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Recorded live at the Vermont Theater in Hollywood, hosts Joe Weisenthal and Tracy Alloway explore the realities of real estate development in Los Angeles with residential market analyst Bill McBride and commercial developer Zach Lasry. The conversation explores why LA manages to sustain a diverse ecosystem of independent mom-and-pop businesses despite high housing costs, the challenges of restrictive zoning and the slow pace of city infrastructure approvals like crosswalks, and how commercial real estate has shifted away from financial engineering toward prioritizing actual product taste. Guests and hosts examine the architectural and community impact of zoning laws, the parking constraints facing urban developers, and the high ceilings for growth in a city that remains a powerhouse for new ideas.
Joe and Tracy introduce the Odd Lots live episode and set the stage for the discussion.
Zach announces Bill McBride of Calculated Risk as the episode’s expert guest.
Zach describes his background, goals, and desire to infuse development with artistic spirit.
The hosts discuss why LA has more mom-and-pop shops and how cost differences affect creative talent migration.
Bill discusses LA’s low density, zoning challenges, and the impact on small businesses and community life.
Zach explains the bureaucratic hurdles and costs involved in building a crosswalk in Los Angeles.
The conversation turns to the tension between parking requirements and creating vibrant, walkable neighborhoods.
The panel speculates on how autonomous vehicles could reshape parking, traffic, and city design.
Zach and the hosts discuss shortages of transformers, HVAC, and other materials and how they affect project timelines.
Hosts wrap up the episode, thank guests, and provide links to follow and subscribe.
Infusing Development With Artstrategy
The guest explains how his background in theater influences his real estate firm, aiming to replace generic commercial structures with developments that capture a creative spirit.
Appreciating Strip Mallsinsight
The host expresses genuine enthusiasm for multi-use strip malls featuring diverse vendors like Korean restaurants alongside tooth whitening businesses.
Jane Jacobs and Sidewalksstrategy
The guest discusses how reading Jane Jacobs inspired his multi-building aggregation strategy to foster a vibrant neighborhood sidewalk culture.
The End of Financial Engineeringinsight
With higher interest rates breaking cap rate and interest rate arbitrage, real estate developers can no longer rely purely on spreadsheets and must make genuinely good products.
The Kafkaesque Crosswalk Processstory
The guest describes the bureaucratic nightmare of trying to get a simple crosswalk approved and installed by the city of Los Angeles.
Koreatown Parking Strugglesdata
The participants discuss the extreme parking shortage in Koreatown, where residents coordinate spots all day long.
“We got approved for a crosswalk on Clinton and Western, and it said it'll be built in a few years or more.”
“You can't get a cap rate and an interest rate arbitrage and make money.”
“The real estate generally retains its value, even if there's a failure.”
Bill McBride did not just predict the 2008 housing bubble, he helped invent financial blogging with his Calculated Risk newsletter. Zach Lasry, meanwhile, is much newer to the scene, but in his career as a real estate developer, he is already responsible for building one of LA's hottest new neighborhoods — Melrose Hill. We spoke to both of them at our live show at the Vermont Hollywood, for a wide-ranging panel discussion on LA real estate. We talk about the difficulty of sourcing construction components, the Kafkaesque process of getting a crosswalk built in LA, and how self-driving cars might help reshape the city and solve its longstanding issues with parking. Read more: Mortgage Rates at 7% Are Forcing Home Sellers to Slash Prices https://www.bloomberg.com/news/articles/2026-09-24/mortgage-rates-at-7-push-sellers-to-cut-home-sale-prices?utm_medium=referral&utm_source=podcast&utm_campaign=odd_lots&utm_content=article AI Data Centers Release Heat, Posing New Problem for Cities https://www.bloomberg.com/graphics/2026-ai-data-center-heat-pollution-cities/?utm_medium=referral&utm_source=podcast&utm_campaign=odd_lots&utm_content=article Only Bloomberg - Business News, Stock Markets, Finance, Breaking & World News http://bloomberg.com/ subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots https://www.bloomberg.com/subscriptions/oddlots?in_source=oddlotspodcast Subscribe to the Odd Lots Newsletter http://bloomberg.com/subscriptions/oddlots Join the conversation: discord.gg/oddlots https://discord.gg/oddlots See omnystudio.com/listener https://omnystudio.com/listener for privacy information.
4,979 words · 10 speakers
Speaker names marked are inferred from speaking time and the show’s known hosts — they are not voice-verified.
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