California is the third largest state in the United States and is home to more than 39 million residents. Its most populous cities include Los Angeles, San Diego, San Jose and San Francisco. California boasts one of the most dynamic economies in the world, with growth sectors in technology, entertainment, tourism and manufacturing. California has recently leapfrogged France and Brazil to become the world’s sixth-largest economy, behind only the rest of the U.S., China, Japan, Germany and the United Kingdom.
Renowned as the entertainment capital of the world, the creative economy in the Los Angeles region – including movie/TV production, fashion, visual and performing arts, communication arts, and other creative sectors – generates $38.8 billion in total labor income. Los Angeles is also a manufacturing hub; approximately 350,000 people work in L.A. County’s manufacturing sector, spread across 12,500 establishments, according to the Los Angeles County Economic Development Corporation.
Eleven Fortune 500 companies call Los Angeles County home, including entertainment conglomerate Walt Disney Co., biopharmaceutical company Amgen Inc., and engineering firm Aecom. The area also has the world’s leading trade and logistics infrastructure with the two largest sea ports in America (Los Angeles and Long Beach), the Alameda Corridor rail system and the U.S.’s third most active international cargo airport, LAX.
According to a recent economic update from the Institute for Applied Economics from the Los Angeles County Economic Development Corporation, most industries in the region will add jobs during the next five years, but overall, the strongest job growth will be in service-providing industries such as health services, administrative support, accommodation & food services, and education. The manufacturing, global trade, and entertainment sectors will thrive as the region embraces new and burgeoning industries, such as advanced transportation.
The commercial real estate market in Southern California is expected to remain positive. A growth in online sales and increasing imports from Asia are generating an ever-increasing demand for warehouse space, according to the Summer/Fall 2017 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey. The industrial space market is expected to continue to be tight during the next three years. The entertainment and tech industries in the Los Angeles region are also growing in response to increasing demand for gaming, streamed content, and television content. The commercial space in the pipelines will most likely not be sufficient to meet the demand, according to the survey.
About Fidelity National Financial
Fidelity National Financial, Inc. (FNF) is currently ranked #238 on the 2022 FORTUNE 500®*, and is among numerous defense, energy, media, hospitality and financial FORTUNE 500®* companies based in the region. Our Southern California-based team of CRE professionals works in all facets of the industry, including power and energy projects, office buildings, industrial parks, multifamily housing, retail properties, government contracts, corporate transactions and more.
Discover what's new and interesting in our backyard in the latest real estate news, provided courtesy of the FNF Newsdesk.
*"FORTUNE®" and "FORTUNE 500®" are registered trademarks of Time Inc. From FORTUNE Magazine, May 2022 ©2022 Time Inc. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of Fidelity National Financial. Commonwealth is a member of the Fidelity National Financial family of companies and the nation’s largest group of title companies and title insurance underwriters that collectively issue more title insurance policies than any other title company in the United States.