Strong demand from creative, tech and media tenants continued in the fourth quarter with rental rates for open, innovative office space among the highest in Los Angeles County. However, as options in some of the most desirable submarkets dry up, competition for innovative space and attractive alternatives, including opportunities in more conventional office buildings, has expanded. Interpublic Group’s 150,000-square-foot lease in Century City is reflective of this trend. The marketing giant is relocating from the Pacific Design Center in West Hollywood and redeveloping traditional offices into a modern, collaborative environment. Playa Vista has also benefited from an influx of tech and media companies, including Yahoo Inc., WPP and Fullscreen Inc. While rents in Playa Vista averaged $4.31 a square foot in the fourth quarter, they are a steep drop from Santa Monica’s $5.19, trailing only Beverly Hills’ $5.23 in the county. Supply, particularly for creative office, remains severely constrained on most of the Westside. However, there are some signs that the frenzy could be abating. A number of companies, frustrated with the cost and congestion associated with a Santa Monica location, have opted to decamp, creating significant future vacancy in this Silicon Beach market.

Matthew Brainard is a senior managing director at the Westwood office of Savills Studley Inc.