December 4, 2020
Adjacent to Culver City, the West Adams neighborhood of Los Angeles, California has recently been spurred by an influx of development and high-ticket leases. Institutional and private investors are heavily investing into West Adams as Fortune 100 companies expand East into West Adams from the Haden Tract in Culver City.
The West Adams neighborhood is defined as the area South of the I-10 Interstate, North of Obama Blvd, East of Fairfax/La Cienega Avenue, and West of Crenshaw Blvd. The Newmark Private Capital Group has seen a significant increase in demand in West Adams among investors and developers through our marketing process of 3317 Exposition Place, a 29,690 square-foot creative office building just outside of the West Adams neighborhood.
The adjacent Culver City development spurred demand for more housing in West Adams, which has growth significantly in Q2 and Q3 of 2020 pushing rates and decreasing vacancy. Office owners have also been able to push asking rent above $5.00 PSF since Fortune 100 companies started moving into Culver City in 2018. This significant increase in asking rents in Q3 2018 contributed to the wave of office development in West Adams, especially considering the (W) rapper project, a 16-story 5-star office project set to be completed in December 2021.
Most of West Adams is a federally designated Opportunity Zone, which further incentivized recent development in the community. West Adams has been the direct beneficiary of the metro expansion and a technology and media company migration. As of August 2020, the median average home price in West Adams has increased 10.9% over the last year compared to just 5.8% for Los Angeles as a whole.
West Adams Demographics
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The West Adams area has tremendous momentum, benefitting from the expansion of the Expo line, the on-going development in the West Jefferson corridor and the strength of the neighboring Culver City market.Andrey Mindirgasov, Director at Newmark Private Capital Group
The 2012 opening of three new Metro Line stops in West Adams, has further connected the community to the rest of Los Angeles and directly to the Westside by the latest 2016 Metro stop in Santa Monica. The expansion of the metro has been a catalyst for a wave of new residents into the neighborhood, which caused significant multifamily development and a change in the demographics of the neighborhood.
West Adams is connected to the rest of Los Angeles through the I-10 Freeway, which runs through the northern border of the neighborhood, and two Los Angeles Metro lines. The existing Expo Line runs through the center of West Adams, along Jefferson Boulevard, and an approved expansion project will extend the Metro along Crenshaw Boulevard and terminate 8.5 miles away in the City of El Segundo. The metro expansion project is expected to be completed in 2021.
There are specific plans to redevelop Crenshaw Boulevard to adjust to the Metro expansion project. The City of Los Angeles’ General Plan Framework encourages development in certain transit designated areas within the city, and the Mobility Plan 2035 has established Crenshaw Boulevard as one of these transit designated roadways. This means that local regulatory authorities will encourage economic development and prioritize pedestrian access in the community.
The Crenshaw Boulevard Streetscape Plan proposes to add street trees, street furniture, crosswalks, and other features that will improve the quality and safety of the boulevard. Crenshaw Boulevard is also designated as part of the Bicycle Enhanced Network and the Bicycle Lane Network, which proposes a network of bicycle paths throughout Los Angeles. The bike path plan proposes to modify Crenshaw Boulevard to accommodate a continuous bike lane in the future.
The full report includes, among other information, a map of the major ownership groups, the current development pipeline, and recent sales and leasing activity in West Adams.