Population Growth Will Mean More TOD Projects

Population growth in Los Angeles may be slow, but it is driving investment and development decisions. Central Los Angeles is positioned to see the most population growth over the next five years, and in that time, Central Los Angeles will see more density with public transit serving as a central role in new development and investment decisions.

“Transit-oriented development and the reinvention of key corridors are driving forces behind investor activity across the market,” Amber Schiada, senior director of research and insight for California at JLL, tells GlobeSt.com. “Los Angeles may look like a sprawling suburban paradise from the outside, but locals know that it’s quite urban, and it continues to grow even more dense with infill development and redevelopment projects dotting the landscape, particularly between the ocean and downtown.”

Central L.A. in particular is not only ripe for population growth, but offers investment opportunities as well. “There’s a lot of opportunity for investors to capitalize on the growth we’re seeing in the center of the city,” says Schiada. “Office redevelopment of obsolete space is a consistent trend, and it’s picking up in response to new industry demand. Emerging corridors such as Sawtelle in West LA, or West Adams adjacent to Culver City, are providing creative new options for office tenants seeking a more central location. Housing is in high demand and we’re grossly undersupplied in L.A., so investors continue to see success in this space.”

In the next five years, the market will grow tremendously. While private investment is actively redeveloping real estate sites and creating density, public investment is fueling infrastructure growth. “The city will grow denser with transit serving a larger role as new lines are completed, and more amenities will continue to pop up to serve a skilled and growing workforce,” says Schiada. “Private and public investment over the next five years will continue to ramp up in response to major sporting events scheduled to take place in central L.A. including the Super Bowl in 2022 and the Olympics in 2028. Ever since Los Angeles captured the bid for the 2028 Olympics in 2017, there has been a rush to improve city fundamentals to greet an international audience. As a city, L.A. has constantly improved internal infrastructure in advance of each one of our hosted Olympics. All of this investment will reinvent pockets throughout the central market, creating new micro-hoods.”