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APPENDIX L Market Study

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APPENDIX L Market Study APPENDIX L Market Study Report: Expo and Crenshaw LRT Transit Neighborhood Plans Market Analysis Los Angeles, CA Prepared for: City of Los Angeles, Department of City Planning (DCP) Prepared by: Pro Forma Advisors LLC re+ep February 2013 (with minor revisions April 2014) PFAID: 10-377.02 Pro Forma Advisors LLC Los Angeles Hartford Hong Kong www.ProFormaAdvisors.com Table of Contents Executive Summary ...................................................................................................................................................... v Introduction .................................................................................................................................................................. 1 Organization of the Report .......................................................................................................................................... 1 Project ........................................................................................................................................................................... 2 Regional Demographic and Socio-Economic Context ............................................................................................. 3 Analysis Geographies ................................................................................................................................................. 3 Population and Households .......................................................................................................................................... 5 Historic Regional Population and Households ............................................................................................................. 5 Market Area Historic Population and Households ....................................................................................................... 6 Projected Population and Household Growth ........................................................................................................... 10 Household Income ..................................................................................................................................................... 13 Regional Household Incomes ................................................................................................................................... 13 Station Areas’ Household Incomes ........................................................................................................................... 15 Age ............................................................................................................................................................................ 17 Market Area Age Profile ............................................................................................................................................ 17 Station Area Age Profile ............................................................................................................................................ 19 Los Angeles County Employment ............................................................................................................................... 20 Real Estate Overview ................................................................................................................................................. 21 Office .......................................................................................................................................................................... 21 Office Geographies ................................................................................................................................................... 22 Los Angeles Office Market ........................................................................................................................................ 23 West LA CPAs Office Submarket .............................................................................................................................. 25 Culver City Office Submarket .................................................................................................................................... 28 Santa Monica Office Submarket ................................................................................................................................ 31 Crenshaw LRT Office Submarket .............................................................................................................................. 34 Station Area Overview ............................................................................................................................................... 36 Industrial ..................................................................................................................................................................... 38 Los Angeles Industrial Market ................................................................................................................................... 39 Westside Industrial Market ........................................................................................................................................ 40 West Los Angeles Submarkets ................................................................................................................................. 42 Inglewood Industrial Market ...................................................................................................................................... 52 Station Area Overview ............................................................................................................................................... 54 Retail .......................................................................................................................................................................... 55 Los Angeles Retail Market ......................................................................................................................................... 56 West Los Angeles Retail Submarket ......................................................................................................................... 57 Crenshaw LRT Retail Submarket .............................................................................................................................. 71 For: City of Los Angeles DCP i PFAID: 10-377.02 Residential Market ...................................................................................................................................................... 75 For Sale Residential Market ....................................................................................................................................... 75 Rental Residential Market ......................................................................................................................................... 85 Industry and Creative Office Analysis ...................................................................................................................... 92 Introduction ................................................................................................................................................................ 92 Regional Industry Clusters .......................................................................................................................................... 92 Key Industry Sectors in Expo LRT Market Area ......................................................................................................... 94 Creative and Media Industries ..................................................................................................................................... 96 Entertainment ........................................................................................................................................................... 96 Digital Media ............................................................................................................................................................. 98 Communication Arts ................................................................................................................................................. 99 Future Trends ......................................................................................................................................................... 100 Creative Office Space ............................................................................................................................................... 102 What is Creative Office? .......................................................................................................................................... 102 Creative Office Users .............................................................................................................................................. 103 Creative Office Real Estate ...................................................................................................................................... 105 Comparables .......................................................................................................................................................... 108 Regional Demand Analysis ...................................................................................................................................... 110 Commercial Office and Industrial Real Estate Demand .............................................................................................
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