California developers aim to land tech tenants

Developers in Los Angeles County hope to land more technology and media working tenants.

At a time when apartment rents in Los Angeles County are nearly 6 percent higher than before the recession, builders are starting to cater new developments to tech, media and entertainment workers, according to the Los Angeles Times.

"That's absolutely one of our prime demographics," said Eric Diamond, CEO of the Decron Properties Corp., which has a 260-unit property in Los Angeles' Playa del Oro neighborhood.

Diamond told the Los Angeles Times that tech-oriented tenants are typically held to lofty standards at work, and these types of workers hold landlords to similarly high expectations.

"The expectations they have for their landlords are no less stringent than the ones they have for themselves," Diamond said. "They want that same consistent commitment to their hobbies, whether it's pets or working out."

Decron Properties is currently building Playa del Oro West, which is valued in the ballpark of $100 million. The facilities will have a large fitness center, a cinema screening room, a business center and gaming room.

Playa del Oro West is slated to open in the fall of next year, and will also pander to dog owners with an on-site dog park and and dog-washing stations.

"It's about the psychology and philosophy," Diamond added. "There is a mind-set of affordable quality. The tech world is all about affordable technology."

Rival company offering similar commercial housing
Bernards, a construction company, is in the midst of building a $140 million redevelopment of Lincoln Place, which is a garden-style apartment complex.

Originally built shortly after World War II, the facility will have approximately 800 units and feature amenities such as a resort-style pool with cabanas, underwater music and fire pits.

"Developers say their need for high-density multifamily product is through the roof," said Bernards' vice president Dave Cavecche, referring to neighborhoods that appeal to Silicon Beach residents. "We don't really see a point where things are going to slow down."

High rent
Meanwhile, high demand in Los Angeles County continues to push apartment rent prices upward.

In the third quarter of this year, the average apartment rent in the county reached $1,688 per month, a 2.6 percent increase from the third quarter of 2012, according to the Los Angeles Times.

"Rent growth has probably got out front of the general economy and general inflation," Tony Solomon, vice president at Marcus & Millichap's West L.A. office, told the Los Angeles Times.

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