Los Angeles Commercial Real Estate

Los Angeles Commercial Real Estate Overview

As the second largest city in the United States, to say that Los Angeles is a cultural and economic powerhouse would be a massive understatement. The city is as diverse as it is sprawling; massive stretches of interstate are synonymous with life in L.A., but offer seemingly endless neighborhoods, suburban cities, and plenty of beautiful vistas that drew so many to the area in the first place.

The city, as you might expect, is a competitive region for business, but its sheer scale offers plenty of opportunity for affordable and spacious commercial real estate. In the last six months alone, over 3,100 listings for office space and other commercial real estate spaces have been posted, averaging just $42 per square foot/year.

With a population of over 10 million people, the Greater L.A. area can accommodate nearly any industry imaginable, but looking past the glitz and glamour of Hollywood for which its best known, Los Angeles is actually the largest hub for manufacturing in the western United States. Its position on the Pacific Coast also makes it one of the largest and busiest ports in the country, serving as both a major seaport and an important transportation and trucking hub.

Economy of Los Angeles

Much of Los Angeles’ economy is centered around the entertainment and tourism industries, which combine for more than $200 billion in economic output each year and provide over 2 million jobs to residents of the city. Yet, Los Angeles is the nation’s largest manufacturing center on the west coast and serves as an important shipping, international trade, and transportation center thanks to its busy port.

According to the Global Financial Centres Index, Los Angeles is the 17th most competitive financial center in the world and the 8th most in North America. Despite this, the city is also a hotbed for entrepreneurs, startups, and innovation, offering ample access to venture capital, financial services, and private lenders looking for the next opportunity.

With an annual GDP reaching nearly $900 billion, Los Angeles is the third-largest economic city in the world behind only Tokyo and New York, yet the region’s largest three employers are public: the City of Los Angeles, the County of Los Angeles, and the University of California employ the most residents of the city than any other entity. However, as home to six Fortune 500 companies, the city remains an important hub for business and private enterprise. Companies seeking high visibility (such as those in finance, retail, or professional services) should consider office space in the downtown area. However, due to the city’s sprawling nature, businesses reliant on foot traffic should find plenty of customers throughout the city’s many and varied neighborhoods.

Trends of Los Angeles

A massive influx of high-tech and software development enterprises have popped up in Los Angeles, particularly in Santa Monica (dubbed by some as “Silicon Beach”). However, these tech-savvy companies have also taken hold in West Los Angeles, South Bay, and Downtown, spurred partly by affordable lease agreements and plenty of vacancies post-recession.

In addition to the steadfast entertainment industry, young professionals and creatives have continued to flock to Los Angeles and locate in neighborhoods like Los Feliz, Koreatown, Westwood, and Silver Lake - and retail, restaurants, and entertainment businesses have followed, transforming these older neighborhoods into modern, exciting hubs for life and play.

Where to Lease Commercial Real Estate in Los Angeles

Commercial real estate in Los Angeles, California is available to rent or lease throughout the city’s entire metropolitan region. With the second largest population in the United States and an area of almost 470 square miles of total space, companies seeking high rise office space with plenty of exposure should consider Bunker Hill or the Financial District. As far as retail and commerce, South Park visits the southern side of downtown Los Angeles. From technology to professional services, retail to restaurants, and manufacturing to shipping, commercial real estate in Los Angeles is available throughout the region. West Hollywood, Downtown Los Angeles, Inglewood, Santa Monica, and more are perfect destinations for businesses of every size.

Where to Buy Commercial Real Estate in Los Angeles

Los Angeles, California commercial real estate is readily available for sale throughout the city’s many neighborhoods. Downtown Los Angeles, Hollywood, and Beverly Hills make for great locations for businesses trying to open restaurants, commercial properties, or industrial spaces. The city is world-famous for its tourism, the movie industry, and culture, but business, retail, professional services, restaurants, manufacturing, and logistics are as vital elements to the Los Angeles economy as ever before. An investment in LA real estate is a major endeavor, but the city’s history of economic power is extensive. High rise, high profile real estate is available in neighborhoods like Bunker Hill, South Park, the Financial District and Hollywood, but retailers should also consider the more rural areas to capitalize on the number of LA-area residents seeking a more local shopping experience.

Learn More About Los Angeles

• Greater Los Angeles Market Reports - Cushman & Wakefield
• Los Angeles County Economic Development Corporation
• Los Angeles - Wikipedia
• Los Angeles, CA -Data USA