For companies that use creative space, like internet companies, the only thing harder than finding a space is negotiating for it.
The office real estate market is exceptionally hot right now for the creative/open office space desired by Internet and other high-tech companies. Demand in the West L.A. and Santa Monica area far exceeds supply, and this demand is spilling over into secondary areas such as Culver City and the South Bay, and even into the Miracle Mile and Hollywood. The market is going to remain exceedingly tight for a while because very little inventory will become available in the near future, and much of that inventory already is preleased during the construction phase. As a result, tenants looking for such office space will have to move quickly to find and lock in space. Without the luxury of long, detailed lease negotiations, tenants will have to address quickly their most important issues to finalize a lease. Negotiating for office space in this environment can present special risks for Internet companies.(The full content of this article may only be available to ULI members.)
Thanks to Urban Land Magazine
FULL STORY: Lease Security

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