Growth of west side start-ups engaged in producing video content for the web, is fueling absorption of office space, housing, and retail.  Numerous video web content companies have sprouted from Silicon Beach to Hollywood, through Playa Vista and Culver City.  The successful monetization of this industry will determine whether this burgeoning field continues to grow. So far, You Tube has experienced some initial success of selling ads on its You Tube channel. Now it starts experimenting with charging for premium channels.  For those in Westside Real Estate–let’s keep our fingers crossed.  You can read more about this below.

YouTube begins paid subscription pilot | Internet & Media – CNET News.

This article from the Wall Street Journal reports on the shift of bright graduates leaving for or opting out Wall Street finance and hedge funds jobs for jobs at technology start ups.

Late Shift: Foosball Over Finance – WSJ.com.

This shift also explains the shifting fortunes in the real estate industry.  Certain cities which are attracting technology companies are doing well while others are doing poorly.  In San Francisco, rents in the City’s financial center, the North Financial District, are starting to lag those in the City’s tech center, the South of Market District (SOMA).  The article reports that New York has successful offset job losses in finance with job gains in technology.  Office brokers continue to report demand from technology start ups and continued downsizing from banks, major corporate users, and service firms.

The shift is translating into where the movers and shakers want to live.

Perhaps, this shift from financial engineering to social and enterprise engineering will result in increased productivity and in the end a bigger pie for everyone.

This  monetization for an emerging original-video-content-for-the-web start up is a shot in the arm that the Westside office market needs.  New start-up original content companies have spurred growth of employment and office absorption on the West-side of Los Angeles. Now DreamWorks is paying $33 million to buy one of these start-ups.  This investment shows that the big boys now think this movement is real.  This trend may result in additional funding for these start-ups, more start-ups, and more West-side creative office absorption.  Anecdotal reports of success have come from other ventures, including You Tube’s new studios in Playa Vista.   A review of Crunchbase shows about $3.5 million of venture investment in Awesmeness TV, so there is probably some pay day in the $33 million for the founders and their investors.  Read about the acquisition below.

DreamWorks Animation Agrees To Pay $33M+ For AwesomenessTV – Deadline.com.

Developers are building many apartments  in Los Angeles for Gen Ys.  Generally, these apartments are multi-story high density smaller units in walkable urban areas. The developers load the building with hip amenities –gyms, do it yourself bike repair, roof pools with fire pits, water features and cabanas.  See article for example.

http://articles.latimes.com/2012/dec/15/business/la-fi-mo-gen-y-apartments-20121214

However, not every Gen Y is alike.  Some Gen Ys will prefer to live in more intimate low rise urban and walkable environments (or in Los Angeles — everything in a very short commute).  Some Gen Ys will desire the character of many of Los Angeles’ older apartments but still desire contemporary interior features and conveniences. Despite how walkable a neighborhood is–in Los Angeles–parking is still very very important.   Unlike the Mc W Apartments being built, some Gen Ys will cherish a less dense environment and the luxury these units afford for private outdoor space.  With more single households–also satisfying Fido (thank you for the mini yard) will fit into the housing decision.  We are renovating these older low rise properties into creative mutli-family to appeal to the young creatives,

Workers in the creative industries are now working on open tables in close proximity to their fellow workers.  Companies have eliminated private offices and partitions.  Entering some offices today is like going into a library: .  people work away on their computer, alone and silent.  Other open office environments feel like the “Daily News” with phones ringing and the din of hustle and bustle.   In these environments, workers resort to earphones to create an environment in which they can focus.  In this case, the collaborative office can produce a non-collaborative environment with ear buds replacing walls.  It is important to provide balance.  Offices need to provide private areas for phone calls, meetings, and employees who focus better with privacy.  To read more about the importance of focus and balance in the workplace, see Gensler’s article below.

Focus_in_the_Workplace_10_01_2012.pdf.

Researchers have found that the first picture is  the fist thing customers look at and for extended  period of tme in an internet add and ,after that their eyes move all over the page.  As a result,  at one dynamite picture is requird.  At pictures, people read the description.  See the article below for more information.

20 Seconds for Love at First Sight | Spread Sheet – WSJ.com.

Low vacancies and rent increases have encouraged apartment developers in Los Angels to break ground on new apartment buildings. Unfortunately, the long City approval process and financing concerns delay the start date of these projects.  Therefore, the surge is felt  more by architects and City planners than anyone else.  Eventually, we will see cranes, steel, and lumber coming from the ground.  Jim Silton, n veteran of many cycles  in his Spring 2013 newsletter writes:

“Let me illustrate what occurred in the 80s.  One of the first new apartments built in Westwood was on the northwest corner of Ohio and Veteran;   it attained rents higher than any other building at that time, which opened the floodgates for new construction.  This lead to overbuilding.  By the end of the decade, maNy of these units went un-leased, pressuring landlords to give rent concessions.So is history repeating itself? Of course it is….that’s what real estate is all about–CYCLES.”

Twitter / CarlMuhlstein: Welcome to the “S” Curve – ….

Broadway@Luxe 420sq ft

Developers have begun to build micro-apartments to appeal to Gen Y looking for affordable housing in the City’s most amenity filled neighborhoods.  For example, NMS recently complete in downtown Santa Monica the Luxe@Broadway, which is composed of 300 square foot singles and 420 square foot one bedrooms.  These units incorporate boat and trailer interior technologies to create very efficient floor plans.  Surprisingly,  developers also built many 300 to 500 square foot single and one bedroom units in the early 1900s in Hollywood, Northeast LA, and around Downtown Los Angeles.  Many of the units could be re-purposed with more efficient floor plans and contemporary features.  This activity is all part of the emerging creative multifamily movement.

To learn more about micro-apartments, click here.

Apartments aimed at creative tenants going up in West Hollywood – latimes.com.