Kenas: In Silicon Beach and South Bay, the drivers relate directly to co-working, tech/creative and entertainment industries that are gearing their workspaces towards millennial' s and creative office environments. One that creates a workplace built around a culture and environment that is an inclusion of their employees. We Work, as an example, have been very actively leasing space during the last 12-18 months.

GlobeSt.com: How did Los Angeles change in quarter 3 compared to the first half of the year?

Kenas: Activity remains strong across market fundamentals, rental rates continue to rise across all markets, while vacancy rates trend downward, the gap in reductions vary by submarket. Absorption across the market remain steady, but at a slightly slower pace than the first half of the year and the previous year. We have seen an uptick in sublease space, and some activity increasing in certain industries, such as co-working.

GlobeSt.com: Are we seeing more new investors enter the market as a result?

Kenas: Yes, investors want to experience the strength and diversity of the Los Angeles office market, both U.S.-based and international investors alike, particularly Chinese investors. Investment sales activity is up by 35% over this time last year with 11.5 million square feet sold through September 2016. And they aren't done yet, as many other new investors continue to consider Los Angeles-based assets for their portfolios.

GlobeSt.com: What is your forecast for 2017 in Los Angeles?

Kenas: Office demand fundamentals in Greater Los Angeles tempered a bit during the first nine months of the year. However continued strong economic performance, driven primarily by nearly 2% job growth in the metro area, will ultimately lead to a healthy year-end and overall solid performance for the region. We anticipate the same conditions to be prevalent in 2017 and for LA to outpace other gateway cities in the U.S.

LOS ANGELES—The office market is on track to close with a bang at the end of this year, according to a new report from Cushman & Wakefield. While the market tempered a bit in the third quarter, it also saw employment gains that will fuel growth in the office market through the end of the year. According to the report, the L.A. office market invigorated by the golden touch of increased construction and redevelopment, particularly in downtown areas. This activity has also led to redevelopment has increased creative office conversions, which has helped to increase both sale and leasing activity. To find out more about these drivers and how the office market is performing and is expected to perform, we sat down with Eric Kenas, market director of research at Cushman & Wakefield, for an exclusive interview.

GlobeSt.com: What is driving the construction and redevelopment activity in Los Angeles?

Eric Kenas: This is a twofold question. The drivers vary from ground-up construction versus redevelopment activity. In DTLA redevelopment activity has many mixed-use applications, including office. Gentrifying old industrial buildings lying vacant for years now serve as trendy innovative retail and creative office projects and include a hotel component. The Broadway Trade Center at 801 S Broadway is an example. There are numerous projects underway in DTLA, many multifamily with retail components. The Wilshire Grand project located at 900 Wilshire is a rare, mixed-use skyscraper development – first of its kind in over 25 years in downtown LA and also includes much-needed hotel space.

GlobeSt.com: This activity is concentrated in certain areas. What are some of the drivers in other submarkets?

Kenas: In Silicon Beach and South Bay, the drivers relate directly to co-working, tech/creative and entertainment industries that are gearing their workspaces towards millennial' s and creative office environments. One that creates a workplace built around a culture and environment that is an inclusion of their employees. We Work, as an example, have been very actively leasing space during the last 12-18 months.

GlobeSt.com: How did Los Angeles change in quarter 3 compared to the first half of the year?

Kenas: Activity remains strong across market fundamentals, rental rates continue to rise across all markets, while vacancy rates trend downward, the gap in reductions vary by submarket. Absorption across the market remain steady, but at a slightly slower pace than the first half of the year and the previous year. We have seen an uptick in sublease space, and some activity increasing in certain industries, such as co-working.

GlobeSt.com: Are we seeing more new investors enter the market as a result?

Kenas: Yes, investors want to experience the strength and diversity of the Los Angeles office market, both U.S.-based and international investors alike, particularly Chinese investors. Investment sales activity is up by 35% over this time last year with 11.5 million square feet sold through September 2016. And they aren't done yet, as many other new investors continue to consider Los Angeles-based assets for their portfolios.

GlobeSt.com: What is your forecast for 2017 in Los Angeles?

Kenas: Office demand fundamentals in Greater Los Angeles tempered a bit during the first nine months of the year. However continued strong economic performance, driven primarily by nearly 2% job growth in the metro area, will ultimately lead to a healthy year-end and overall solid performance for the region. We anticipate the same conditions to be prevalent in 2017 and for LA to outpace other gateway cities in the U.S.