LOS ANGELES-Century City’s Avenue of the Stars ranks eighth on a list of the nation’s most expensive streets for office space, according to a new Jones Lang LaSalle report. Avenue of the Americas has the largest collection of trophy office buildings in West Los Angeles, averaging rents of $60.12 per square foot.
“Century City is a place where you can attract and retain talent, and Avenue of the Stars has always had an allure and attraction,” Craig Kish, senior VP at JLL, tells GlobeSt.com. “Developers have really done a great job building trophy assets on Avenue of the Stars, and great tenants like Twentieth Century Fox are headquartered there.”
Although ranked at number eight in the nation, Century City rents have been stagnant for the last couple of years. In 2011, Avenue of the Stars was ranked sixth on the same list with rents averaging $59 per square foot. Rents on Boston’s Boylston Street and San Francisco’s California Street, on the other hand, were originally ranked lower than Avenue of the Stars, but rising rents, as much as $9 per square foot, have helped them climb the ladder to the number six and seven positions.
“Century City has a 14.7% vacancy rate, which is somewhat soft,” says Kish, adding that rents have been slow increase. “This is primarily because century city consists of mainly law firms, financial entities and entertainment, and hiring for those companies has been flat.”
Sand Hill Road on the San Francisco Peninsula sits at the top of the list, followed by New York’s Fifth Avenue and Silicon Valley’s University Avenue in the number two and three slots.
While West Los Angeles has a large collection of trophy assets, it isn’t attracting booming technology companies, according to Kish. These companies instead are settling in Santa Monica. One example is image-based advertising company GumGum, which recently leased a 4,390-quare-foot creative office space in the historic Santa Monica Clock Tower building.