Los Angeles: Homegrown firms making their mark

Big growth in recent years continues to be the catalyst for broader economic expansion.

Market overview

Led by a rapid rise in both square footage and employee headcount, people are taking notice of the tech scene in the City of Angels. When focusing on 24 of LA’s most notable technology and new media companies, these firms have expanded their footprints by almost 675 percent over the past five years.

(Yes, that’s not a misprint.)

While the market is still seeing the southward migration of Bay Area giants, homegrown technology startups are contributing substantially to the industry’s local growth.

One of those companies born and bred in Los Angeles you’ve probably heard of: Snap. (Although, you probably know them as Snapchat.) The mobile app giant continues to mature before our eyes. Since 2012, it’s grown from 2,800 square feet to a footprint that exceeded 435,000 square feet in 2017.

As entertainment consumption morphs and media and technology further intertwine, the preexisting film and television talent infrastructure in Los Angeles should remain a key factor in the success of new media via content creation. A skilled local labor force and a storied history of creativity also bode well for the future of the local tech sector.

Numbers to watch

A highly skilled labor pool makes this market a top draw.

  • 37.2% - The population over 25 with an Associates degree or higher
  • 30.3% - The population over 25 with a Bachelors degree or higher
  • 31.5% - The share of Bachelors degrees that are STEM degrees
  • 6.7% - The population over 25 with a STEM degree

Top lease transactions (2017)

1. Santa Monica Business Park

  • Submarket: Westside
  • Size: 435,000 s.f.
  • Type: New

2. 5808 W. Sunset Blvd.

  • Submarket: Mid-Wilshire
  • Size: 92,000 s.f.
  • Type: New

3. 407 N. Maple Dr.

  • Submarket: Westside
  • Size: 95,000 s.f.
  • Type: New

(Note: Deals were closed by various companies.)

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