Los Angeles, CA Office Overview
The prosperous Los Angeles real estate scene includes submarkets such as Downtown Los Angeles, Sherman Oaks and San Fernando Valley. With a metropolitan population of over 13 million residents and gross metropolitan product of $866 billion, the local commercial real estate market is vigorously growing, driven by a diverse blend of business and industry.
Downtown Los Angeles hosts a prosperous real estate market. The Hollywood area also attracts considerable attention from real estate investors, and many secondary markets, such as Westlake and Brentwood, also drive demand in the metro.
As of mid-2017, the market encompasses over 101 million square feet of office space in properties larger than 50,000 square feet. The market is thriving thanks to the integrated transportation system of Southern California, which supports a myriad of businesses in the metro area.
Los Angeles, CA Office Inventory Description
While the beginning of the city’s history can be dated back to the Spanish conquest in 1542, the office market in the metro area is anything but dated. Over 65% of Los Angeles office space is Class A product, while Class B property accounts for just over 33% of the inventory.
Some of the best known submarkets of L.A. include the entertainment and film production centers of Studio City and Hollywood. Traditionally involved with the entertainment industry, neighborhoods such as North Hollywood and West Hollywood are seeing increasing demand for the inventory of office space they have on offer.
The multi-cultural areas such as the neighborhoods of Chinatown and Koreatown, as well as the ritzy areas of Woodland Hills and Westwood are also popular with real estate investors from around the world.
It's hard to know where to begin, when counting the trophy office properties in the metro area. The Wilshire Beverly Center and the 9595 Wilshire buildings in Beverly Hills certainly belong on the list, as does the Clock Tower property in Santa Monica and the Fox Plaza in Century City.
Los Angeles, CA Commercial Inventory Breakdown
Office Spaces
Total: 202,231,095 SF
By square footage range:
- 50k to 100k SF: 32,409,021 SF / 16.03% of total office
- 100k to 500k SF: 115,384,981 SF / 57.06% of total office
- 500k to 1M SF: 29,188,493 SF / 14.43% of total office
- > 1M SF: 25,248,600 SF / 12.49% of total office
By class:
- Class A+: 16,741,057 SF / 8.28% of total office
- Class A: 101,122,598 SF / 50% of total office
- Class B: 64,629,164 SF / 31.96% of total office
- Class C: 2,354,154 SF / 1.16% of total office
Top 10 Largest Office Buildings
in Los Angeles
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| Mail Order District - Sears Building | 2650 East Olympic Blvd, 90023 | 1,791,000 | n/a |
| Warner Center Business Park - Redevelopment | 20950 Warner Center Lane, 91367 | 1,480,000 | n/a |
| 2CAL | 350 South Grand Avenue, 90071 | 1,420,000 | 1990 |
| Bank of America Plaza | 333 South Hope Street, 90071 | 1,405,428 | 1974 |
| Wells Fargo Center North Tower | 333 South Grand Avenue, 90071 | 1,400,639 | 1982 |
| The Gas Company Tower | 555 West 5th Street, 90013 | 1,345,163 | 1991 |
| California Market Center | 110 East 9th Street, 90079 | 1,296,360 | 2021 |
| Century Plaza Tower South | 2049 Century Park East, 90067 | 1,210,730 | 1973 |
| City National Plaza - North Tower | 515 South Flower Street, 90071 | 1,171,979 | 1971 |
| City National Plaza - South Tower | 525 South Flower Street, 90071 | 1,170,416 | 1971 |
Most Recently-Built Office Buildings
in Los Angeles
| Office building | Address | Sqft | Year built |
|---|---|---|---|
| ROW DTLA Building 2 | 767 South Alameda Street, 90021 | 360,000 | 2019 |
| The Ford Factory | 777 South Santa Fe Avenue, 90021 | 257,028 | 2019 |
| 24 | 9220 Winnetka Avenue, 91311 | 255,815 | 2019 |
| ROW DTLA Building 1 | 777 South Alameda Street, 90021 | 185,859 | 2019 |
| INclave | 4065 Glencoe Avenue, 90292 | 115,384 | 2019 |
| The Culver Steps | 9300 Culver Blvd, 90232 | 115,000 | 2019 |
| East Hollywood Campus | 1370 Saint Andrews Place, 90028 | 75,760 | 2019 |
| The Sycamore | 953 North Sycamore Avenue, 90038 | 75,670 | 2019 |
| 2041-2115 Colorado Avenue | 2041 Colorado Avenue, 90404 | 75,000 | 2019 |
| Maxwell - 405 South Mateo Street | 405 South Mateo Street, 90013 | 65,022 | 2019 |
Los Angeles, CA Green Office Space
While just under 4% of office buildings larger than 50,000 square feet in the city are LEED certified, that percentage continues to grow. When looking at energy-efficient office buildings as a whole in Los Angeles, nearly 11% are green-rated and over 10% are Energy Star-certified.
As major investors begin to expect green certification for their assets, the city has demonstrated that it is ready to meet the expectations of the global investment community by requiring that all new buildings over 50,000 square feet meet LEED building standards.
The 2017 National Green Building Adoption Index looked at commercial office properties in 30 major U.S. markets and found that, including EPA Energy Star-labeled buildings, the percentage of green certification has increased from under 5% in 2005 to 38% as of mid-2017. The Los Angeles metropolitan area placed 13th in this prestigious annual survey.
Los Angeles, CA's Top Office-Using Sectors
As the second most populous city in the U.S. and the cultural, financial and commercial center of Southern California, the international investment community expects stable and predictable long-term performance from L.A., and the market more than meets those expectations.
A countless number of industries drive the L.A. market, including entertainment, aerospace, technology, finance and telecommunications.
- Entertainment – Companies such as Capitol Records, DreamWorks, and NBC Universal contribute to Los Angeles' high rate of office-working employment.
- Aerospace – Boeing, Northrop Grumman, Aerojet Rocketdyne, and Honeywell Aerospace are all located in Los Angeles.
- Technology – The demand for Class A space in Los Angeles is driven in large part by the high-tech industry, including companies such as Simplicit Technologies and Clean Water Technology.
- Finance – Banking and financial services businesses create large amounts of white-collar employment and demand for L.A. office space from companies such as Raymond James and Prudential.
- Telecommunications – In addition to financial services, companies in the technology sector such as CBRE Group, AECOM Technology Corporation, and Chrome River Technologies also propel demand.
Los Angeles Demographics
Population
- Total Population3,959,657
- Male Population(49.6 %) 1,962,356
- Female Population(50.4 %) 1,997,301
- Median Age35.40
Income/Financial
- Average Household Income$91,608
- Median Household Income$58,385
- Median Income Under 25$31,785
- Median Income 25-44$62,717
- Median Income 45-64$66,167
- Median Income Over 65$42,427
News
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