Gensler will design the addition to the Playa Jefferson Campus, and the property will target tenants looking for 18,000 to 55,000 square feet of contiguous space.

LOS ANGELES—Playa Vista started out as a budget-friendly alternative to the Santa Monica market, but the market is now on par with the Westside giant—and it is still growing. Demand in the market continues to grow for tenants in all size ranges.

“Playa Vista office market has never been stronger. Demand for the last creative space options in this highly desirable and relatively small submarket of just over three million square feet is competitive,” Matt Montgomery, principal for Marshall Property & Development, tells GlobeSt.com. “There are very few options for mid- to large creative companies in this pocket and the inventory continues to decrease. It's practically at equilibrium now with Santa Monica. Since Playa Vista is a newer submarket, more of the buildings offer a higher parking ratio than Santa Monica so this is also a major tenant driver in relocation decisions. More parking equals more marketability. Playa Jefferson for example, offers 4/1,000 square feet, which is the highest in this submarket.”

Even better, there is room to develop more office space in the market, and developers are stepping in to strike at the opportunities at all size ranges. Rockwood Capital and Marshall Development have announced plan to expand the Playa Jefferson Campus with the addition of Building E, a 55,000-square-foot property. “The project has an incredibly prestigious tenant roster and we are adding an architectural gem to an incredibly successful adaptive reuse. We are targeting high credit, world-class brands, innovators and thought leaders in technology, entertainment, advertising and media,” says Montgomery, adding that there is a “myriad of prospects ranging from 5,000 to 50,000 square feet.”

Illustrating the demand in the market, the developers have already received interest from prospective tenants. “Yes, we are conducting marketing tours already and we are excited about the initial momentum of activity,” says Montgomery. “It's more about the right tenant, credit and fit for the campus than just a lease timetable. Building E will be completed by October 2017, so this is a quick build and we look forward to pre-leasing the property.”

Gensler will design the addition to the Playa Jefferson Campus, and the property will target tenants looking for 18,000 to 55,000 square feet of contiguous space.