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Commercial Real Estate Updates

Greater Los Angeles Commercial Real Estate: Critical Updates 2024

DnG Commercial Real Estate Agents:
Deborah Naumovski
, Los Angeles Commercial Real Estate Agent
Gulshen Kaur, Los Angeles Commercial Real Estate Agent

Greater Los Angeles: Santa MonicaCulver CityMarina Del Rey

We are commercial real estate agents here in LA, and have been for – can you believe it? Almost 20 years between us. Our tenant rep clients have us constantly looking for great locations to buy or lease and our owner/investor clients have great properties that we help them sell or lease. Combined, we have lived and worked in the area for over 50 years and our clients are all over greater LA, so we know the area and market really well. We’re happy to give you our take on the commercial real estate situation in Greater Los Angeles. Check back often for updates either here or in our articles.

Currently the market for both sales and leasing is driven by – as always – location, location, location. Both Retail and Industrial commercial real estate remain strong, with Multi-family following close behind. The state of the Office market is still in question, and is related to location and size of the building.

Call us so we can learn about your specific needs and what category you are looking at so we can give you a detailed analysis of what the market is like, and how we can help. We have extensive experience (over 18 years between us) helping both buyers and sellers curate their perfect portfolio of Los Angeles Commercial Real Estate! We’re told by our clients that our friendliness and helpfulness are the things that help us stand apart in commercial real estate, especially here in LA and we always welcome bringing on board new property owners and businesses to our client list.

When working with tenants, we care so much about your business's success, that we take the challenge of finding the perfect location very personally. We get to work with all kinds of business owners, so listening is our key. We take the time to understand your business, and then we make suggestions. DnG focuses our search in the areas you want, but also since we know the market so well, we make other suggestions. We know other properties could be a huge commercial real estate win for you.

In the end, we see your success as ours. We become an integral part of your team. We work with you long term, to help you find additional locations as your business expands across the greater LA market.

The LA commercial real estate market remains hot in some areas and slower in others, it really depends on the location and use. Industrial and smaller owner user spaces on the Retail side are in demand, Multi-family is holding and the fate of the Office is still yet to be determined. The most in-demand locations remain extremely expensive for both sale and lease. 

Vacancy rates vary based on classes, and what part of the city they are located in.  If the location is prime, owners are trying to hold out for rents they have been used to in the past.  Even with that said, we are still able to put together some creative deals with financially strong tenants.

Depending on the nature of the business, this could include a couple of creative options. Option 1, three to eight months of deferred rent, which could be all up-front or across the lease. Two, a tenant improvement allowance or even. Three, we’ve negotiated a percentage of sales after a break even point is reached. We determine the approach on a case by case basis, but again a lot of this will be defined by the financial strength of the tenant and the other terms and duration of the lease.

All across the Los Angeles commercial real estate market, hospitality is having a hard time. It varies by specific location, but in general the pandemic hit hospitality hard. It’s getting better, but from what we can see, it may not be getting better quickly enough.

Tech, entertainment, tourism, transportation, food manufacturing and medical continue to drive the LA market so let’s take a deeper dive into a couple of these locations within Los Angeles.

Santa Monica
Culver City

Santa Monica Commercial Real Estate

Even though we both live in the South Bay, our business extends to Santa Monica. Santa Monica is always in demand, so we stay on top of it for our clients – both property owners/investors and businesses that are looking to expand.

Some of the key stats around the Santa Monica market include:

Santa Monica Retail Commercial Real Estate Market:

Santa Monica Office Market:

Santa Monica Office Market.jpg

Santa Monica Hospitality Market:

Santa Monica Hospitality Market.jpg

Santa Monica Multi-Family Commercial Real Estate Market:

Santa Monica Multi Family Commercial Real Estate Market.jpg

One thing we see that is different about Santa Monica real estate in particular, is that the city can actually be easy to work with. Not always, not for everything, but compared to other Greater Los Angeles real estate markets, Santa Monica is pretty welcoming. Permits can be a hassle and make starting a new location or closing a deal difficult, but we are finding the City of Santa Monica stepping up for us. 

The homeless issue remains a factor in SM, particularly around the highly prized Promenade. Downtown Santa Monica continues to work on finding a solution for the homeless. 

Some older real estate market players have been forced to leave town, making space for new ones. COVID changed things, there’s no doubt. We’re still seeing the effects, but we’ve also seen substantial recovery.

Want to talk commercial real estate in Santa Monica?

Culver City Commercial Real Estate

Culver City is highly diversified and remains a favorable location for business due to its proximity to freeways and all of the surrounding cities. Downtown and the Helms area continue to be popular locations for retail and just outside of downtown, the industrial buildings are prime locations for flex/office type businesses.

Some of the key stats around the Culver City market include:

Culver City Retail Commercial Real Estate Market:

Culver City Retail Commercial Real Estate Market.jpg

Culver City Commercial Office Real Estate Market:

Culver City Commercial Office Real Estate Market.jpg

Culver City Multi-Family Commercial Real Estate Market:

Culver City Multi Family Commercial Real Estate Market.jpg

Obviously, the studios are a primary market in Culver City, along with the tech industry and a lot of commercial retail space. Culver City in most cases is less expensive than Santa Monica, but commercial real estate prices are holding steady. As always, location is the key (along with DnG!)

Want to talk commercial real estate in Culver City?

Marina del Rey Commercial Real Estate

Marina del Rey is a small area within greater L.A. that packs a lot of punch! Retail spaces are snatched up pretty quick and the fate of the office market is still in question. In particular, the medical industry is a strong commercial market driver along with Tech and Tourism due to the Marina being the center of the city. MDR, like the other west side commercial real estate, has fantastic demographics.

Some of the key stats around the Marina del Rey commercial real estate market include:

Marina del Rey Retail Commercial Real Estate Market:

Marina del Rey Retail Commercial Real Estate Market.jpg

Marina del Rey Commercial Office Real Estate Market:

Marina del Rey Commercial Office Real Estate Market.jpg

Marina del Rey Hospitality Commercial Real Estate Market:

Marina del Rey Hospitality Commercial Real Estate Market.jpg

Again, Marina del Rey is a great area for commercial real estate to be in because of its location. It picks up the overflow from Venice and doesn’t seem to have the same homeless issues. It also picks up traffic from nearby Westchester. There is easy freeway access in and out of the city which makes it easy to get to from any location and close proximity to LAX.

Would you like to open a location in Marina del Rey? We’d love to help you with that! Contact DnG

That’s our look at a couple of our favorite places in Los Angeles right now. As commercial real estate agents working the entire Greater LA market, we have a good beat on what is happening. Contact DnG today and let us solve your LA commercial real estate problems! As we say, DnG is the key!

Marina Del Rey
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