Whether a commercial real estate purchase or lease agreement, many industrial buyers/sellers and landlords/tenants choose arbitration and thus waive their rights to have the dispute litigated in a court or jury trial. Many believe arbitration saves time and money in the dispute resolution. However, in recent years a new avenue of dispute resolution has grown in use: judicial reference. However, this option has not been incorporation into the AIRCRE standard purchase contract or lease agreement yet. It would have to be added to the addendum. See below excerpt from a law firm for more insight.
Comparing the overall comparative benefits however, judicial reference has a few significant advantages over arbitration. For one, while arbitration is – except in very limited cases of egregious instances of fraud or arbitrator misconduct – binding on the parties, while judicial reference affords the parties complete appellate rights. That right of appeal, tied to the referee’s obligation to follow the rules of evidence (as opposed to an arbitrator’s limited obligation to do the same and the arbitrator’s proclivity to consider almost any evidence presented at the arbitration) renders a judicial reference a more secure and predictable dispute resolution option than arbitration. These factors alone may warrant the inclusion of a judicial reference clause as the alternative dispute provision in a contract of any consequence.
The only clear disadvantage to a judicial referee compared to an arbitration proceeding is that judicial reference proceedings must be public, while arbitration is usually a private affair, taking place at a private facility not open to the public with and, oftentimes, with no public record. Arbitration awards, even if confirmed by the Superior Court, are much more likely to be sealed and kept private which is often an important consideration in employment or intellectual property disputes.
The L.A. County industrial neighborhood of City Terrace has seen increased buyer and investor activity in the past few years. Not only have several properties sold in this up and coming area, but a new 200,000 square foot industrial building is under construction by a well known developer.
The heightened interest in this once sleepy area may be due to it’s proximity to the Arts District, Boyle Heights, and Lincoln Heights, and also between Cal State University L.A. and the USC Keck School of Medicine. Nearby a Biotech/Bioscience campus is being built with heavy interest from prospective tenants. These are exciting developments for one of the oldest industrial tracks in L.A.
A new opportunity is a 106,141 square foot land parcel with 40,000 square feet of old manufacturing buildings on it. This site is being offered for sale at land value. Allowed uses in this M2 zone are manufacturing, distribution, trucking, cannabis, and a variety of other industrial and commercial uses. One advantage of operating a business in unincorporated county lands is that there is no gross receipts revenue tax as there exists in the City of Los Angeles.
The online coupon company, Honey, has signed a lease to occupy the former Coca-Cola syrup manufacturing plant in 2019. Hudson Pacific, the property owner, paid $49 million in 2015 and renamed the site to Fourth+Traction. They purchased it from GPI who purchased it for $19 million in 2014. One of my colleagues and I represented the buyer in that sale, where they then more than doubled their money flipping it. The seller then was a woman related to the man that once occupied the building as a toy distributor, T.T. Toys.
The Honey lease follows other recent DTLA Arts District transactions such as Warner Music at the Ford Building and Spotify at the At Mateo complex.
Historical photo below showing occupancy of Coca-Coca at the building.
Los Angeles has an abundance of street art, especially DTLA and in the DTLA Arts District. I and many downtown dwellers view and define “street art” as artwork in a public space that has a generally pleasing design. Contrast that with typical street-gang graffiti, which was primarily composed of dreadfully designed words and dominated the public realm prior to 2000. Most denizens consider graffiti to be blight. Street art adds value to the public realm as well as property values, especially in areas such as the Arts District. Check out some great examples here: https://www.instagram.com/explore/tags/lastreetart/. A large portion of DTLA street art has been painted on industrial buildings.
Street art is not exclusive to gentrifying areas. See below in the heart of Skid Row with homeless encampments.
According to the 2017 Otis Report on the Creative Economy of the Los Angeles Region:
With 747,600 salaried jobs in the creative industries, California far surpasses New York State, which has 478,100 jobs, followed by Texas at 230,600 jobs.
In a postindustrial society, activities based on creativity are an essential feature of a flourishing economy.
What unifies this dissimilar set of industries is the fact that they all trade creative assets in the form of intellectual property – the medium through which creativity is transformed into something of economic value. Within these industries, we find the intersection of art, culture, business, and technology.