Netflix, WeWork and others bolster L.A.'s office market

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Entertainment, technology and co-working companies kept Los Angeles office landlords happy in the third quarter.

The office rental market in Los Angeles County held steady in the third quarter as technology, entertainment and co-working companies kept up their long-running demand for new space.

Among the largest Westside leases were Kite Pharma’s agreement to take 87,000 square feet in Santa Monica and WeWork’s deal to occupy 67,000 feet in West Los Angeles. Average asking rents on the Westside were $5.14 per square foot per month, well over the county average of $3.71 a foot.The county average rent was unchanged from a year ago and vacancy also held steady at 14.3%, the same as it was in last year’s third quarter.

Hot Hollywood has seen a raft of “pre-leasing” of planned or unfinished buildings in recent quarters, with market dominator Netflix interested in any offering of 20,000 feet or more. The entertainment streaming giant has leased or committed to occupy about 1.6 million square feet in Los Angeles. Nearly 80% of the office space being built in Hollywood is already leased.Burbank’s sister “Tri-Cities” markets of Pasadena and Glendale also had a good quarter, Horne said.

 

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