Los Angeles, CA, offers a thriving, top-tier metro with a massive population, surging economic growth, and plentiful commercial real estate opportunities for ambitious investors and tenants alike.
The sprawling MSA features a sizable CRE inventory within its thousands of square miles, dozens of cities, and multiple regions. Principles and expanding businesses look to Los Angeles as a premier area to invest in commercial property. Crexi proudly equips property seekers with the tools they need to identify Los Angeles commercial real estate that precisely fits their needs.
Los Angeles commercial agents and brokers representing Los Angeles property for sale harness Crexi’s powerful listing and lead management platform to interact with engaged buyers and tenants. Using Crexi’s software suite, Los Angeles commercial brokers can discover hundreds of leads, save time, and close more deals faster.
As of this writing, Crexi has helped brokers and buyers transact more than $300 billion in property sales and marketed assets representing over $2 trillion in total.
Crexi proudly serves Los Angeles, Long Beach, Anaheim, Pasadena, the Inland Empire, and the Greater Los Angeles metro in its entirety as the region’s fastest-growing digital CRE platform.
The State of Los Angeles Commercial Real Estate
Greater Los Angeles is ranked as the #1 Customs District in the U.S. based on two-way trade value. With a consumer market of more than 13 million people, the region is home to the world’s leading trade and logistics infrastructure and robust commercial real estate market.
Los Angeles is situated at the northeastern tip of the San Fernando Valley and spans nearly 5,000 square miles. The region is home to eight distinct business regions and 88 cities and towns from the Santa Monica Mountains to the Pacific Ocean. Metropolitan Los Angeles is known for its thriving entertainment industries, diverse population, dynamic economy, extensive freeway system, and an ideal Mediterranean climate.
Nicknamed the City of Angels, Tinseltown, and La-la-Land, there’s something for everyone in Los Angeles. The metro area is home to every type of business imaginable, including countless cultural venues like the Los Angeles Music Center and the Walt Disney Concert Hall, multiple professional sports teams, and 1.4 billion square feet of commercial real estate space.
Los Angeles Regional Breakdown
The populations of the City of Los Angeles and Los Angeles County increased by 2.8% and 2.0% respectively over the past 10 years. This growth kept LA the second-largest city in the nation and LA County the largest in the country. Due west of the LA Central Business District, Santa Monica was among the fastest-growing cities in the county.
- Los Angeles is home to about 3.9 million people in the city and 13.2 million in the Los Angeles metropolitan area.
- Population growth in Los Angeles was -0.58% last year and 2.8% over the past ten years.
- Los Angeles is the largest city in California and the second-largest in the U.S.
- Greater Los Angeles includes the cities of Long Beach, Santa Clarita, Glendale, and Pasadena.
- Between 2010 and 2020, the population of Los Angeles County grew by 2.0%.
- The median age in Los Angeles is 37.4 years, a little less than the figure for the U.S.
- Median household incomes in Los Angeles increased by nearly 7.2% year-over-year, while property values grew by almost 2.6%.
- Per capita income in Los Angeles is $37,764, and median household income is $77,774.
Los Angeles Job Market
Los Angeles County has gained back two-thirds of the jobs lost since the pandemic, with the leisure and hospitality, information, and professional and business services sectors showing the most robust signs of recent growth. In fact, between October and November 2021, the metro area added nearly 43,000 net new jobs.
- The Los Angeles-Long Beach-Anaheim CA MSA’s GDP is over $1 trillion and has grown by nearly 39% over the past decade.
- The unemployment rate in Los Angeles is 7.1% as of November 2021.
- Fastest growing employment sectors include construction, trade and transportation, information, professional and business services, leisure and hospitality, and education and health services.
- Major business districts in Greater Los Angeles include Downtown LA, Downtown Long Beach, and the Pasadena, Glendale, and Burbank central business districts.
- The economy of Los Angeles remains solid and diverse and is powered by a wide variety of business sectors, including entertainment, aerospace, technology, finance, law, healthcare, and international trade.
- Target industry sectors in the Los Angeles metropolitan area include advanced transportation, aerospace and defense, biosciences, creative design industries, entertainment, digital media, and trade and logistics.
- County of Los Angeles, Los Angeles Unified School District, Kaiser Permanente, the State of California, the Federal Government, and University of California Los Angeles are among the largest employers in metro Los Angeles.
- Some of the nation’s leading universities are located in Greater LA, including California Institute of Technology Pasadena, University of California Los Angeles, University of Southern California Los Angeles, and Pepperdine University Malibu.
Transportation infrastructure in Los Angeles includes an extensive network of freeways and highways, an efficient logistics network of distribution centers and warehouses, local and regional freight rail service, air freight and national and international business air travel, and the Port of Long Beach and Port of Los Angeles seaports.
Los Angeles Industrial Market
The Los Angeles industrial market boasts the second-lowest vacancy level in the country (just behind the Inland Empire), with levels below 3.0% over three years in a row. Net absorption of industrial space in Greater LA in 2021 was among the highest on record, with tenants such as Amazon, FedEx, and Omni Logistics all signing leases greater than 300,000 square feet.
- Total industrial inventory: 1,053,629,554 SF
- Average asking rent: $1.09 per SF per month, NNN
- Vacancy rate: 1.1%
- Absorption: 13.7 million SF in 2021
- Key lease transactions by tenant: Amazon 319,000 SF, DSV-Panalpina 295,000 SF, JD Logistics 216,000 SF
- New construction: 2.2 million SF delivered in Q4 2021 with 6.3 million SF under construction
- Key sales by buyer: Cancilla Properties II LLC, Covington Group Inc., Black Creek Group with prices ranging from $110/SF to $441/SF
- Largest industrial submarkets: Central, LA North, South Bay
Los Angeles Office Market
The Los Angeles office market appears to have turned a corner, recording the first quarter of net absorption since the beginning of 2020. Entertainment companies such as HBO, Riot Games, and Roku have signed leases for hundreds of thousands of square feet of office space in West LA. The outlook for the office market in Los Angeles continues to be optimistic, with occupancy rates rising and average asking rents holding steady.
- Total office inventory: 212,790,229 SF
- Average asking rents: $3.67 per SF per month, full service gross, all classes
- Vacancy rate: 19.4%
- Absorption: 562,952 SF in Q4 2021
- Key leases by tenant: Riot Games 332,000 in two transactions, HBO 161,000 SF, Los Angeles Chargers 145,000 SF, and Roku 94,000 SF
- New construction: 387,000 SF delivered in Q$ 2021 with 3.1 million SF currently under construction
- Key sales by buyer: Brookfield Properties, IRA Capital, Pacshore Partners with prices ranging from $592/SF to $1,495/SF
- Largest office submarkets: West Los Angeles, Downtown Los Angeles, South Bay
Los Angeles Retail Market
The Greater Los Angeles retail market is also on the rebound, booking its first positive quarter of net absorption since Q2 2019. Although landlords with smaller retail properties are facing increased concessions and TIs, trophy retail locations are attracting the most interest from tenants, while some vacant freestanding retail buildings are being targeted for industrial conversion.
- Total retail inventory: 132,676,505 SF
- Average asking rent: $2.83 per SF per month, NNN
- Vacancy rate: 6.2%
- Absorption: 184,494 SF in Q3 2021
- Key leases by tenant: Seafood City 37,600 SF, Westrux International 32,500 SF, The Center Church 23,600 SF
- New construction: 1.08 million SF currently under construction
- Key sales by property: Crenshaw Plaza $131.6 million, The Home Depot $61.7 million, Amazon Fresh $35 million, Dynasty Shopping Center $29.5 million
- Largest retail submarkets: Ventura, San Gabriel Valley, South Bay, San Fernando Valley
Los Angeles Multifamily Market
Los Angeles multifamily rents are recovering swiftly post-pandemic, increasing by 14.2% in 2021. Over the past 12 months, vacancy rates have decreased from 8.4% to 4.0%, allowing apartment landlords in LA to raise the rents as deliveries and unemployment continue to trend downward.
- Total housing units: 4,697,571
- Renter occupied: 52%
- Total multifamily units: 1,972,980
- Average asking rent: $1,681
- Annual rent growth: 13.1% year-over-year
- Vacancy rate: 2.2%
- New construction: 1,676 units delivered in 2021 with 4,238 units currently under construction
- Top completed construction: Alta Upland 203 units, Crestview Terrace 184 units, and Avenida Palm Desert 161 units
- Sales activity: 5.1% average cap rate vs. 5.6% in 2001, with an average price/unit of $267,716 increasing 31% compared to 2021
- Recent sale transactions: Solamonte 521 units, The Monterey 442 units, 1400 Barton Rd. 496 units
- Median household income: $77,774
- Per capita income: $37,764
How Crexi Connects Buyers and Tenants to Los Angeles Commercial Real Estate
It’s never been easier for buyers and tenants to discover property in the Los Angeles commercial real estate market. The nation’s second-largest metropolitan area represents a thriving, active commercial real estate market and opportunities for high-gain returns.
Tenants and investors can quickly search hundreds of Los Angeles properties for lease or sale on Crexi with a few simple clicks. Searches can be narrowed by asset class, neighborhood, leaves type, property type, price or rate per square foot, size, and amenities.
Once they’ve found the ideal property, buyers and tenants can immediately connect with the listing’s broker, download OMs and flyers, and even submit their letter of intent (LOI) through Crexi’s secure platform.
Intelligence Equips Investors with Data and Market Knowledge
Crexi also strives to equip its users with the latest market trends and data via Intelligence. The Intelligence subscription offers Los Angeles investors market knowledge via its comprehensive library of millions of third-party-verified property records and sales comparables, and in-depth demographic and regional data on every property page.
With Crexi Intelligence, buyers and tenants can trust they’re making the most informed investment decisions as they investigate Los Angeles properties.
How Los Angeles Brokers Thrive with Crexi
In Los Angeles, brokers have listed nearly 700 properties for sale and over 4200 buildings for rent within the city’s limits alone. As Los Angeles emerges from COVID-19-induced closures and vacancies, rates have remained relatively steady across asset classes, and the market stands tall as one of the highest value regions in CRE.
Los Angeles commercial real estate agents harness Crexi’s software tools to quickly upload and market properties while identifying hundreds of high-quality buyer and tenant leads. Agents in Los Angeles can easily list properties across asset classes such as:
- Industrial buildings
- Multifamily developments
- Retail properties
- Mixed-Use buildings
- Hospitality assets
- Land parcels
- Non-traditional properties such as data centers, self-storage, etc.
Crexi’s all-in-one tech suite offers Los Angeles brokers every tool needed to guide commercial property sales from listing to close. Brokers can track buyer and tenant engagement and connect with the most valuable leads in real-time. Agents can also house secure due diligence documents in Crexi’s file storage vault.
While Crexi’s free broker tools are powerful, the real power of Crexi emerges with Sale PRO, Lease PRO, and All PRO.
Crexi’s All PRO Membership
Los Angeles commercial real estate brokers harness PRO to automate their listing workflow and close more deals. PRO’s robust features include highly detailed lead contact information and management that helps brokers identify the best-fit buyers and tenants.
PRO simplifies cross-team collaboration and makes reporting easy, allowing brokerages to download branded lead reports with a few clicks. PRO broker listings also enjoy preferred placement at the top of Crexi search pages, viewable by actively browsing principles.
Crexi sends weekly property feature emails to hundreds of thousands of active property seekers, specifically matched to the seeker’s search behavior. These emails use machine learning to select the best property matches, earning a 10-15% higher click-through rate on PRO listings than the industry average.
PRO members also can access Crexi Intelligence included in their membership, harnessing its vast property record and sales comparables library to help their clients make informed decisions.
In Los Angeles, brokers use Crexi PRO subscriptions to engage with the 13.7 million leads interested in LA property in the last two years.
On average, PRO users engage with 125% more leads and close six to eight more deals than non-PRO users on Crexi.
Contact firstname.lastname@example.org to learn more about All PRO.