A recent article published from Bloomberg.org discusses the rise of creative space throughout major cities. The resurgence of the digital technology sector has created a demand for this type of creative office space. This time around, major developers and institutional investors acknowledge this trend and have driven down the yields on this product. Certain features of the space are leading to new ways of working, especially for firms with employees who spend a lot of time on computers or mobile devices. This is a shift from a traditional office environment where employees focus their time in small conference rooms or on the telephone. At PMI, we continue to strive for our spaces to promote creativity, collaboration, and the ability to scale if needed.
In all of about 15 years in Los Angeles, there were only about three or four developers doing this. PMI was one of them. None of them were institutions. It was hard to get financing as the lenders believed this type of office design was a fad. PMI was able to buy Marina Studios because the lender who foreclosed could not figure out what exactly Marina was or how it should be used. It did not work as an industrial building and it did not look like offices. PMI was able to take control of the building, effectively design and market it, and we now currently maintain a fully leased building.
The full article outlines more of the characteristics of these new, emerging offices.