El Segundo, Playa Vista and Hollywood have captured much of the creative office space conversions attention. Now, Downtown Los Angeles’ Arts District diverse and changing setting is getting in the act as well. The addition of retail, multi-family and condo units as well as cultural venues is helping draw office tenants and developers Downtown, including the headquarters for Hyperloop, Elon Musk’s high-speed transportation initiative.
Nearly 15,000 residential units are planned for the Arts District over the next several years. ASB Real Estate Investments and Blatteis & Schnur started construction of AT MATEO in early 2015. The $80 million project will have 125,000 SF of open-air retail space and 50,000-SF of creative office space constructed with re-purposed materials such as bricks and wood beams from nearby schools and historical structures.
Westside’s Appeal Remains Strong
While Downtown Los Angeles has gained traction of late, many creative sector tenants still prefer a Westside location. The Interpublic Group leased 150,000 SF of former Northrop Grumman space at 1840 Century Park East in Century City. The marketing firm, which is currently located at Pacific Design Center in West Hollywood, said the building will shorten the commute time of some of its 700 employees. The space at 1840 Century Park will be redeveloped into creative office space to house its public relations subsidiaries PMK-BNC and Rogers and Cowan, which will have signage on the top of one of the towers.
Tenants are spreading out across the entire region. In San Gabriel Valley, City of Hope's Beckman Research Institution committed to the entirety of the Xerox building (139,644 SF) at 1214 South 5th, Monrovia’s biggest lease since SCE occupied the same space as a sublease in 2010.