LOS ANGELES—Now that the stock of outdated industrial supply on the Westside has dried up, owners are beginning to convert traditional office buildings into creative spaces to keep pace with the huge demand for creative space. Lee & Associates' Andrew Wilson, Pat Ayau, Christei Abbott and Jeff Moore are handling the leasing for a property in Bel Air, a traditional office property that is getting a creative office makeover, and the team says that it is part of an ongoing trend in the market. To find out more, we sat down with Aleks Trifunovic, president of Lee & Associates L.A. West, for an exclusive interview.

GlobeSt.com: The Westside has become known as a creative office market. What is the demand for traditional office space?

Aleks Trifunovic: There is still demand for traditional office space in the marketplace due to the fact that the Westside it is an economic and financial hub for all of Los Angeles. I think that “traditional” office will slowly start to transition into office space that attracts millennials. The millennial demographic is now the largest group in the workforce of the United States.

GlobeSt.com: Have you seen owners convert traditional buildings into creative properties?

Trifunovic: Yes. This is the next phase of conversion because there is now a lack of supply for the old industrial warehouses. Hudson Pacific's property at 12655 Jefferson is a prime example. They renovated that property, and leased it to WeWork.

GlobeSt.com: When is it beneficial for owners to convert the property to creative office?

Trifunovic: When you have a large enough vacancy [you should look into converting the property to creative office], and when your existing improvements have reached their useful life, that is an especially good time to look into conversion to creative office. If a landlord puts in $70 per square foot on a traditional buildout and it has been usable for a tenant in the past 5 years, it is difficult to convince them to tear it out for a creative build out. However, if a newer owner who already has a plan to convert the project, then it is a good time to convert to creative office. In that case, they would start with common areas immediately and wait for vacancy of individual units to go through the transition.

GlobeSt.com: How does the leasing activity for creative space in the first half of the year compare to 2016?

Trifunovic: I think that there is a lack of supply in the Westside. I feel that there were more tours at the start of 2016 and a pull back heading into the election.  There is not much space available that is truly ready to go for a tenant today do the demand is steady in a extremely supply constrained market.

GlobeSt.com: You are handling the leasing for 640 Sepulveda, which was recently converted into a creative space. How does this property represent the trends you are seeing in the market?

Trifunovic: This is a 1980s Spanish Mediterranean style office being modernized and converted for the needs and wants of the modern Tenant in the Westside with open work areas and indoor-outdoor space. Andrew Wilson, Pat Ayau, Christei Abbott and Jeff Moore represent leasing at the property.

LOS ANGELES—Now that the stock of outdated industrial supply on the Westside has dried up, owners are beginning to convert traditional office buildings into creative spaces to keep pace with the huge demand for creative space. Lee & Associates' Andrew Wilson, Pat Ayau, Christei Abbott and Jeff Moore are handling the leasing for a property in Bel Air, a traditional office property that is getting a creative office makeover, and the team says that it is part of an ongoing trend in the market. To find out more, we sat down with Aleks Trifunovic, president of Lee & Associates L.A. West, for an exclusive interview.

GlobeSt.com: The Westside has become known as a creative office market. What is the demand for traditional office space?

Aleks Trifunovic: There is still demand for traditional office space in the marketplace due to the fact that the Westside it is an economic and financial hub for all of Los Angeles. I think that “traditional” office will slowly start to transition into office space that attracts millennials. The millennial demographic is now the largest group in the workforce of the United States.

GlobeSt.com: Have you seen owners convert traditional buildings into creative properties?

Trifunovic: Yes. This is the next phase of conversion because there is now a lack of supply for the old industrial warehouses. Hudson Pacific's property at 12655 Jefferson is a prime example. They renovated that property, and leased it to WeWork.

GlobeSt.com: When is it beneficial for owners to convert the property to creative office?

Trifunovic: When you have a large enough vacancy [you should look into converting the property to creative office], and when your existing improvements have reached their useful life, that is an especially good time to look into conversion to creative office. If a landlord puts in $70 per square foot on a traditional buildout and it has been usable for a tenant in the past 5 years, it is difficult to convince them to tear it out for a creative build out. However, if a newer owner who already has a plan to convert the project, then it is a good time to convert to creative office. In that case, they would start with common areas immediately and wait for vacancy of individual units to go through the transition.

GlobeSt.com: How does the leasing activity for creative space in the first half of the year compare to 2016?

Trifunovic: I think that there is a lack of supply in the Westside. I feel that there were more tours at the start of 2016 and a pull back heading into the election.  There is not much space available that is truly ready to go for a tenant today do the demand is steady in a extremely supply constrained market.

GlobeSt.com: You are handling the leasing for 640 Sepulveda, which was recently converted into a creative space. How does this property represent the trends you are seeing in the market?

Trifunovic: This is a 1980s Spanish Mediterranean style office being modernized and converted for the needs and wants of the modern Tenant in the Westside with open work areas and indoor-outdoor space. Andrew Wilson, Pat Ayau, Christei Abbott and Jeff Moore represent leasing at the property.