Adaptive reuse projects draw the attention of large office users
While ground-up development is costly and time consuming, some developers are turning their attention to outdated, or underutilized historic buildings.
March 12, 2019
- As Los Angeles continues to benefit from the growth of both content creation companies as well as the profound expansion of flexible office providers, the market is attempting to keep pace with the ever growing demand. While ground-up development is costly and time consuming, some developers are turning their attention to outdated, or underutilized historic buildings. Once converted, these architecturally interesting projects offer the same modern conveniences of new, ground-up creative construction, but come with a storied history and desirable location. These projects typically command above market rents, which has not scared off users whose company mission or culture is amenable to a unique office setting.
- In recent years, we have seen the success of many of these adaptive-reuse projects, first starting in downtown’s Arts District with conversions of old warehouse and manufacturing projects and more recently hitting the rest of the market, stretching from Hollywood to the Westside, south into El Segundo and out to areas in the Tri-Cities and San Fernando valley.
- There are currently 9 projects, including a former shopping mall, a newspaper publishing headquarters, two stand-alone big box retail sites, and a former aerospace campus which are set to deliver in the next 3 years. Five of those projects are either entirely or substantially pre-leased by major users.
Source: JLL Research
You may also like
Shifts in the way people live, work and shop in a post pandemic world have forever impacted the industrial real estate sector
Chestnut and Walnut Street retail visits drop precipitously in Philadelphia during COVID-19 pandemic
Pressure from distressed New York retailers has softened landlord sentiment, allowing for lease restructurings