The bulk of Los Angeles’ office construction in the past decade has been concentrated in Playa Vista and Hollywood, a new CBRE report found.
The two markets are responsible for more than 67 percent of all office construction between 2006 and 2016, GlobeSt reported, citing the study. That’s 1.58 million square feet of construction in Playa Vista — or 45 percent of L.A.’s total — and 758,566 square feet of construction in Hollywood, which accounts for 21.7 percent of the total.
Both markets tend to target creative tenants, especially in the tech and entertainment fields and are attracting a millennial workforce, according to CBRE analyst Max Saia.
Playa Vista was the last frontier for the Westside, Saia said, while Hollywood has been redefining itself for years. The latter still has a considerable number of developments under construction, but has seen successful in pre-leasing.
Saia attributed the L.A. market’s high vacancy rates to tenants becoming more savvy and efficient with the use of their spaces. [GlobeSt] — Cathaleen Chen