Saia: Silicon Beach submarkets such as Santa Monica and Playa Vista remain popular, but as the industry grows so too does the geography these companies are occupying. To the south, El Segundo has emerged as an attractive submarket, and to the east companies are planting flags in Hollywood, West Hollywood, and Downtown LA. As tech and media companies expand in Silicon Beach, causing vacancies to fall and rents to rise, tenants begin to look for areas that can meet their business needs, but might offer a better price point or the ability to stand out a bit more as a brand. These markets all have unique office product, strong amenity bases, nearby housing, and convenient freeway and public transportation access.

GlobeSt.com: How has the start-up industry fueled the office market in Los Angeles?

Saia: The recent growth in the tech and media industries has had a clear impact on office fundamentals, and primarily in Silicon Beach. Occupancy rates, asking lease rates, and sales pricing for Silicon Beach office properties have been growing at a faster pace than the rest of Greater Los Angeles during this current expansion.

GlobeSt.com: What types of spaces are popular among these companies?

Saia: Obviously creative office is the first thing that comes to mind but that phrase has been a catchall, and it doesn't address the specifics these tenants actually need. Every company has a unique culture and is looking for unique space that reflects that and helps to attract and retain talent. Vaulted ceilings, sealed concrete floors, and predominately open space aren't absolute solutions for tech and media companies. Instead, tenants are focused more on wellness components, outdoor space, strong amenity bases, and access to transit.

LOS ANGELES—Start-ups are flooding into Los Angeles, thanks to more attractive pricing than San Francisco and a great pool of talent, and the demand is fueling major growth in the office market. Located mostly in the Silicon Beach markets, start-up companies drive activity for everything from co-working spaces to creative office, and when they take off, larger blocks of space. To find out more about the impact of start-ups on our office market and why we are seeing this influx of demand, we sat down with Maximilian Saia, senior research analyst at CBRE, for an exclusive interview.

GlobeSt.com: Why has Los Angeles become an attractive market for startups?

Maximilian Saia: Los Angeles offers companies every key variable they need to be successful. A world-class university system and diverse economy combine to create a constant pipeline of top tier talent. There is diversity of office product and a huge amenity base that allow tenants to define their brand and attract and retain talent. The quality of life provided throughout the region is another reason companies are drawn to LA.

GlobeSt.com: Which L.A. submarkets are these companies congregating in, and why?

Saia: Silicon Beach submarkets such as Santa Monica and Playa Vista remain popular, but as the industry grows so too does the geography these companies are occupying. To the south, El Segundo has emerged as an attractive submarket, and to the east companies are planting flags in Hollywood, West Hollywood, and Downtown LA. As tech and media companies expand in Silicon Beach, causing vacancies to fall and rents to rise, tenants begin to look for areas that can meet their business needs, but might offer a better price point or the ability to stand out a bit more as a brand. These markets all have unique office product, strong amenity bases, nearby housing, and convenient freeway and public transportation access.

GlobeSt.com: How has the start-up industry fueled the office market in Los Angeles?

Saia: The recent growth in the tech and media industries has had a clear impact on office fundamentals, and primarily in Silicon Beach. Occupancy rates, asking lease rates, and sales pricing for Silicon Beach office properties have been growing at a faster pace than the rest of Greater Los Angeles during this current expansion.

GlobeSt.com: What types of spaces are popular among these companies?

Saia: Obviously creative office is the first thing that comes to mind but that phrase has been a catchall, and it doesn't address the specifics these tenants actually need. Every company has a unique culture and is looking for unique space that reflects that and helps to attract and retain talent. Vaulted ceilings, sealed concrete floors, and predominately open space aren't absolute solutions for tech and media companies. Instead, tenants are focused more on wellness components, outdoor space, strong amenity bases, and access to transit.