NEWPORT BEACH, CA—As even more-conventional users begin to seek creative space for their offices, what will truly creative users do to distinguish themselves from the pack? As GlobeSt.com recently reported, international building contractor Balfour Beatty Construction has signed a seven-year lease with Bixby Land Co. to occupy 9,875 square feet at Avalon, the innovative office building developed by Bixby at 1501 Quail St. here. Bixby told us exclusively that Balfour Beatty liked the creative buildout Bixby had designed for its own offices at Avalon enough that this became the space the new tenant chose to lease, furnishings included. We spoke exclusively with Aaron Hill, Bixby's EVP and COO, about what this lease says about the office market and how more-creative users will distinguish themselves from conventional users by way of their space.
GlobeSt.com: What does it say about the office market when a construction company is seeking well-appointed creative space for its offices?
Hill: What it says is there's a lot of traditional office space that used to offer certain things that were appealing to many users, but it is product that is not really in demand any more. What used to be a class-A office with a granite-clad formal lobby and parking structure would have commanded higher rent. Now we're seeing a transition—not just by creative but by all companies—of wanting to get in and out more easily via more surface parking; ground-floor space, which used to be for quasi-retail like banks, is now the desired space to get the more mobile workforce in and out more quickly and spend less time in an elevator. At Avalon, tenants have direct access to the outdoors, with operable windows, balconies, light and bright space with access to fresh air. Older buildings can't deliver without significant repositioning. That transition is translating to demand across the board.
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