Gone are the days of Silicon Beach being synonymous with Santa Monica alone. What many of us have known for a while — that the term has and continues to broaden to encompass much of Los Angeles — was only reinforced recently when Google announced a $120-million 12-acre land acquisition in Playa Vista.
According to the Los Angeles Times, the tech behemoth is likely to lease the 319,000-square-foot Hughes hangar next door, in total making room for approximately 6,000 well-paid and highly educated workers.
Expected to be not far behind Google in making the move to Playa Vista is the lesser yet still impressively large Internet corporation Yahoo. According to the Times, Yahoo, Inc. is making a separate deal to lease 130,000 square feet in the area. The same space, known as the Reserve, is already home to big-name tenants like Verizon, PlayStation, Microsoft, and Warner Bros, and is not far from Facebook, Rubicon Project, Belkin International, and ICANN operations.
At 368,500 high-tech employees, Los Angeles already hires more people into high-tech jobs than any other metropolitan area in the United States. Looking specifically to entrepreneurs, our rate of 490 entrepreneurs per 100,000 people beat’s out New York’s 320 and comes in second only to San Francisco’s 570.
So what does this mean for the South Bay? Short-term, there are housing considerations to be made for the thousands of affluent Google and Yahoo employees who will be arriving to the area. El Segundo, Manhattan Beach, Hermosa Beach, and Redondo Beach are just a short commute to Playa Vista and boast an incredible lifestyle along with some of the county’s top schools.
Bigger picture is a more systemic change that is emerging from the geographic and financial growth of Silicon Beach. There will be new shops, new restaurants, new housing, new medical offices, and so much more needed to meet the needs of the growing tech population. There will be employees of the big-name corporations who spin off and launch their own startups in fields as diverse as aerospace, advertising, ecommerce, mobile apps, and television production. With each new round of funding, each new acquisition, and each new company that moves into the area, the surrounding commercial and residential real estate markets will continue to grow.
Regarding Google’s move, Kieran Hannon, chief marketing officer at Belkin, explained it perfectly: “It increases the quality of the work, it increases the ability to network, it increases the ability to attract more people here. It has a complete knock-on effect.”
It’s an exciting time to be in Silicon Beach and we couldn’t be happier to be a part of it. If you’re thinking about buying or selling a home in the South Bay, contact us at Team Simply the Best.