Southern California Development Forum brings value through educational, networking and philanthropic events around current developments in the A/E/C world. Read all about our recent events here.
How will LA’s Infrastructure Support the 2028 Olympics and More?
At this month’s Southern California Development Forum panel, industry leaders joined together to discuss hurdles facing LA Infrastructure Investments. With the World Cup and Olympics on the horizon — and pressing challenges like wildfire recovery and long-term resilience planning — the urgency for regional coordination has never been greater.
Moderated by William Gorham, Vice President of Plenary Americas, the panel featured Heather Repenning, Executive Officer at Metro; Matthew Horton, Vice President of Research and Policy at the LA Economic Development Corporation; and David Jacot, P.E., the Director of Distributed Energy Solution at the Los Angeles Department of Water and Power.
A Call for Regional Collaboration
With the 2028 Olympics and 2026 World Cup on the horizon, Los Angeles is positioned to showcase its capabilities on a global stage. But as exciting as these events are, they also come with high expectations for infrastructure, transportation, housing, and environmental sustainability. The key to meeting these expectations lies in regional collaboration.
Los Angeles doesn’t exist in a vacuum—it's part of a larger Southern California ecosystem that includes neighboring cities and counties. If we’re going to meet the needs of the millions of visitors expected during these events, we need to approach these challenges as a region, not just as a single city. This means coordinating efforts across municipal boundaries, creating a unified strategy for transportation, housing, and environmental protections.
For instance, improving regional transit infrastructure will not only benefit the Games but will also leave a lasting legacy for residents by providing better options for commuting, reducing congestion, and lowering emissions. Similarly, investing in sustainable housing solutions that meet the needs of both visitors and residents will help us ensure that the city’s growth benefits all Angelenos.
Value Creation through Smart Investments: Balancing Sustainability & Resiliency
One of the major hurdles in large-scale infrastructure projects is ensuring that investments are not only impactful but also sustainable in the long run. To achieve this, Los Angeles must take a holistic approach to development, blending resilience and sustainability into every decision.
“Resiliency is clearly a key topic at the moment,” William stated. “Dealing with the aftereffects of the fires as well as addressing the need, and value, of investing back in the communities - all while preventing the replication of the same situation so that we won’t suffer from the same problem – is a challenge to balance.” He continued, “How do you balance this need to reinvest in our communities, with the need to make sure that they're resilient, and then make sure that our investments are equitable across the community?”
To ensure that value is created from these investments, we must focus on projects that are not just "green" in name but have measurable, long-term impacts. For example, investing in green building technologies, such as energy-efficient HVAC systems, recycled building materials, and low-carbon concrete, can provide long-term cost savings and environmental benefits. Similarly, incorporating resilient designs that can withstand future natural disasters will ultimately protect both the physical and financial health of the city.
When referencing these investments, Heather added, “we're not just investing in capital. We're investing in safety. We have a very robust ambassador program. We're investing in cleanliness. We’re even rebuilding our ridership from the time prior to COVID.” She continued, “I see us (Metro) as a great place for people to come with ideas and collaboration.”
As part of these efforts, we should focus on integrating green spaces and urban cooling solutions into our infrastructure projects. This not only helps reduce the urban heat island effect but also contributes to the well-being of the community. The future of Los Angeles depends on smart investments that create both economic growth and a healthier, more sustainable environment.
Addressing Staffing Shortfalls and Local Needs
As we embark on these ambitious projects, we also need to address one of the most pressing challenges Los Angeles faces—staffing shortfalls. The city is experiencing a talent gap, particularly in fields like construction, engineering, and sustainability, which are crucial for the successful implementation of long-term infrastructure projects. Southern California is home to some of the country’s top engineering programs, yet many of these graduates leave the region for work elsewhere.
“The greatest needs we see within our own organization and also regionally is skilled workforce development,” said David. “Where we see these positions going unfilled is in construction trades, public, private positions, contractors.”
The solution? Fostering industries that align with the region's strengths in technology, sustainability, and infrastructure. Encouraging talent retention and creating new sectors within the circular economy will be crucial to ensuring that Los Angeles can stay at the forefront of innovation. Local partnerships between universities, trade schools, and industry leaders can create a talent pipeline that will power future infrastructure developments. By offering competitive wages, benefits, and career development opportunities, Los Angeles can position itself as a leader in sustainable infrastructure and resilience, creating a local talent pipeline that will serve the city for years to come.
Long-Term Sustainability and Community Benefits
Ultimately, the investments we make in infrastructure, sustainability, and resilience must benefit the entire community. As Los Angeles prepares for the Olympics and World Cup, it’s vital that the city’s investments address the needs of vulnerable communities, particularly those most affected by climate change and urban development pressures.
This means prioritizing affordable housing, equitable access to green spaces, and ensuring that economic growth translates into job opportunities for all residents. Additionally, public-private partnerships can play a vital role in leveraging additional resources to drive large-scale projects that benefit the entire region, ensuring that both environmental and social sustainability are central to the planning process.
Matt mentioned that in meeting this moment, “we have an opportunity as a region, as a state, to really usher in a whole new sustainable building materials economy - from a prefab housing to cone innovation to using other kinds of sustainable building materials – this requires us to ask: what could that look like from a production standpoint? From a manufacturing standpoint? From an innovation and ultimately, from an implementation standpoint?”
The Olympics as a Catalyst for Change
With the 2028 Summer Olympics on the horizon, LA has a unique opportunity to showcase its resilience on the global stage. As the world prepares to come to Los Angeles in just three years, the focus will be on not only the city’s infrastructure but also its commitment to sustainability and climate action. Hosting the Games will provide a platform to push forward ideas that could transform the city—ideas that prioritize green building, public health, and climate adaptation.
The Olympic Games will be a key moment for Los Angeles to prove that it can lead by example, not just in sports, but in how cities prepare for the challenges of the future. “No one wants to be embarrassed—we want to be proud of LA," said Heather.
The next few years present an exciting opportunity for Los Angeles to make meaningful investments that address current challenges while positioning the city for long-term success. By focusing on sustainability, resilience, regional collaboration, and workforce development, we can ensure that Los Angeles not only survives future challenges but thrives in the face of them.
At this month’s Southern California Development Forum Panel, industry leaders came together to discuss the pressing issues facing the region’s real estate market. Moderator Gilbert Rocca, Managing Principal of AC Martin, led an insightful conversation on the impact of recent crises—ranging from COVID-19 and legislative changes like Measure ULA to the devastating 2025 wildfires. The discussion underscored the urgent need for streamlined regulations, government support, and industry collaboration to accelerate housing development and recovery efforts.
To provide expert perspectives, panelists Bryson Reaume, Founder and CEO of The Cooperative LA, Kamran Paydar, First Vice President of CBRE Capital Markets, Chris Marsh, Founder of Cherry Tree Capital Partners, and Gabe Hungerford, Principal of Trammell Crow Company shared how these challenges are shaping the future of Los Angeles housing. The panel explored key topics such as post-pandemic market uncertainty, the role of state policies in development, and opportunities to drive investment and innovation in fire-impacted areas.
Key takeaways included:
The Impact of COVID-19 on Housing
The pandemic introduced unprecedented disruptions to the housing market. Supply chain issues and fluctuating costs created uncertainty for developers, while favorable interest rates initially spurred investment. However, as market conditions shifted post-COVID, rent growth cooled, and urban centers faced unique challenges in attracting residents. Panelists noted that mixed-income housing developments struggled under these conditions, and developers faced new hurdles in securing financing and maintaining existing zoning standards.
Legislative and Policy Hurdles
Policy changes, including Measure ULA ("mansion tax," a special real property transfer tax on sales exceeding $5 million), SB 330 (a California law aimed at addressing the state's housing shortage by expediting housing development and limiting local government's ability to restrict housing projects), and SB 91 (COVID-19 Tenant Relief Act, extends eviction protections to COVID-19 impacted tenants), have significantly shaped the real estate market. Marsh and Rocca detailed the challenges of securing stable zoning standards under SB 330, while Hungerford highlighted the benefits of state density bonus laws. The panelists collectively emphasized the need for legislative certainty, as political risk remains a major deterrent to development in LA.
Wildfires and the Housing Market
The devastating 2025 wildfires placed additionalstrain on the region’s housing supply. Demand for larger floor plans increased as people soughtsafer, more resilient housing options. However, rebuilding in fire-impacted areas remainsa challenge due to regulatory hurdles and the need for better coordination between state and local governments. Panelists stressed the importance of state leadership in expediting housing approvals and streamlining environmental review processes to support faster recovery.
Government Support and Industry Collaboration
State and local government intervention is crucial in addressing LA’s housing crisis. Industry leaders called for more consistent regulations, third-party consultants to facilitate development, and better collaboration between the public and private sectors. The importance of engaging elected officials to ensure they stay informed on evolving housing laws was also underscored.
Paydar also mentioned the challenges of rebuilding in single-family neighborhoods and the need for comprehensive community support, especially the implementation of a “community plan”;i.e.,how to treat the sidewalks, public benefits, and so forth.
Future Outlook: Challenges and Opportunities
Despite the challenges, the panelists expressed cautious optimism about the future. The recent crises—COVID-19 and wildfires—have created an opportunity to push for much-needed regulatory reform. Marsh noted that Los Angeles has been slower returning to pre-COVID-19 rents, as most of the country has returned to normalcy five years later. Cities like Thousand Oaks and Culver City, which have proactively updated zoning laws, offer models for more effective housing development.
Investment opportunities still exist, particularly for developers who can navigate political uncertainties and find strategic locations. The discussion concluded with a reminder that with the right policies, collaboration, and support, LA’s housing market can evolve to begin to meet the region’s needs.
Action Steps Moving Forward
Audience members questioned the panelists on how they as a collective can help the city move forward after this devastating time. This is what the panelists advised:
Engage with policy leaders: Reach out to Supervisor Kathy Barger's office to advocate for developers' inclusion in wildfire advisory panels.
Support fire-affected communities: Coordinate with private industry groups to create and distribute resources for homeowners and property owners impacted by wildfires.
Leverage crisis for reform: Explore how recent disasters can be used to push for regulatory changes that facilitate housing development.
Educate and advocate: Continue engaging with elected officials and city staff to streamline approval processes and remove barriers to housing construction.
Pursue strategic development:Identify opportunities in proactive cities like Thousand Oaks and Culver City, which have updated their general plans and zoning laws to support housing.
The conversation surrounding LA’s housing market is far from over. Reaume sees the recent fires as a catalyst for real change and the opportunity to create a better path forward.The solutions discussed in this panel provide a foundation for meaningful change, but action from developers, policymakers, and community stakeholders is essential. As the city grapples with these pressing issues, continued dialogue and collaboration will be key to shaping a more resilient and accessible housing market for the future.
More than 300 industry leaders gathered for the January SCDF 2025 Economic Forecast, engaging in discussions on the trends, challenges, and opportunities shaping the real estate landscape this year. The event served as a platform for sharing insights into market shifts and economic forces expected to influence the industry.
Moderated by Sam Pepper, vice president of development for Lincoln Property Company, the expert panel featured Eric Sussman, professor at the UCLA Anderson School of Management; David Fan, senior research director with JLL; and Shlomi Ronen, managing principal and founder of Dekel Capital.
Philanthropy and Community Commitment
Before diving into market forecasts, SCDF took a moment to address the devastation caused by recent wildfires. This year, SCDF selected Architecture and Advocacy as its primary philanthropic organization, dedicating a significant portion of event proceeds to the nonprofit’s mission of redesigning neighborhoods for the better. Additionally, SCDF reinforced its commitment to wildfire relief efforts, partnering with organizations like Harvest Home and Flint Ridge Center. A representative of Architecture and Advocacy shared the nonprofit’s goals of addressing neighborhood inequality and providing students with greater access to STEM programs.
Key Discussion Points
· Economic Forecast and Wildfire Impact
The discussion opened with a sobering acknowledgment of the destruction caused by the Pacific Palisades and Altadena fires, which decimated homes, businesses, schools, and public facilities. Panelists underscored the long road to recovery and the pressing need to streamline rebuilding processes to help affected communities move forward swiftly.
David Fan outlined the immediate and long-term impacts on the residential sector, emphasizing that rebuilding efforts will likely take longer than anticipated due to rising construction costs and labor shortages. He also pointed to a significant housing challenge: many displaced residents want to remain in their original neighborhoods, but limited rental availability may force them to relocate permanently.
Shlomi Ronen highlighted the growing concern around insurance costs. “Before these fires, developers often saw insurance as an overlooked line item. Now, with the rising impact of natural disasters, many are re-evaluating these costs and reconsidering where to build.”
Eric Sussman, a Pacific Palisades resident himself, shared his gratitude for not being directly affected but emphasized the need for a more efficient permitting process. He pointed to regulatory hurdles from
agencies like the Coastal Commission and the California Environmental Quality Act (CEQA), which often delay development.
· Macro Trends and Market Indicators for 2025
Shifting to broader economic trends, panelists expressed optimism about the retail and industrial sectors, citing strong inventory replenishment and consumer resilience. According to Fan, JLL’s Q4 2024 reports showed the strongest market performance in recent years.
“Earnings are outpacing inflation, which gives retailers a confidence boost. We expect consumer spending to continue supporting the market into 2025,” he noted.
Ronen discussed the evolving capital landscape, explaining that developers who once relied on traditional bank financing have increasingly turned to private debt funds. While Federal Reserve rate cuts may provide some relief, he tempered expectations: “It’s unlikely we’ll see 3% interest rates again in our lifetime.”
· Multifamily and Office Sectors Outlook
Fan pointed to strong demand for multifamily housing but acknowledged affordability concerns. “The median cost of homeownership in LA is nearly double the cost of renting an apartment. With LA ranked as the third most expensive market for single-family home affordability, multifamily rentals remain a viable option for many.”
Ronen highlighted regulatory and financial hurdles, including rent control and the city’s mansion tax, which have deterred investment. He also criticized the prolonged approval timelines: “In LA, it takes at least 24 months from land purchase to breaking ground. That’s far too long given our housing shortage.”
Sussman elaborated on the challenges facing office space, citing interest rates, inflation, and the increasing need for fire resilience. “In my class, I call it the ‘I’ of the storm—interest rates, inflation, insufficient rent growth, illiquidity, insurance, and intense regulation.”
· The Future of the Office Sector
Despite historically low office valuations, opportunities remain. Ronen noted that while institutional capital has pulled back, private capital investors are still active. “We haven’t seen the distress wave many expected. With return-to-office initiatives gaining momentum, the office sector may stabilize faster than anticipated,” he said.
· Opportunities in Industrial, Life Sciences, and Retail
New growth areas emerged in the discussion, with panelists highlighting data centers and student housing as strong investment opportunities for 2025. While Sussman urged caution regarding the bullish
sentiment around data centers, there was broad agreement on a retail resurgence, particularly in high-quality centers.
Looking Ahead: Rebuilding and Adaptation
The conversation concluded with a focus on rebuilding efforts and the need to streamline processes to help residents return home more quickly. Adaptive reuse of office buildings for multifamily housing was discussed, though panelists acknowledged the financial and logistical hurdles that make conversions challenging.
Despite these complexities, Los Angeles remains an attractive place to live, buoyed by strong universities, a thriving tech and entrepreneurial ecosystem, and an unparalleled quality of life.
“As challenging as it is to build here, the fundamentals remain strong,” said one panelist. “You can ski and surf in the same day, and the weather is unbeatable.”
In the end, Los Angeles continues to be an extraordinary place to live, work, and invest.
At this month’s Southern California Development Forum Discussion Panel, Gerald McCallum, Senior Project Manager of Wilson Meany, led an engaging discussion on the future development and planning in preparation for the LA 2028 Summer Olympics. The conversation highlighted the benefits and challenges of what’s to come in the future.
To share insights, panelists Chris Torres, President of Agency Artifact; KevinRieger, Senior VP at AEG; Andrea Ambriz, General Manager of Exposition Park;Doane Liu, Executive Director of the Los Angeles City Tourism Department; Christopher E. Jackson, Sr, lead of the Development Services Department of the City of Inglewood, discussed how their establishments are planning for the upcoming LA Olympics. All panelists emphasized that the development is not just for the Olympics, but also the future of LA tourism.
History of the LA Olympics
Liu provided a historical overview of the 1984 Olympics, emphasizing its profitability and the legacy of the LA 84 Foundation. Fortunately, the 2028 Olympics were plannedas a no-build event, leveraging existing venues and infrastructure. The City of Los Angeles and its department specifically acknowledged that it is a shame how past Olympic venues are currently underutilized, which reflects a waste of resources and unsustainable development.He, as well as the other panelists, stressed the importance of using the Olympics as a starting point for long-term development and investment in the city.
AEG’s role in Sports and Entertainment
Reiger explained that AEG entertains over 100 million guests annually and owns sports teams like the LA Galaxy and LA Kings. AEG manages over 30 music festivals and has venues on four continents, including those used for the London Olympics and the World Cup in Brazil. Though theLA Olympics is honoring a “no-build” policy, Reiger explained that Angelinos should still expect some development. Rather than constructing new arenas, he explained that AEG is focusing on renovating existing venues such as the Crypto.com Arena, and expanding others including the LA Convention Center. These renovations will enhance the venues' competitive edge and make them more profitable for Los Angeles in the future.
Exposition Park and its Development
Ambriz discussed the history of Exposition Park (Expo Park)and its current developments for the LA 2028 Olympics.The park is undergoing significant improvements, including the construction of the Lucas Museum of Narrative Art. She emphasized the importance of green infrastructure and community engagement in the Park’s development. Expo Park has plans to rip out asphalt-covered parking lots and replace them with a new green terrace, a minimum of six acres. In fact, Governor Newsom and the legislature offered an incredible investment of $366 million into this project, markingthe single, largest investment in the history of South LA’s infrastructure.
“I can only imagine the opportunity that we’re going to have when cameras are facing Exposition Park, and we have aerial footage [of LA] from above, they’re not only going to see the stadiums holding the events, but they’re going to see green space. That’svery differentfrom what Exposition Park is, and frankly, what Los Angeles is.”
These investments reflect Los Angeles’ values in sustainability and future tourism.She concludes these projects are not just for the Olympics but for the future of LA.
Agency Artifacts Festival Trail Project
Torres introduced Agency Artifact's Festival Trail project, a 28-mile zero-emissions corridor connecting Olympic Venues. The project aims to create a community-driven, coalitional effort to shape Los Angeles’ future. The Festival Trail will connect venues from LAX to the Rose Bowl, emphasizing public transportation and pedestrian-friendly design. Similarly to the other panelists, Torres agrees that this initiative createsa legacy that reflects the values and aspirations of the city.
Inglewood’s Role in the Olympics
The City of Inglewood is also making developments in preparation for the Olympics. Inglewood is home to significant venues like SoFi Stadium, the Intuit Dome, and Hollywood Park. Jackson explained the city is committed to creating a walkable, sustainable entertainment district that can accommodate a large number of visitors.
Engaging the Community and Addressing Equity
One audience member asked how the LA Olympics will engage the community and address equity, a duality that most Olympic cities fail to touch upon.Many understand the city’s housing and homelessness issues, and the audience member asked how the city will address them.
Torres recommends the need for ADA-accessible infrastructure and the potential for housing along the Festival Trail. The panelists all agreed on the importance of creating opportunities for local businesses and residents to benefit from the Olympics. They also agreed on the need for public advocacy to ensure the success of the Olympic projects. Fostering inclusivity, supporting local communities, and prioritizing long-term benefits for residents will be key to ensuring the success and lasting impact of the LA Olympics.
While the event will showcase Los Angeles on the world stage, the real legacy lies in the long-term investments being made in the city’s venues, neighborhoods, and public spaces. From green parks at Expo Park to zero-emission corridors along the Festival Trail, the focus is not just on preparing for the Olympics, but on creating lasting benefits for residents and businesses. By prioritizing community engagement, equity, and sustainability, Los Angeles aims to set a new standard for how Olympic cities can leave a positive and enduring impact long after the games have concluded.
At this month’s Southern California Discussion Panel, John Dang, Business Development Manager of Oltman’s Construction Co., led an engaging discussion on future forecasts of the industrial market in Los Angeles County. Panelists Paul Giorgio, COO of Eldridge Acre Partners; Philip Tsui, Senior Vice President at Trammell Crow Company; and Cameron Merrill, Senior Vice President of CBRE, discussed their insights and trends they are seeing within their perspective fields. All four emphasized how easing costs and strategic planning will improve the market for industrial space.
Challenges in the industrial sector
Challenges in the industrial sector over the past four years have been due to the pandemic. When COVID-19 took the nation by storm, there was a great increase in demand for industrial space in Los Angeles. However, the county lacked the available inventory, which led to a rise in leasing rates. Since 2022, the industrial sector has seen a surge in inventory, which has improved the leasing rates. Tsui added that lease rates are hard to predict in the next two to three years. However, he suggested that if the market follows the cyclic trends, then land value will probably decrease, leading to a decline in property value.
Merrill concluded that companies have become more interested in leasing buildings that have attractive amenities and facilities (loading docks, high ceiling clearance, truck port spacing, etc.). He also mentioned increased interest in locations near desirable residential neighborhoods.
Signs of growth ahead
The panelists are optimistic about the future, noting significant improvements across the industry. Merrill highlighted that we have returned to pre-COVID leasing rates, and inventory levels are seeing a rise in occupancy. Tsui expressed confidence in his projections, noting that land value has decreased from 75% to 50% of his projects’ budgets. This shift indicates a more balanced relationship between land value and property value.Giorgio concurred that positive trends are emerging but emphasized that "those who react quickly are the ones who succeed." He indicates that just like with COVID-19, things can change quickly, so it is important to make key strategic developments and always plan accordingly.
Construction’s effect on the industrial sector
Giorgio compared the industrial market to the retail market, where consumers have always been attracted to prime locations, like the Westfield Century City Mall. In the same way, companies want their industrial buildings to be high-quality and equipped with good amenities, planning their construction accordingly. The best industrial buildings will ultimately stand out and dominate the market.
Dang and Tsui noted that construction costs have decreased by 8%-10% since January 2024, which enhances project viability. They emphasized the importance of planning construction in advance, as companies can save significantly by aligning their projects with market trends.
Predictions for the industrial sector in the next year
All the panelists expressed optimism about the industrial market's future. Giorgio explained that the decrease in construction costs, land values, and interest rates are promising signs. However, to see positive changes, we must be strategic with our planning. Many assume that development is straightforward, but circumstances can change quickly. Developers need to ensure they are creating the "right" project, as what benefits a company today may not be as effective a year from now. Clear communication and proactive planning are crucial.
Tsui agreed and shared that Trammell Crow is moving forward with new development plans for the next six months. "It’s been quiet, but when the time comes, the industrial market will thrive," said Tsui.
Merrill added that many larger properties, currently unused, will be redeveloped into industrial operating sites (IOS), cold storage facilities, and e-commerce buildings. He noted that these are the properties companies are looking to lease.
Legislation’s impact on the industrial sector
An audience member asked how California Assembly Bill 98 (AB 98), a law regulating the development of logistics facilities and warehouses, will impact the industrial market. Giorgio and Tsui agreed that AB 98 will inevitably increase costs due to stricter regulations on construction and will significantly affect the real estate, design, and construction industries.
John expressed concerns about the bill's clarity. “If COVID-19 has taught us anything, it’s to remain composed. We need to understand this bill fully, and a lot of work is needed to achieve that understanding.” He noted that while AB 98 has pros and cons, and while it opens doors for innovative designs and products, it also risks delaying construction plans if they don’t comply with updated regulations. It’s crucial to consider the benefits and challenges of this new legislation carefully.
While the industrial sector has faced significant disruptions over the past few years, the overall outlook remains positive, with decreased construction costs, increasing inventory, and a focus on high-quality developments that meet the changing needs of businesses. As the market continues to evolve, those who are agile and forward-thinking in their planning will be best positioned for success in the years ahead.
At this month’s Southern California Development Forum’s Discussion Panel, Emily Olman, CEO & Chief Media Officer of Hopscotch Interactive, led an engaging discussion on the impact of artificial intelligence, known as AI, in design and construction. The conversation highlighted AI's ability to streamline workflows, increase accuracy, and support better decision-making, and clearly it will impact the entire industry.
To share insights, panelists Sophie Pennetier, Founding Director of Digne; Ed Krafcik, Senior Director at Metropolis Technologies; Matt Ducharme, Principal at Woods Bagot; and Sam Omans, Senior Manager of Architecture Industry & Business Strategy at Autodesk, discussed how AI was being used in their companies. All four emphasized how AI can empower human creativity and play a critical role in addressing environmental sustainability.
AI in Operational Efficiency and Real-World Applications
All the panelists agreed that AI is seen more frequently in our offices as well as our lifestyles more than anyone actually realizes. Omans chimed in on this topic by noting that ChatGPT is the most used platform, reigning in with 20.03% of the searches per month. He explained that using ChatGPT becomes more intuitive with practice, as refining your questions on the platform improves the results.
Krafcik agreed and explained that ChatGPT is also useful in communicating difficult messages with clients. If he just submits his ideas and asks the platform to format the message into an email, ChatGPT will save him time creating his responses.
Pennetier concluded that AI helps her to “do more and think less” in a pinch. The panelists concluded that ChatGPT is a great tool for all industries and should be seen as a timesaver, not as a crutch.
AI’s Impact on Sustainability and the Environment
Pennetier’s consulting firm, Digne, leverages AI to address climate change and implement sustainable practices in their construction efforts.
“AI allows us to run permutations much faster than humans. For instance, by increasing the amount of recycled content in metals, steel, aluminum, and glass, we reduce the energy required to produce them, which in turn lowers greenhouse gas emissions. By thoughtfully considering how we compose these materials, we can significantly reduce the embodied carbon in the built environment,”Pennetier explained. This approach not only promotes sustainability but also contributes to a more efficient and eco-friendly construction industry.
AI’s Role in Education and Skill Development
When most people start their careers, they learn soft skills by accomplishing mundane tasks. An audience member shared his concerns that AI will be a detriment in learning these soft skills. The panelists all disagreed with this statement. To alleviate the audience member’s doubts, Omans compared the expansion of AI to other historical discoveries.
“If we think about European art, many canonical architects that were doing great work had dabbled in painting, sculpture, and other forms of media. Some of these new tools we are talking about are somewhat the same thing. This is like an expansion of our palette. These new tools can expand our knowledge and creativity, ultimately leading us to new discoveries,” said Omans.
However, he advises that we must have agency in our experimentation, or else we will lose discipline. If we continue to use AI when it is not needed, we will lose those skills. Ducharme agreed with Omans and included that our curiosity and hunger for knowledge will never go away, but the way we learn will change as technology grows.
Krafcik reflects this issue of discipline back on the companies. He suggested that the real issue might not be AI itself, but rather the work environment that young employees find themselves in.
“Soft skills do not go away, but they do go away if you are not in the office. How do you get people back into the office?” he said.
It is easy for employees to work from home, but are young workers gaining valuable learning experiences like they would in an interactive office? This reasoning is why Krafcik suggests that companies should examine the architectural design of their offices. There may be opportunities for improvement that could satisfy the professional and social needs of these employees.
AI’s Role in Enhancing Human Potential
As AI advances into our workplace, many people feel that AI will impact job security. An audience member proposed the question: “How do we [as design professionals] not diminish our value by using AI?”
Suggestions included staying up to date on new design tools and bringing an entrepreneurial spirit back into the workplace. A discussion was held on "What value do you add to your work with your own human intelligence?”
Ducharme agreed and also added that AI would never replace human intelligence. As humans, we have to adapt to the changes and use the tools we have to our advantage. This involves spending the extra time gained from using AI technologies to produce outstanding design projects.
There is no question that AI is here to stay. The overall consensus was learning to use it as a great tool to enhance what we as designers bring to the table, not replace it. No doubt this will be a hot discussion topic moving forward.
In recent years, health systems nationwide have been undergoing significant transformations. Faced with the rising costs of care and the unfortunate reality of local hospital closures, these systems are not only adapting to these challenges but also seizing new business and partnership opportunities to enhance their services. Despite these changes, their commitment to providing the best possible care to their communities remains unwavering.
The recent Southern California Development Forum (SCDF) panel discussion, moderated by Angie Weber of CBRE, was a lively discussion of this topic. Panelists included Gizelle Paz of Providence St. Joseph Health, Paul Da Veiga of UC Irvine Health, Tim Hatch of Intermountain Healthcare, and Sophia Lee of Keck Medicine of USC. The panel discussed how the four major health systems in the Southwest are transforming their portfolios and growth strategies, including how they are responding to increasing costs of care, the impact of hospital closures, and how they are developing innovative business opportunities for healthcare delivery – all while continuing to provide the best care to their communities.
The panelists shared their insights and perspectives on recent mergers and acquisitions. Hatch emphasized that hospitals must care for their patients and workers yet contribute to reducing the nation’s healthcare costs. He also emphasized that healthcare is “19% of the gross domestic product, meaning one in every five dollars is spent on healthcare” today. Furthermore, Intermountain has faced challenges with expanding in rural areas, including shortages of qualified construction labor, forcing them to think of other methods of care and building delivery.
The panelists in California addressed the challenges related to meeting the 2030 seismic compliance deadline. In addition to being extremely cost prohibitive, there are concerns statewide of pending shortages of labor in all sectors, including plan review, inspections, design, and construction. The panelists all agreed on the importance of maintaining a constant line of communication with governmental entities to advocate for necessary changes.
Weber presented the issue of determining the right time and place to open new healthcare facilities. Paz discussed the challenges of opening new ambulatory care facilities and emphasized that their decision-making process is largely data-driven. She explained that Providence uses data analytics and collaboration with government affairs to identify where facilities are needed and where they can best serve the community. "We build health reports for a specific set of markets to understand the needs of the market, and then we see if there are opportunities for joint ventures or partnerships." This approach allows Providence to make informed decisions that benefit the people in these communities.
Da Veiga added to the conversation, noting that, before their recent acquisition of 4 Tenet Hospitals, UC Irvine had been investigating available land in north Orange County to align with their strategic growth plans. Before proceeding with development, they make sure to conduct surveys and assessments to understand scope and risks.
To keep up with strategic growth, strategic partnerships are being formed with other healthcare entities. Da Veiga highlighted this by discussing UC Irvine’s partnership with Lifepoint Rehabilitation.
"The benefit is partnering with somebody who specializes in a particular service. They do rehab well… And so, when you partner with somebody who's an expert, I think that it just enhances your brand and stability,” he said. “Leveraging Lifepoint’s expertise improved their overall quality of services while maintaining the UC Irvine brand.” Likewise, Keck Medicine of USC recently partnered with Henry Mayo to bring much needed care to the Santa Clarita Valley area.
Lee agreed with Da Veiga and further added that building in California is prohibitively expensive. She noted that USC is working with healthcare developers to rebuild old offices, which is a cost-effective way of providing healthcare directly in their actual communities. While competition is beneficial for the economy, partnering with other companies can enhance facility management capabilities.
Lee and Weber further highlighted that healthcare has become institutionalized, which means maintaining facilities is increasingly costly but necessary.
“For tenants and landlords, the level of sophistication on both sides is great but we need to do a better job managing, and one of the things we’ve discovered now is that we're adding more to our basis of design as we’re building these smaller clinics throughout the community. In fact, two years after you build a brand-new building, something goes wrong with the air conditioning or water. Building it, in a way, is a lot easier than maintaining it. But today, we must oversee both of them." Despite the higher initial costs, she argued that this approach is more cost-effective in the long term.
Hatch noted Intermountain’s recent partnership with Providence and other leading U.S. health systems to start Civica RX, a nonprofit generic drug company aimed at keeping the costs of medication down and available for those who need it.
When asked the question “How do you handle your facilities from a design and branding standpoint?” Hatch emphasized the need to focus on branding design rather than architectural design.
Lee agreed that most of USC’s branding is based on the culture of their clientele. The level of changes done to a building is based on USC’s branding, and the vernacular of the patients, all of which is enhanced by the value-add strategy.
Weber wrapped up the panel by including how branding has changed over the past ten years. What once seemed insignificant ten years ago is now hugely important and can affect the presence and visibility of health systems.
The recent Southern California Development Fund (SCDF) panel discussion with Garrett Lee of Jamison Properties, Anthony Muhlstein of Newmark, and Harold Wang of Palisades Investment Management, moderated by Michael Bohn, AIA, of Studio One Eleven, shed light on the current landscape of office conversions and adaptive reuse projects. Held at the Biltmore Hotel in DTLA, the May event provided valuable insights into the complexities and promises of this niche in real estate development.
Here’s a closer look at what’s being built and how these projects pencil out financially.
President of Jamison Properties, Garrett Lee highlighted his firm's focus on adaptive reuse projects in Koreatown, Los Angeles. "We transitioned from a commercial real estate office to multifamily development about ten years ago," Lee said. "Post-COVID, we are fully engaged in adaptive reuse projects." Jamison is converting old office buildings into residential units to revitalize neighborhoods and address housing shortages.
Anthony Muhlstein, from Newmark's West Coast Capital Market multifamily team, provided a financial perspective, noting, "We're definitely seeing a lot of interest in office-to-housing conversions because we've been selling a lot of them. However, developers face challenges with execution and the cost of capital." Muhlstein explained that office vacancies are high in areas like Playa Vista and Hollywood, making conversions attractive despite financing difficulties. He added, "The pricing seems to top out between $100 and $150 per square foot, with construction costs around $350 per square foot, leading to financing needs of 8-9%."
Lee also discussed the mandatory retrofits required for Jamison's pre-1978 buildings due to local ordinances. Since these updates are necessary, it makes financial sense to change the use of the buildings simultaneously, enhancing the economic viability of the projects.
The panelists agreed that certain features make office buildings more suitable for conversion. Harold Wang, one of Palisades' founding partners, emphasized the importance of the building's structure: "You need a rectangle floor plate, smaller plates are better, and the floor-to-ceiling height is crucial." Wang also noted that cities with existing adaptive reuse ordinances make the process smoother. "If the city has an ordinance already, that makes things much easier," he said.
Lee echoed these sentiments, adding, "We look for urban core markets with a lot of amenities and walkability. Our aim is to create a mixed-use balance of work, play, and residence to foster 24/7 communities."
Benefits and Challenges
Adaptive reuse projects often offer financial benefits over new constructions. Lee pointed out, "Construction costs have increased 20-30% in recent years, and interest rates have doubled, making ground-up projects hard to pencil out. Adaptive reuse can offer savings in hard costs, making financing more attainable." Muhlstein added, "If you're converting a building at $325 to $375 per square foot, compared to $700 to $800 for new high-rise constructions, you're looking at significant savings."
However, the process is not without its challenges. Wang shared his experience, "City approvals have taken longer than anticipated. Recent policy changes have added to these delays." Lee also mentioned unexpected hurdles, such as mandatory retrofitting for older buildings, which can complicate projects but also offer opportunities to improve safety and sustainability.
Case Studies and Success Stories
The panelists shared examples of successful projects to illustrate their points. Wang highlighted a project in Long Beach, where an old GTE building was converted into 106 housing units with additional townhouse penthouses. "We removed the original rooftop equipment and utilized the space to add value," he explained.
Lee discussed a project in Koreatown, where converting 50% of an office portfolio to residential units created a vibrant mixed-use community. "This strategy also helps fill vacancies in remaining office buildings, creating a more occupied and lively environment," he noted.
The Future Outlook
As adaptive reuse ordinances evolve, the potential for these projects grows. "The upcoming adaptive reuse 2.0 ordinance in Los Angeles is exciting," said Lee. "It will expand opportunities citywide, allowing for more flexibility and creativity in converting buildings."
In conclusion, office-to-residential conversions present a viable and increasingly popular solution to the dual challenges of office vacancies and housing shortages. With careful planning and execution, these projects can offer financial benefits and contribute to urban revitalization. As Muhlstein summed up, "People need products, they have to develop. So we're busy."
This panel discussion highlighted that while the road to adaptive reuse can be complex and filled with challenges, the rewards make it a path worth pursuing.
As the anticipation builds for the 2028 Olympic Games in Los Angeles, there's a flurry of activity behind the scenes to ensure seamless transportation for athletes, spectators, and stakeholders. Recently, the April event for the Southern California Development Forum (SCDF), held at the Biltmore Hotel in Downtown Los Angeles, delved into the intricacies of this topic. The event panel was moderated by Tony Fermelia of HNTB and featured experts Jake Adams, Deputy Executive Director at LAWA; Aaron Galinis, Senior Airport Planner at Hollywood Burbank Airport; and Ernesto Chaves from LA Metro.
Change is Coming at LAX
Jake Adams opened the discussion by highlighting the monumental task of preparing Los Angeles for the 2028 games. He emphasized the urgency to complete crucial projects, such as the people mover and metro connections, at LAX before the Olympics kick off.
“We see this as a transformative opportunity for transportation in LA,” Adams shared. “Several exciting changes are underway at LAX that will make our transport systems better and more sustainable including the landscaping program we were just awarded—it’ll help us look less like a construction site!”
The LAWA team is also focused on increasing the number of off-ramps and hold points to segregate airport traffic from street traffic. Adams shared that his team is enhancing signage and wayfinding programs to accommodate the influx of international visitors as well.
Streamlining Air Travel into Burbank
With hundreds of thousands of tourists expected to make their way to the city of angels, the replacement of Hollywood Burbank Airport’s aging 94-year-old terminal is critical.
"There are many reasons to replace this terminal, but safety is paramount. Doing all of this before 2028 will be tough but I'm happy to say we're on schedule and plan to open in 2026," Galinis said.
He cited the Superbowl LVI as a learning moment for the airport and outlined plans for the new terminal, located in the airport’s northeast quadrant, which is set to open in 2026.Through temporary emergency operations centers, the Hollywood Burbank Airport team will manage corporate aviation and facilitate smooth ground transport operations for tourists and locals alike.
Ground Transportation's Pivotal Role
Ernesto Chaves from LA Metro underscored the pivotal role of surface transportation during the Olympics, with a staggering 1.2 million anticipated daily transit trips.
“Spectators won’t be able to stay in LA proper because hotels will be booked up by the Olympic Games ‘family’—the athletes, referees, media, and other people involved in the games,” Chaves noted. “So, we intend to bring spectators from Orange County, Pomona, Carson, and elsewhere into the Los Angeles area so they can enjoy games and have reliable ground transportation that gets them there.”
At Sofi Stadium, for example, the stadium’s thousands of parking spaces will not be used for spectator parking. Instead, the spaces will house security for the games. LA Metro plans to double the bus fleet, coordinating with transit agencies across the state and country in order to do so. As the Paris 2024 Olympics approach, Chaves’s team is in close communication with their Paris partner IDFM, discussing what they’re seeing and what will translate to the 2028 Los Angeles games.
Preparing for the Paralympics
After the Olympic Games comes the Paralympic Games. LAWA, the Hollywood Burbank Airport, and LA Metro are preparing to further make their facilities accessible. For instance, Adams shared that LAWA is building temporary spaces tailored to the needs of Paralympic athletes. In Burbank, Galinis’s team is prioritizing universal access in the build of their new terminal and LA Metro is focused on addressing much needed accessibility upgrades at stations across all lines.
Building a Legacy
As the countdown to 2028 continues, collaboration, innovation, and adaptability will be paramount in ensuring a transportation system that not only meets the demands of the Olympics but leaves a lasting legacy for the city of Los Angeles. With a clear roadmap and unwavering determination, Adams, Galinis, and Chaves believe that LA is poised to deliver a transportation experience worthy of Olympic excellence.
What is the impact of the ESG movement? ESG -- or environmental, social and governance – more often simply called sustainability – was the topic of the March meeting of the Southern California Development Forum (SCDF), held at the Biltmore Hotel in Downtown Los Angeles. The conversation was led by moderator Abbey Ehman of Creative Artists Agency and featured panelists Lynn Simon, Principal and Sustainability Leader at Arup, Lauren Eckhart Smith, Senior Vice President at Cain Development, and Jim Andersen, Chief Development Officer for Chelsea Investment Corporation.
The ESG Domino Effect
In bustling cities, where concrete meets the sky, a silent revolution is underway—one that places sustainability at the forefront of urban development. Recent environmental reports and shifts in legislation and building codes have supported the development of transformative projects that promise to reshape cityscapes and urban living while minimizing environmental impact and supporting biodiversity. In the greater southern California region, several projects are leading the way.
1950 Avenue of the Stars in Century City
At the forefront of sustainable development stands 1950 Avenue of the Stars. Designed by Johnson Fain with engineering by ARUP, the soon-to-be new headquarters of Creative Artists Agency has made a commitment to attaining a platinum LEED certification. Why is the entertainment industry powerhouse spending millions to move their offices just across the street? Ehman says the future move to what will become the vertical CAA campus is driven by the company’s commitment to providing beautiful spaces for team collaboration and reducing their environmental impact.
“We continue to hear about the recession or economic downtown we are experiencing, yet some of the most sustainable projects are also happening right now. We would be remiss if we didn’t celebrate that,” Ehman shared.
The project exemplifies a harmonious blend of innovation and environmental consciousness with its high-performance features such as facade glazing, EV charging stations, and reclaimed water systems. By meticulously designing each facade to reduce solar heat gain and incorporating a botanical garden atop the parking garage, the space will enhance local biodiversity and provide a peaceful space for those on foot.
“One of the sustainability strategies of note is that the façades are designed differently in order to reduce solar heat gain, optimize thermal performance, maximize views, and most importantly to improve occupant’s comfort and well-being," Simon noted.
One Beverly Hills
Nestled at the border of Century City and Beverly Hills, One Beverly Hills emerges as a testament to luxury living with a green conscience. The 17-acre property will include two residential towers, one 30 stories tall and the other 28 stories tall, making them the two tallest buildings in Beverly Hills. The community will also have a 78-key Aman Hotel, 100,000-square-feet of available commercial space, and an eight-acre botanical garden. To top it all off, the iconic Beverly Hilton will be renovated during the ground-up construction process of the development. The One Beverly Hills project seeks to redefine urban landscapes.
“Sustainability is critical in our line of work, and we all should be doing it,” Smith said. “It's part of our responsibility."
The integration of features like gray water systems, 350 geothermal wells, and an ice cooling system underscores a holistic approach to sustainability. As the project unfolds, it represents an opportunity to create a better tomorrow for Beverly Hills—a future where opulence and eco-consciousness coexist seamlessly.
Midway Rising in San Diego
In San Diego, the Midway Rising development heralds a new era of urban development, breathing new life into an underdeveloped area.
“The whole concept is set up as an equitable place for people to live," explained Andersen. “Our income over income spent on housing ratio is the worst of any city in the U.S. so a community like Midway Rising is desperately needed.”
With a focus on affordable housing, community empowerment, and environmental consciousness, this initiative aims to address pressing social, economic, and sustainability challenges. The 4,250-unit community will include 2,000 affordable units, giving many of the region’s hospitality workers accessible and financially achievable housing options so they no longer commute 50 or miles to work each day. In turn, the community is helping to reduce the region’s carbon footprint while also improving the lives of those who maintain its largest industry: hospitality.
Furthering Midway Rising’s commitment to sustainability is that of the 12.5 acres of parks that will be spread throughout the community. Through sustainable practices such as gray water usage and minimizing on-site parking, the project paves the way for a greener, more resilient future in San Diego. Commerce and tourism haven’t been neglected in the plans for this community either. It’s all seamlessly integrated, Andersen noted.
“The Taylor Swift’s of the world go from Phoenix to LA to Orange County and bypass San Diego because they do not have the facilities. With Midway Rising that’ll change, and all of the major acts will have a place to play,” he emphasized.
Midway Rising will include a 16,000-seat arena majority owned by Los Angeles Rams owner Stan Kroenke. Outside of the arena developers will be building out a space for a larger-than-life jumbotron that will broadcast the arena’s performances, giving everyone a chance to watch and enjoy.
By blending affordable and market-rate housing seamlessly and integrating amenities like job training academies and onsite healthcare facilities, Midway Rising embodies a vision of inclusivity and sustainability.
Celebrating a Sustainable Future
As these projects unfold, they serve as pillars of hope in an uncertain world. By embracing sustainability on a grand scale, they offer a glimpse into a future where environmental consciousness is not just a goal but a way of life. And as we navigate the challenges ahead, let us bear in mind the clear sentiment echoed throughout these developments: sustainability is not just a choice—it's our collective responsibility.
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