Thanks to its prime location, diverse business base and affordable leasing rates that make it a viable alternative to the pricier West Los Angeles and Downtown markets, El Segundo has recovered nicely from the high-tech downturn of several years ago and continues to flourish despite difficult economic times. With major projects such as Northrop Grumman’s expansion and the arrival of two new data centers, El Segundo has seen its Class A office space vacancy rate, which had risen as high as 23 percent just a few years ago, drop below 10 percent (9.8 percent) for the first time in nearly a decade.
El Segundo is also prized for its affordable leasing rates, which are considerably lower than those of West Los Angeles and other key business sectors.
More Fortune 500 companies are headquartered in El Segundo than any other city in California except for San Francisco.
Currently, a 40% tax credit based on sales tax generated in one year is available. This credit may be used to offset up to 100% of the business license tax liability in any given year.
Utility User Tax Comparison
El Segundo boasts one of the region’s lowest utility user tax rates; another of the many advantages to operating a business here. The following chart illustrates comparable utility user taxes among notable ccommunities within 20 minutes of El Segundo.
| City | Utility Tax (Water, Gas & Phone) |
| Burbank | 7% |
| Culver City | 11% |
| El Segundo | 3% Telecommunication 2% |
| Long Beach | 10% |
| Los Angeles | 10% – Telecommunication 9% |
| Redondo Beach | 4.75% |
| Santa Monica | 10% |
| Torrance | 6.5% – Water 6% |