Are Creative Office and Traditional Office Separate Markets?

The office market is starting to split in two. Creative office and traditional office are servicing a very different tenant base, and brokers are becoming more specialized in each space, according to Jeff Rinkov, CEO of Lee & Associates. The creative office market has a campus environment and often service younger and more creative tenants, and that needs a more specialized service. While the there are few economic reports that separate the markets, Rinkov says that creative tends to be a driver of the office market and sees more demand and rental premiums.

“We are looking at the markets differently,” Rinkov tells GlobeSt.com. “If you take strong metropolitan markets, where we see an abundance and a high demand of creative office, we are seeing a specialization in that. It is typically more low-rise and converted space. We see quite a few class-B landlords looking to convert their space to what looks like creative space with heightened ceilings and polished concrete. That might be good enough for some, but true creative office is built around a campus-style environment. That is requiring a specialization.”