Last week’s decision by the National Football League to allow the Rams franchise to relocate from St. Louis to Los Angeles was a landmark decision not only in fan loyalty but in terms of commercial real estate potential values.
It has been more than two decades since a professional football franchise called Los Angeles home, and it sparks a number of interesting questions for California’s other NFL franchises, the San Diego Chargers and the Oakland Raiders. The NFL essentially approved the Rams’ move to their eventual new home in Inglewood, where a stadium will be built near the former grounds of the Hollywood Park race track.
The stadium reportedly will not be ready until the 2019 season and will cost an estimated $1.9 billion. At that cost, the stadium will be the largest and most expensive stadium project in the league, dwarfing AT&T Stadium in Dallas.
But the basic principle of any successful real estate venture is obtaining land at a reasonable price and letting the value of it accrue over time. Since the Rams’ announcement, interest in commercial real estate surrounding the area of the future stadium has grown significantly. The immediate area surrounding the future venue is littered with body shops and strip malls, and has investors salivating at the possibilities of mixed use properties. In fact, real estate agents are reportedly trying to make connections to the future stadium with current property listings.
Considering Inglewood’s current commercial leasing and vacancy rates, it remains to be seen whether the Rams’ new home will be the proverbial tide that lifts all boats. If you have questions about the acquisition, leasing or local ordinances related to commercial real estate in Inglewood or anywhere else in southern California, contact The Loftin Firm at 760-814-9649.