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

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

The Downtown Long Beach market has been undergoing a renaissancethat could rival Downtown Los Angeles, with an abundance ofinvestor interest and development. Some of this activity was fueledby the city's rezoning plan, which eliminated the need for parkingand increased density in the Downtown area. Now, Gill and Coburnnote that the promenade is becoming a hot bed forretail, entertainment and creativeoffice. "This is going to be the coolest stretch ofretail, and the demographic is one we haven't seen before," hesays. "It is young, upper mobile people that want to be in creativeoffice."