From PMI Properties, investors in creative office space located in Los Angeles and San Francisco: Developers and owners convert existing warehouses, old buildings, and even conventional offices to produce creative space. The cost to convert traditional office space to creative is $50 to $80 per square foot and can be accomplished in 30 to 120 days. In Los Angeles, brokers call these “soft creative” because the spaces lack the drama and intrinsic of single level converted warehouses.
In Los Angeles, warehouses can be converted in less than a year. Even now in San Francisco, owners are working feverishly to convert conventional offices into creative spaces, moth balled buildings in more creative spaces, and vacant land into new highrise creative buildings. When it comes to creative space production, we are all “Houstons”. The last time around, the real estate investment and leasing community failed to accurately account for the production of creative space and even office space ( changed from other uses). I attach an article from the dot.com bust as a reminder of the phenomenon.
*Shared by Ted Simpson, Scott Steuber & Jeff Vertun