Los Angeles, CA Office Overview
The prosperous Los Angeles real estate scene includes the Downtown Los Angeles, Santa Monica, and Hollywood commercial real estate submarkets. With a metropolitan population of over 13 million residents and gross metropolitan product of $866 billion, the Los Angeles commercial real estate market is vigorously growing, driven by a diverse blend of business and industry.
As of mid-2017, the Greater Los Angeles commercial real estate market encompasses over 101 million square feet of existing office space in properties larger than 50,000 square feet. The office market in Los Angeles 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 Los Angeles can be dated back to the Spanish conquest in 1542, the office market in the metro area is anything but dated. Over 65% of L.A. office space is Class A product, while Class B office property accounts for just over 33% of Los Angeles'; office inventory.
Some of the best known office submarkets of LA include the entertainment and film production centers of Century City and Hollywood, the multi-cultural areas of Chinatown and Koreatown, and the ritzy areas of Wilshire and Santa Monica.
It's hard to know where to begin, when counting the trophy office properties in metropolitan Los Angeles. The Wilshire Beverly Center and the 9595 Wilshire office buildings in Beverly Hills certainly belong on the list, as does the Clock Tower office property in Santa Monica and the Fox Plaza on the Century City office scene of Los Angeles.
Los Angeles, CA Commercial Inventory Breakdown
Office Spaces
Total: 188,810,776 SF
By square footage range:
- 50k to 100k SF: 31,047,514 SF / 16.44% of total office
- 100k to 500k SF: 107,752,475 SF / 57.07% of total office
- 500k to 1M SF: 25,892,187 SF / 13.71% of total office
- > 1M SF: 24,118,600 SF / 12.77% of total office
By class:
- Class A+: 16,741,057 SF / 8.87% of total office
- Class A: 97,490,323 SF / 51.63% of total office
- Class B: 62,009,043 SF / 32.84% of total office
- Class C: 1,982,844 SF / 1.05% of total office
Los Angeles, CA Green Office Space
While just under 4% of Los Angeles office buildings larger than 50,000 square feet are LEED certified, that percentage continues to grow. When looking at energy-efficient office buildings as a whole in metro L.A., nearly 11% are green-rated buildings and over 10% are Energy Star- certified.
As major investors begin to expect green certification for their office assets, the City of Los Angeles 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 the Los Angeles office scene, and this market more than meets those expectations.
A countless number of industries drive the LA office 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 office 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 LA 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 the demand for office space in Los Angeles.
Los Angeles Demographics
Population
- Total Population3,949,776
- Male Population(49.5 %) 1,953,844
- Female Population(50.5 %) 1,995,932
- Median Age35.20
Income/Financial
- Average Household Income$86,758
- Median Household Income$54,501
- Median Income Under 25$29,296
- Median Income 25-44$58,345
- Median Income 45-64$61,972
- Median Income Over 65$40,425
- Boyle Heights Demographics
- Brentwood Demographics
- Century City Demographics
- Chatsworth Demographics
- Downtown Los Angeles Demographics
- Downtown Santa Monica Demographics
- East Hollywood Demographics
- Encino Demographics
- Fox Hills Demographics
- Hollywood Demographics
- Koreatown Demographics
- Mid-City Santa Monica Demographics
- North Hollywood Demographics
- Pacoima Demographics
- Panorama City Demographics
- Platinum Triangle Demographics
- Playa Vista Demographics
- Sawtelle Demographics
- Sherman Oaks Demographics
- Sunset Park Demographics
- Sylmar Demographics
- Tarzana Demographics
- Van Nuys Demographics
- West Hills Demographics
- Westchester Demographics
- Westlake Demographics
- Westwood Demographics
- Woodland Hills Demographics
News
2019 US Office Pipeline – NYC, the Bay Area and San Francisco Set to Deliver 33 MSF of Office Space
April 10, 2019
Since 2009, the U.S. economy has had more than 110 consecutive months of growth, making this the second longest economic expansion since the Great Depression. After a rather tepid 2017 performance, the U.S. office market gathered some steam in 2018, adding 76 million square feet of new office sp...
The U.S. industrial real estate market had a solid year in 2018 and has continued to strengthen through the first quarter of 2019. Industrial rents are on an upward path, while the construction pipeline is robust and development is spurred on by the e-commerce sector. In terms of development, 20...
2018 California Office Sales Report—LA, SF on Cooldown, Stability in the Bay Area and Orange County Markets
March 18, 2019
More than 55MSF changed hands across California office markets in 2018, totaling over $20B in sales. Cooler trends prevailed, as sales slowed and markets saw more stability throughout the year. Development was driven by the tech sector and construction is decidedly getting greener.