Nadine Watt
these two 23-story
March 29, 2026 · 1 hr 1 min
How She Manages A 6M Sq Ft Real Estate Portfolio | Nadine Watt (Watt Capital Partners)
With Nadine Watt — CEO, Watt Capital Partners
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Nadine Watt, CEO of Watt Capital Partners, joins Taylor Avakian on the No Vacancy Podcast for an in-depth conversation on LA commercial real estate, the evolution of a multi-generational family…
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Nadine Watt, CEO of Watt Capital Partners, joins Taylor Avakian on the No Vacancy Podcast for an in-depth conversation on LA commercial real estate, the evolution of a multi-generational family dynasty, and the future of Century City offices. Third-generation leader Nadine Watt shares the remarkable history of Watt Capital Partners from her grandfather Ray Watt building homes for post-WWII veterans and pioneering timeshares and master-planned communities, to developing Watt Plaza, the landmark 23-story twin towers in Century City with nearly 1 million sq ft of office space. She discusses the company's major LEED Platinum renovation of Watt Plaza (including a new central plant, lobby upgrades, and amenities), navigating the post-pandemic office market challenges, and strategies for revitalizing Los Angeles amid business exits, regulatory hurdles, and shifting tenant demands. Topics include women in commercial real estate, succession planning and mentoring, the importance of in-person connectivity, storytelling in development, retail and industrial trends, affordable housing struggles in SoCal, and lessons from her unique path through film/entertainment into the family business. Chapters: 0:00 - Introduction & Welcome to Nadine Watt 2:45 - History of Watt Capital Partners: From Post-WWII Homes to Master-Planned Communities 4:41 - Timeline of the Family Business: Shopping Centers, Commercial Shift & Watt Plaza Origins 8:02 - Building Watt Plaza in Century City & Ground Leases in LA 9:34 - Nadine Watt Becomes CEO: Restructuring, Development Focus & Pre-Pandemic Renovation Plans 11:24 - The $20M+ Watt Plaza Renovation: LEED Platinum, Central Plant & Sustainability Upgrades 14:37 - Current Occupancy & Century City Office Market: Tale of Two Cities 16:01 - Revitalizing Century City: Amenities, Subway Access & Nightlife Potential 18:06 - Downtown LA Struggles & the Importance of Office Activation 19:38 - Nadine Watt's Journey: Film Career, Foreign Sales & Entering the Family Business 23:31 - Lessons from Film to Real Estate: Storytelling, Entitlement & Parallel Paths 25:04 - The Power of Storytelling & Psychology in Development & Leasing 28:08 - Mission-Driven Leadership vs. Deal-Making: Focusing on Outcomes & Experiences 31:15 - Navigating Stakeholders & Selling Vision in Real Estate Projects 32:01 - Surviving COVID: Occupancy Trends, Work-from-Home Impact & Return-to-Office Challenges 36:39 - State of the LA Real Estate Market: Office Green Shoots, Retail, Industrial & Hospitality 39:57 - Regulatory Challenges in Southern California: Business Exodus, Entertainment & AI 43:22 - Behind Closed Doors: Leadership, Incentives & Fixing LA's Business Climate 44:44 - Geographic Diversification: Investing Outside California While Building Locally 51:15 - Women in Commercial Real Estate: Opening Doors & Leaning In 54:44 - Long-Term Vision for Watt Capital Partners & Next Generation Involvement 57:35 - Advice for Young Professionals: Networking, Humility & Learning from Experts This episode offers candid insights into LA's evolving office landscape, family business succession, and practical strategies for developers, investors, brokers, and CRE professionals facing today's market realities.#realestate #commercialrealestate #podcast
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Episode transcript
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0:00–10:00
Nadine Watt
[Music]
Nadine Watt
[Music]
Nadine Watt
for having me, Taylor.
Taylor Avakian
Exactly. It's going to be fun. Can you please provide a little bit of color and background on Watt, which is now Watt Capital Partners, a little bit of the history which I know your grandfather started building homes for post-World War II veterans. Is that true?
Nadine Watt
Yeah, my grandfather started the company almost 80 years ago now. 26 or 27, it'll be 80 years. So, um, you know, many generations, many cycles, lots of real estate cycles back. But he was working for Douglas Aircraft in Santa Monica, um, building planes during World War II. When the war the war was over, a lot of GIs would be coming back and would be needing a place to live and Southern California was such an amazing place to live. Um, he knew there was going to be great demand. So, he and his brother started a little construction company. I think they called it Knight and Day Construction, something like that and, you know, started building garages and then it kind of took off from there. I guess my Uncle Don did a lot of the government relations and, um, my grandfather handled like the construction. Um, Ken Leventhal was his accountant.
Nadine Watt
So, we were a client number one with, uh, Ken Leventhal before I Y. And then, um, John Nicholson from Cox, Castle, they were like the three the three musketeers who, um, really came up and built
Taylor Avakian
and you guys have done a ton of stuff over that history and career. Can you kind of walk me through what it shaped into and I I know on your website it was like the home stuff and then you guys went, uh, state side, like across multiple states and then there were some shopping centers things that went over there which then turned into Bricks more, like there's been a whole history of changing and then now at Watt Capital. So, if you can just briefly walk me through like the the timeline, I guess.
Nadine Watt
My grandfather was doing a lot of master plan communities. Um, he built a lot in the infill areas in, um, the urban areas in LA that people, uh, didn't tend to build in. He did a lot in the South Bay. From there, you know, those little tract houses that, um, entry-level, first-time families and we lived in one and I lived on the same street as all my my aunts and uncles and cousins and friends and, um, it was great at the time. I I didn't think there was anything better than living on a street where you knew everybody on the street and your your family built the project and you got your grocery store on the corner that you built and all the, you know, ancillary retail stuff. So, it was quaint and cute. He was one of the first people to ever come up with
Nadine Watt
timeshare and fractional ownership and he built something called San Diego Country Estates in Ramona. It was a big equestrian project and he sold off a week at a time. You could buy a week at this great equestrian ranch. And in order to sell those weeks, he had to get people to come and and visit and walk through. So, he came up with all of these incredible marketing ideas, the first being the original Battle of the Sexes, which was Bobby Riggs and Margaret Court. And so, it had a great tennis facility. He brought, you know, Bobby and Margaret down there and they did the original No way. Battle of the Sexes and of course Bobby Riggs, you know, just crushed Margaret Court and that's why he thought when when the offer came around again to do it with Billie Jean King, he thought, "Oh, I'm I'm going to crush her, too."
Nadine Watt
Little did he know.
Taylor Avakian
You're right.
Nadine Watt
Little did he know. But my grandfather, right, had come up with that idea and he, um, among other things, he, uh, would have like the Philharmonic come down there and play outside in the stars. And, uh, that would be a big draw for people to come and sit outside and listen to Philharmonic and so, of course, with all these great activities, you want to buy a week out there. So, That was incredible. one of his amazing, you know, visionary, um, precursors to all of the experiential Any genius. Yeah, he sure was. From there, he went on to build things like Fairbanks Ranch, which was also nearby. It was another equestrian big complex and they ended up hosting the 1984 Olympics there, all of the equestrian events. Jeez. Um, so, you know, that another great way to get people to come and see your master plan as [Laughter]
Taylor Avakian
at the Olympics. Let's have the Olympics there.
Nadine Watt
Yeah, that's a good one. Yeah. Yeah. So, from there, my father eventually came into the business and when you do a big master plan community, there's always that that extra piece that needs to be a commercial piece and so we ended up doing the market drug, um, that would be, you know, attached to that or nearby and so that was originally how we got into the commercial business and my father, um, my grandfather sort of was more of the home building side and my father got in a little bit into the commercial side.
Taylor Avakian
So, you own Watt Plaza, which is, uh, a very well-known one if you know Los Angeles or Century City. It's a very well-known office building. When was that That was built in '79 and '80, 1979 and That's your father?
Nadine Watt
Um, my it was my grandfather and my father. Alcoa was building the twin towers to showcase their steel. Century City got built because of this steel structure that was coming and my grandfather got access to some property next door to that and got one of the Alcoa, um, executives who ended up coming over and helping us build that project. These two 23-story towers. Almost a million square feet. Almost a million square feet of office in Century City. That was definitely definitely put us on the map. And he also built a lot of other projects in Century City at the time around it. He did Century Hill and Park Place and all those condos in the area. Yeah. Uh, No way. It was because he had had access to all of that, uh, Westside real estate in Century City. So, those were all for sale.
Nadine Watt
Sure. Originally, uh, Watt Plaza was on a ground lease which we later, um, bought out and and now own the ground and the building.
Taylor Avakian
So, That's amazing. I wonder, would you is most of Los Angeles is not ground leased like New York City. Do you know why that's the case of of us not doing ground leases like that?
Nadine Watt
I think they thought there was so much land available that there was really a land grab out here and so nobody thought it would have value to hold on to it and, you know, lease it out. They just thought, "Oh, there's so much of it. There's always going to be so much of it. We could just sell it."
Taylor Avakian
No, you know, Little did they know. Century City, they probably should have held onto that ground lease if, uh, if they were smart about it, but good for you guys for for picking that up. And then, I guess to to now we are today and and recently restructured when you became CEO in 2019, 2020. Talk to me about how that occurred and how this position for you to be running the ship
Nadine Watt
happened. Well, originally, I had become president of of Watt Commercial Properties
10:00–20:00
Nadine Watt
in 2011 um and at the time we we were big property managers and not only did we property manage our own assets, we we property managed a lot of other assets. When I came in and took over, we decided to do a little um downsizing and streamlining and become more of an investment vehicle and to do more development and more joint ventures at the time. So, we outsourced all of our property management, got rid of our property management division that, you know, had had old agreements that we weren't allowed to make a lot of money on and figured that, you know, a third-party manager could probably do a better job than we could and probably make more money at the time or at least, you know, margin. So, I had become president at that time and then
Nadine Watt
became CEO in 2020 months before the
Taylor Avakian
pandemic and And you guys at that time, cuz we we went to an event last week and you were telling me or talking about it a little bit, but you guys had at that time decided to redo Watt Plaza, right? Completely refresh it, lead certified, all this kind of stuff. I'm sure it was a very big undertaking. Was that decided like years before and then it just happened to coincide with one of the biggest office mishaps, I guess, in history?
Nadine Watt
Yeah, I think what happened was in about 2015-ish, I'm getting some dates not exactly correct, but we um went off the central plant. Most of Century City was on a central plant owned by Veolia. And um one by one a lot of the buildings started going off the central plant because you weren't in control of your own destiny. You had to be on their power and you would have to pay whatever their rates were, whatever they you know, they demanded and if you didn't you know, if they decided to shut down, your building would be obsolete. You wouldn't have any heating or electricity. Wow.
Taylor Avakian
Yeah.
Nadine Watt
So, we decided to do a a very big energy investment into the building. Which um we now have our own central plant and we're in charge of our own destiny and maybe in collaboration with that we were like, well, if we're going to spend this amount of money you know, directing our own destiny let's also think about is it time for a big refresh? Is it time to do some kind of um you know, refurbishment and uh upgrade and update. So, after we had paid for the central plant, done the central plant, but started doing plans to do the remodel of the common areas upgrade the elevators, you know, that kind of stuff, some title 24 stuff for sustainability and solar and
Nadine Watt
um we had become one of the earliest um lead certified platinum buildings in Century City for a you know, 1980 building, I want to say like a 30-plus-year-old building was quite an undertaking as well. I assume, jeez, yeah, absolutely. So, but the tenants also were sort of demanding that. That was a time in the life where Yeah. I mean, office is sustainability was important and you know, the climate was important and
Taylor Avakian
Yes. demanded it.
Nadine Watt
Yeah, that the earth needed protecting.
Taylor Avakian
Responsibility, yeah.
Nadine Watt
And so, we decided that, you know, regardless of whether or not there was ROI, that it was necessary and of course there is a payback on doing, you know, that Yeah. putting that kind of um effort into having a more sustainable building. Not only you because your tenants are demanding it, but
Taylor Avakian
also because it's it's good for the world. Is it public how much you guys spent on the renovation?
Nadine Watt
Um I'm not sure. Okay. Exactly. I mentioned I'll say the overall project was over $20 million. Wow. So, between the upgrade and everything and everything How many million put in this building? Between our own Sunset Plant and all of the upgrades that we
Taylor Avakian
did. Yeah, that is not some no no small renovation project that you guys
Nadine Watt
did. And you know, we're not a JP Morgan or we're not, you know, backed by a big institution. It's um we have a partner and so, it's really just the Watt family and the New family and so, every penny is is really out of our pocket and out our profit and Yeah.
Taylor Avakian
So, And where where is the office today in terms of occupancy? Where you guys at?
Nadine Watt
We're probably hovering around 70-plus. Okay. Um I think Century City is also a tale of two cities. There's the trophy properties, the properties that are on Avenue of of the stars and the brand new properties that are getting over uh you know, $10 a foot as we were just talking about and then um the properties that are are all still A I think all of Century City is an A A minus market. There's not, you know, Yeah. a lower end of Century City, but our properties are a little bit older and they just they're commanding, you know, maybe half of Yeah.
Taylor Avakian
the demand is not the same because there is you have these buildings with crazy, you know, technologies and and the way they're structured and parking and like all this kind of stuff. It's it's uh it is I see what you're saying in terms of tail of two cities of just I mean, we were in 2029 and then we moved to where we are today and it's just you can see the difference. You can see I mean, JP Morgan owns that thing. Unlimited boot cool box, right? They can spend on whatever they need to do, right? To get tenants in, concessions, all this kind of stuff. So, it's uh it's a battle for sure. I think Century City's still the best office market in Los Angeles.
Nadine Watt
For for sure.
Taylor Avakian
By by a wide margin. And if you've been there, you realize why.
Nadine Watt
Well, it's beautiful. The streets are pristine.
Taylor Avakian
Clean.
Nadine Watt
They're clean, there's no homelessness, they have a PBID, everybody pitches in, you know, the it's the kind of place where if you see garbage on the street, you actually pick it up and throw it away. Yeah. So, um who knows what's going to happen when the subway comes and uh hopefully the the PBID works and security increases and that, you know, it still is beautiful as it is. In our remodel, we uh opened up an entryway that goes straight onto Constellation where the subway stop will be. Oh, great. So, we have we'll have a direct entry. We prepared for that. In the remodel, we completely redid our lobby, we put in conference rooms, we put in Wi-Fi, we put in music, we put in um you know, some beautiful art and sculpture. We put in a gym. We're um in the process
Nadine Watt
of putting in a new restaurant, Carla Cafe should be opening any day Oh, what? So, you know, the cult following of Urth Caffé can come and get your matcha and your banana foam.
Taylor Avakian
Let's go.
Nadine Watt
Um and I need a sandwich. I'm I'm obsessed with that. is bar none the best sandwich in the city. So, we're super excited to have them come and then, you know, maybe they'll do some later happy hour stuff and we'll get that happy hour culture back to Century City. That has been missing for so long or since the seller left. Yes. Uh it's needing a little bit
Taylor Avakian
a little bit of yeah, and I think nightlife and and stuff like that. That that office culture which when downtown was was buzzing, it had from morning till night. Like you could do anything and everything. And obviously, if anyone knows downtown LA is not what it used to be. Um but I think if you can get that microcosm of everything within an area, right? With they have the mall, which is great and I think one of the best malls in LA. And the farmers market. And the farmers market, yeah, and and it's just it's a great place to be, I think, during the day. I would love for it to be a great place to be at night, too.
Nadine Watt
I think there's a new hotel coming. The InterContinental used to be Yeah, they're redoing The Fairmont has kicked up uh some occupancy has increased in their condos and yeah, if we could get just a little bit of energized Century City. I think the metro coming will help, too. And the mall being remodeled has made an amazing difference. Love Eataly, love, you know, a lot of the new Asian restaurants that have come in there.
Taylor Avakian
Din Tai Fung in there.
Nadine Watt
Din Tai Fung the best and that's a huge draw. So, you know, I think Century City has it. I mean, going back to downtown LA I think people forget what happened in this um you know, starting with COVID people not going back to work, still not going back to work. They forget the ancillary businesses that are not being activated, that are not being utilized. So many restaurants, so many mom and pop, you know, the flower shop, the dry cleaner, the nail lady, Yeah. you know, all those people who had to leave downtown because it was so unsafe and because there was so much homelessness and because people weren't going back to the office and those spaces were not activated, um it's it's really a shame. Um I'm glad to see some some government is coming back and Yeah. um you know, hopefully
Nadine Watt
downtown will will get revived again because that's what you need for a vibrant downtown and it's just heartbreaking.
Taylor Avakian
You and I hope both hope that that turns into something special again because it was at its peak was was very very unique place. Um I want to talk about a little bit of a year path into the real estate business from your background in terms of film entertainment. So, you you were more on the film entertainment side before then joining the family business. Can you walk me through
20:00–30:00
Taylor Avakian
why why film why entertainment? What was the draw?
Nadine Watt
Well, even before that, I had grown up in Europe and spent some time in Europe and I um originally went to Georgetown School of Foreign Service and I thought speaking a few languages I would go into the Foreign Service uh you know, professional or maybe someday be an ambassador and that still could still in the cards still could be a goal one day. But, I I loved that sort of expat lifestyle having lived it for a couple of years. And then for some reason they didn't offer the Foreign Service exam the year that I graduated from Georgetown and I wasn't ready to go to work and didn't know exactly what I wanted to do. So, I thought oh I'm I'll apply to film school. I I'll apply to USC and it's you know, the number
Nadine Watt
one film school in the world and if I get in you know, then it would be acceptable to do you know, there. So, I got in and graduated with my masters in in film and then I worked for a foreign sales company who happened to be in Watt Plaza. That was like Wow. my first um job entry was because I'd been leasing the guy office space.
Taylor Avakian
So No way.
Nadine Watt
the office in the building and he said what are you doing leasing me office space if you have a masters from USC? And I said oh I'm still looking for a job. So, he ended up No way.
Taylor Avakian
Yeah, he Were you walking around a little little taller when you're like hey you know, who owns this building by the way? Well, I had a better parking place than he did. Right? Nadine Watt her parking spot right here you're like wait you have a reserved parking spot?
Nadine Watt
Exactly. Um So, I worked in the business for a number of years and I traveled the world. There was there I got my international um film that I that I wanted. So, I would travel to all the foreign film festivals. And um we would look to acquire finished films or put together projects that you would have a script and you would have some actors attached like Van Damme and you would go around and you would sell to all the foreign territories. So, Japan was worth a certain amount of money. Italy was worth a certain amount of money. England was worth a certain amount of money and then you would whatever you didn't sell at the market at Cannes or at Toronto or at Milan then you would kind of uh there were some banks that would that would loan on the potential contract.
Nadine Watt
You know, the US was usually held out um Got it. So, they that would bankroll the film on pre-sales. Interesting. Yeah, it was a fascinating business and then that you know, it worked for so long um and then it until it didn't. Until it didn't. And so, the company wasn't going forward anymore and um so my dad said well while you're looking for another job why don't you come to the office and He's
Taylor Avakian
slowly pre-wedding you by American right? He's like hey I think it's time just come come hang out you know, during the
Nadine Watt
day. You're Sherry Lansing at Paramount. I want you to know how to read our balance sheet and know our business and know that someone isn't cheating you.
Taylor Avakian
Yep. So, you go.
Nadine Watt
So, I came back and then people didn't know what to do with me.
Taylor Avakian
Is she is she staying? Is she going? What's she doing?
Nadine Watt
And I said I need a project. I need some responsibility. And after that I said I'll commit to two years and now I'm almost 25 years
Taylor Avakian
later. 25 years later and the CEO the show. That's amazing. Was was there something or anything you learned during the that sales and film job that you've been able to take with you into the real estate side of the business?
Nadine Watt
Is there any creativity things. I'll just say that it's a kind of a same job different widget in a weird way.
Taylor Avakian
Yeah.
Nadine Watt
That you have to you know pick a project pick a script. You have to entitle a project. You have to get um your cast together produce the film. You have to um make the film right? So, you have to build the building. You have to market the film market the building. You got to fill it up. You got to lease it out. You got to do all the marketing and prints and trailers and um PR for a film. So, in a weird way that the two paths paralleled each other which I wouldn't have known when I started.
Taylor Avakian
Totally.
Nadine Watt
Um and of course all of development is is storytelling. It's Okay, let's beginning to end.
Taylor Avakian
Let's get into that a little bit because I'm fascinated by storytelling. I'm fascinated by being able to craft a narrative and and how humans react how how we decide to do anything right? What what compels us enough to take an action whether that's to go buy a film whether that's to buy a piece of clothing whether that's to lease out an office space develop over here. You know, what is it what's the story that we believe or we tell ourselves that this is something we want to do.
Nadine Watt
Wish I'd done a a little more psychology. My daughter's getting her um bachelor's at USC in psychology and consumer behavior. So, she's learning you know, what's the mentality of why we buy what we buy or why we like what we like. Wish I had a little more of that in my background.
Taylor Avakian
If I had to do it over again I would have taken psychology just because everything we do is uh humans. It's it's you're trading in relationships. You're trading in experience. I I was talking to um someone on my team today actually when we were talking about skills and I said you know, what makes someone really skillful is pattern recognition. And and he was like well, what do you mean by that? And I said well, look if you think about it why do you guys come to me for advice on certain things? It's because I've seen and experienced more of this and can recognize different patterns. Okay, is this deal going to make? Here's the hiccups we're going to get. Here's how we can try to overcome those because of my experience in recognizing these patterns and I think when it comes to real estate
Taylor Avakian
development or real estate in general or or any of these businesses it's recognizing those patterns and then being able to take that knowledge and then the other side of it is the human element. Okay, how then do we move this massage this make this come into reality by convincing or or making people make the actions that actually have to occur and that comes from a psychology perspective too. So, I think it's this there's a lot of things. I just love that side of the business and exploring that because I'm in sales too right? Like we you know, I'm working with people all day long and the storytelling aspect of of what you guys are doing with marketing and building like what has your film or has your film background like how do you use that in the way you think about what you guys need to do from from that
Taylor Avakian
perspective?
Nadine Watt
Well, even um I have to be telling the story from minute one. From the minute I bring it into the the governmental entity to entitle the project. I have to have been crafting story. I have to craft the story to get someone to want to you know, come along and pay for it with me. I have to craft the story of who's my market? Who's going to be living in this? Who's going to be occupying it or leasing it? I it's from day one and the and it has to kind of have um a through line from beginning to end that fortunately you know, development does offer that experience and um a lot of times you you don't know you don't know exactly what it's going to be but you start with a kernel. Like I'm my grandfather I don't think was as mission driven as I am right?
Nadine Watt
He was he was driven by a deal. He was kind of a deal junkie and same with my dad you know, loved the deal and you know, get this deal done so I can go on to the next deal.
Taylor Avakian
Yes.
Nadine Watt
And I'm a little more um experiential and I care more about the outcome um and people's experience with the outcome than I do about the
Taylor Avakian
deal. Got it.
Nadine Watt
That's what that's what gets you going. That's what gets me going more right? I'm I would almost work to break even
Taylor Avakian
Yeah.
Nadine Watt
to to be able for the outcome to be oh I've housed a hundred people. Got it. Or I've you know, made someone's life better or I've helped them have an experience a better experience than they would have had otherwise.
Taylor Avakian
Has that been difficult with um you know, other people cuz you're not the only one I'm sure making decisions. You have other people in the room trying to you know, have inputs and whatnot. Has that been hard for you to get across or to translate that into certain things? Has there been difficulties with you getting stuff to to happen because of that specific aspect?
Nadine Watt
I think you have to help them think it's their idea a lot of times. Okay.
Taylor Avakian
Yeah.
Nadine Watt
So, I don't know. I I you just made me think about a lot of different constituencies right? If you have a vision and you can sell your vision and you can help them think it was their vision too and that's also in the storytelling.
Taylor Avakian
Do you have an example that you can share?
Nadine Watt
Just as an example you know, I had wanted to do a renovation of Watt Plaza and you know, it's going to cost a certain amount of money.
Taylor Avakian
Yep.
Nadine Watt
And you have to sell the idea sell the vision that this will bring you more money bring you more tenants bring you something that's a value. Otherwise no one's going to go along with your vision and even something as simple as we we did it a chandelier scheme in the lobby. And the architect shows you 500 and each individual one costs a fortune. Uh-huh. And then so you got to you got to narrow you got to narrow the architect down,
30:00–40:00
Nadine Watt
narrow the consumer down, narrow the person who's paying for it and down. And so I think we ended up with maybe 200 in the lobby instead of 500. Now visually you still have a very similar impact.
Taylor Avakian
Totally.
Nadine Watt
But you're still getting a desired outcome. You're getting there and a unique Getting everybody on Right.
Taylor Avakian
You're like, I'm going to get this chandelier. We're going to work to to figure out how we make this happen and create the path to get the outcome that you're hoping
Nadine Watt
to achieve. Right. So that's something as simple as that.
Taylor Avakian
Yeah, I I get get where you're coming from too because I think what has been interesting to see from getting and keeping a deal together, right? And then like you said having someone else come up with it being their idea, but you can kind of lead them down the path to asking the right questions and having having them shape the narrative and story to the way that they think in perspective. Okay, you think in ROI. Okay, how can we shape this into being where the ROI or whatever number you're thinking of makes sense, right? And then I understand what it's going to be doing over here. So how how can we craft that or how can we have a conversation to get it to a point where we both agree on something to make something happen.
Nadine Watt
Right. That that I think that's a sign of a good deal.
Taylor Avakian
Yeah, exactly. All around.
Nadine Watt
Win win win.
Taylor Avakian
100%. We have a sponsor for today's episode and that is AI for Siri Collective. 25 listings at the moment. We're closing four or five deals a month. It's been incredible. So if you want to learn if you're in commercial real estate how to use the AI in your business, whether you're a property manager, a broker, an investor, really anyone. We have a huge group of 400 people in this community. And the website if you want to go check it out is AIforSiriCollective.com. So appreciate you guys. Now back to the episode. Tell me about through COVID and the disruptions that happened with Watt. Obviously you guys had done this huge renovation project and then the pandemic hit. And what happened?
Nadine Watt
To be honest, we were still, you know, at about 92% occupancy Wow. through through the first couple years. You know, the leases hadn't People were trying to make it work. And so the leases hadn't rolled over. And so to the to the extent that there weren't bad actors, you know, people were really trying to pay their rent and trying to be good ethical people. There's always, you know, the one or two bad actors um who were taking advantage of the regulations, but we we stayed pretty occupied through a couple years. And then as the leases rolled over, as people saw that the idea of work Mhm. was changing, that you didn't have to go into an office every day, they started to either downsize or just, you know, everybody work from home
Nadine Watt
or, you know, much much smaller work space Consolidating. to begin with. So um it was really hard to create an environment that you know, people would want to be in. And that's kind of what you have you would have to do to get people back to the office.
Taylor Avakian
Totally. Right?
Nadine Watt
You I mean, I think so much got missed in that work from home environment and I'm not a fan of work from home. You know, I think people need to be together. I think you get synergies of ideas, you get celebrations, you get succession planning, you get mentoring, you get if I don't see you, how am I going to know how good you are, if you should get a raise or if you should get a promotion or if someone who is there in front of me every day, I mean, they're more likely to get the attention and they're more likely to have a relationship with that I see and I trust. And and I think yeah, you that's one of the things that you lost in in work from home is this sort of innate trust that you had from people who you'd been working with and seeing every day
Nadine Watt
and um even, you know, just learning about their
Taylor Avakian
family. Yeah.
Nadine Watt
Building a real relationship. things that you just completely miss on Zoom. And those little interstitial moments, those happenstance things that help you get to know someone. I mean, even trying to take out the trash, you know, or like Yeah. You don't know. Oh, I didn't know where the trash was and somebody had to help me and then we spilled the, you know, everything on the way to the trash and whatever that like some some funny happenstance that occurs as you go through life.
Taylor Avakian
I agree. We I think when when we were out of the office um and again, I don't know if we were an essential business, but I think we got considered an essential business. Uh I think the statute of limitations are passed on that one, but we were out of the office for maybe like 6 weeks. And I um am the type of person I live a mile from the office uh and I moved there purposely because I and if anyone's watching this and knows me, I I live in the office. I love being in the office. It is my home away from home. It almost feels more home than my apartment building. And for me it's just being able to separate um you know, work from personal life. Like when I go home, I don't have Wi-Fi, funny enough. I don't have a TV.
Taylor Avakian
Yeah, well this is some extremes that I have, right? But uh it's like I want to be able to disconnect cuz I feel like with our phone nowadays, I can be on 24/7 all the time and it's it's very hard to have a single-minded focus to actually get something done when you have a million things all at once that anything could be done. There's always something to do and to be done. But if you don't know that most important thing that's actually going to move the needle forward because you're distracted by a bunch of things, it's really hard to actually make a movement forward to progress in whatever you're trying to do in your business or in your personal life or anything like that. So I think having Yes, having intention. Yes, having intention.
Taylor Avakian
You have to have incredible intention, especially in today with all the distractions that are going on. Yeah. It's incredible. What So I'm curious to know because you guys have a lot of insight um into how offices performing, the intricacies of of leasing and the markets. And I mean, I know you guys have shopping centers and developments. Like what's the state of the market as you see it today? What's the state of of office of Los Angeles? Like give me a little bit of color into what you're experiencing and and I guess maybe what are some of your constituents or some of your friends are discussing behind closed doors that's actually
Nadine Watt
happening. I'm starting to see a little bit of green shoots in the office. I think people are realizing the importance of connectivity in person, of how do you how do you do succession planning, how do you mentor, how do you grow people? I think people are coming to terms with that those are important things. So we're seeing a lot more expansion. I feel like it's the the retreat has stopped. Uh-huh. The recession has stopped and there's a very slow coming back awakening. Yeah, I see the green shoots awakening. So I'm optimistic about the future of office, I I guess. Um retail seems to be the darling
Nadine Watt
these days because we were so isolated that that was the one place where people can now go to the grocery store and go to some, you know, food courts or that human interaction that to get that community sense of community. Yeah. And so I think retail is back. There's enough room I guess for online purchasing and going to the mall.
Taylor Avakian
Yeah, to do both.
Nadine Watt
To do both. So I think there's a retraction in industrial. You know, it's not as on fire as it was six months to a year ago. I think, you know, tariffs have scared people a little bit and government scares people a little bit and whether we're going to be able to import and use all that industrial space, you know, it's a little volatile. It's a little bit of a question mark right now. Hospitality is very interesting. Mhm. Just, you know, seeing a lot of restaurant closures that have been around for 15 plus years now closing and they can't make it. I think minimum wage and unions are having a big effect. Some of the the regulatory The things that we've passed in Southern California and city of LA are having
Nadine Watt
an effect that wasn't expected, right? If you you can't pay everybody $30 an hour and still run a business. There's just it doesn't make it worthwhile. I think ULA had an effect that was unexpected. I think, you know, development has dropped off a cliff. Like there's not a lot of pipeline for multi-family or office. I just feel like in a few years there there's going We're going to
Taylor Avakian
feel something.
Nadine Watt
a void. Yeah. A very big void.
Taylor Avakian
Yeah, let's let's I want to talk dive into that a little bit with Southern California. What are we up against? I think I've seen it in the last 10 years of what's changed just in that short amount of time period, but there's a lot of things that have changed and it feels like the goal posts are moving completely continuously. Like the the rules of the game keep getting changed and it's very hard to play a game where you don't know what the rules are. So, what have you seen in terms of that effect, in terms of regulations and what's going on in SoCal, and what can we do about it?
Nadine Watt
I think we have chased out a lot of business
40:00–50:00
Nadine Watt
by not being supportive of business and new business. I think we forgot the importance of the entertainment business. You know, I come and come from the entertainment business. It was always one of the lifeblood of Southern California. We lost the defense industry a long time ago, but we could always count on the entertainment business. I think, you know, a lot of the regulations, the lack of tax credits, the lack of support for the industry, the the strikes, so many so many things have made the perfect storm of entertainment leaving. We also didn't get the benefit of AI coming. So, I feel like that went more to San Francisco, Northern California. And the surface is roaring. And they are thriving, and we are
Nadine Watt
drowning. Um, well, we would have to do something to incentivize businesses to come down here to to get some of that AI business, to revamp and reinvigorate the entertainment business. Um, I think the studio business is in the
Taylor Avakian
tank. Uh, it's We're at 60% and the studio
Nadine Watt
and studio and they used to be fully I mean, people started building more and more studio because could never Yeah,
Taylor Avakian
fill the demand.
Nadine Watt
Fill the demand, and so I don't know what it's going to take to get that back. And And you know what? I miss a little bit of the glamour. I love that was half the reason I was in the entertainment business was because it was so glamorous. The celebrity and the um, that lifestyle was one of the reasons I didn't want to come into the real estate business. It seemed so drab and unexciting. Little did I know, I was so wrong.
Taylor Avakian
But, uh But at least the perception was there.
Nadine Watt
The perception was there, and I'm I miss that a little bit.
Taylor Avakian
Mhm.
Nadine Watt
And even a lot of celebrities moved out of Los Angeles and aren't coming back. So, you don't have that ancillary.
Taylor Avakian
Like what Yeah, you kind of have to provide as a city, you're providing a service, right? You're providing a place for people to want to live, spend their money, spend their tax dollars to be in this place. And the weather can only take you so far. If If you don't provide the services that the tax dollars are paying for or the expectations, then why would someone choose to stay and spend their money there? It's frustrating when you see a possibility to improve this and you have ideas, and I think other areas have been taking advantage of our lack of decision-making a good decision-making from that front, and everyone's moving to these other places where they're like, "Okay, you guys don't want that talent, we'll take that talent.
Nadine Watt
Yeah, bring it on." Atlanta, we'll take Exactly. your entertainment business. We'll take everything.
Taylor Avakian
It's we'll take Vancouver, everyone, like here, come come. You LA doesn't want you, like we'll take you. And um, I'm curious, you sit in a lot of boards, you you talk with a lot of people in power who are making decisions and trying to change things and run a lot of businesses. What are they talking about? Like what what are they saying behind closed doors in terms of is this fixable? Are they working to enact something? Do we What are the levers of change that needs to occur? Like what are those conversations looking like?
Nadine Watt
Uh I mean, I I think uh leadership change.
Taylor Avakian
Yeah.
Nadine Watt
They talk about that. Um, the problem with uh you can't just change one leader because you have to have a people who support the leader. A lot of cities are are more supportive and are doing more for individual business owners, for large companies. I mean, Elon, Tesla has left. CBRE has left. I don't think we're doing enough to support big business industries to to stay in LA. Housing is too costly for employees. Transportation isn't there. Um, as exciting as LA is going to be with the World Cup coming and the Super Bowl coming again, and of course the Olympics and it being on a national stage, you know, that's not the cure-all.
Nadine Watt
And so much has to be done in the meantime and so much will have to be done afterwards.
Taylor Avakian
Yeah. Are you speaking of of moving and and moving your money, like are you guys looking to reinvest in Southern California and in California, Los Angeles, or are you looking to move your money other places because it's just become unfeasible for you?
Nadine Watt
I'm spreading out a little more geographically. I have investment in City of LA through I'm a co-GP with a group called Thrive and they're doing a lot of workforce housing, I'll say, not 100% affordable with a capital A, but workforce housing. And um, I have a couple hundred units that I'm developing in Waikiki under Bill 7. They're, you know, have a very tax-friendly um, mandate and are really working. Obviously, I have a partner on the ground there that makes that feasible, but um, and it's it's workforce uh I think it's 80% AMI, which is still, you know, $2,100 a month. It's still pretty high there. But, for me and my sort of mission-driven mentality, I can do well by doing good, and I
Nadine Watt
I mandate to keep these affordable for 15 years, and then they become market rate after that. And so, maybe that's for my kids one day later, but they'll cash flow very nicely. And And the city is much more friendly and they're much more supportive, and they they want Mhm. this product. I have a product I have a project at Crenshaw and Exposition that we've been working on for over 7 years, 400 units, fully affordable with 40,000 square feet of servicing retail. I can't get my capital stock together. I can't get I can't get the the vouchers to meet the bonds to meet the the all of the capital stock that's the funding the governmental funding it's not all coming together in in a way that we can get the project out of the ground.
Nadine Watt
And it's ready. 400 units are ready to go. They're designed, drawn, and titled, on transit. You know, that will connect the airport and downtown, and it's the city isn't helping and it's, you know, it's a fascinating governmental debacle, in my opinion, cuz it's the county and it's metro and it's the housing department and everybody can't come together and everybody can't communicate. And we're private developer trying to make it happen.
Taylor Avakian
Yeah, not even using the the funds and from the public perspective. Why do you think are they getting in their own way? Or is it Is it something where they're disincentivized to make it happen? Cuz everyone keeps saying we need housing, we need more units. Like it's clear as day that that is is an issue, but it seems like every decision that is getting made and/or the people who make it more difficult to do that are not allowing that to occur. So, is it Is it they can't get out of their own way? Is it the sentiment around LA from outside capital sources and and banks and these big people providing funding? Like what do you think is causing a lot of this inability to get something done?
Nadine Watt
Well, I don't think big institutional money is coming to LA right now. I think there's way too much stacked against that happening. Um, it will come eventually because there's no supply and nothing is getting done, but yeah, I'll just say the city can't get out of its own way. The the way that we fund isn't transparent enough. It's too much red tape, too many applications, too many this has to happen before that happens, and there's no communication.
Taylor Avakian
It's funny how they they say any sign of a good relationship is communication, right? And if they want private to actually build these things, cuz I know they're not going to build it.
Nadine Watt
Yeah.
Taylor Avakian
There needs to be a good line of communication if you want to have a relationship with the people who are bringing what you want to your city.
Nadine Watt
Yeah.
Taylor Avakian
New tax dollars, new investments, new people, affordable housing. Right? Like let's let's make it a little bit easier for us to do what you said you need to do.
Nadine Watt
Yeah.
Taylor Avakian
But they just can't.
Nadine Watt
And it's happening to everybody. It's not we're we're not alone here. It's all the big players. It's you name it. The Trammell Crows and the CIMs and it's it's the big
Taylor Avakian
players. Everyone's having issues with it. Yeah, it's it's um, it's something that I think we're hopefully have hit the pendulum of of the far side and we're trying to come back. We're on our way up. It's hard to tell where we're at in that whole pendulum swing, but I'm really hoping so because uh I mean, you know, 2 weeks ago there was a a vote that changed the way that RSO housing is rental increases, and I did a video on um, 1920s buildings. And I've historically, that's where I started my business was selling a lot of these brick buildings in Koreatown. And that's some of the most affordable housing in the city. And they just basically chopped its knees off by not allowing it to have the excess rent increases because it's master metered. And those buildings run at 55 60 percent expense ratios.
Nadine Watt
And now you can't allowed to charge back your water and your No. And your Um insurance and all the
50:00–1:00:00
Taylor Avakian
other Yeah, so how about you run this and you lose money? And um we're going to make it so you lose a little more money now coming up. So, thank you for providing affordable housing. It's like, no. No one in their right mind is going to be Uh you know, giving losing money on an investment. These are investments. There's risk associated with that. Um Why would anyone spend their money to go and do that? And it it just kind of baffles me that These are these are the decisions that are being made by uh people who say one thing and do the exact opposite. So, it's it's very frustrating. Um And it's speaking to to you guys, the family companies born and raised, grown everything up in SoCal. You know, been here for 80 years and you're like, "Hey, I don't think we want to do
Taylor Avakian
business with you guys anymore. You're just not uh the relationship isn't there. It doesn't It doesn't make sense." Um so, I hope they can get out of their own way.
Nadine Watt
I'm with you.
Taylor Avakian
Me too. You're very promotional and advancing the careers of women in commercial real estate. I've talked to a couple other very high-powerful women in in real estate and they say the same thing. What if are we making moves progress for that? What do you think can be done? Like, what is your experience with that? And uh do you think we need more women in commercial real estate?
Nadine Watt
Well, I think the sheer fact that we're talking about it is means that we're making strides. I I don't think women want to be chosen or to be hired because they're women. They want to be chosen because they're the best person for the job.
Taylor Avakian
Amen.
Nadine Watt
And so, the more the the bigger the pool Yeah. the more likely that is to happen. As we talked about sort of at the beginning, I am third generation, so I had a lot of doors open for me before I walked into this business. And because I've been fortunate and I had had that opportunity, I want to give that opportunity to a lot of women. I I'm going to I'm going to open that door and give it to as many women who are willing to walk through it. Now, that's another challenge because they don't raise their hand very often. I mean, if I'm teaching a class at USC, the amount of people that contact me afterwards, it's 90% men. It's not the Again, the women are not coming forward. I I talked to both, obviously. I'm hiring Trojans. But I wish more women leaned in.
Nadine Watt
Yeah.
Taylor Avakian
You know. It's It's I I completely agree and it's I We talked about this too before. Like, the best salespeople, and just speaking from the broker side, we're talking, you know, across the industry from the property management to the development to the principal side, like there's plenty of room. But even just speaking of the broker's business, women are the best brokers. They're empathetic, they listen, they understand humans um emotions, things like that, right? And that's so much of being a good salesperson. And uh if the opportunities are so endless. If it's just getting past like that initial uh I don't know if it's like a perspective or the adage of it being like um you know, a old boys club or whatever it is. I'm not quite sure. Sales, obviously, you know, it it's not for everyone. I get that. But I think realizing that there is a
Taylor Avakian
competitive advantage to being a a very confident woman in the industry, like you will do better than the men. You like you really have the skill set to be I'll take that. better Yeah, to to let No, literally. I And I've experienced it firsthand. So, I hope that um any of the women listening to this realize that their opportunities are are boundless in in the industry. It's ripe for disruption.
Nadine Watt
So, if you want to be the type of guy that excited that, you know, we get together as a group and we get uh you know, Reon and Jamie Lee and Vicky and myself um you know, we all get together and talk about ways to make improvements and ways for more women to have a voice. And um we're fortunate that we even have this group of second, third generation women in this business. Um again, I don't know that any of us would have been in it if we weren't second or third generation. Just given the barriers to entry. So, I think we all agree that we will open doors for as many women as possible.
Taylor Avakian
I'm excited for that. I really am. Um tell me about the long-term vision for what for where you guys are seeing this. Obviously, there's cycles that are coming. Like, what is the next 5, 10, 15 years look like in your mind? I guess you don't have to necessarily have a plan, but how do you see the company growing? Do you see the kids, your kids coming into the business? Like, what What do you envision for for Watt?
Nadine Watt
Well, having being a third generation, I would love to see it go into the future. I originally didn't think either of my girls would be interested. But um as they're getting older and more mature as I did, they're showing a little more interest. Um my older one is graduating in May.
Taylor Avakian
She's graduating soon.
Nadine Watt
Thank you very much. She worked at um Kennedy Wilson over the summer cuz I wanted to have her get a little taste of real estate and see if what she thought. And I think she likes the idea of um communications and um marketing for high-end hospitality. So, we may have a hotel in our future. Who knows? And my little one, she's just a freshman, but has also expressed some interest in real estate and learning more what I do and being able to explain it to her friends. So, maybe I'll have done a good thing by starting early enough. Um I really had no interest. I Like I said, I I wanted something a little more glamorous, a little more sizzle, or what I my idea of that was. So, um I think I've shown them that this has all of that and more.
Nadine Watt
Um It can it can make you some money and it can give you some some give back and some opportunities for philanthropy and some opportunities for civic engagement. I'm you know, I've been really fortunate to have be able to do a lot of different things.
Taylor Avakian
It's very uh It's a very dynamic industry and you can do so many different things to to move the needle in in different directions that I think giving someone an opportunity to see that, right? This this real estate definition what people have in their mind, it's like, no, go explore it and see how fun it is. There's so much fun to be had. It's not this boring old industry. You can make it unique. You can make it your own. Especially hospitality. I mean, the world's changing. Things People experience things Again, you're providing a service to people, right? The real estate doesn't work unless there's people involved in that real estate who are paying to rent whatever it is, the NOI to to get there. So, it is It's really a people business.
Nadine Watt
It's a customer service business.
Taylor Avakian
customer service business.
Nadine Watt
People forget that. I mean, it's it's problem-solving and customer service. Those are the two things I feel like I'm doing every single day.
Taylor Avakian
All the time. Every day. Um let me ask you before we wrap up. If If you were late 20s, early 30s, or just starting out in the business with everything that you know, right? Where do you think you'd be headed? Where would you be focusing on? What What would you be doing with your knowledge now to to set yourself up to ideally be in this position where Nadine Watt is today?
Nadine Watt
I think building your network is super important.
Taylor Avakian
that.
Nadine Watt
That you make friends and you talk to a lot of people. And never dismiss anybody. I mean, my grandfather knew everyone's name when he walked in the door. He from from the janitor to the woman at the front desk, too. He He looked everybody in the eye and he knew a little bit about every single person. And I agree, it's a people business. But your employees aren't necessarily your customers. But But in a way, they are. And it's your brand. I'm I'm selling my brand. Here is me. And one of the things that I learned is how to treat people and how I want to be treated and how to listen. And how to try and be humble and how to try to make people feel good. And um when you walk into a room, acknowledge people. I think those are some things that are really important.
Nadine Watt
And if you are good with your network and you you start young, you start early, and you just continue to grow it, those people are going to be growing with you. And they're going to be the CEOs when you're a CEO. And you guys are going to have a group just like I mentioned. I have a great group of women friends that we all sort of grew up uh together in this business. And I just would say take advantage of that and take advantage of of mentoring and um being a good mentor and also hopefully someone mentoring you.
Taylor Avakian
Yeah.
Nadine Watt
Teaching you some things. Helping you do it better than they did it.
Taylor Avakian
Yes.
Nadine Watt
Giving back. generational expertise that, you know, one of the last things my grandfather said to me before he passed away was, you know, do your homework. Like, don't let people take advantage of you. And um you know, make sure you are prepared. And And then I The other thing my my father always tell me is use the experts. Like, you people smarter than you in the room, ask them for advice, ask them for help, have a great board, have a great advisory board, have great surround yourself with great smart people, they'll make you look good, too.
Taylor Avakian
Let me ask you one of the follow up on that. What are the lessons that you've taken from your your grandfather and father? You mentioned a little bit, but like, can can you expand on what you've learned from them?
Nadine Watt
Again, consulting the experts is really important. Don't be Don't be afraid
1:00:00–1:10:00
Nadine Watt
to have someone be smarter than you or to know more than you do. They definitely gave me experiential advice, like, better to have one large lobby than two small lobbies, something as silly or minuscule as that. Um, you know, don't burn bridges. Try to be as ethical and honest as you can in a negotiation. You never know when you might need that banker again or you might need that politician. Yeah.
Taylor Avakian
Yeah.
Nadine Watt
So, for me, I definitely try to as I said, have some humility, but be confident and be self-assured and be honest and and ethical in my in my dealings with people.
Taylor Avakian
I love it. Nadine, thank you very much for being on the show. I learned a lot. I enjoyed a lot of it and I'm excited for for people to listen. So, go check out Wat Plaza. I'm excited to see what you guys build and thank you. Come visit me, friends and family. I know. I know discount. We might be moving in soon.
Nadine Watt
Thank you. Thank you, too.