A New Thriving Real Estate Market
At the recent Los Angeles Silicon Beach Real Estate Summit, presented by Bisnow, a panel of commercial real estate professionals discussed the driving factors luring start-up technology and media companies to coastal towns. This area, which is increasingly being referred to as “Silicon Beach,” includes Playa Vista, Marina Del Rey, El Segundo and Santa Monica,
The panel included:
- Wayne Ratkovich, Founder & CEO of The Ratkovich Company.
- Howard Stern, President of Hudson Pacific Properties.
- Randy Starr, Founder & CEO of Starrpoint Commercial Partners.
- Jeff Solomon, Co-Founder & Executive Director of Amplify.LA.
- Chari Jalai, VP and Director of Interior Design for HOK Los Angeles; Kevin Ratner, President of Forest City West.
- Chris Nowlin, Senior Vice President – Human Resources & Operations of Dun & Bradstreet.
- Nick Romito, Founder & CEO of View The Space
After companies such as Google, Facebook and YouTube took space in Silicon Beach, smaller companies flocked to the area to get their share of this new market. These start-ups consist of a younger generation and they have a whole new outlook on “the office.” Some of the items on their wish list when leasing space include:
- Flexibility – The office cubicle is obsolete. These companies work in teams and seek space that lends to a collaborative environment. Indoor/outdoor spaces for meetings is also a must.
- Leasing flexibility – As start-ups, they are looking for short-term leases and landlords that are flexible when it comes to renovation and redesign.
- Shared resources – As more competitors are sharing office space, these tenants are functioning similar to how a small college campus would function.
- Walkability – They want to walk to work, lunch or to a museum to get their creative juices flowing.
Law firms and accounting firms are learning from tech companies, saying “good things can come from talking to each other.”
So, what’s next? The panelists forecast that downtown Los Angeles will be the next big hub for tech and media companies, largely due to the fact that the football stadium is being built at LA Live and that you can walk almost anywhere downtown.
As the coastal towns continue to flourish, the real estate market appears to have a bright future and lots of opportunities.
-By Berbay Account Manager Erica Hess