Downtown Los Angeles’ newest residential communities are spread throughout the burgeoning metropolis, delivering nearly 2,300 new apartments and condos in five separate districts in the first quarter alone, according to the Downtown Center Business Improvement District’s (DCBID) Q1 2019 Downtown Los Angeles (DTLA) Market Report. DTLA also celebrated the first quarter groundbreaking of The Grand, The Related Companies’ $1-billion mixed-use complex on Bunker Hill.
Demand remains strong, as evidenced by Onni Group’s newly-opened 53-story 825 South Hill apartment tower in the Jewelry District, which already has leased more than 50% of its 516 apartments.
DCBID’s Suzanne Holley says, “DTLA’s housing growth is now pushing out beyond the central districts, to neighboring areas such as the Fashion District, Chinatown, and City West. Many of these new communities are replacing what were previously surface parking lots, further enhancing DTLA’s vibrant lifestyle and urban experience.”
2019 Q1 Market Report Highlights:
• 84.7% Occupancy rate for Apartments; 9.2% decrease YOY
• $3.17 PSF Average for Apartments; .6% increase YOY
• $2,645 Average Effective Rent per Unit; flat YOY
• $709 PSF Condo Price
• 18% Office Vacancy; 4% increase YOY
• $3.80 PSF Class A Lease Rate; 5.3% increase YOY
• 123,784 SF YTD Net Absorption; 39% increase YOY
• 951,962 SF YTD Leasing Activity; 16.3% increase YOY
• 6.3% Vacancy Rate; 28.6% increase YOY
• $3.07 PSF Lease Rate; 1.3% increase YOY
• -177,032 SF Net Absorption
• 76.2% YTD Occupancy Rate; flat YOY
• $218.98 YTD Average Daily Rate; 3.1% decrease YOY*
• $166.93 YTD Average RevPAR; 3% decrease YOY*
*Temporary drops due primarily to a historically wet and cold winter.