El Segundo, CA Economic Overview
El Segundo is a suburban city of Los Angeles located in Los Angeles County, Calif., on the Santa Monica Bay with a small population of just over 16,900 residents. El Segundo is translated as “The Second” in English, receiving its name after being granted the location of Standard Oil’s second oil refinery in California. The north and south boundaries of the town are Los Angeles International Airport and Manhattan Beach, with the Pacific Ocean as the western boundary. The City is known as a major aeronautical and industrial business center, home to the Los Angeles Air Force Base. Defined by its many aviation-related and petroleum-related industries and operations that occupy the El Segundo commercial real estate market, the Southern Californian city was granted an Eddy award for being the most business-friendly city in L.A. County.
While only a small number of residents may call El Segundo “home”, compared to the rest of California, this has not limited its ability to attract a wide variety of thriving companies across multiple industries. Many large aerospace companies have facilities in El Segundo, including Boeing, Raytheon, Lockheed Martin, Northrop Grumman, Wyle Laboratories and The Aerospace Corporation. The last two are headquartered there. It is also home to the Los Angeles Air Force Base and the Space and Missile Systems Center (SMC), which is responsible for space-related acquisition for the military. In addition to the Chevron oil refinery, El Segundo is located next to the Hyperion sewage treatment plant and the El Segundo power plant. The current Boeing factory, the Boeing Satellite Development Center, was originally built by Nash Motors in 1946 and opened in 1948. In 1955, Hughes Aircraft Company purchased the 500,000-square-foot building; it was converted to build missiles and also served as a test facility. The city also hosts toy manufacturer Mattel, an AT&T Entertainment Hub, IT services firm Computer Sciences Corporation, grocery chain Fresh and Easy, and database company Teradata R&D facility. The largest employers in the area are Raytheon Space and Airborne Systems, Northrop Grumman, and Boeing.
El Segundo, CA Commercial Real Estate Market
Due to its proximity to Los Angeles and its international airport, the El Segundo office market, a submarket of the South Bay market, has remained highly desirable, but at comparatively more expensive rates. El Segundo is the host of several offices of airlines, including United Airlines, Japan Airlines, Air China, Turkish Airlines, Thai Airways, Emirates, Singapore Airlines, and Air New Zealand. El Segundo is currently undergoing rapid transformation, boasting more than $1 billion in recent and planned developments that include new office spaces and campuses intentionally designed as smart, state-of-the-art, and architectural works of art. Its current commercial market invites big, medium, and small-scale companies to explore new office spaces, including developments such as 777 Aviation, Apollo, the Landing, Elevon, Trisonic, and Utah Ave Campus.
The local market has seen rental rates rebound with positive growth in recent quarters, with vacancy rates also ticking upwards. As of mid-2017, there are 278 office buildings and over 30 million square feet of office inventory located in the area. Future demand, high-quality traditional and creative space, and steady rental rates continue to attract a variety of media, technology and consumer product tenants.
Tower District is rich in amenities and encompasses premier Class A office campuses with a vast array of exciting lifestyle centers. The El Segundo Tower District office market includes some of El Segundo’s landmark buildings, such as Pacific Corporate Towers, that can be seen lining the bustling street while a large concentration of El Segundo’s Fortune 500 companies can also be found here.
Aerospace District is zoned for commercial, industrial, and manufacturing businesses. The Aerospace District contains many of El Segundo’s (and the country’s) most prominent corporations and aerospace companies. The El Segundo Aerospace District office market is home to Los Angeles Air Force Base, Northrop Grumman, Boeing, Raytheon, and The Aerospace Corporation, just to name a few.
Continental Park runs along the vibrant Rosecrans Corridor and combines the best of premium office space with adjacent first-class retail, recreation, and residential amenities. The El Segundo Continental Park office market is maintained in a high-quality campus setting, surrounded by the extremely desirable El Segundo and Manhattan Beach communities.
El Segundo, CA Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
El Segundo, CA Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
El Segundo, CA Commercial Inventory Breakdown
Office Spaces
Total: 16,814,969 SF
By square footage range:
- 50k to 100k SF: 1,362,365 SF / 8.1% of total office
- 100k to 500k SF: 11,291,155 SF / 67.15% of total office
- 500k to 1M SF: 4,161,449 SF / 24.75% of total office
By class:
- Class A: 7,990,428 SF / 47.52% of total office
- Class B: 5,777,089 SF / 34.36% of total office
- Class C: 290,806 SF / 1.73% of total office
Industrial
Total: 963,106 SF
By square footage range:
- 50k to 100k SF: 91,840 SF / 9.54% of total industrial
- 100k to 500k SF: 871,266 SF / 90.46% of total industrial
By class:
- Class B: 703,266 SF / 73.02% of total industrial
Office Spaces with Retail
Total: 380,558 SF
By square footage range:
- 100k to 500k SF: 380,558 SF / 100% of total office with retail
Employment in El Segundo, CA
Employment in El Segundo has been growing at a rate of 3.82%, from 8,988 employees in 2014 to 9,331 employees in 2015. The most common job groups, by number of people living in El Segundo are Management, Business, Science, & Arts, Sales & Office, and Service.
According to the BLS, the industries in the Los Angeles-Long Beach-Glendale, CA area with the highest employment numbers include:
- Trade, Transportation, and Utilities—currently employs 819,000, growing at a yearly rate of 0.4%
- Education and health services—currently employs 797,100, growing at a yearly rate of 3.3%
- Professional and business services—currently employs 614,300, growing at a yearly rate of 2.7%
Education in El Segundo, CA
The El Segundo Unified School District serves the residential district of El Segundo, west of Sepulveda Blvd. The school district is listed as one of the state's 29 academic outperformers by Standards and Poor's in 2005.
In total, there are 127 colleges within 50 miles of El Segundo. The nearest college in El Segundo is Argosy University Los Angeles at 1.8 miles from El Segundo center.
Commuting Time in El Segundo, CA
In a mere five-square-mile radius, area businesses in El Segundo have access to two major freeways, a light rail station, a bus depot and LAX. The city is located directly next to the Los Angeles International Airport and just 30 minutes from San Diego and 45 minutes from San Francisco.
Employees in El Segundo, CA have a shorter average commute time of 21.5 minutes than the national average of 24.8 minutes. The largest share of workers in El Segundo drove alone to work in 2015, followed by those who work at Home and walked.
El Segundo Demographics
Population
- Total Population16,929
- Male Population(49.1 %) 8,313
- Female Population(50.9 %) 8,616
- Median Age38.70
Income/Financial
- Average Household Income$120,471
- Median Household Income$92,942
- Median Income Under 25$52,169
- Median Income 25-44$118,170
- Median Income 45-64$94,175
- Median Income Over 65$70,028
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