The most promising thing about Culver City is that vacancy rates are currently going down across all commercial asset classes. Economic activity is high due to the changes the city has made to bring in new tenants and revitalize the downtown Culver City submarket. This has attracted more people to live and work in Culver City.
One of the strongest sectors in Culver City has been in multifamily, with a consistent trend for decreasing vacancy rates for 4 years. In correlation to this, prices and sales volume have increased dramatically for multifamily, as investors feel more comfortable with the general fundamentals of these investments. The entrance costs are high to invest in multifamily, but there is a good projection for gains over time. The low vacancy rates suggest a high demand for rental space and should provide upward pressure in rental rates for this property type. An important advantage to investing in Culver City over other nearby areas such as Los Angeles or Santa Monica is that it isn’t rent controlled. This allows investors to adjust their rents to market rates quickly.
Net Absorption & Vacancy Rate
Sales Volume & Sales $/SF