If You Build It, They Will Come

When we first heard those words whispered by a disembodied voice in the 1989 corn comedy, “Field of Dreams,” no one knew it would be endlessly mangled and recycled, cementing itself in our everyday American vernacular. But perhaps more interestingly, it has become the all-too-apt mantra for the real estate development world. It suggests the creation of demand – we don’t know we want the baseball field until we have it. It also reflects on a time in our history when consumer demand, material supply, and available capital were all abundant. Yes, times are hard, but they’re not going to get any better if we just sit back and complain. Observing the pace and frequency of new construction in a given market is a great way to gauge not only the climates for development and construction, but also financials, housing, retail, natural resources, and personal finance.

And Los Angeles is a fascinating market. It is the largest U.S. municipality by area and second largest by population. It is one of the fastest growing large cities and supports a diverse and robust array of industry and demographics. Los Angeles has experienced two major booms, the 1920s oil and aerospace rush and the 1950s postwar housing frenzy, and was one of the biggest victims of the recent real estate collapse. Because of progressive (though overdue) planning, the city’s architecture reflects a number of periods and styles. Historic preservation is increasingly important and popular, not in a stuffy museum way, but in the smart ‘adaptive reuse’ instated downtown. A gross housing shortage means stable and continued growth in that sector and perennially nightmarish traffic means increased density everywhere.

While the timing may not be perfect, this city definitely deserves a second look (if not a new building or too). So NIMBYs and tycoons unite! We’ll be cruising from Downtown out to Santa Monica, and from Culver City up to the Valley. Throw on your hard hats – it’s gonna be a wild ride.