By Andrew Havill
In a submarket monopolized by one of Los Angeles’ largest institutional owners of real estate, Douglas Emmett, creative office space in the San Fernando Valley has been few and far between…until now. More traditional office space was the go-to product type for companies located on Ventura Boulevard and the surrounding area, but the valley is going through a transformative time spurred by the booming West Los Angeles office markets just on the other side of the mountains.
As Silicon Beach (Santa Monica, Venice, Playa Vista, Culver City), Beverly Hills, West Hollywood and Hollywood continue to explode with rental growth and record low vacancy rates, companies are now looking further than ever for creative office product at a lower price while still attracting top employee talent. The “budget” option used to be Culver City, but with the large signings of HBO, Amazon, Google, Apple and TikTok, rents are almost double of what they were 5 years ago for the same office product, which amount to some of the highest in the county.
With the majority of the West Los Angeles market filling, where will the next wave of growth occur? The San Fernando Valley has a strong chance. Companies can still attract top talent that live in Silicon Beach, Beverly Hills and the Hollywood areas given the reverse commute on the 405 or 101, making drive times extremely manageable for the millennial filled housing markets. By calling the valley home for organizations, companies can cut their rent in nearly half—and for some companies, this could be the difference between making it to their next round of funding, or not.
Thankfully the valley has experienced a large influx of quality, creative product that is attracting some of the top companies in the country. Douglas Emmett has also even changed their produce strategy to offer spaces with exposed ceilings, polished concrete flooring, upgraded kitchens, and amenity rich environments that more creative focused tenants love.
Below are just a few of my favorite campuses offering creative office in the San Fernando Valley.
The Mix – Northridge
The Mix campus boosts over 500,000 square feet of office space that ranges from your more traditional office space to some of the most creative space you can get in Los Angeles. Located off the 405 and 118, this campus offers state-of-the-art finishes, high ceilings and loft-style open floor plans. Just a few companies that have space at this campus are Facebook, Charter Impact, HemaCare and Harman.
Asking Rate: $2.65 – $3.15 per square foot
The Ranch – Sherman Oaks
The Ranch is a multiphase campus built in arguably the most convenient location of creative office in the San Fernando Valley, located on the border of Sherman Oaks and Van Nuys. The campus has critically convenient access off the 405 and 101 Freeway being quite accessible, and offers both indoor and outdoor work areas. A few notable tenants at the campus are FloQast (just raised $40M), Fusefx and Stantec.
Asking Rate: $3.50 per square foot
ELEVAR – Tarzana
ELEVAR is a brand-new campus that is nearing completion in Tarzana just off the 101 Freeway. Comprised of over 100,000 square feet of office space, this campus is targeted to those in the modern media, entertainment and technology industries. With 21-foot ceilings, the campus will be able to accommodate office, studio and production space for a variety of tenants.
Asking Rate: $3.50 per square foot
Runway – Van Nuys
Located adjacent to the Van Nuys airport and less than a mile from the 405, Runway has about 100,000 square feet for creative office. The old Bratz Dolls campus is currently under renovation to provide a variety of amenities to its tenants, including a 5/1,000 parking ratio, outdoor patios, barbeques, table tennis and a basketball court.
Asking Rate: $2.75 per square foot
With lower rates, close proximity to freeways, reverse commutes and plenty of impressive office space options available, it’s easy to see why the San Fernando Valley is quickly becoming the next booming neighborhood for businesses in Los Angeles County. While only time will tell, the future is definitely looking bright for this region!
Andrew Havill is a vice president with Hughes Marino, an award-winning commercial real estate company specializing in tenant representation and building purchases with offices across the nation. Contact Andrew at 1-844-662-6635 or email@example.com to learn more.