Tech Workers Driving LA Office

Tech talent clustering is a growing driver of office demand across the country, and LA ranks No. 18 on that list, according to a new report from CBRE.

CBRE vice chairman Jeff Pion says tech tenants have greatly influenced rents in the market as well. In addition, the report ranks LA as a top 10 market for Millennial population growth. No surprise, Silicon Valley ranks No. 1, with Washington, DC, and S.F. rounding out the top three.

CBRE EVP Blake Mirkin says the growing LA tech scene is not a passing phase, and that growth in markets such as Playa Vista are a clear sign of the influence tech has had on the local office market. He adds that Venice has blossomed into a true tech market, with Santa Monica still considered a top tech incubator market.

And there's no sign of things slowing down, especially in Playa Vista. Institutional money is now flowing in the market, highlighted by Invesco's $300M purchase of The Reserve, Donald Bren's plan to construct more than 1,500 units of housing geared toward Millennials and trendy retail, such as a new Whole Food Market opening in June.

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