Investors flock to Inglewood for land near stadium

Los Angeles /
Jan.January 20, 2016 02:51 PM

It’s only been a week since the announcement that the Rams are officially moving to Los Angeles and into Stan Kroenke’s stadium project, but already, realtors are claiming an uptick in interest in the commercial properties that surround the site in blocks lined with strip malls and auto repair shops.

Real estate agent Matt Crabbs of Re/Max Estate Properties told the Los Angeles Times that he had seen dismal interest in one his listings for a vacant retail property in the low-rent city. That is, until last week, when six parties have expressed a desire to buy the roughly 17,000-square-foot building, which is listed for almost $4 million.

Realtors are not being shy about using the stadium as a selling point.

“Within blocks of the new stadium development,” reads one ad for a 5,500 retail building on Century Boulevard.

The city made most famous by Tupac’s line “Inglewood, always up to no good” has long struggled on the commercial front.

Its retail spaces rent for a meager $1.43 a square foot a month with 5.9 percent vacancy, according to CoStar. It falls well below the county average of $2.31 for rent and 4.7 percent vacancy.

Its office market is even worse. Inglewood has a 27.4 percent office vacancy rate and its office properties average $1.61 a square foot a month, compared to L.A. average of 11.2 percent vacancy and $2.71 rent.

To boot, residential realtors have made it clear that the Rams’ players, staff and administration will look elsewhere, in luxury markets, for housing.

It’s not expected that the coming of the Rams will transform property values across the city. Victor Matheson, an economist at the College of the Holy Cross, told the Times that property values tend to increase in the streets directly surrounding a stadium, but even a half a mile away there is no effect.

One argument for the change in Inglewood is that Kroenke and Stockbridge Capital Group’s plans for the site include not just a stadium but also a hotel, housing and hundreds of thousands of square feet of retail and office space. [LAT]Hannah Miet


Related Articles

arrow_forward_ios
From left: Related California’s Gino Canori and William Witte with 710 Broadway (710 Broadway, Getty, Related)
Related scores $385M in financing for Santa Monica mixed-use project
Related scores $385M in financing for Santa Monica mixed-use project
Onni Group’s Rossano De Cotiis and Wilshire Courtyard at 5700-5750 Wilshire Boulevard in Los Angeles
Onni leases 225K sf of offices in Mid-Wilshire to Sony Pictures
Onni leases 225K sf of offices in Mid-Wilshire to Sony Pictures
Simon Property Group's David Simon, Brea Mall at 1065 Brea Mall (Getty, Google Maps, Simon Property Group)
Simon seeks to redevelop former Sears site at Brea Mall
Simon seeks to redevelop former Sears site at Brea Mall
CBRE's Stew Weston with rendering of 1011 North Sycamore Avenue
CIM to build offices on West Hollywood cement plant site
CIM to build offices on West Hollywood cement plant site
Bed, Bath & Beyond's Sue Gove with 14351 Hindry Avenue
Bed Bath & Beyond to close seven more stores across SoCal
Bed Bath & Beyond to close seven more stores across SoCal
Griffin Living's Paul Griffin III and Griffin Plaza at 3885-3977 Cochran Street in Simi Valley
Griffin Living sells Simi Valley shopping center for $22M
Griffin Living sells Simi Valley shopping center for $22M
TGS Management's Fred Taylor and FivePoint's Daniel Hedigan
TGS Management pays $240M to buy 42 acres for Irvine data hub
TGS Management pays $240M to buy 42 acres for Irvine data hub
Susan Phillips, a professor of environmental analysis and director of Pitzer College’s Robert Redford Conservancy for Southern California Sustainability and San Bernardino County Supervisor Curt Hagman with warehouses in San Bernardino county
IE warehouse boom generates call for building moratorium
IE warehouse boom generates call for building moratorium
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...