Entertainment, Electronic Gaming Firms Boost Play in Los Angeles Office Market

Los Angeles’ newest “it” industry may sport companies with unfamiliar names, but Charles Dunn Co. senior managing director Eugene Page is glad they are calling Los Angeles home. While some financial services firms are returning space to the market, electronic-gaming firms and entertainment companies continue to take down significant chunks of Los Angeles office space. “These electronic-gaming companies are creating a lot of jobs,” Page said. A year ago, he knows of a Korean computer-gaming firm that leased a 23,000-square-foot floor to a company that employed two people. A year later, the company’s staffers fill the entire floor. And Fox Interactive Media signed a mammoth, 12-year lease in late June to occupy 421,000 square feet at the mixed-use Playa Vista in southwestern Los Angeles for a total consideration of $350 million. Los Angeles hosts such large firms as Mattel Inc. and Northrop Grumman Corp., but entrepreneurial firms occupy much of the market’s office space. In a time of economic uncertainty, these companies can provide stability as shareholders of large, publicly traded firms pressure their companies to shed employees. As Page noted, “Many of these private companies are not as reactive to a downturn.”