New Projects Contributing to the Expansion of the Culver City Commercial Real Estate Market
As part of the Greater Los Angeles metropolitan area, Culver City has experienced significant growth and development in recent years. Many factors have come into play to fuel this expansion trend, particularly the legacy of the city as a film production hub, which at one point was nicknamed "The Heart of Screenland." Now that technology giants such as Amazon and Apple are competing in the video streaming and digital content segments, Culver City is reaping benefits from the trend.
Rendering Courtesy of Regency Centers
The blocks surrounding the Metro Line station along Exposition Boulevard, between the McManus and Castle Heights districts, have been transformed into a new Southern California technology hub. This is where Warner Bros. Discovery/HBO has opened new regional offices close to the studio backlots managed by Amazon Video and Apple TV+. Other notable tech companies that have opened offices here include Reddit, video game studio Scopely, self-driving vehicle startup Envoy Technologies, and the popular TikTok social network.
Residents and business leaders are pleased to see the city returning to its Hollywood roots with a new digital twist. The influx of tech companies has driven demand for office space, and it has coincided with investments in infrastructure, particularly transportation and public transit, which are enhancing the city's connectivity and appeal to businesses.
Major commercial projects such as the Culver Public Market have resumed development after construction was suspended during the COVID-19 pandemic. This project was presented to the city council in 2018; it involves an upscale market with space for artisans, gourmet dining spots, and shops spread across 26,800 square feet. The lead developer is a company affiliated with development giant Regency Centers, and the project was initially valued at $24 million. Parking will be available at a nearby two-story structure with 122 spots. The municipal Redevelopment Successor Agency is the steward of the project; it has committed $17 million in funding, and it also granted the use of a city building for the parking structure.
Financial projections for the Culver Public Market suggest that it could bring close to $160,000 in annual revenue for the city, while also creating more than a hundred new jobs. The city council has been proactive in supporting this type of projects because of their positive impact to the local economy. Commercial and residential property values have been rising accordingly, and the city lifestyle has become more vibrant thanks to the opening of new dining, shopping, and entertainment options.
Another project contributing to the expansion of the commercial market is Habitat, a mixed-use development that will feature two tower structures, one for urban apartments and the other for office space. This is a $316 million project located in the McManus district, next to the L.A. Metro station and less than a mile east of the Light Rail station. Habitat will add 260 residential units above 2,900 square feet of space for shops, cafes, and restaurants. The six-story office building is being designed by architects from Southern California, and the residential tower will feature upscale amenities such as a fitness center, spa, and Level 3 fast-charging stations for electric vehicles.
Culver City is also benefiting from a "flight-to-quality" trend among companies that want to establish regional offices in Southern California, but not necessarily in the chaotic heart of Los Angeles. To this effect, three major tenants recently signed leases to occupy 50% of the newly-built Entrada office park, located in the Fox Hills district off the I-405 freeway. Impact Networking, a provider of nationwide managed IT services, will take 14,000 square feet. Toymaker Jazwares signed a lease on 51,000 square feet, and a prominent digital marketing firm leased 75,000 square feet for its new headquarters office.
Fox Hills Plaza, a former shopping center near the aforementioned Entrada office park, was recently sold to REDA Residential, a renowned developer of multifamily projects. Part of the zoning changes promoted by the city council in recent years call for the expansion of residential development, and REDA plans to convert the seven acres of Fox Hills Plaza into a new apartment complex. The Westfield Mall is in proximity to this project, thus making it more attractive to prospective tenants without the need for REDA to apply for a mixed-use zoning resolution.
The Culver City council has also expedited permits and approvals for infill development projects, especially in the eastern districts where commercial builder Redcar Properties has proposed building a three-story office tower with underground parking.