Todd Nathanson is the founder and president of Woodland Hills-based illi Commercial Real Estate, a commercial brokerage, property management and investment advisory service firm specializing in multitenant, triple net leased commercial real estate. Nathanson sat down with the Business Journal at Los Toros Mexican Restaurant in Chatsworth for a Power Lunch to discuss his career and the real estate market.
How did you first get interested in real estate?
My grandfather immigrated from China. He landed in San Francisco and then migrated down to Los Angeles and he worked in the automotive business. He was a manufacturer but loved real estate and started developing and building a lot of retail real estate. In the summers I worked in that factory. I spent quite a bit of time visiting properties with him. I migrated from the factory to construction cleanup when I was about 14 years old…The same property that he developed that I cleaned up with a wheelbarrow, we’re now brokering.
Why work at a brokerage instead of in development?
I bounced around a lot. I was really excited about getting into the business world. I had a resume that looked like a checkerboard, six months here, six months there, and went out and got a real estate license…I wound up at a small boutique firm in Santa Monica where I was introduced to retail.
Why start your own firm?
2008 was not a strong time to start a firm in the economy that was going on then, but I just found myself in a situation where I didn’t have a choice. I started running a brokerage within a brokerage (while at CBM)…A lot of the people that I was working with opted to come with me, which was great, and it just grew. I had developed a whole new book of clients, and a lot of my clients migrated over, and it was humming along really well because it was precisely what I had been doing for 20 years… Within the first seven years of our existence, (my biggest competitors) decided to join the firm, which was a windfall.
How did the pandemic impact retail real estate?
During Covid, we saw expansion and growth. When the economy turns toward the dark side we see attrition. We see a lot of businesses fall out, which to us, is more opportunity, and we see survival of the fittest.
How do retail bankruptcies affect your business?
In Southern California, the demand is always high for retail. As soon as one company makes a closing announcement; we find that those lists of stores get circulated really quick. We have several operators that are flourishing and negotiating on several locations.
Is there demand for larger spaces still?
These bankruptcies are typically on grade A locations, and that’s why the demand’s there. (Some were in their locations for a long time so) them vacating the property actually presents a whole new income opportunity for the property owner.
What’s next for retail in L.A.?
I’m an optimist. I think the retail market in L.A. will continue to surge.
How did the fires impact the market?
I think it’s a little too soon to tell but we have started taking some relocation calls.
What’s next for your firm?
We just moved offices and are very excited about the west end of the Valley’s future. A lot of commitment is being made dollar wise and tenant wise to the West Valley. Our firm is situated in the middle of that…(and) I have a son who’s joined the executive team which is very encouraging.
