Demand for creative offices grows on Westside

Growing demand from creative businesses such as post-production, new media, advertising and technology firms resulted in the greatest net absorption of creative office space on Los Angeles County’s Westside in 2011 since the start of the recession, a report said.

Last year, more than 500,000 square feet of offices were taken off the market, the highest annual net absorption since 2006 and a 32% increase over 2010, real estate brokerage Industry Partners said.

The firm describes creative space as an adaptive reuse of an existing commercial or industrial building predating 1970 or new construction meant to convey a similar look and feel. There are about 17.5 million square feet of creative office space on the Westside with vacancy at 12.7%, down from 16.1% a year ago.

Although Westside landlords continue to renovate and redevelop buildings to make creative office space, it will only offset the expected loss of as much as 1 million square feet over the next few years, according to the Industry Partners’ report.

Several buildings along Colorado Boulevard in Santa Monica will be demolished to make way for the Expo Line light rail. Other creative offices are slated for demolition to make way for an even hotter category of real estate in the seaside city: apartments.

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