Top 10 Office Completions in Los Angeles
- Dec 18, 2018
Los Angeles is about to end another year of strong office construction activity as demand for new, modern space has continued to rise. Although projected deliveries for 2018 are unlikely to compete with last year’s high, inventory is still expected to grow by some 2 million square feet by the end of the fourth quarter. According to Yardi Matrix data, the projects under construction totaled roughly 5.6 million square feet as of September.
The central business district led development activity in the metro year-to-date, as the submarket continued to see renovations carried out at older assets, while other areas are seeing substantial stock changes as well. The Hollywood, Jefferson Corridor and Culver City submarkets are about to welcome the most significant stock increases of the last decade. New projects account for 20 percent of Hollywood’s existing office inventory and 15 percent of Culver City’s total stock.
The majority of upcoming properties total less than than 100,000 square feet, as demand has been the highest for mid-size creative office spaces. Medical office buildings and tech spaces are among the most in-demand and they also make up the top list of largest office developments delivered in 2018.
5. Kaiser Permanente Santa Clarita Medical Offices II (Santa Clarita)
Kaiser Permanente’s newest health-care facility in the L.A. metro encompasses 64,000 square feet and is located at 26877 Tourney Road in Valencia, Calif. The facility features a lab, pharmacy and urgent care as well as specialty services which include cardiology, hematology, neurology, oncology and pain management. The building was built on a steel frame, making it look more like a traditional office development than a medical facility. The development is aiming for LEED certification. The site also hosts a seven-story parking garage with room for up to 567 vehicles.
4. 5500 West Jefferson (Culver City)
Formerly a warehouse, the two-story property at 5500 W. Jefferson Blvd. in the Culver City submarket has recently become the new home of Apple’s original-content division in West Los Angeles. Hackman Capital Partners, the owner of the 75,000 square-foot building, bought the asset in 2016 from Modern props Inc., expanded it and turned it into what is now known as La Cienega Expo project. The site includes an additional 2.3 acres of land, which could be used for future expansion.
3. Ascend at Utah Avenue Campus (El Segundo)
Ascend is one of the six buildings which make up the Utah Avenue Campus in El Segundo. The single-story, 80,000 square-foot building is the result of a collaboration between developer NSB Associates and Frank Gehry. It replaced two existing warehouses at the site which were torn down for the new development. The office asset is located at 2330 Utah Ave., features 24-foot ceilings, glass panel walls and skylights and is awaiting LEED certification. Only a 16,000 square feet at the facility remain available, with JLL in charge of leasing.
2. Norris Healthcare Center (East Los Angeles)
University of Southern California’s newly delivered Norris Healthcare Center is located in the East Los Angeles submarket and encompasses 116,000 square feet. The seven-story building hosts an infusion center, a women’s care center, a transplant institute and an outpatient surgery center. The latter provides six large operating rooms, 46 examination rooms, several procedure rooms, a blood draw station, a pharmacy, an image enhancement center, a gift shop and a dining area with retail space. The center represents the fourth outpatient facility that Keck Medicine of USC has built near the hospital.
1. Spruce Goose Hangar (Jefferson Corridor)
The Hercules Campus at Playa Vista has recently opened a new building — the 524,759-square-foot Spruce Goose Hangar which Google pre-leased two years ago. The project represents the largest development delivered in the Los Angeles metro area so far this year and the fourth building at Google’s campus. First completed in the 1940s for Howard Hughes, the Hercules Campus was turned into office by Japan-based ASO Group, which bought it in 2016.
The top 10 office completions in Los Angeles has been based on year-to-date information made available by real estate data provider Yardi Matrix.
Images courtesy of Yardi Matrix