Los Angeles – Oct. 14, 2016 – Over the past 10 years, 67.1 percent of the office construction in Los Angeles County has occurred in Playa Vista and Hollywood, according to the latest research by CBRE Group, Inc.
Between 2006 and 2016, 1.58 million square feet of new office space was completed in Playa Vista, 45 percent of the LA County total, and 758,566 square feet, or 21.7 percent, in Hollywood, according to CBRE research.
“Development in Playa and Hollywood took off for similar reasons,” said Patrick Amos, first vice president at CBRE. “There was room to build, and both markets are in desirable locations, making them ideal for large tenants looking to attract the well-educated, Millennial talent from across Los Angeles.”
Playa Vista and Hollywood grew at different paces, yet development activity has been buoyed in both by the appeal of their live-work-play environments. Playa Vista was the last piece of undeveloped land on the Westside, attracting large tenants that could not find space in markets such as Santa Monica.
Leasing data confirms that larger tenants have been signing leases in both submarkets as compared with the Los Angeles average, according to the research. Like Playa Vista, Hollywood offered large available blocks of space that tenants could only previously find in markets that lacked housing, amenities and a central location.
“The decade-long transformation of Hollywood into a 24-7 environment, has drawn office developers and tenants to the area,” said Maximilian Saia, senior research analyst at CBRE. “We expect growing tenant demand and the dissipation of large blocks of quality space to push asking lease rates up in both neighborhoods, as particularly owners of high-quality properties will hike rents in the face of demand.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
