Demographics Are Changing Downtown

LONG BEACH, CA—The demographics are changing in Downtown Long Beach, and the shift is helping to fuel much of the increased investment and development we have seen in the market. According to Greg Gill and Jeff Coburn of Lee & Associates Long Beach, the 20s and 30s young professional segment is moving into the market, largely because of the value and quality, and retailers and employers are following.

"We have seen that the 30-something group loves the vibrancy of the Downtown. People take a look around we are getting a great value," Gill, the president of Lee & Associates Long Beach office, tells GlobeSt.com. "We interview kids that say they have been priced out of Santa Monica; they have been priced out of Venice; they have been priced out of Culver City. They can get a great living in Downtown Long Beach, and they can walk to great restaurants and retail."

The Downtown Long Beach market has been undergoing a renaissance that could rival Downtown Los Angeles, with an abundance of investor interest and development. Some of this activity was fueled by the city's rezoning plan, which eliminated the need for parking and increased density in the Downtown area. Now, Gill and Coburn note that the promenade is becoming a hot bed for retail, entertainment and creative office. "This is going to be the coolest stretch of retail, and the demographic is one we haven't seen before," he says. "It is young, upper mobile people that want to be in creative office."

The migration of working, professional millennials has really been a catalyst for more growth in the retail and entertainment sectors. "The new population that is coming in is boosting the retail, and that is in turn boosting the commercial side," Coburn, a principal in Lee & Associates Long Beach office, tells GlobeSt.com. "We are seeing a lot of the principals moving up here so that they can walk or ride their bike to work."

While this is a great market for young professionals because it is affordable, near the beach and has a great retail and dining scene, business owners and professionals also have a nearby home. "Remember if you move of just a little bit, one of the greatest residential areas in the world is the Palos Verdes peninsula," says Gill. "This is as good as it gets. We are seeing that this has become a great compromise location with business owners living up in Palos Verdes. Long Beach is a big city with some really good parts."