Dealing With Supply Constraints In Silicon Beach
It's no secret Silicon Beach is growing, and, while the demand is there, the space may not be.
Parts of the area are supply-constrained, according to Lincoln Property senior vice president Kent Handleman (center), one of the featured panelists at last week's the Evolution of Silicon Beach event.
"The barriers of entry are not only high, they're impossible," Handleman said. "You cannot develop new projects ... What is under construction and has been constructed here is done. Same thing in Santa Monica, so you're not adding square footage to the market as demand increases."
CBRE Global Investors director of acquisitions Gardner Ellner (far right) said there is not a great deal of space available at this point.
Mar Ventures director of acquisitions & development Lionel Uhry (speaking above) agreed. He told the more than 400 people in attendance it is very hard to get new projects developed in this part of the market.
Uhry is also predicting the demand in Santa Monica is going to grow.
"Santa Monica is the tail that wags the dog," Uhry said. "Maybe it's the whole dog, and we're all just the tail."
Uhry (far right) said he believes people are underestimating the impact of the light rail line, which will make it more convenient for employees who live farther away to be able to commute to Silicon Beach.
Clarion Partners director of acquisitions Dean Rostovsky (center) said the area is very sought after from an investment perspective.
The popularity of Silicon Beach boils down to its people and its culture, according to Uhry.
Right now, Silicon Beach has what tech and creative industries are looking for, he said.