Retail Impacts Perception of Mixed-Use Builds

LOS ANGELES—Although retail is a small investment at the Bloc—a major mixed-use development in Downtown Los Angeles with retail, office and hotel from a joint venture between the Ratkovich Co. and National Real Estate Advisors—it has one of the biggest impacts on perception. The property is approximately six months from its opening, and has signed a healthy roster of retail tenants, all of which fit into a unique mold: they are mostly boutique in style, have a creative edge and have an entertainment or experiential quality. These tenants have received the most buzz, despite the significant office and hotel components.

“It started with the retail. From an economic perspective, the retail is a small part of the overall investment. The hotel and the office are much bigger investments, but the retail has a disproportionate impact on the perception of the project and on the value of the other parts,” Jeffrey J. Kanne, president and CEO of National Real Estate Advisors, tells GlobeSt.com. “As a national investor, retail is a hard thing to invest in today because the real competition isn’t the store down the street the competition is the internet and everything that you can buy online. The retail that really makes sense in an urban setting is, other than service retail, experiential retail that is really different.”