Column: LA Could Be a Blueprint for What Real Estate Looks Like When Workers Return

Jonathan Wasserstrum, SquareFoot CEO
Jonathan Wasserstrum is the CEO and co-founder of SquareFoot.
Column: LA Could Be a Blueprint for What Real Estate Looks Like When Workers Return
Photo by izayah ramos on Unsplash

In mid-March, a majority of companies had to send their employees home and tell them to stay there indefinitely. Most business owners were abiding by what they hoped would be a short-term situation. Few could have imagined 10 months ago that at the beginning of 2021 they would still lack a bonafide game plan to get back up and running. In fact, the longer this pandemic has dragged on, the more it's become clear that the typical, pre-pandemic workplace is not something we'll see again for quite some time.

Reflecting on what the country looks like today, it's a real possibility that in the not-too-distant future L.A. sets not only the stage but also a new standard for what a health-conscious commute and a productive work life looks like as a model for apprehensive Americans.


Commercial real estate brokers in crowded cities such as New York have heard from countless clients that the city's population density complicates matters materially. Even employers who hope to get back to the office as soon as possible are reluctant to return to buildings where they may deem it ill-advised to step into the lobby or to use the elevator to get to their desired floor. Safety comes first for everyone.

Sprawling Los Angeles, however, offers a different landscape. Downtown L.A., once abandoned by businesses in favor of other neighborhoods and nearby cities, has seen a documented boom in recent years. It's a proud home to law firms and financial companies, yet it's not by any means the only area that appeals to L.A. businesses — and that's a benefit. What makes L.A. so unique is how expansive it is. There are so many options for where to plant your flag. Being in the city center is not necessarily the best spot for most businesses. In fact, there's very much a floating 'center of town,' depending on where tomorrow's companies intend to establish themselves.

For many decades, we've heard about how the so-called hub and spoke model - having one central headquarters in the heart of the city with smaller offshoot offices in the suburbs - would be the future of commercial real estate. Last spring, conversations began to bubble up again in that direction, though those realities haven't yet manifested. Companies ultimately want to keep their teams intact and together. In cities other than L.A., if that's your intent, you're stuck with the major downtown area, and paying a steep price for it since every other organization is looking at the same limited supply of offices. But, because L.A.'s culture and infrastructure is already spread out, there's no reason to hesitate to move your office headquarters elsewhere, where it makes most sense for your company, within L.A. County's 88 cities.

Moving away from the urban center is not as much a concern for L.A.-based businesses. In fact, with the state of affairs on the ground right now, it's a major draw. The commute is proven to be employees' greatest concern. A car-dependent culture such as L.A.'s doesn't require any rethinking or rejiggering of transportation to accommodate the same transit shift that is hitting other cities so severely.

In recent years, big tech companies including Apple, Amazon, Google and Facebook have made sizable real estate commitments to shift their focus and operations, thereby considerably reimagining their local presences. Despite the ongoing pandemic, these projects are chugging along, and the payoffs begin with thousands of new jobs being created in the coming years. Expect this trend to accelerate in the future. If it's good enough for those giant tech companies, others like them will take notice, and smaller companies will follow.

For example, Hollywood is being transformed around streaming content, and it's all taking place within driving distance of the entertainment capital of the world. What's notable, though, is that these companies are deliberately choosing areas such as Culver City to stake their claims. In such a city, they have the space to put down both traditional offices and fully built-out studios where they can shoot, produce, edit and release content. Although the technology and the thinking have evolved, Los Angeles remains at the epicenter of the global entertainment industry.

That's what makes L.A. such an exciting place to be right now. With an industry in transition, it creates opportunity for others to reshape what comes next. While those types of seismic moves take time, they begin with the biggest players' real estate investments that are then quickly followed by the next crop of companies looking to find their slice of the growing pie.

While there are still challenges in the world of commercial real estate, the office is not dead. As with many other industries, commercial real estate will have to adapt and grow to the needs of businesses and entrepreneurs across all cities. But if you're trying to figure out what possibilities lie ahead, and how innovation can take place within existing infrastructure, look no further than Los Angeles.

LA Startups Supercharging Cars and Dating 🚗⚡💑

🔦 Spotlight

Happy Friday Los Angeles!

EVgo Inc., a leading Electric Vehicle (EV) charging company based in West Los Angeles, has seen substantial growth under CEO Badar Khan. The company now operates over 3,400 fast chargers across 1,000 sites nationwide, strategically placed in high-traffic urban and suburban areas to enhance convenience for EV users. EVgo’s model focuses on owning and managing its charging stations to ensure a seamless experience, reflecting its commitment to supporting the mass adoption of electric vehicles and facilitating the transition to cleaner transportation.

In a different electrifying market, Joe Feminella, inspired by his own successful dating journey, launched the dating app, First Round’s On Me in El Segundo with $5 million in funding. This app differentiates itself by requiring users to schedule a date within 24 hours of matching, and after a soft launch in select markets, it expanded nationwide in 2024. As the dating app market faces criticism over algorithmic practices and premium features, First Round’s On Me aims to offer a more genuine and immediate dating experience. Both EVgo and First Round’s On Me exemplify how companies in different industries are addressing their respective market challenges with innovative approaches to improve user experience and engagement.


🤝 Venture Deals

LA Companies

  • 3DEO, a startup that specializes in 3D printing small, high-volume metal parts, raised a $3.5M Strategic Investment Round from Mizuhio Bank. - learn more
  • Spotter, a startup that underwrites creators and offers AI tools, raised a $7.4M Funding Round. - learn more
  • Cashmere, a lead generation startup for wealth managers, raised a $3.6M Seed Round. Canapi Ventures led, and was joined by Benchstrength, Plug and Play, The House Fund, and Courtyard Ventures. - learn more

LA Venture Funds

  • Crosscut Ventures participated in an $8.9M Series A Extension for Nostra AI, a startup that helps e-commerce businesses improve their website performance by speeding up load times. - learn more
  • Fika Ventures, an eight-year-old Los Angeles venture capital firm, has raised a fourth fund in the amount of $160 million to invest in early-stage B2B startups. - learn more

      ✨ Featured Event ✨

      LA TECH CEO SUMMIT

      LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

      Learn More Here

      Register Here


      Download the dot.LA App

      🍵☕️Top 6 Coffee Alternatives for Enhanced Productivity

      In the fast-paced world of startups and venture capital in Los Angeles, maintaining peak productivity is essential for founders and investors alike. As the hustle intensifies, many are seeking alternatives to traditional coffee that not only provide a sustained energy boost but also support overall health and well-being. The following list highlights some of the top-rated coffee alternatives that can enhance focus and productivity while minimizing the adverse effects of caffeine. These options incorporate adaptogens, superfoods, and gut-friendly ingredients, making them ideal choices for those looking to optimize their performance without the afternoon crash.


      Matcha

      Image Source: Jade Leaf Matcha

      Matcha is a finely ground green tea that offers a moderate amount of caffeine, along with L-theanine, which promotes relaxation without drowsiness. This combination can enhance focus and concentration, making matcha a suitable alternative for those looking to boost productivity without the jitters of coffee.

      Popular Brands: ReNude Chaga Matcha (60 mg caffeine), Golde Pure Matcha (60 mg caffeine), Organic Ceremonial Matcha - Teahouse Edition (30 mg caffeine)


      Dandelion Root Coffee

      Image Source: Amazon

      Dandelion root coffee is a caffeine-free alternative that mimics the taste of coffee. It is known for its potential to support liver health and digestion, which can contribute to overall well-being and productivity. The drink can help avoid the acidity and jitters that often accompany regular coffee, making it a gentler option for those sensitive to caffeine.

      Popular Brands: Dandy Blend (0 mg caffeine), Teeccino Dandelion Dark Roast (0 mg caffeine)


      Adaptogenic Drinks

      Image Source: MUD\WTR Masala Chai

      Adaptogenic beverages, which include ingredients like ashwagandha, reishi, and maca, are designed to help the body adapt to stress and promote mental clarity. These drinks can provide a sustained energy boost without the crash, supporting productivity throughout the day. They are often made with superfoods and spices that enhance both physical and mental performance.

      Popular Brands: MUD\WTR Masala Chai (35 mg caffeine), Four Sigmatic Think Coffee (150 mg caffeine), ReNude Chagaccino (0 mg caffeine)


      Golden Milk (Turmeric Latte)

      Image Source: Golde

      Golden milk, made from turmeric, ginger, and milk (or a milk alternative), is a caffeine-free option that can improve mood and reduce inflammation. The calming properties of this drink can help maintain focus and clarity, making it a great addition to a productive morning routine.

      Popular Brands: Golde Turmeric Latte Blend (0 mg caffeine), Blume Turmeric Blend (0 mg caffeine), Four Sigmatic Golden Latte Mix (0 mg caffeine)



      Chicory Root Coffee

      Image Source: Teeccino

      Chicory root coffee is an excellent alternative that satisfies the desire for a warm beverage without caffeine. It is rich in inulin, a prebiotic fiber that aids in digestion and promotes gut health by supporting beneficial bacteria. Chicory coffee has a nutty, earthy flavor and can help control blood sugar levels, contributing to overall energy and productivity throughout the day.

      Popular Brands: Anthony’s Instant Chicory Root (0 mg caffeine), Teeccino Chicory Coffee Alternative (0 mg caffeine)


      Yerba Mate

      Image Source: Guayaki Yerba Mate

      Yerba mate is a traditional South American herbal tea made from the leaves of the Ilex paraguariensis plant. It contains about 40-80 mg of caffeine per serving, which is less than a standard cup of coffee but enough to provide a gentle energy boost. Yerba mate is rich in antioxidants, vitamins, and minerals, and users often report feeling energized without the jitters or crashes associated with coffee. It has a unique, slightly bitter flavor and can be enjoyed in various forms, including loose-leaf tea and pre-brewed options.

      Popular Brands: Guayaki Yerba Mate (40-150 mg caffeine)


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      LA’s Data Center Supply Crunch

      🔦 Spotlight

      Happy Friday Los Angeles!

      The Los Angeles data center market is experiencing a significant supply crunch, ranking 12th in growth among top markets since 2020 with only 265 megawatts of colocation inventory (data centers where businesses rent space to store their computing hardware and servers). Despite this, demand is surging, driven by AI, cloud, and hyperscaler needs, with AI accounting for 20% of new data center demand nationally. This scarcity is creating a highly competitive environment, with vacancy rates at a record low 3% and asking rents rising 13-37% year-over-year. For Los Angeles, this presents both challenges and opportunities in the big picture. The city's strategic position as a global entertainment hub and its connectivity to international markets through subsea cables make it an attractive location for data centers. However, the limited inventory and rising costs could potentially hinder growth and innovation in the tech sector. To maintain its competitive edge, Los Angeles will need to address these constraints through new developments, such as GI Partners' 16 MW addition at One Wilshire, and by focusing on high-connectivity, high-power capacity submarkets. The city's tech community should prepare for a landscape of increased competition for quality data center space, higher costs, and the need for innovative solutions to meet growing demand, particularly in AI and cloud services. While Los Angeles faces a challenging data center supply crunch, its strategic advantages and ongoing developments offer a promising path forward.


      🤝 Venture Deals

      LA Companies

      • Daisy, a one-year-old startup that designs and installs smart home and office technology systems, raised a $7M Series B co-led by Goldcrest and Bungalow, with previous investors Bullish and Burst Capital also stepping up. The company has raised a total of $13.3 million. - learn more

      LA Venture Funds


        ✨ Featured Event ✨

        LA TECH CEO SUMMIT

        LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

        Learn More Here

        Register Here


        Download the dot.LA App

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