Staying Competitive In Today's Office Environment
Staying competitive in today's changing office market environment takes a focus on transportation, connecting people with the buildings where they do business and creating environments with attractive space, panelists said at last week's Los Angeles Annual Office Forum.
Transportation is key, panelists told the more than 250 industry professionals who attended Bisnow’s recent event in Hollywood. The all-star panel included Rios Clementi Hale Studios partner Mark Motonaga, CBRE SVP John Zanetos, Archway Holdings president Sean Moghavem, Adler Realty Investments CEO Michael Adler, Brookfield Office Properties VP James Malone and First Property COO Michael Geller. They foresee development occurring where light rail and other transportation is being developed.
Mark, who moderated, asked the panelists to talk about trends they are seeing in office space and identify the next big hotspot in LA.
Michael said more tenants are focusing on 24/7 areas near transportation, including light rail. He mentioned some Westside tenants are moving out to more affordable areas that are closer to where some of their employees live.
There is "a huge increase in rental rates, which is forcing a lot of tenants to look further out in other spillover markets," including parts of the South Bay and San Fernando Valley, according to Michael.
"Our biggest challenge is changing how people perceive the buildings," James said. As a result, he said Brookfield Properties is hosting events and other activities, including movie screenings, to help make people feel connected to their buildings.
James said his company's properties also have a lot of open space.
Rooftop decks and generous outdoor space are design components that have worked well for his company, according to Sean.
The Arts District has seen development, according to John. He sees the next phase moving to Chinatown and Boyle Heights, with potential for creative office space there. John said those two areas are well-connected for transportation. He also mentioned the importance of hospitality, pointing to what Rick Caruso has done on his properties as an example.
Michael said office space seems to be headed toward creating what he referred to as "lifestyle space." He said the space is more about supporting a lifestyle, not just creating a place to conduct office work.