Man of Two Countries : Irish Native Compares Markets Here, Abroad

John Rohan has learned to look for the future in two different places.

As president of the Rohan Corp., Los Angeles, he develops commercial and industrial property in Southern California and also in his native Ireland.

He says the most significant difference between the two markets is how far away each places its future.

Southern Californians, he says, see the future as being just beyond the present.

The Irish see the future as off in the distance.

One result of this time view is that Irish commercial and office leases typically are for 25 to 30 years, with a review every five years.

This compares to the typical Southern California five-year lease with one five-year option.

‘Greater Flexibility’

“While the shorter leases favored by Southern Californians can be seen as reflecting a lack of long-term planning,” Rohan says, “it can also be seen as showing greater flexibility.”

An offshoot of this differing view of time, Rohan says, is Californians’ desire for new architectural designs compared to the Irish preference for traditional designs.

Almost as significant as the differing time views is the greater wealth of the U.S. economy--especially the Southern California economy.

One result is that Southern California tenants get more amenities because they can afford to pay for them.

“For example, while Southern California business park developers commonly use 15% to 20% landscaping, in Ireland, it’s more typical to use only 5% landscaping.”

Weather Conditions

The Irish climate also affects development.

“We don’t use tilt-up concrete construction in Ireland because we can’t pour concrete in the rain. The Irish evening frosts can also damage the curing of the concrete,” he said.

In Ireland, Rohan’s firm manufactures precast concrete portal frames. These are used to support the building’s roof. External walls are clad with concrete block or brick or a combination of block and metal sheeting.

During the 1960s, to satisfy a pent-up demand for housing, Rohan built more than 3,000 prefabricated concrete bungalows in Ireland. He sold them for about $2,000 each, which included erecting them on the buyer’s property.

Better Labor Relations

Labor relations between contractors and unions in Southern California are better than they are in Ireland, Rohan says.

In Ireland, contractors must deal with a greater number of labor unions on each job site than do Los Angeles contractors. Irish labor unions are also more suspicious of management’s motives than here and strikes are more common.

Financing is also different. The Irish do not have anything similar to our construction loans on specific projects but make loans based on a builder’s reputation and balance sheet.