Recent Technology, entertainment and new media companies help drive down LA unemployment rate
The unemployment rate in Los Angeles is currently sitting at a historic low of four percent
August 14, 2019
- The unemployment rate in Los Angeles is currently sitting at a historic low of four percent. Since the recession, where the unemployment peaked in 2009 at 12.4 percent, the rate has consistently declined year over year.
- The decrease can be attributed in part to the recent technology and entertainment boom within the market. In the last three years, tech and new media companies, such as Netflix, Amazon, and Apple, have occupied over seven million square feet of office spaces 50,000 square feet or larger. Much of the sector’s growth has been driven by the demand for streaming services and new content creation.
- And yet, tech and new media companies are continuing their rapid growth despite their already large-scale presence in the market. There is currently over two million square feet of under-construction office space where some of these companies have already signed leases. One of the most prominent examples is Google, which has committed to over 550,000 square feet of office space at One Westside (formerly “Westside Pavilion”, a large retail mall). The project will not be ready for move-in until 2022.
- Ownership groups have also benefitted from the trend. Over the last five years, office rents have increased 32.4 percent.
- With the large amount of pre-leased space on the market, large technology and new media companies will fill their offices with new employees, which ultimately could drive employment rates down further.
Source: JLL Research, Bureau of Labor Statistics
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