There were recently seven West Coast markets that were ranked in the U.S. Top 10 for High Tech VC Funding by JLL. Los Angeles was one region that topped the list so GlobeSt.com caught up with the firm's L.A. SVP, Blake Searles to discuss the details.
GlobeSt.com: How will VC funding impact the pending correction in office leasing in the L.A. market?
Blake Searles: Funding in Los Angeles totaled $1.59 billion in the second quarter, and was propelled by a large expansion stage, Series F fund infusion for the ever growing Los Angeles technology giant, Snapchat. Snapchat has grown their office footprint in lock step with their ever increasing venture capital investments. While Snapchat exemplifies the real estate impact of well-funded technology firms on a larger scale, Los Angeles continues to see smaller start-ups move forward with real estate decisions after securing venture capital dollars.
Funding has a direct correlation to employment growth and therefore office space. As start-up and early stage companies are expanding, demand in the market drives pricing.
GlobeSt.com: What submarkets in the area are being the most impacted by the current VC funding?
Searles: The bulk of the funding this quarter was focused in the Silicon Beach markets of the Westside. More specifically, Venice, Marina del Rey and Santa Monica all saw over $70 million in investment.
GlobeSt.com: What VC funding trends in your market will we be talking about at this time next year?
Searles: VC capital appeared to be split between expansion and early stage capital infusions which demonstrates a continued varied interest in the Los Angeles market from the venture capital community. As the technology industry continues to grow and thrive in Los Angeles, we should be able to expect an increased flow of funding. Augmented and virtual reality is seeing a substantial flow of investment. Los Angeles provides an attractive climate for the marriage of engineering and entertainment.
There were recently seven West Coast markets that were ranked in the U.S. Top 10 for High Tech VC Funding by JLL. Los Angeles was one region that topped the list so GlobeSt.com caught up with the firm's L.A. SVP, Blake Searles to discuss the details.
GlobeSt.com: How will VC funding impact the pending correction in office leasing in the L.A. market?
Blake Searles: Funding in Los Angeles totaled $1.59 billion in the second quarter, and was propelled by a large expansion stage, Series F fund infusion for the ever growing Los Angeles technology giant, Snapchat. Snapchat has grown their office footprint in lock step with their ever increasing venture capital investments. While Snapchat exemplifies the real estate impact of well-funded technology firms on a larger scale, Los Angeles continues to see smaller start-ups move forward with real estate decisions after securing venture capital dollars.
Funding has a direct correlation to employment growth and therefore office space. As start-up and early stage companies are expanding, demand in the market drives pricing.
GlobeSt.com: What submarkets in the area are being the most impacted by the current VC funding?
Searles: The bulk of the funding this quarter was focused in the Silicon Beach markets of the Westside. More specifically, Venice, Marina del Rey and Santa Monica all saw over $70 million in investment.
GlobeSt.com: What VC funding trends in your market will we be talking about at this time next year?
Searles: VC capital appeared to be split between expansion and early stage capital infusions which demonstrates a continued varied interest in the Los Angeles market from the venture capital community. As the technology industry continues to grow and thrive in Los Angeles, we should be able to expect an increased flow of funding. Augmented and virtual reality is seeing a substantial flow of investment. Los Angeles provides an attractive climate for the marriage of engineering and entertainment.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
