CITYWIDE — Los Angeles-area investors might still be leery about the future of California’s economy, but when it comes to Santa Monica real estate, they are bullish, according to a poll released by Morgan Stanley.

Image-based advertising firm GumGum, Inc. recently signed a five-year office lease valued at $1.35 million with real estate firm Avison Young for 4,390 square feet on the sixth floor of the historic Clock Tower building at 225 Santa Monica Blvd. (Photo courtesy Avison Young)

Image-based advertising firm GumGum, Inc. recently signed a five-year office lease valued at $1.35 million with real estate firm Avison Young for 4,390 square feet on the sixth floor of the historic Clock Tower building at 225 Santa Monica Blvd. (Photo courtesy Avison Young)

L.A. beach cities and the South Bay real estate market ranked the most attractive by far, the poll showed, with more than a third of investors expecting real estate to take off.

Much of that has to do with the location and the blossoming tech sector that has called Santa Monica home, helping the city by the sea earn the moniker Silicon Beach.

“Local investors continue to be enamored with our rapidly growing tech sector, and they seem to see a great deal of promise in real estate, especially in the beach cities where the local tech sector is flourishing,” said Jeff Adams, Morgan Stanley Wealth Management’s Southern California regional director.

Vacancy rates in Santa Monica for creative office space hover around 6 percent, real estate experts say, which is only driving up rents. That could force tenants to look elsewhere, including the South Bay and Downtown Los Angeles.

 

kevinh@smdp.com

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