Entertainment has historically been a pillar of the L.A. office market—so it was not surprising when Savills Studley’s 2Q16 office report showed that entertainment and media were the top leasing performers for the quarter. However, with all of the talk about the growth of tech—the now proverbial Silicon Beach movement—we were curious how entertainment stacks up against the new office giant. Turns out, they are one in the same. Here, Savills Studley SVP Josh Gorin sits down for an exclusive interview to talk about entertainment, technology and how the L.A. office market is really performing.
GlobeSt.com: Is it surprising to see media and entertainment industries lead leasing activity in the market?
Josh Gorin: Not at all. As content creation has seismically shifted from more traditional studios to technology platforms, it’s not a surprise that Los Angeles has seen an incredible amount of growth in this vertical. There has long been an active entrepreneurial tech community here so it was only a matter of time before the manner in which entertainment is created met the changing nature of its consumption. Much of the rental rate growth in the market was initially propped up by capital markets, Landlords arbitrary pricing and a willingness of certain companies to overpay due to LA seeming like a relative bargain compared to their Northern California nerve centers. This industry niche represents real growth.
GlobeSt.com: The leasing activity seems to be segmented. Is the office market struggling in areas where there is fewer demand from media and entertainment?
Gorin: Despite the hype, there are certainly pockets of softness throughout the market and many options for companies that can be creative and patient with their search. Landlords remain in the business of leasing space and rarely will pass on an opportunity to compete for quality tenants...Tech Or Entertainment: Which Industry Leads L.A. Office?
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