Last week we wrote about HBO leaving Santa Monica and heading over to Culver City in a new, expansive office. But this week, we want to highlight all of the companies making their way into Silicon Beach.

Silicon Beach has been a hotbed for tech in LA for over a decade, with companies such as Youtube, Hulu, Headspace and Snap Inc. calling the area home. According to an article published by Built in LA, Silicon Beach is home to more than 500 companies with startups alone raising $4.2 billion in 2016.

As the economy in Silicon Beach continues to grow and evolve, more companies are planning on making the community home including the global law firm Goodwin who recently announced plans to set up a new practice in Santa Monica dedicated to private equity and technology.

Goodwin will be located at 520 Broadway in Santa Monica. It will initially take up more than 20,000 square feet over the building’s entire fifth floor. The office will be home to approximately 20 technology and private equity lawyers, including current Goodwin lawyers who will relocate.

Goodwin is moving to Santa Monica because many of their tech clients list the travel from the westside to other parts of Los Angeles is a legitimate deterrent for business deals. The move will open up a wide range of possibilities for clients from Hermosa to Santa Monica.

While Goodwin is moving in, other companies (like aforementioned HBO) are moving out of the coastal tech hub. One of the reasons companies are leaving is the price of rent in Silicon Beach as opposed to communities 5 or 10 miles away from the beach. As the city’s tech industry grows, so does the cost of office space.

According to a 2018 report by CBRE — which surveyed office rents in the top 30 tech markets across the U.S. and Canada — LA’s tech scene ranks second in overall market growth, with around 1.3 million square feet of space rented in the last five years. But as the need for space intensifies, the rent rises. The rent in Silicon Beach went up 16% between 2016 and 2017, with rent in Santa Monica alone rising 78% between 2011 and 2018. If you think moving to one of the other beautiful beaches would give your wallet some relief you would be wrong. Rent in Playa del Rey and other coastal communities neighboring Santa Monica and Venice sits at around $100 per square foot.

You may be wondering, “if rent is so high, why are startups still settling into Silicon Beach?” With breathtaking beaches, unlimited resources for tech startups and a right of passage that comes along with the location, it is still one of the top locations in the country for tech companies.