LA has been known for having its share of extremely successful technology companies, including Facebook, Snapchat, and YouTube, to name a few. However, these companies have always been located in the more affluent parts of LA, instead of the more gritty downtown area. Now, according to the LA Times, LA is seeing a new trend of tech companies moving to the downtown area, which is more central and relatively cheap.
Before, really downtown LA was ruled by the online retailers, like Nasty Gal and style website Daily Look, since downtown LA is very close to the fashion and manufacturing district. But now as we see this new tech chance coming through, there are now 78 tech companies in downtown LA, and they cover everything from mobile apps and hardware to digital media and clean-tech companies.
Why start a tech business in downtown LA? Well, most of these companies are start-ups, and downtown LA is more cost effective than some of the other parts of the city. Also, since they are start-ups, they have very few employees. Tech hiring has become extremely competitive, so in downtown LA they have a wider range of employees than in other cities. However, these companies are also looking at the cultural aspects downtown LA offers as well. Instead of building skyscrapers, most companies are choosing to set up shop in abandoned warehouses and old buildings.
In reality, this new tech chance to downtown LA should not be a surprise. Right now, the process of new start-ups and abandoning skyscrapers has been a trend the US has been seeing for a while. Also, it really attracts younger workers, the exact type of employee for which these new tech start-ups are looking. Although, there have been issues with crime, since crime is still more prevalent in downtown LA than other parts of the city. However, in reality this shift is one of the best things that could happen to LA. New companies are starting up and cleaning up their downtown area and offering lots of employment opportunities and an interesting new culture.