Who is #1? Kershaw or Koufax? Answer: Trick question. BOTH as L.A. itself ranks #1 again on our Americas Investors Intentions Survey 2018.
Why did I also find L.A. so attractive in my Select LA Presentation on Thursday? Let me count the ways:
1. Office Using Job Growth. Every story begins and ends here and L.A. is one of the top cities for both absolute office using job growth, but HIGH PAYING job growth given its heavy concentration in the creative industries (it’s top draw);
2. Foreign Capital. Top 5 market in U.S. for foreign capital investment and perhaps #1 when you look at the development dollars on top of it (see the Metropolis site near the Staples Center as Exhibit A). Foreign money brings more than cash, it brings jobs, diversity and price appreciation;
3. Live, Work, Play. No market in the U.S. has a better combination of high-end jobs, weather/outdoor activities, and cool places to live in a city that is still growing (see the Arts District). Note: Affordable Housing is a big issue in L.A. and other high growth cities, and if/when the CRE community and elected officials deal with it, LA will be #1 forever;
4. Healthcare. UCLA Medical and other world-class medical institutions in L.A. are driving what will be the #1 growth industry nationally over the next 10 years, according to the BLS;
5. Tech. If tech is FIFTH on the list of the growth factors of your city, then you know you are doing something right! L.A. ranks #24 on our Scoring Tech Talent survey and in the top 3 “Brain Drain” markets. L.A. produces TOO MANY tech graduates from its world-class universities, including USC and UCLA and they have to go elsewhere for employment. This means if you can bring the tech jobs here, you have pent up growth unlike other cities that have to depend on in-migration.
PS. I’m voting for Koufax (sorry Kershaw fans)!