Western Real Estate Business

JUN 2018

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

Issue link: https://westernrealestatebusiness.epubxp.com/i/993830

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Page 48 of 50

46 • June 2018 • Western Real Estate Business www.REBusinessOnline.com firms and law firms are still keeping an eye on out-of-pocket expenditures. Fortunately, ample supply in many of the gateway markets is compelling landlords to offer record concessions, making conditions ideal for tenants." Downtown's deep ties to the legal, banking, and professional and busi- ness services sectors prevented this submarket from gaining much trac- tion last year. Tenant effective rent (the tenant cost for top Class A space) in Downtown LA rose above $30 per square foot in 2017, but is still sub- stantially lower than its Westside brethren. Tenant effective rent in West LA was $53.46 per square foot in 2017, representing the third consecutive year-on-year increase, according to Savills Studley's Effective Rent Index 2018. Competition may be fierce for office space in highly sought-after submar- kets like Silicon Beach and the West- side, but the pursuit of new, novel and exclusive means LA's office market all comes down to neighborhood and youth. Now in My Backyard A new form of NIMBYism seems to have emerged among LA's office elite. It's the ability to tout the innovative, forward-thinking companies who share your parking lot, amenities and lunch options. Ring.com, which pro- duces live-stream video services for doorbells and security cameras, cur- rently resides at 26th Street in Santa Monica. The company was recently acquired by Amazon for more than $1 billion. One of its first items of busi- ness was to switch submarkets. Silicon Beach may be a Southern California tech mecca, but Jamie Simi- noff, Ring's inventor, was attracted to another area that has garnered fa- vored with, among others, Elon Musk. Ironically, Hawthorne is known as "the city of neighbors," and that's just what Ring will be getting when its new 62,000-square-foot headquarters is completed by the end of the year. "With SpaceX, Tesla and Amazon's shipping center located a stone's throw away, some of the world's most renowned creative geniuses of the tech industry will have their eyes on the development of this area, which we feel extremely honored to be a part of," says Matthew Rosenberg, CEO and founder of M-Rad, which is designing Ring's new creative office campus. "The opportunity to design Ring's headquarters in this rapidly evolving tech hub couldn't be a better fit for us." The headquarters at 12515 Ce- rise Ave. will be developed by Vella Group. The creative office space will feature a grand atrium with 30' trees, unique co-working space, and a state- of-the-art engineering and design wing for the technology startup that is just steps from the Tesla and SpaceX campuses. "We are proud to join the list of in- novative, forward-thinking compa- nies that call Hawthorne home," Simi- noff says. "Our new space will allow Ring to grow as we work to make our neighborhoods safer." In addition to impressive neighbors, Ring's 250 employees will be situated near Hawthorne Municipal Airport, Interstate 105, Chester Washington golf course, and big box services like Lowe's, Target and 24 Hour Fitness. "Hawthorne has become a hotbed for technology companies seeking sustainable alternatives to creative office space in El Segundo and LA's Westside," says Zach Vella of Vella Group. "We are thrilled to play a role in this exciting transformation that will continue to bring good-paying, creative jobs to the city." Satellite Success SiriusXM was also attracted to its new LA digs based upon the loca- tion, neighboring tenants and abil- ity to have a brand-new office space. Headquartered in New York, the world's largest radio company by revenue recently signed a long-term lease for 27,000 square feet at CIM Group's new building at 953 Syca- more. The eight-story building on the southwest corner of Sycamore Av- enue and Romaine Street is situated in an evolving community southwest of central Hollywood known as the Media District. As the name notes, the neighbor- hood is already home to casting agen- cies, acting classes and media studios, including Formosa Group sound company and Docler Holdings enter- tainment firm. The new office space, which will offer contemporary design with floor-to-ceiling glass façades, will be housed on the top three floors to maximize light and views. Parking is provided on the second through fifth floors, along with two subterra- nean levels. The ground floor features additional office and retail space. Siri- usXM will use this new office as its West Coast programming headquar- ters. It will also utilize a portion of an adjacent CIM building to the south for a live performance space and broad- cast studio for multiple channels and shows. "The addition of SiriusXM to the neighborhood exemplifies the strong appeal of the area to entertainment and media businesses," says Shaul Kuba, co-founder and principal of CIM Group. "It provides a walkable environment with a multitude of pur- veyors of art, food and fashion near desirable residential options and pub- lic transportation. These attributes make this a prime location for a mod- ern office building." Los Angeles City Councilmember David Ryu believes these new office projects will allow the Hollywood area to maintain its foothold on the creative and media industries the city was well known for prior to this trend taking off nationwide. "New office space that attracts en- tertainment businesses, such as Siri- usXM, is a welcome addition to the area," he notes. "It brings good jobs to the district and enhances revenue for the city and local businesses. As the employee base grows it attracts new retailers and restaurants and other amenities to the area, enriching the community for all." CIM Group is also busy finishing up its nearby Formosa West campus, located at the Lot on Santa Monica Boulevard and North Formosa Av- enue. The campus already features a 98,000-square-foot creative office building, which will be joined shortly by an additional 106,000-square-foot creative office building. The campus is home to the OWN network and Fun- ny or Die productions. Showtime will also relocate to the new building from Westwood once the space is complete. For companies that are able to land brand-new office spaces situated among tech and media royalty, it re- ally can be a classic Hollywood end- ing after all. n IN LA'S OFFICE MARKET, IT'S ALL ABOUT THE NEW NEIGHBORHOOD Ring's creative office space will feature a grand atrium with 30' trees, unique co-working space, and a state-of-the-art engineering and design wing for the technology startup that is just steps from the Tesla and SpaceX campuses. LA OFFICE from page 1 SiriusXM recently signed a long-term lease for 27,000 square feet at CIM Group's new building at 953 Sycamore in Hollywood's Media District. CIM Group is finishing up its Formosa West campus, situated at the Lot on Santa Monica Boulevard and North Formosa Avenue. Showtime will also relocate to a new creative office building from Westwood once the space is complete.

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