Where is LA tech real estate headed? Breaking down the top 4 areas

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The best way to keep an eye on LA’s growing tech scene is to watch its impact on the city’s commercial real estate market. 

 

According to a report by CBRE, 6 percent of companies looking for office space in LA are startups and tech currently accounts for 4.2 percent of the total occupied space in the Greater Los Angeles area (about 9.3 million square feet). That number may not seem impressive, but when you consider that in West LA alone, those numbers rise to 13 percent and 12 percent respectively, it becomes clear the industry is continuing to seize a large part of the city. 

 

There is 2.2 million of square feet of office space construction currently underway in LA county, including 1.2 million in Hollywood, 479,830 in Marina Del Rey, and 615,000 in the rest of West LA. Demand for this space is continuing to climb — within the past year, the asking lease rate in West LA has climbed 10.8 percent.

 

But who’s moving in? With higher rates, smaller startups may have to search elsewhere for office space if the area continues to climb. 

 

But one thing is for certain, tech giants are still looking to West LA for their new, shiny offices. Here is a quick breakdown of the four highest concentrated tech neighborhoods in LA:

Square feet of tech: 2,309,092 

Concentration of tech in real estate: 26.5%

 

One of the original LA tech giants, TrueCar calls Santa Monica home. The company started with 4,390 sq ft., added a 33,700 sq. ft. space in June 2013, and plans to move into an additional 25,747 sq. ft. this month — totalling 71,175 square feet.

 

Square feet of tech: 1,359,489 

Concentration of tech in real estate: 80.4%

 

Perhaps the area’s most notable company is Belkin. The company was ahead of the curve, relocating to 166,335 sq. ft. of Playa Vista real estate in 2010.

 

Square feet of tech: 1,352,288 

Concentration of tech in real estate: 45.1%

 

While tenants in the business services and hardware sub-industries account for 67.6% of the total tech footprint in Culver City, its fastest growing resident is a gaming company. Scopely currently works out of 28,199 sq. ft. in the submarket.

 

Square feet of tech: 852,429 

Concentration of tech in real estate: 23.7%

 

It should come as no surprise that Snapchat is the fastest growing company in this submarket. The company has leased 77,995 sq. ft. since the beginning of the year and accounts for 42% of the positive net absorption of the submarket. With their newest 6,000 sq. ft. building, they will amass 95,331 sq. ft. in LA.