SoHo Emerges as SoCal Destination for Creative Companies

By Dennis Kaiser

CBRE’S Downtown LA team specializing in urban investment and leasing, headed by Phillip Sample, is experiencing greater demand than ever for creative office space in what is being called “South Hollywood.” In order to meet this increased leasing demand, Ryan Phillips recently joined the team, as a partner, bringing with him a wealth of experience and client relationships.

Connect Media asked Phillips to explain a bit more about what’s driving this emerging submarket, his role and growth prospects for the area. Check out our latest 3 CRE Q&A to find out what he thinks.

Ryan Phillips

Q: What is driving this increased demand for creative office space in what you are coining as ‘South Hollywood’ – otherwise known as the Mid-Wilshire, Miracle Mile area? And how has the market evolved in the last five years in this regard?

A: In recent years, there has been a spike in multifamily development along Wilshire through Miracle Mile and most recently Koreatown, which is attracting a younger demographic to the area. This, in turn, is catalyzing the need and demand for more amenities and retail options. With this growing, diverse demographic comes an increased talent pool. This area along Mid-Wilshire and Miracle Mile is truly a burgeoning, live-work-play environment.

Public transportation is also a huge draw for tenants—the Purple Line was recently approved for a $3.2 billion extension into the Westwood area and is set to be completed in 2026. Another desirable aspect of this area is its central location—just west of Downtown, south of Hollywood and east of Miracle Mile. It pulls several tenants with expiring leases from surrounding high-rent districts like Hollywood, that are experiencing the “sticker shock” of rental rates that may be close to double from what they were currently paying. These tenants are looking for value in an area that provides a similar “live/work/play” lifestyle, and they are finding that now in “South Hollywood.”

In the last five years, institutional landlords have seized the opportunity to buy office buildings early in this up-and-coming area and make the significant investments needed to completely renovate and redevelop the properties by converting old tired space to “creative office,” redesigning lobbies by adding tenant amenities and stunning designs that attract today’s modern tenant. This, plus the recent explosion of multifamily developments, has naturally increased the value of the area, attracting higher-end retailers and restauranteurs and different demographics of tenants such as tech and entertainment.

Q: What does your new role as Director of Leasing with CBRE’s Urban Group entail? Why did you decide to make the move to CBRE?
A: This team, which specializes in creative office leasing and sales focused in downtown, and throughout Hollywood, Mid-Wilshire and surrounding markets, wanted to bring on a third senior-level partner to run and continue to grow their already robust leasing platform, while the original two partners, industry veterans, Phillip Sample and Chris Caras, can continue to focus their attention on the investment sales aspect of the team.

With 11 plus years of experience of tenant and landlord office representation in the Los Angeles area, this role presented the perfect opportunity at this point in my career to be partner with an already proven pair of industry leaders. Knowing that CBRE is a world-class company, and learning of its endless array of resources and innovative technological capabilities, made the move a no-brainer for me.

Q: Can you talk about your most recent transaction and how you aim to boost the team’s leasing activity to 5 million square feet from their current 3.8 million square feet by the end of this year.
A: Our team as a whole is currently in lease negotiations upwards of a half million square feet. Now that we have strengthened our capabilities by adding a more specialized skill set and expertise in additional markets, we have the firepower to grow the entire portfolio by providing a full suite of services to our clients. We are able to partner across the firm’s entire platform and combine different areas of expertise which, in turn, allows us to provide unmatched market knowledge, insight and information to advise our clients on the best solutions. The sky is the limit, and I am excited for things to come!

*Pictured is LACMA’s proposed Miracle Mile rebuild that was recently approved by the County

For comments, questions or concerns, please contact Dennis Kaiser