YUCs (Young Urban Creatives) Fuel Gentrification in Los Angeles’ Urban Core

A Young Urban Professional

 Young Urban Creative

We have struggled to define a term for the millennials that can pay higher rents to live in our newly substantially renovated apartments.  Yuppies really defined the young baby boomers who chose professions in the 80s that allowed them to live with conspicuous consumption as they pursued their careers.  Hipsters define a certain culture of monied young millennials pursuing a more bohemian lifestyle. Millennials describes the entire generation Y. Many people use the terms Millennials or Hipsters to describe the creatives that are pursuing a more urban lifestyle in Hollywood, Echo Park, Silver Lake, Downtown Los Angeles, Downtown Los Angeles, and Koreatown.  We do not think these descriptions fit our tenancies.  We instead referred to this demographic as “young creatives” as they tended to work or pursue passions in the creative industries within Los Angeles:  tech, media, entertainment, art, architecture, music, etc.

Finally, an article in Mashable called “Death of the Hipster, Rise of the Yuccies ” has tried better to define this demographics as “Young Urban Creatives”.

These creatives choose currently to rent and want a more diverse environment close to amenities, work, and entertainment.

We invite you to read more about this demographic in the article below.

Death of the ‘hipster.’ rise of the ‘yuccie’ – CNN.com.

Note:  Can you predict a generation by what screens they prefer for entertainment:  television, computer, laptop, tablet or smartphone?

Finding More Parking for Office Tenants

parking lot

It takes some creative thinking to find parking for office tenants in Los Angeles.  Despite the hope that office workers will take transit, most still drive.  Los Angeles office workers demand and covet convenient parking.  Many tenants today are looking to accommodate worker densities of four to five people per 1000 square feet. However, most buildings have parking of 3 per 1000 square feet or less.

The Over Park:  Many buildings with unreserved parking can offer parking at 3.6 per 1000 square feet even if the actual parking lot has only 3 spaces per 1000 square feet.  This anomoly results from what is called an “over park.”  Even in the most peak parking situation, only 80% of the people with parking spaces will use the parking at the same time.  The others are out of the office.  This allows the office building owner to sell more spaces that he actually has.  The key is to have unreserved versus reserved parking ..We have found it very difficult to shift tenants from reserve to unreserved parking even if you can offer them more parking passes as a result.

Valet:  In many cases, a valet can increase the number of parking spaces that can be sold.  To break  even, a valet must create an additional 35 to 45 spaces per valet. In a recent case, we saw two valets park 40 additional cars on a 60 car lot.

Automated Parking:  Several owners are turning to automated parking, although this is still rare and expensive.  It will probably require a valet to operate and require very stringent screening regulations.

Hustle and Search for Offsite Parking: The next technique is to hustle to find and lease offsite parking for tenants. Finding offsite parking  is becoming harder and harder.  However, as parking rates rise, more people will lease out under utilized day time parking  spaces.  In the case of our 10951 Pico office building, we approached the nearby mall for years to rent parking spaces on their lowest level.  We observed that nobody but mall employees parked on the lowest level during the weekday.  On entreaties fell on deaf ears for years.  Then the mall instituted an automated parking system which allowed them to identify what spaces were being used when and to better control who parked in their parking.  Based on this technology, the mall finally offered to lease our tenants offsite spaces.  Now we can offer almost unlimited parking to our tenants.

The problem in Los Angeles is that parking is a loss leader.  Tenants want not only convenient parking but they want subsidized parking.  Monthly parking rates would need to range from $200 to $300 per month to justify building parking garages.  In Los Angeles, parking rates range from $75 to $150 per month.

Owners must continue to find new offsite spaces.  What about apartment buildings whose tenants are away at work during the day.? Could this parking be used by office tenants during the day, and can residential tenants use office parking spaces at night?  Owners need to apply creativity and persistence to identify parking for their tenants.

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.

Silicon Beach Gains Major Tech Tenant

Silicon Beach in Los Angeles is once again enticing more tech and media companies to relocate their offices, or possible add another branch to this emerging hotbed.

Check out the latest article from the Los Angeles Business Journal to see what tech and media mogul will be joining the Silicon Beach ranks.

Read all about it here:  Patched In | Los Angeles Business Journal.

Transit and Parking is Coming Near 10951 Pico Creative Offices at Sepulveda/Pico Expo Line, But Will Employees Walk?

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Photo courtesy of Curbed Los Angeles

New and exciting things are happening in the 10951 Pico neighborhood! The Expo line will connect the area around 10951 Pico with transit to Downtown and Santa Monica, as well as providing 1,795 new parking spaces.  It will also feature a 250 space free Caltran commuter lot.  The Expo Station will be less than a half mile from the 10951 Pico Creative Offices (at Veteran Avenue and Pico Boulevard), making the walk just under ten minutes.  Compared to other cities, where a ten minute walk is nothing, LA Westsiders consider this trek an inconvenience.  Even a short five-minute walk borders as unbearable.  Los Angelenos just don’t walk from parking or transit to work.

Even now, there is plentiful free parking along the Expo line that is a five-minute walk from the 10951 Pico Creative Offices.  However, some tenants do not recognize such parking as convenient.

In Beverly Hills for example, some office deals hinge on parking spaces next to the elevator.  It can get that competitive.  More transit and parking is coming, but the big question is if employees will get used to walking back and forth from the parking located 5-10 minutes away from their respective work locations.  As office densities continue to increase beyond five per 1000 square feet, tenants and employees alike will need find locations near parking and transit, and learn to walk longer to work.  A University of Michigan survey found that teenagers in 2010 were much less likely to drive than teenagers in 1983, so maybe times are changing.

The mixed-use project proposed at the Sepulveda/Pico site includes on-site bike and car sharing facilities, bicycle parking, and will even offer transit incentives and free or discounted Metro Passes to residents and employees by the developer.  Once this project is finished, time will tell if those enticing amenities and incentives will encourage more people to use transit to get to work.To learn more, read about the proposed parking in this article.

10951 Pico Creative Offices Home to New and Old Tech Startups

10951 Penthouse

10951 Pico Penthouse Space

The 10951 Pico building was the birthplace of one of YouTube’s most successful content providers, Machinima.  In 2006, Machinima was founded by Allen DeBevoise in a 150 square foot suite in the Penthouse.  By July 2012, they already had 191 million unique users who viewed an excess of 2.1 billion videos on their YouTube channel and website and occupied 30,000 square feet in Hollywood.

10951 Pico also serves as the corporate headquarters for Bebo, a social networking site that was at one time a contender with Myspace and Friendster.  Little Black Bag, a social e-commerce company backed by David Tisch and Mark Suster, recently moved into the ground floor suite.

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New Penthouse Cafe Kitchen

With it’s open and collaborative Penthouse space, and upgraded cafe style kitchen, 10951 Pico will continue to house creative offices to inspire the new tech startups joining the ranks, as well as continuing to go above and beyond to accommodate and maintain close ties to older tech startups.

Marina Marketplace Opening Spring 2013

Marina Marketplace, next to our Marina Glencoe Studios, is currently being renovated and should be completed by spring this year.  Marina Marketplace is a place for shopping, dining, entertainment, and fitness with popular stores including Barnes and Nobles, Sport Chalet, DSW Shoes, Gelsons, to name a few.  New additions in the spring will include Yard House, Pier 1 Imports, Le Pain Quotidien, and Tender Greens.  Restaurants will have outdoor dining areas with umbrellas and creative lighting.  Marina Marketplace will also have plenty of parking for customers.

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AMC Dine-in Theaters and Equinox have recently opened.  AMC Dine-in Theaters contains two types of theaters: one as a casual dine-in and the other with a full cocktail bar and luxury recliners.  Moviegoers can reserve their seats prior to arrival.  During the movie, one can place an order as easy as pressing the call button for a server.  Whether people are waiting for a movie to start or hanging around after the movie has finished, MacGruffins Bar and Lounge is open for patrons to enjoy.

Please visit here to view the new full directory of Marina Marketplace.