Century City’s office market is thriving and growing, particularly in comparison to Downtown Los Angeles (DTLA).
Despite the fact that both areas are considered the go-to places for professional services, The Real Deal reports that Century City’s office market’s vacancies dropped more than 5 percent between 2016 and 2017 (from 14 to 9 percent), while DTLA’s market barely moved from 16.4 to 16.3 percent.
Experts say the growth over the last year in Century City is largely in part to the growing tech and entertainment sectors on the Westside. And Century City in particular, caters heavily to the entertainment industry, in areas such as talent agencies and entertainment law.
“Whether it’s Google in Playa Vista or Snapchat in the Santa Monica Business Park or Sony in Culver City, the Century City submarket is seeing the spillover effects” said Brian Niehaus of JLL Investment Management Company. “Things would be very different if Google went Downtown.”
While many firms are focusing on downsizing, in Century City, entertainment-focused law firms are bucking that trend according to Transwestern Research Manager Michael Soto. Both Lakim & Watkins and ICM Partners actually expanded their leases. “2016 was a year of interesting relocations and organic expansions in Century City,” JLL Director of Research Amber Schiada said in a recent JLL report. “Looking ahead, it seems like the massive wave of in-migration and expansions are over for now but tenants continue to eye Century City.”
