Broker Bets on Demand for Private Office Space

Companies across the country are returning to work amid the pandemic, or at least they’d like to. Some office buildings offer workers a way to do that more safely — and therefore more quickly — than others.

Boutique-style office buildings and suites have proved popular with tenants seeking space that allows for social distancing during the coronavirus era, with private entrances, lobbies and amenities that don’t have to be shared with other businesses. Andrew Sinasohn, executive vice president at Zacuto Group, a brokerage and advisory firm that operates out of Venice, California, has witnessed this dynamic firsthand.

“Everyone wants to go back to their office, it’s just a matter of how and when they can do it safely,” he told LoopNet. The firm is currently listing a 6,500-square-foot office at 406 Wilshire Blvd. in Santa Monica, California. One of the main draws of this particular suite in the COVID-19 era: it offers a private entrance, lobby and elevator.

While the full-floor, loft-style suite was designed with a tech or creative industry tenant in mind, the COVID-conscious nature of the unit could attract tenants of all kinds.

“This [type of office space] really lends itself well to any tenant that is trying to go back to their office safely [amid and post] COVID,” Sinasohn said. “Many tenants do not want to go back to a larger building where they are sharing elevators or common spaces with multiple other tenants, or walking through the crowded promenade to get to their building. This will ultimately provide occupants with an extra level of comfort as it minimizes interference with other tenants whom they can’t control.”

The desire for more private office spaces goes hand-in-hand with the desire for tenants to distance themselves from large, crowded high-rise buildings.

“Every company [I am working with] is rethinking their strategy right now. For example, we have companies that might occupy 15,000 square feet, and we’re breaking them down into five different, 3,000-square-foot spaces to separate employees and reduce risk,” said Sinasohn. “We’re taking them out of large Class A high rises and putting them in more standalone opportunities with indoor/outdoor space and operable windows.”

The office suite at 406 Wilshire — which was once home to Bruce Willis’ production company — is designed as a New York-style loft, with exposed wooden beams in the pitched roof, brick walls, flooring that mimics concrete and an open layout. The numerous picture-frame windows bring in natural light and are operable for fresh-air ventilation — another feature that is attractive to tenants looking for COVID-conscious features. The single floor also includes a smart HVAC system with multiple zones, and tenants can access a private rooftop.

The suite currently features a conference room and two private offices, and Sinasohn said the rest of the currently open layout will be customized to the future tenant’s needs.

“The space was tired and needed some rehab, so we repurposed the core and shell as an open layout and are waiting for the tenant to tell us where they want offices and conference rooms once we have them at the table," he noted.

Sinasohn said that while a lot of leasing activity has slowed across the board during the pandemic, he has actually been “more active than ever.”

“It is because [our firm] is focused on how to get companies back to work safely. Every tenant is looking to get back to their own space, but they need to be less dense and have access to more fresh air. A building like 406 Wilshire, for example, tends to the new wave of COVID-conscious tenants.”