CBRE's LA Head Lew Horne discusses barriers in the LA real estate market like a stagnant office market, new transfer taxes, and bureaucratic permitting processes. He emphasizes the need to regain trust in the development community and not restrict what they build.
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Quick takeaways
Addressing development barriers by regaining trust and removing restrictions on builders.
Adapting to market changes post-COVID with a focus on attracting tenants and price resets.
Advocating for solutions to homelessness through increased resources and public-private partnerships.
Deep dives
Critique of ULI (Underdevelopment of Los Angeles)
The speaker criticizes the ULI, describing it as misguided and misrepresented, particularly objecting to the notion that it was labeled a mansion tax targeting wealthy homeowners selling high-priced homes. The speaker believes this tax has hindered development efforts in Los Angeles and should be repealed due to its negative impact on the housing market.
Challenges in the LA Office Market
The podcast discusses the challenges faced by the office market in Los Angeles, highlighting issues such as high vacancy rates and difficulty in attracting new tenants. The speaker suggests that the market is undergoing significant changes, particularly due to the impact of COVID-19, with a shift towards opportunistic investors and a forthcoming price reset in the commercial real estate sector.
Impact of Homelessness on LA
The speaker emphasizes the significance of addressing homelessness in Los Angeles, pointing out the need for increased resources, a shift in attitude, and public-private partnerships to provide housing and support services for the homeless population. The speaker shares a personal experience of losing a brother to homelessness, underscoring the community's obligation to find solutions.
Family and Personal Reflections
The episode delves into the personal life of the speaker, discussing family connections, tragedy, and professional journey. The speaker shares insights into their upbringing, career path, marriage, children, and friendships, highlighting the importance of family support and personal experiences, including the impact of a tragic event on their life.
Favorite Restaurants in LA
The podcast closes with a lighter note as the speaker shares favorite dining spots in Los Angeles, including Amici's and Caruso's in Montecito. The conversation extends to the speaker's love for discussing real estate at the dinner table, showcasing a blend of professional passion and personal anecdotes within the family dynamic.
Lew Horne thought he was going to run a pet store business. Then, he thought he’d sell computerized systems to wholesale grocers. Neither panned out. Instead, Horne runs CBRE’s operations across Los Angeles, Orange County and the Inland Empire, leading advisory services, property and project management and capital markets teams.
And in L.A., developers, brokers and brokerage heads have no shortage of hurdles — a stagnant office market, new transfer taxes on sales over $5 million, homelessness and bureaucratic permitting processes. Horne chatted about it all.
“Let’s get some of these barriers out of the way,” Horne said. “Let’s start taking a look at what we need to do to regain the trust of the development community. Let’s not restrict them on what to build.”
The Real Deal sat down with Horne for The Closing, The Real Deal's signature monthly magazine interview series. Deconstruct is airing an extended version of this interview. To read it, head to TheRealDeal.com.
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