Los Angeles Office Report – Winter 2019
- May 10, 2019
The Los Angeles office market continues to expand, thanks to its highly educated workforce and the influx of high-tech companies drawn by its entertainment industry. In 2018, Apple opened a 75,000-square-foot office in Culver City, with a second, 128,000-square-foot location in the works nearby. Google expanded its Los Angeles footprint by more than 500,000 square feet, leasing the Hercules Campus at Playa Vista in the Jefferson Corridor. Additionally, Netflix is set to grow its Hollywood presence by more than 650,000 square feet by 2020. All three giants are enhancing their original media content divisions.
The job market was strong at the end of 2018, with 60,000 jobs added last year. Significant job gains in the leisure and hospitality (24,400) and professional and business services (16,400) sectors have offset losses in others, such as government and trade, transportation and utilities. The two sectors lost 4,500 jobs last year.
Development activity is picking up pace, with more than 7 million square feet currently underway. Los Angeles is the fourth-largest metro based on square footage in place or under construction in opportunity zones, with 32.2 million square feet as of March, representing 10.3 percent of the total inventory. Hudson Pacific Properties is developing four properties totaling more than 500,000 square feet in opportunity zones.