Downtown Oakland Hits Another Milestone

August 21, 2013 Downtowns all over are hot, and Oakland is doing its part. (This is not a weather report, we promise.) On Friday, the City opened its latest public space: Latham Square.

Local musicians played while city dignitaries joined with business owners to unveil the new pedestrian plaza. (Would've been more interesting if the city dignitaries tried their hand at the tuba.) Latham SquareTelegraph Avenue and Broadwayis at the gateway to the emerging Uptown and entertainment district. Rebar's Matthew Passmore says the space is designed to explore possibilities such as pop-up retail and farmers markets, and the pilot project may pave the way for more public spaces in downtown Oakland.

VIPs included East Bay YMCA president Robert Wilkins, who has helped develop the Lake Merritt Uptown District Association, a community benefit district (CBD), as a board member. Both it and its sister CBD, the Downtown Oakland Association, have separate board structures but often pool resources and ideas to create a positive vibe throughout downtown.

Downtown Oakland Association district services manager Andrew Jones addressed some 100 attendees (and anyone who happens to be looking for a new tie at the Men's Wearhouse). His org will

manage and maintain the new public space. Iris Starr of Oakland's department of engineering and construction also discussed the City's vision for the experimental public space.

When the folks in Oakland talk about big bellies, they might not be referring to beer. Here's one of the contraptions you might run into: BigBelly solar trash compactors, which the Downtown Oakland Association and Lake Merritt/Uptown District Association installed to improve the look and feel of Oakland's downtown core. In June, the CBDs were recognized by the International Downtown Association as the IDA's Downtown of the Month for their recent projects, such as newly landscaped medians.

Andrea Kirkpatrick, GM of Swig's Kaiser Center, chairs the District Identity and Street Improvement committee and is a Lake Merritt/Uptown CBD board member. Uptown has seen more than 15 eateries and cafes alone opened in the past year, she says, and Oakland is becoming a magnet for the hip and cool, such as Internet radio company Pandora, solar companies, and other new economy ventures.

Occupancy Races

If US hotel markets were competing in the Winter Olympics, it's clear who's standing on the pedestal come 2014: New York, Oahu,

and San Francisco, all pulling occupancy above 80%. PKF Hospitality Research guru Robert Mandelbaum tells us they're markets with high barriers to entry and where it's tough to find land to develop. (Unless you want to build your hotel on an Oahu volcano.) While Oahu and San Francisco will only see 1% supply growthfurther driving occupancy and average rates upNY leads the country in active construction, with 6.6% supply growth.

Source: PKF Hospitality Research

But keep an eye on these contenders: Miami is being driven by a surge in international travelers, particularly from Brazil, Robert says. (Which means that if you want to do business there, you'd better learn how to dance.) In California, economic, regulatory, environmental, and political challenges make it extremely difficult to develop hotels, limiting competition in Los Angeles and Oakland. (Anaheim and Seattle are following suit.) And developers, particularly limited-service, are sniffing around energy marketsTexas, North Dakota, and Pennsylvaniawhich performed the strongest in the heart of the recession, he says.

What Civic Center Needs

The Civic Center area has seen an increase in demand for both office and residential, and this unique transformation requires the right retail balance to meet the needs of the building and 24/7 livework neighborhood. That's why we're holding our San Francisco Property Management Summit next week, where our all-star panel will talk about projects like Shorenstein's 330k SF at One Tenth St. (Register here.) SVP of property management and construction services David Jaber (left, with Bill Heyes) tells us it's a challenge, since there's a larger-than-normal proportion of space dedicated to retail. At the event, make sure to also ask him about mountain biking in the hills around the Bay Area and the Sierras.

Arent Fox Welcomes M.J. Pritchett

Arent Fox opened its San Francisco law office in June and has recently welcomed real estate transactions partner M.J. Pritchett. M.J.who's well versed in Bay Area business and playersarrives shortly after the addition of three intellectual property and healthcare attorneys to the Northern California office. He'll focus his real estate transactions practice on all facets, including acquisition, development, leasing, and finance. Previously, M.J. was a partner at Orrick, Herrington & Sutcliffe for more than 20 years, serving on the firm's professional development committee. Arent Fox concentrates over 50 attorneys on real estate nationwide. Its local office is at 55 Second St and also includes attorneys from its nationally recognized corporate and sports practices. For more info on our sponsor, click here.

Writers Wanted

Reporter Rock Star Wanted: seeking a hotshot, versed in the local commercial real estate biz for at least a year. We'll also consider those of you who are passionate about real estate and want to build your network (and can write). In essence, we want people who live for the art of the deal. Here's our deal: While you wow us with your intense writing and editorial skills, we'll hand you the opportunity of a lifetime to network with the city's power players. You'll get an instant pass to all the happenings in commercial real estate, including events, parties, and one-on-ones with the movers and shakers who have made this industry legendary. Long hours and tight deadlines guaranteed. Are you Bisnow reporter material? If so, holler with your resume to bryce.nielsen@bisnow.com