While every market is different, often on a neighborhood-to-neighborhood basis, the most reliable market prospective real estate investors can choose is Los Angeles.
Real estate in Los Angeles isn’t just the best in the country; it’s some of the best in the world. From townhouses to single-family homes, residential real estate listings are booming. However, LA real estate isn’t just for homeowners and home buyers; the commercial real estate scene in LA is perhaps the most robust in California.
We’ve spent four decades in L.A. as real estate professionals — not real estate agents, realtors, or a realtybrokerage firm, but an investment firm. After all that time, we’ve got the expertise to guide you through the best commercial real estate investment opportunities the California housing market offers.
Why Is Los AngelesReal Estate So Strong?
Any financial decision warrants a close examination of its potential. Here are a few reasons why Los Angelesreal estate continues to appreciate and earn investors better returns.
Los Angeles epitomizes what people look for in the California dream, perhaps more so than places like San Diego, Sacramento, and San Francisco. The climate in Los Angeles alone makes it a stand-out market. California residents and businesses alike are drawn to the consistency of the weather.
The weather in Los Angeles stays at a consistent 67 degrees. Angelenos can count on blue skies and golden sunshine throughout the year. Even in the wintertime, the temperature in Los Angeles rarely gets below 42 degrees — that’s not something you can say for all California cities.
Los Angeles living doesn’t have the same weather drawbacks as colder or wetter climates. This allows businesses to know what exactly they’re getting from the forecast; they can plan more effectively without fear of facing disruptions to their schedule caused by weather.
The Silicon Beach
One of the most significant influences in Los Angelesreal estate in the past decade has come from the Silicon Beach phenomenon.
It describes the mass influx of tech giants to the Westside region of Los Angeles. Drawing its name from northern California’s Silicon Valley, Silicon Beach has become the country’s fastest-growing tech hub — right on the sunny beaches of Los Angeles.
Silicon Beach began to take shape in 2011 when Google built a massive satellite campus in Santa Monica. Since then, dozens and dozens of companies have made substantial headquarters, offices, and campuses in Santa Monica and the surrounding Westside area.
The effect on the local real estate has been profound.
A city can be transformed by the presence of just one tech company. Here’s a short list of a few tech companies that have made Silicon Beach their home:
- Dollar Shave Club
- Falcon Computing Solutions
- The Honest Company
- Oculus VR
- Riot Games
- Snap Inc.
- Thrive Market
- Virgin Hyperloop One
How Has Silicon Beach Affected Commercial Real Estate?
Tech has become a dominant force in the economy. Companies like Google and Meta are multi-billion dollar industries. When these high-capital corporations establish themselves in the local economy, they increase the circulation of capital in the area.
Commercial real estate becomes more valuable as tech titans to fresh startups compete for the office space to conduct their business.
New campuses and HQs bring a high-income earning workforce who need places to live. Residential properties in the vicinity increase in value as these upwardly mobile employees compete for housing.
Tech may be the newest addition to the Los Angeles industrial world. But far and away, the industry most commonly associated with Los Angeles is the entertainment industry.
For almost 100 years, the film industry has thrived in L.A. From the Hollywood sign to the Walk of Fame, Los Angeles is a symbol of the glamor of movies and larger-than-life celebrities.
The film industry’s effects on the city go deeper than cultural appeal. L.A. is an entertainment hub and, as a result, draws in massive amounts of people and investment.
Transplants rent from property owners to the city as they find their footing in the film industry. Commercial spaces are leased for filming purposes and fill office space for film production work. Fields within the more significant entertainment industry also require office space, like talent agencies.
An entire economic ecosystem is developed around the entertainment industry in Los Angeles, adding intense competition for a wide variety of commercial spaces.
The Port of Los Angeles
Los Angeles’ location on the west coast has made it a significant link in the global supply chain.
The port of Los Angeles is the largest in the United States. Millions of goods shipped from East Asia find their port of call in Los Angeles.
As a fulcrum point in the import-export industry, Los Angeles commercial real estate is highly influenced by the sheer volume of goods coming through the city. Warehouses, shipyards, truck lots, and many other commercial spaces are plentiful in Los Angeles county and can prove to be great opportunities for enterprising investors.
The Restaurant Scene
Los Angeles has some of the best restaurants in the world.
L.A. is a cultural hub. Some of the leading figures in the culinary world have their flagship restaurants in the city. There are tens of thousands of restaurants spread out across the city. With such a high concentration of eating venues across the city, commercial real estate in the restaurant industry has become a substantial portion of real estate options in Los Angeles.
The vibrant restaurant scene is an equally dynamic real estate opportunity for investors, from four-star dining options to food trucks.
People worldwide look to Los Angeles for the cutting edge in fashion trends.
Los Angeles houses a rich and diverse market for boutique retail storefronts and specialty name-brand outlets. The biggest names in fashion and design set up shops across the city to participate in this fashion-crazed city.
There are endless opportunities for investors to get into Los Angeles retail property, from small boutiques to malls.
Learning more about the nuances of the city is key to understanding the real estate market’s potential. If you want to keep up to date on developments in Los Angelesreal estate, check out our press portal for the latest news in the city.
What Are the Best Neighborhoods for Commercial Real Estate?
- Santa Monica
- Century City
Santa Monica is ground zero for the Silicon Valley tech boom.
Google’s massive campus here drives up commercial property value as other tech-oriented businesses vie for office space adjacent to this technological behemoth.
A few tech companies in Santa Monica include Naughty Dog, Postmates, and Headspace.
But there’s much more to Santa Monica commercial real estate than the tech office space.
Santa Monica is teeming with retail storefronts selling designer fashion, fine dining restaurants, and all sorts of commercial spaces.
Santa Monica Is Ideal For Commercial Investment: One of the more prominent neighborhoods in L.A.’s Westside, Santa Monica, presents a wide range of commercial real estate opportunities. Retail, restaurants, office space, Santa Monica has it all.
Venice is just south of Santa Monica. It has a rich cultural history and plenty of things to do, drawing in crowds of people and making it a great place to invest in commercial real estate.
Its proximity to Santa Monica positions it squarely within the borders of Silicon Beach. Its bohemian history appeals to the most creative kinds of tech entrepreneurs.
The social media company Snap Inc, an e-commerce social media hybrid company called StackCommerce, and a green energy company called Enervee are just a few of the tech companies that have set up within Venice’s tight streets.
The dining scene in Venice is a rich tapestry of options, from fine dining options to brick-and-mortar storefronts reinventing street-fare classics.
Venice is home to the Venice Beach boardwalk, where thousands of people go to spend a day perusing through shops all along the beach.
Century City is located just east of the Westside region, closer to central Los Angeles.
At about 176 acres, Century City is a sizable business district in the middle of Los Angeles. Century City’s towering skyscrapers contribute to the iconic Los Angeles skyline; inside them are floors of office space that fuel this neighborhood’s commercial real estate market.
Constellation Place and the Century Plaza towers are two Century City office space powerhouses. Westfield Century City is one of Los Angeles’ vibrant outdoor malls, putting up many boutique stores.
The Fox Studio Lot is located in Century City, which takes up quite a bit of commercial space in the area.
Century City Is A Prominent Business District: This neighborhood is oriented for business purposes, resulting in a sprawling commercial ecosystem. With plenty of square feet for office space, restaurant space serving white-collar workers getting lunch, and mall outlets, the commercial real estate in Century City is some of the highest in Los Angeles.
Hollywood is the cultural heart of Los Angeles. Tourists come from far and wide to walk along the Hollywood Walk of Fame, see the Chinese theater, and take in the entertainment offerings of Hollywood’s music and comedy venues.
With such a high degree of tourism in this neighborhood, Hollywood naturally houses a vast range of businesses that serve the influx of people visiting this iconic Los Angeles location.
The restaurants in Hollywood are some of the best in the city. There are hundreds of eating options to choose from in Hollywood. The nightlife always presents a bustling scene for L.A. residents, sustaining bars and nightclubs with a consistently high revenue stream.
Hollywood Businesses See a Lot of Traffic: Since it’s such a popular area, Hollywood is a premium location to set up customer-facing businesses.
Retail storefronts, cafés, restaurants, bars, and nightclubs do well in Hollywood. Investors interested in financing these sorts of businesses won’t find better assets than the selection in Hollywood.
The Future of Los Angeles Commercial Real Estate
Between Silicon Beach, the deeply rooted entertainment industry, and the integral position of the port of Los Angeles, the forecast for commercial real estate in Los Angeles will be consistently sunny for the foreseeable future.
The increasing tech presence in Los Angeles makes commercial real estate an even more practical investment option.
As these trends continue, commercial real estate will likely increase in value as tech companies expand beyond the Silicon Beach neighborhoods of the Westside deeper to central Los Angeles locations like Culver City and Century City.
Invest With the Best
Commercial real estate can be challenging to break into as an individual investor. Properties are costly — Los Angeles commercial real estate even more so.
To gain access to these high-value real estate assets, you need the skill set, capital, and network found through a firm like Christina.
Get started today and protect your portfolio for tomorrow.