LOS ANGELES-A third quarter report from Industry Partners shows that leasing activity for creative office space on the Westside is strong. Most notably, the vacancy rate for creative office is down to 10.6% from 11.4% in the 3Q of 2012. Absorption is up to 36,892 square feet from negative 37,542 square feet a year ago, and rental rates are up to $3.67 from $3.24 last year.

Santa Monica is showing the most impressive growth. The submarket has a 7.9% vacancy rate, down from 8.5% in Q2; however, that is up from 7.1% the same time last year. The report expects much of this vacancy to be absorbed next year when Riot Games, Lionsgate, Red Bull and Amazon sign new leases. Rental rates also improved, up from $4.01 in Q2 to $4.14, as did absorption, up from 14,720 square feet in Q2 to 59,069 square feet in Q3.

Culver City and West L.A. also showed some growth. Rental rates in these submarkets increased from $2.82 in Q2 to $2.96. Vacancy rates, however, increased in this submarket from 6.2% in Q2 to 6.6%. The submarkets have the most affordable rates of any the Westside markets, while the Culver City infrastructure is improving dramatically. The report notes that Beats by Dr. Dre and entertainment firms The Mill, Hungryman, On Board Entertainment and Bandito Films have recently signed long-term leases.