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Welcome to our 2nd Quarter 2018 Newsletter , highlighting the recent work of the firm; including new developments in using every square inch of an industrial building for logistics, our involvement in the valuation of a Los Angeles landmark, and the most recent changes in market dynamics - both from the perspective of planning and investment.  

Anytime we can provide you with market research information, consulting, or simply answering a question, just let us know; we are happy to be of help.  We are more than happy to help!


Steven R. Norris, MAI, CRE

Norris Realty Advisors
Microsoft Theater at LA Live
Norris Realty Advisors to Provide Restrospective Value Opinions

Standing as a prominent feature of The Downtown LA Live development, the Microsoft Theater (formerly the Nokia Theater) hosts major events in the entertainment industry every year. Our firm was recently contracted to provide a retrospective value opinion for the Microsoft Theater for its inaugural year of 2007.

This engagement has lead to extensive research on major theatrical venues throughout the Los Angeles area, and the US, with particular emphasis on the real estate component of theater operations.   

Some other characteristics of this assignment involve determining the fiscal relationships between venues and promoters, reading event contracts between "acts" and theaters and researching the few major corporations that control the majority of major venues across the country.

Super Hi-Cube Warehousing

The world of world-class logistics is changing rapidly - as evidenced in the PUMA warehouse in Southern California's South Bay.

PUMA has implemented an AutoStore goods-to-person system utilizing  170 robots to improve order fulfillment operations at its logistics facility in Torrance, California.  Since adopting this system, PUMA has increased operations by 2-3x and now ships 97% of orders within 24 hours.  Efficient order fulfillment is crucial as more consumers shop online and expect quick deliveries.

With the ability to ship orders at the same pace as during non-peak season, this system provides for a favorable reputation for the company as well as revenue growth.  It also enables PUMA to capture the business of last-minute shoppers when other retailers "cannot fulfill any more orders that will ship before Christmas."

To learn more about what the future will look like in large warehouse logistic - view the video below.

The Future of Warehousing Storage and Logistics
The Future of Warehousing Storage and Logistics

TOD - Major Changes in Market Dynamics
Recent Changes in Density May Affect Land Pricing

In late February of this year, the new Transit Oriented Development initiative of the City of Los Angeles was enacted.  This planning measure has the potential to significantly affect both development densities and land values in many locations throughout the City.  Already, Norris Realty Advisors has been involved in a number of key land transactions that are either pending or have been recently completed.

This new initiative will result in significantly higher development densities for properties located with access to regional transit.  For a good outline of the effects of this new planning initiative, visit here.

And, for more of an overview of Transit Oriented Developments on a national level, review information at the Transit Oriented Development Institute web site.

Chinese Investment in Commercial Real Estate
Will 2018 Bring Signficant Change?

Our work experience over the past six months has provided contrasting views on the involvement and effect of Chinese investment capital in Southern California commercial real estate markets.

On one hand, there are press reports of measurable declines in the previous years' windfall of overseas investments in commercial properties throughout the region.  However, our experience indicates that in many sectors of the marketplace, Chinese capital is still very active, making significant investment and lending decisions.

The remaining months of 2018 will be fascinating to observe, as governmental capital restrictions in China may have a further dampening effect on investment in Southern California.  Or not.

For more on recent developments in national capital flows, review this recent article.

Thank you for taking the time to review our Newsletter.  We greatly value our relationship with clients, peers, and friends of the firm.  Contact us directly with any questions.

Steven R. Norris, MAI, CRE View our profile on LinkedIn
Norris Realty Advisors