Does downtown really need another office building?

Certainly not right now, based on high vacancies and the fact that companies require less space to do business. Back in the 1970s, as noted by the LAT the other day, corporations would plan on 500 to 700 square feet per employee. Today's average is a little more than 200 square feet, and by 2015 it could drop to 50 square feet (it's the ubiquity of laptops, telecommuting, a changing corporate culture, etc.). So why on earth would Korean Air want to build both a hotel and office tower to replace the Wilshire Grand? And why did the Planning Commission sign off on the idea at yesterday's meeting?

Well, for openers, the office portion won't necessarily be built. Developer Thomas Properties hopes to break ground on the 560-room hotel in about two years (with the opening set for 2015), but plans for the office tower are less clear. As the Downtown News reports, development would depend on market conditions. If the thing does get built, however, I wouldn't be surprised to see it succeed. By 2015, 23 years will have passed since the last commercial high-rise was completed in downtown L.A., and a shiny new building could attract plenty of tenants. Remember, too, that by the time the tower is ready, economic conditions are likely to be a lot stronger than they are now, which means more business formations and a greater demand for space.

It's the financing, though, that continues to be worrisome - and more to the point, whether Korean Air receives some of the same tax breaks and other incentives that the city has showered on AEG over the years. Given the unsettling budget prospects, unnecessary tax breaks are about the last thing L.A. needs to do.