LOS ANGELES—High-technology companies haveaccounted for 20% of the major national officeleasing this year, according to a new report fromCBRE. Los Angeles is in the top 10 cities, rankedninth overall, to see significant rent growth as a result of thestrong presence of technology companies and technology jobgrowth.


While Los Angeles is ranked in the top ten, the L.A. submarketof Santa Monica, which is the city's largest technology market,ranks fourth in the country for rent growth. In the second quarterof this year, the market had per-square-foot rents of $57 annuallyand a vacancy rate of 7.5%. By comparison, the L.A. marketgenerates $32 annual rents per square foot with a 16.8%vacancy.


NationalBuilder signed the largest office leaseso far this year for 54,800 square feet at 520 S. Grand Avenue.Butterfield Productions andBuzzFeed also signed significant leases.Butterfield Productions signed up for 42,300 square feet at 1950Sawtelle Ave., while BuzzFeed comes in third with a40,000-square-foot lease at 6322 De Longpre Ave.


The report also found that tech companies are starting tomigrate to the downtown market both because of the revitalizationand for the lower rents. There is also significant creative officedevelopment in the downtown market, including ASB RealEstate Investment's $62.5 million redevelopment of five warehouses in the arts districtand Atlas LA 4th Street'splans to convert the former Coca-Colawarehouse into creative office space. Aside from Santa Monica,other top L.A. markets include Westwood, Culver City and the SouthBay coastal markets.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.