Home News Los Angeles’ Office Real Estate Market Recovering on the West Side – The Hollywood Reporter

Los Angeles’ Office Real Estate Market Recovering on the West Side – The Hollywood Reporter

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As a commercial for LA real estate Markets have recovered from the COVID smash, with some regions prospering while others have been sluggish for two years. Jody Poirier, Executive Managing Director of Koreas, said:

Bill Bloodgood, Executive Managing Director of Newmark, said: This is good news for established new creative hubs such as Culver City, West LA, South Bay and Arts District. In the words of JLL’s Managing Director, Jaclyn Ward, for a more traditional business district, such as a central, outdated office space in downtown that looks like a “law firm in the 80’s or 90’s.” The bad news.

Overall, the Greater Los Angeles region’s commercial sector lags behind other parts of the country due to strict COVID regulations and 25% of office space available, according to a report from the Koreas’ first quarter of 2022. I am. While employees are returning to work, they have fewer days to return to the week, reducing the need for floor space. “We see companies doing more in less space,” says Bloodgood.

Playa Vista’s three Waters Edge campuses near Facebook and Google’s LA offices.
Courtesy of Cbre

Pandemics are also accelerating pre-COVID trends, with employers focusing on fostering a comfortable and creative environment for their employees. There are high-rise offices with many cubicles. There are brick and wood low-rise buildings with ample natural light, garden space, high ceilings, ease of entry and exit, and facilities such as gyms and dog runs.

A prime example of this new style is Hackman Capital Partners’ 30-acre 888 Douglas St Campus in El Segundo. This is a modification of a former aerospace plant with a 50-foot-high ceiling and skylights. The other is Playa Vista’s Waters Edge. Here, Nike has taken over the campus building, including an Olympic-sized swimming pool.

Jeff Pion, CBRE’s Vice President, said:

Ward sees the battle for amenity brewing as businesses compete for employees. “We have a big resignation in our hands,” she says. “We have a very tight labor market and these changing workplace dynamics. All the big companies are fighting for the same talent.”

Home to Amazon Studios and Warner Bros. Discovery, Culver City continues to be LA’s hottest entertainment hub. The amount of low-rise, creative choices for users, “says Bloodgood.

Indeed, with its large number of large, flexible and creative campuses, West LA has bounced faster than anywhere else in the county. “The West Side of LA is about 25 percent of Los Angeles,” says Ward. “But the West has specifically accounted for 30% of all leases we’ve seen in the last three months.”

The resurgence of West LA is partially supported by the growing popularity of Century City, which is attractive for its central location, as well as the presence of Westfield Century City Mall and the new Fairmont Century Plaza Hotel. In January, CAA announced that it had signed a lease agreement for 2026, the main tenant of an unconstructed 37-story tower designed by JMB Realty. “It’s a high-rise environment, but it’s working very well. I think it’s amazing to many,” says Pion.

This is another story in the high-rise areas of DTLA, where traditional sectors such as banks and financial services have long dominated. According to the Koreas, the overall vacancy rate in downtown is 29.8%, the highest in the LA office market.

Pandemics have had a devastating impact on commercial real estate, which may help turn offices into more enjoyable workplaces. “Companies are still interested in how to foster a corporate culture,” says Ward. “I find it very difficult to virtually build a corporate culture, whether it’s collaboration, connection, or anything for you.”

A version of this story first appeared in the June 1st issue of The Hollywood Reporter. Click here to subscribe.

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