December 3, 2019
By Dennis Kaiser
Danny Rainer recently joined JLL’s Century City office as EVP to focus on the West Los Angeles and Downtown submarkets. Connect Media caught up with the tenant rep broker to find out what the latest office trends are and how they’re impacting demand. Check out our latest 3 CRE Q&A to find out how the push toward creative office environments is being addressed today.
Q: How would you describe the state of office tenant growth in L.A.?
A: The office market remains healthy and active, as the creation and diversification of media content continues to energize the Los Angeles office market. We’ve seen a new wave of tenant migration. New deals at new projects are getting done and hopefully we will see this trend continue.
Q: What features and amenities are in the most demand for office tenants? Will we see more creative office space going forward?
A: Outdoor space and authenticity are two main drivers creative tenants want. Connectivity to indoor/outdoor space is highly sought after and landlords are doing a better job at providing and adapting to this request. Tenants are also looking for true authenticity of building character which is where you find true “creative office.” Exposed ceilings and concrete floors are so prevalent now that at times can have a sterile feeling. Unique building design, architecturally enticing space and thoughtful design are what tenants want in creative office space.
Q: What are some of the challenges office tenants are facing in the relocation process?
A: Construction costs and rate sensitivity are two challenges. With the enormous scale of construction taking place throughout the city, office improvement costs have skyrocketed due to the demand for construction labor. Tenants are finding it harder and harder to relocate for a cheaper deal and to construct replicated like-kind space is nearly impossible to do with landlord allowances. The office market is as expensive as its ever been in Los Angeles, which creates heartache for small to mid-cap tenants.
For comments, questions or concerns, please contact Dennis Kaiser