Los Angeles is the largest city in California and, after New York, the second largest in the United States. Located in the southern region of the state, Los Angeles comprises almost 500 square miles in area. Often known by its initials L.A., the city is the focal point of the larger Los Angeles-Long Beach-Santa Ana metropolitan statistical area, with almost 13 million people and ranks as one of the most populous metropolitan areas in the world and the second largest in the U.S. Los Angeles is also the seat of Los Angeles County, the most populated and one of the most ethnically-diverse counties in the United States, while the entire Los Angeles area itself is recognized and regarded as the most diverse metropolitan area in the United States.
Nicknamed the City of Angels, Los Angeles is a world center of business, international trade, entertainment, culture, media, fashion, science, technology and education. It is home to renowned institutions covering a broad range of professional and cultural fields and is one of the most substantial economic engines within the country. Los Angeles has been ranked the third richest city in the United States and fifth most powerful and influential city in the world, behind only New York City in the United States. The Los Angeles combined statistical area (CSA) has a gross metropolitan product (GMP) of more than $830 billion, making it the third largest economic center in the world, after the Greater Tokyo and New York metropolitan areas.
As the home base of Hollywood, L.A. is known as the entertainment capital of the world, leading the globe in the creation of motion pictures, television productions, video games, and recorded music. The importance of the entertainment business to the city has led many celebrities to call Los Angeles and its surrounding suburbs home. Los Angeles is also often billed as the creative capital of the world, due to the fact that one in every six residents works in a creative industry. According to the USC Stevens Institute for Innovation, "there are more artists, writers, filmmakers, actors, dancers and musicians living and working in Los Angeles than any other city at any time in the history of civilization."
Los Angeles hosted the 1932 and 1984 Summer Olympics, and is also home to renowned universities such as the University of Southern California and the University of California, Los Angeles.
Los Angeles is a company headquarters mecca. In all, 21% of Los Angeles companies are involved in real estate, finance or insurance. The L.A. Metropolitan Area’s office market comprises distinctly different submarkets known as Downtown Los Angeles; West Los Angeles (which includes Beverly Hills, Westwood, Century City and Hollywood); the South Bay (which encompasses the area in and around Los Angeles International Airport (LAX)); and the northern part of the city known as the San Fernando Valley.
The Los Angeles retail market’s diverse offerings range from high-end stores on Rodeo Drive retail to big-box outlets prevalent throughout Southern California. In recent years, many big-box retailers have taken advantage of L.A.’s favorable long-term lease opportunities to open strategic locations in the region. The overall retail vacancy rate has consistently remained less than 5%.
The vast L.A. industrial real estate market benefits from its proximity to the Port of Los Angeles, which handles approximately 6 million containers per year. The industrial sector is principally located in proximity to downtown Los Angeles, the LAX hub and the Long Beach port. The largest completed transaction in nearly 10 years occurred in 2011 when the 99 Cent Only chain leased a 622,000-square-foot distribution center.
Institutional investors, including notable pension funds, REITs and public companies, are attracted to the Los Angeles market as a whole due to the city’s large population and the number of companies based here. While institutional investors dominate the office sector, they have also invested billions in the retail, industrial and multi-residential markets. Private investors tend to have stronger footholds in the retail and multi-residential sectors of Los Angeles.
Avison Young opened its first Los Angeles office in August 2011, forming a base for locations across the Southern California region. The Los Angeles office has a strong affiliation with many of the most notable firms in the entertainment industry and comprises a full-service real estate platform. L.A. brokers serve tenants, landlords and investors while sharing knowledge in all aspects of the real estate industry. The Los Angeles office also works very closely with many of the Avison Young offices located throughout the United States and Canada.