a diverse group of tenants. Having a crowd is more important than anything else.
What submarkets are hot?
Abbot Kinney Boulevard in Venice Beach and the Melrose Avenue corridor in West Hollywood.
What’s your outlook on real estate for the next 6-12 months?
We’re entering both an exciting and scary time. From a landlord perspective, there’s a need to be incredibly sensitive and careful as to which tenants to sign leases with and somehow balance a good financial deal with an interesting brand. From the tenant perspective it is important to choose good locations that can rely on neighborhoods and locals to keep a hopping atmosphere if possible. Brands want to be near spenders and yet they want to be authentic to their loyal customer.
Vice President of Brokerage, Kennedy Wilson
Weiss is a downtown market expert with 10 years of experience in leasing and sales. Weiss and partner Lee Shapiro have completed more than 550,000 square feet of transactions in downtown.
What’s the biggest trend in retail now?
The experiential nature of retail is continuing unabated. More stores like Crate & Barrel are embracing food and beverage components, such as rooftop bars. In the restaurant world, commissary-style warehouses and commercial kitchens located strategically for delivery-only services like Postmates and Grubhub are also changing the game. From a landlord perspective, mall owners such as Unibail-Rodamco-
Westfield are embracing the idea of shorter-term, pop-up tenants. What submarkets are hot now?
Culver City and Playa Vista are on fire due to the arrival of numerous tech tenants like Google, Amazon and HBO taking massive spaces. West Adams is also growing quickly with tenants like Alta Adams and Gjelina opening.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Industrial: Logistics Spaces Drive Hot Market
- Office: No Sign of Cooling in Sizzling Submarkets
- Paragon Sticks With Retail
- Single-Family: Value, Lifestyle Top Buyer Lists
- Malls Brace for Forever 21 Closures
- Playa Vista Deal Shores Up Investor’s Portfolio
- Deal for CNN Building Big News for Hollywood
- Hyatt Sees Double on LAX-Area Hotel Project