LOS ANGELES—“Los Angeles' increasingly intertwined tech, newmedia and entertainment companies continue to account for asignificant percentage of the market's overall leasing activity,”says Studley corporate managing directorJon Azulay, who is one of the recognized“Tomorrow's Leaders” for Southern California, in the June issue ofReal Estate Forum. He notes that, as a result of thisleasing activity, the city is “developing into a vibrant,entrepreneurial environment as younger companies select L.A. fortheir headquarters operations.”

This leasing activity is underscored by the expanding tech andentertainment companies, like Google,Beats by Dre and Riot Games, allof which have offices in the L.A. area. Azulay uses the example ofRiot Games' recently signed lease for Element LA, a284,000-square-foot creative office campus. This was the largestlease transaction in several years. Riot Games then followed it upwith an additional lease for 77,000 square feet atKilroy's Westside MediaCenter.

“This activity will likely continue as L.A., from a real estatecost perspective, is more affordable than some other tech hubs suchas San Francisco,” Azulay explains, adding that limited supply onthe Westside is becoming a danger “not only driving up the rentsbut resulting in building sales at record-breaking prices.”Companies that cannot afford to be in the Westside markets areseeking creative office space in the arts disctrict and the SpringStreet cooridor downtown.