Growth Drives Lease Expansion

Simpson says Infinity's expansion is an indicator of the booming video-game industry, which is bringing business and jobs to San Fernando Valley. The new jobs, in turn, are boosting demand for space from companies like Infinity. Vacancy rates are very low in Encino and Sherman Oaks, Simpson adds, so there are very few alternatives for office space in the range of 35,000 sf.

Without the downsizing of PeopleSoft, the previous occupant of the space, and its subsequent acquisition by Oracle, the expansion space that Infinity has signed for would not have been available, Simpson says. He cites the most recent Cushman & Wakefield research, which shows Encino's overall vacancy rate for office space at 7.2%, lower than the Los Angeles North area's 9.5% and considerably lower than the L.A. County vacancy rate of 14.1%.