Los Angeles large office leases being inked well before project delivery dates
There are currently 21 projects throughout the Los Angeles basin totaling 2,541,470 square feet in the construction pipeline.
January 23, 2019
- There are currently 21 projects throughout the Los Angeles basin totaling 2,541,470 square feet in the construction pipeline. These ground-up and redevelopment projects are scheduled for completion in the next 24-months. Additionally, there is roughly 2.2 million square feet of planned development which has yet to break ground but is already drawing the attention of large users in the market.
- New media companies with an emphasis on content creation are driving demand in the Los Angeles market. Bay area giants such as Netflix, Apple and Google have grown their local footprint, some by 1,000 percent in the last 5 years.
- New development projects in key micro markets appear to be the product of choice for these large content creators looking to further expand their presence in this strategically important market.
- The early commitment by new media companies remains contradictory to the long standing trend that Los Angeles is not an active preleasing market. Tenants have traditionally been slow to commit to development projects, often waiting for final delivery before inking deals. However, due to the explosive nature of the new media industry, many users are signing leases in an attempt to stake claim to specific submarkets and bank space for future growth.
Source: JLL Research