Office Tenants Migrate to Downtown Market

LOS ANGELES—Brookfield Office Properties reports that 45% of the 110,000 square feet in office leases the firm signed to its portfolio of office properties in the first quarter of this year came from out-of-market tenants. The information reveals a trend in office tenants migrating from other Los Angeles markets to the downtown market.

CoStar Group is one example of this trend in migration. The company signed a 17,350-squae-foot lease at 777 Tower, relocating from its former office space in Westwood. “The new to Downtown tenants that we meet are focused on the overall quality of the work environment that is conducive to recruiting and retaining the highest quality workforce,” John Barganski, SVP of leasing for Brookfield Office Properties’ western region, tells GlobeSt.com. “The residential base is made up of high quality workers and that will only grow with the wave of new development.  The “cool” factor is high with new, urban amenities—restaurants, retail, etc—and a transportation network that connects it all to the rest of the City.”