Demand for creative office space in Los Angeles is growing, fueled by a $1.2 billion influx of venture capital investment in tech companies in this creative city.
L.A. is home to no fewer than seven “unicorns”— formerly mythical creatures, today a name for private tech companies valued at $1 billion or more due to the strength of their VC funding. That’s a large chunk of the global total of 138 golden unicorns.
Why do companies like Snapchat (valued at $16 billion), SpaceX ($12 billion), Tinder and Just Fab (both $1.1 billion) choose Silicon Beach over traditional Northern California locations?
One reason is the generous number of venture capitalists based in L.A. Two, the city’s vast entertainment industry is converging with media and tech companies as the market shifts to tech-enabled channels such as mobile devices. Three, the creative culture and reputation of the city attract a talented, entrepreneurial workforce that provides the infrastructure for innovative young companies. L.A.’s eternally sunny climate only increases the appeal.
The commercial real estate community anticipates continued growth in Silicon Beach. Tech gorilla Google made a large land purchase in Playa Vista in 2015, with entitlements to build up to 900,000 square feet of office space. Its presence is likely to encourage more startups to join the cluster, and venture capital funding can be expected to rise even higher.
For more information contact Devon Parry