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Playa Vista – Market Overview/Current Trends
• Currently one of the hottest markets in the country. • Numerous household name companies have planted their flag in Playa Vista
including Google, Yahoo, Facebook, and YouTube. • Commonly referred to as “Ad Agency Row”, as many of LA’s advertising
agencies have clustered around each other. Creative synergy and proximity to affordable housing for employees are key factors.
• New development is everywhere, from creative office, to multi-family, to retail. • The Runway, an 11 acre retail development, comes online this year, adding a
key piece to the attraction of Playa Vista. • Most landlords in Playa Vista are currently only catering to tenants 10k SF and
larger.
Playa Vista – Recent News
• Google Buys 12 Acres in Playa Vista http://www.latimes.com/business/realestate/la-fi-playa-property-sale-20141203-story.html#page=1 • Yahoo Signs Big Lease at The Collective, Set To Move Operations From Santa
Monica To Playa Vista http://www.latimes.com/business/la-fi-yahoo-playa-vista-20150116-story.html • The Reserve Sells For $316 Million http://www.labusinessjournal.com/news/2015/feb/05/playa-vistas-reserve-sells-316-million
• Big New Leases Signed at Clarion’s i|o http://www.latimes.com/business/realestate/la-fi-property-report-playa-20141218-story.html
Vacancy & Rental Rates – Creative Office Buildings
Data Source: Costar
$3.35
$4.17
$3.51
$4.18
9.0%
6.2%
65.1%
38.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
$3.20
$3.40
$3.60
$3.80
$4.00
$4.20
$4.40
2007 2008 2009 2010 2011 2012 2013 2014 2015
Percent Vacant Av
g. A
skin
g FS
G R
enta
l Rat
e (P
er S
F/Pe
r Mon
th)
Avg. Rental RateVacancy %
• The spike in vacancy in 2009 & 2010 is attributed to the over 1M SF of new product that was delivered, in addition to about 370,000 SF of negative net absorption
Net Absorption – Creative Office Buildings
Data Source: Costar
(36,618)
65,644
154,385
(370,046)
(111,741)
8,487
197,711
393,147
137,407
(500,000)
(400,000)
(300,000)
(200,000)
(100,000)
0
100,000
200,000
300,000
400,000
500,000
2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015
Net
Abs
orpt
ion
(SqF
t/Ye
ar)
Largest Projects In the Market
Building Address Building Name Building Class RBA
Asking Monthly FSG Rental Rate
(Per SF)
Percent Vacant
Available Space Owner Name
12121-12181 W Bluff Creek Dr The Bluffs A 500,943 $3.75 10.24% 207,838 SF
(Available Now) JP Morgan Chase & Co
13031 W Jefferson Blvd The Reserve A 451,373 - 0.00% None Invesco Real Estate
12130-12180 Millenium i|o A 301,642 $4.25 65.62% 193,243 SF (Available Now) Clarion Partners
12025-12045 Waterfront Dr Campus at Playa Vista A 265,579 - 0.00% None Hines Global REIT, Inc.
5510 Lincoln Blvd Water's Edge A 195,214 $4.00 15.55% 60,303 SF (Available Now) DivcoWest
12777 W Jefferson Blvd Playa Jefferson - Buildings A, B, C & D A 195,095 $4.00 33.32% 65,000 SF
(Available Now) Vantage Property Investors LLC
12101-12400 W Bluff Creek Dr Hercules Campus B 193,587 $4.20 15.57% 30,145 SF
(Available Now) Invesco Real Estate
5340 Alla Rd The Annex B 118,330 $4.25 7.59% 83,977 SF (Available 3/2015) CalPERS
12555 Jefferson Blvd Twelve555 A 89,425 $4.15 37.77% 33,775 SF (Available Now) Ocean West Capital Partners
Landmark Projects
The Reserve – 13031 W. Jefferson Blvd. • Total RBA – 399,373 RSF
• Class – A
• Asking Monthly Rental Rate – Fully Occupied
• Vacancy – 0.00%
• Landlord – Invesco Real Estate
• Broker – Carl Muhlstein (JLL)
• Largest Tenants:
1) Verizon (Edgecast) (135,00 SF) 2) Sony Home Entertainment (87,508 SF) 3) Team One Advertising (64,000 SF)
Photo Source: The Reserve
Landmark Projects
The Bluffs – 12121-12181 Bluff Creek Drive • Total RBA – 500,943 RSF (2 Buildings)
• Class – A
• Asking Monthly Rental Rate – $3.80 FSG
• Vacancy – 10.24% (207,838 SF of “available” space)
• Landlord – JP Morgan Chase & Co.
• Broker – Michael Geller (First Property Realty)
• Largest Tenants:
1) The Rubicon Project (46,643 SF) 2) Core Digital Media (40,121 SF) 3) California Pizza Kitchen (33,591 SF)
Landmark Projects
i|o – 12130-12180 Millennium • Total RBA – 301,642 RSF (2 Buildings)
• Class – A
• Asking Monthly Rental Rate – $4.25 FSG
• Vacancy – 65.62% (193,243 SF of “available” space)
• Landlord – Clarion Partners
• Broker – Rick Buckley (LA Realty Partners)
• Largest Tenants:
1) Full Screen (57,900 SF) 2) Group M (48,665 SF) 3) Chernin Group (30,000 SF)
Landmark Projects
Campus at Playa Vista – 12025-12045 Waterfront Dr. • Total RBA – 265,579 RSF (3 Buildings)
• Class – A
• Asking Monthly Rental Rate – Fully Occupied
• Vacancy – 0.00% • Landlord – Hines Global REIT
• Broker – Eric Lyon (Hines)
• Largest Tenants:
1) Belkin International, Inc. (63,804 SF) 2) ICANN (30,300 SF) 3) USC-ISI (29,883 SF)
Landmark Projects
Playa Jefferson – 12777 W. Jefferson Blvd. • Total RBA – 195,095 RSF (4 Buildings)
• Class – A
• Asking Monthly Rental Rate – $4.00 FSG
• Vacancy – 33.32% (65,000 SF of “available” space)
• Landlord – Vantage Property Investors LLC
• Broker – Peter Best (LA Realty Partners)
• Largest Tenants:
1) Omnicom (60,000 SF) 2) Arup Engineering (35,858 SF) 3) Regus (20,143 SF)
15 Largest Users
Tenant Address Premises
Verizon (Edgecast) 13031 W. Jefferson Blvd. 135,000
Electronic Arts (EA Games) 5510 Lincoln Blvd. 125,000
Chiat Day 5353 Grosvenor 100,000
Sony Home Entertainment 13031 W. Jefferson Blvd. 87,508
TOMS Shoes 5404 Jandy Pl. 70,850
Team One Advertising 13031 W. Jefferson Blvd. 64,331
Belkin International, Inc. 12045 E. Waterfront Dr. 63,804
Omnicom 12777 W. Jefferson Blvd. 60,000
Full Screen 12130 -12180 Millennium 57,900
72 and Sunny 12101 W. Bluff Creek Dr. 55,000
Group M 12130 -12180 Millennium 48,665
The Rubicon Project 12181 Bluff Creek Dr., 4th flr 46,643
Frank Gehry 12541 Beatrice St. 46,000
YouTube 12422 W. Bluff Creek Dr. 41,000
Core Digital Media 12181 Bluff Creek Dr., 2nd Floor 40,121
Recent Lease Transactions
Tenant Address Premises Comm. Date
Expiration Date
Monthly Rental Rate
(Per SF) Free TIA
Club W 5340 Alla Rd. 12,407 5/1/2015 9/30/2022 $2.85 NNN w/ 3% escalations
5 and 2/3 months $55.00/SF
Edgecast 13031 W. Jefferson Blvd. 135,000 4/1/2015 9/30/2024 $2.70 NNN w/ 3% escalations 10 months $65.00/SF
Wiredrive 5340 Alla Rd. 9,466 7/1/2015 11/30/2022 $2.85 NNN w/ 3% escalations
5 and 2/3 months $55.00/SF
Omnicom 12777 W. Jefferson Blvd. 60,000 6/1/2015 5/31/2028 $2.25 NNN w/ 3% escalations 13 months $70.00/SF
Group M 12130-12180 Millennium 48,665 6/1/2015 8/31/2020 $3.85 FSG w/ 3% escalations 3 months $60.00/SF
Full Screen 12130-12180 Millennium 57,900 6/1/2015 8/31/2020 $3.85 FSG w/ 3% escalations 3 months $60.00/SF
Stauffer 12540 Beatrice, Suite 200 5,000 11/1/2014 10/30/2017 $2.50 NNN w/ 3% escalations N/A N/A
Popchips (LA) 5510 Lincoln Blvd., 4th Floor 7,200 10/1/2014 9/30/2020 $3.60 MG w/ 3% escalations 2 months $57.00/SF
Sony Home Entertainment 13031 W. Jefferson Blvd. 87,508 9/1/2014 3/311/2022 $2.50 NNN w/ 3% escalations 7 months $60.00/SF
R/GA 12731-12777 W. Jefferson Blvd. 15,000 7/1/2014 11/30/2021 $2.25 NNN w/ 3% escalations 5 months $50.00/SF
Recent Building Sale
The Reserve – 13031 W. Jefferson Blvd. • Sale Date – January 29, 2015
• Buyer – Invesco Real Estate
• Seller – Shorenstein Properties & Worthe RE
Group
• Combined RBA – 399,373 RSF
• Sale Price – $316,000,000 ($791.24/SF)
• Percent Leased at Time of Sale – 100%
• All-cash purchase
Recent Building Sale
i|o – 12130-12180 Millennium • Sale Date – July 2, 2014
• Buyer – Clarion Partners
• Seller – ASB Capital Mgmt & Lincoln Property
• Combined RBA – 294,491 RSF
• Sale Price – $132,700,000 ($450.61/SF)
• Clarion Partners’ significant investment will make
i|o the first Class A development in LA to undergo a redevelopment on this scale – broken apart and reconfigured to satisfy creative-space demands
New Office Development – Under Construction
The Collective – 11975-12015 W. Bluff Creek Dr. • Total RBA – 204,422 RSF (5 Buildings) • Delivery Date – May 2015
• Asking Monthly Rental Rate – Fully Occupied
• Pre-Leased: 100.00%
• Landlord/Owner – Tishman Speyer
• Tenants:
1) Yahoo (131,592 SF) 2) Annenberg (72,830 SF)
New Office Development – Under Construction
5801 S. Campus Center Dr. • Total RBA – 60,299 RSF • Delivery Date – February 2015
• Asking Monthly Rental Rate – Owned • Landlord/Owner – Imax Corporation
• Building will cost $45 million to build
• IMAX is moving all 120 employees from Santa
Monica into this building when it is completed
• Avison Young brokered the transaction for the land
Available Sublease – Greater Than 10,000 SF
The Bluffs (East Building) – 12181 W. Bluff Creek Dr. • Building RBA – 261,669 RSF
• Sublease Premises – Divisible 98,775 RSF (Floors
4-5)
• Space Type – Shell
• Current Tenant Name – Fox Interactive Media
• Asking Monthly Rental Rate – $2.50 NNN
• Term – Thru May 2021
• Owner – JP Morgan Chase
Available Sublease – Greater Than 10,000 SF
The Bluffs (West Building) – 12181 W. Bluff Creek Dr. • Building RBA – 239,274 RSF
• Sublease Premises – 16,572 RSF (2nd Floor)
• Space Type – High-End Modern
• Current Tenant Name – ROVI Corporation
• Asking Monthly Rental Rate – $2.75 FSG
• Term – Thru November 2016
• Owner – JP Morgan Chase
Available Sublease – Greater Than 10,000 SF
Water’s Edge – 5510 Lincoln Blvd. • Building RBA – 239,274 RSF
• Sublease Premises – 29,955 RSF (2nd Floor)
• Space Type – Software Company/Creative
• Current Tenant Name – Electronic Arts, Inc. (EA)
• Asking Monthly Rental Rate – $3.00 MG
• Term – 4 to 7 years
• Owner – DivcoWest
Available Sublease – Greater Than 10,000 SF
The Annex – 5340 Alla Rd. • Building RBA – 239,274 RSF
• Sublease Premises – 35,000 RSF (1st Floor)
• Space Type – Creative
• Current Tenant Name – Laureate
• Asking Monthly Rental Rate – Withheld
• Term – Thru January 2016
• Owner – CalPERS
Available Space – Over 50,000 SF
The Bluffs (East Building) – 12181 W. Jefferson Blvd. • Building RBA – 261,669 RSF
• Available Space – Divisible 51,284 RSF (2nd Floor)
• Space Type – Shell
• Availability Date – Available Now • Asking Monthly Rental Rate – $2.50 NNN
• Preferred Term – 5 to 7 years • Landlord – Vantage Property Investors LLC
Available Space – Over 50,000 SF
i|o – 12130 Millennium • Building RBA – 193,806 RSF
• Available Space – Divisible 175,459 RSF (Floors 1-6)
• Space Type – New
• Availability Date – Available Now • Asking Monthly Rental Rate – $4.25 FSG
• Preferred Term – 3 to 10 years • Landlord – Clarion Partners
Available Space – Over 50,000 SF
Playa Jefferson – 12777 W. Jefferson Blvd. • Building RBA – 195,095 RSF
• Available Space – Divisible 65,000 RSF (Building A
or B)
• Space Type – New
• Availability Date – Available Now • Asking Monthly Rental Rate – $2.75 NNN
• Preferred Term – Negotiable • Landlord – Vantage Property Investors LLC