CARL MUHLSTEIN

ToJones Lang LaSalle managing director Carl Muhlstein, the middle of the city is one fire--not just markets west of the 405. The lattermarkets are maturing and "all the diamonds in the rough have been acquired." Hollywood is the tightest market in the county right now--close to the new neighborhoods like Eagle Rock and Silverlake where young people are renting and buying homes. Carl just concluded a lease with Sony in Burbank and noted the company's also in Santa Monica and Culver City. None of these large employers can choose just one neighborhood because we're coming tothe borough-ization of LA. So what happens when Santa Monica rents start hitting $6 and $7/SF, and hundreds of thousands of feet of tenantssign in Playa Vista? Right now the employers of Santa Monica are thinking, OMG, it can take 20 or 30 minutes to get from Santa Monica to Playa Vista "driving down Lincoln or the broken 405." Mass transit will have a great impact but it won'tbe a panacea.

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