PMI Properties and Bisnow to Host Summit on the Future of Culver City, LA’s Next Big Submarket

future of Culver City

PMI Properties and Bisnow is hosting on Tuesday, October 14, 2014 a summit on the Future of Culver City:  LA’s Next Big Submarket.  The event shall take place at PMI Property’s Eastham Station at 3525 Eastham at 5pm.

Many are saying that Culver City could be LA’s next big neighborhood—connecting the Westside to the Eastside, capitalizing on its central location and historic character.  The summit will dive into topics such as new developments under way and on the horizon, challenges and opportunities in the market, and what the City is doing to promote growth!

Other issues include What’s pushing Culver City’s growth? Is it its good stock of larger creative former industrial buildings and better housing options for employees?  How will the Expo Transit affect Culver City and how will the City capitalize on it?  What would the impact of City sponsored super fiber be on business? What is happening to bring amenities to the Hayden Tract and Jefferson corridor? What business are moving to and are attracted to Culver City? What is the new media cluster all about? How will Culver City compete against Playa Vista and Downtown L.A.? What new projects are being built?

Panelists include Michael Hackman, CEO of Hackman Capital, Thomas Wulf, Senior Vice President of Lowe Enterprise Real Estate Group, Andrew Weissman,  Councilman & former Mayor, Brad Gross, Executive Vice President of DTZ Brokers, Damon Juha, Partner with Freeman, Freeman, & Smiley, and Jeffrey Palmer, Partner with PMI Properties.

For more information and tickets, see below:

Future of Culver City – Event Information | Online Registration by Cvent.

The Fashion Industry is Helping to Fuel Growth of Los Angeles Creative Industries

fashion industry

The fashion industry may have sparked the birth of creative office in Downtown Los Angeles.  Nasty Gal, for example, an internet retailer of tween wear, took 50,000 in the Pacific Mutual building, a historic Downtown Los Angeles office building recently converted to creative office. The Fashion industry maintains a long history in Downtown that was dwindling but may not be rekindled on the creative side.

Surprisingly, PMI still continues to get demand from fashion  manufacturers for creative offices in Culver City, another Los Angeles outlet for the fashion design industry.

Many smaller consumer good companies today are more design, media, and marketing companies than they are manufacturers.  These companies design, prototype, brand and market their products from their creative offices in Los Angeles and outsource their manufacturing (overseas) and distribution.

Joel Kotin warns in his opinion article for the Orange County Register below (August 10, 2014) that Los Angeles is losing its dominance as a media center and is also thereby falling in its ranking of top world global cities.

However, Los Angeles may be growing as a design and marketing center for the consumer good industry because Los Angeles is rich in creative types who can design,create, market, brand, and sell.

 

Joel Kotkin: L.A. hanging on as a top global city – The Orange County Register.

You Need To Disperse a Variety of Private Spaces in An Open Office Environment

Work

A number of spontaneous activities occur during the workday that require the need for private spaces within an open floor plan. People need to take calls ,unexpectedly talk to a colleagues, engage in a heated conversations or conversation that should be kept private.

Although in some cases these conversations can motivate collaboration, in other cases, these conversations will cause disruptions to others.

It may be inconvenient to have to travel a distance to a conference room  for a short spontaneous need. Inconvenience encourages people to ignore etiquette and disrupt other workers.   We recommend telephone rooms and/or very small conference rooms dispersed in and  around the open work area so that these private areas are easy to get to and convenient.  In contrast, we would not recommend that these private areas be concentrated in just one part of the office.  Workers will be more likely to use the facilities to just take a short call or conduct a fast conversation if they are brainlessly in close proximity.

Open office plans give rise to a host of issues regarding noise, distractions, and privacy that needs to be addressed.  Knoll has provided a whitepaper on  establishing guidelines for appropriate open office behavior.  See below:

ules for Etiquette in the Open Office | Workplace Research | Resources | Knoll.

Why Snapchat May Be A Boon for Westside Office

Urban economists have traced the growth of Cities to the success of breakout hit companies.  One example was Microsoft’s relocation to Seattle and how that move resulted in the growth of prosperity of Seattle.  A breakout hit company attracts other companies, employees, venture capitalists to the area.   The hit company scales and hires more people and consumes more office space.  Service firms, lawyers, busboys,  and other workers are hired to accommodate this growth.   The new wealthy employees break off and form new firms within the area and hire even more people.

Now Snapchat may be the West side hit company that the LA Tech community has waited for in hopeful anticipation.  It user growth exceeds that of Instagram’s.  Read below.

 

Snapchat Hiring Massive Sales Team, Said To Be Raising $100M At A Near $1B Valuation To Pay Them.

Green Street Advisors Says West Los Angeles Office Market is Tops in U.S. For Rent Growth

Michael Knott, managing director of Newport Beach, California-based research firm Green Street, wrote in an e-mail that West Los Angeles is the top office market based on forecasted rent growth growth through 2017.  In contrast, he said San Francisco’s office market is now in the “fifth inning” of a nine-inning recovery, with “decelerating” growth that’s dropped its five-year outlook for rent increases to second in the U.S. based on revenue per square foot.

Office rent growth in San Francisco has been quite spectacular while office rent growth on the West side of Los Angeles has been slow.  San Francisco’s rent growth has produced a development wave that is the greatest since 1991, while the West side Los Angeles office growth consists of a few warehouse conversions. You can read the full article below.

San Francisco Leasing Slows Amid Office Boom: Real Estate – Bloomberg.

Changing Office Trends Hold Major Implications for Future Office Demand

Like many other parts of our economy, the office market is going through seismic shifts in demand usage.  Private offices are out, and open workspace is in.  Some of the causes for this shift are technological.

Twenty years ago, no one used email; instead they fielded or made about 70 to 100 phone calls a day.  Today, most people field or make around ten phone calls a day and send, respond, or read 100 emails.  Hence, the need for private space–either in offices or workstations–has radically decreased.

Digital storage has lessened the need for physical storage.  Cloud based computing allows one to work anywhere.  The result is fitting more people into less space and thereby reducing the demand for office space.  Companies are figuring out that they can reduce real estate costs and, at the same time, create a more contemporary environment.  Office owners must focus on making their space more productive to be more competitive.

The higher density in office space movement exhibits the following:

1.  Working in open environments with less walls and partitions.

2.  More shared collaborative spaces: conference rooms, meeting rooms, break rooms, bigger kitchens and informal meeting areas.  Some of these areas are also used for focused work or making phone calls for those who need private space at variable times throughout the day.

3.  Amenities and Break areas: coffee refreshment areas, ping pong table, and Foosball.

Below is an as built plan of the West Los Angeles 10951 Pico Boulevard Third Floor, excluding the mezzanine, which is roughly about 8,000 square feet.  The plan shows 20 private spaces and room for about 12 workers in the open area.

As Built 8000 sq ft

As Built 8,000 Square Feet

This next space study shows an extreme move to density with five enclosed areas, including a conference room and room for a 115 workers in open areas.

Max Density

Max Density

A more optimal plan for a software company would involve a max density of 10 people per 1000 square feet.  This would include more disbursed private spaces such as a small conference rooms and workrooms with computers and phones.  Some open area would be converted to informal meeting and recreational areas that would bring density down to 5 to 6 per 1000, but still allow temporary scaling of people if required.

For an example, click on the link below:

28041 – 2013 04-09 Conference Room Options

Creative space helps alleviate the impact of this density, as volume and natural light give the sense of greater space despite the density.

Volume Mitigates Density

Volume Mitigates Density

Read the full story on changing office trends from the CoStar Group’s website here.