|
|
3/01/16
|
Los Angeles’ Downtown Center Business Improvement District [DCBID] released its 2015 Year End Market Report revealing a record setting year for development. “One gaze across the skyline will tell you all you need to know about the state of Downtown. We are in growth mode. And as we predicted at the close of 2014, the Downtown LA office market has officially joined the Renaissance, as illustrated by decreasing vacancy rates, increasing lease rates, continued positive net absorption, and 2.5M square feet now under construction,” announced Carol Schatz, President and CEO of the DCBID.
Key findings include: total commercial leasing volume increasing to 2.4 msf, an increase of 14% over 2014; 10,170 residential units are currently under construction; and more than 2 msf of retail space is under active development.
Residential:
* 95.8% occupancy rate for apartments; despite 2,000 units delivered in 2015
* $644/sf average condo price
* 10,170 units under construction; a 37% increase year-over-year
Office:
* 18.2% office vacancy; a 6% decrease year-over-year
* $3.24/sf avg lease rate in Q4; a 1% increase year-over-year
* 2.4 msf under construction; a 574% increase year-over-year
Hospitality:
* 75.4% year-to-date occupancy rate
* $195.10 year-to-date average daily rate; a 7.5% increase year-over-year
* 2,515 rooms under construction
Retail:
* 4.8% vacancy rate: a 30% decrease year-over-year
* $2.59/sf avg lease rate; a 4.9% increase year-over-year
* 2 msf of space under construction
In addition to all of the positive numbers achieved in 2015, Downtown LA as a neighborhood experienced some significant milestones, including:
Retail:
* Whole Foods – opened at 8th and Grand
* Burlington Coat Factory – opened at Broadway and 7th
* Clifton’s Cafeteria – opened at Broadway, near 7th
* The BLOC – to open early 2016
Civic and Culture:
* The Broad Museum – opened at 2nd and Grand
* Hauser, Wirth & Schimmel to open blue-chip art gallery in the Arts District
* 6th Street Viaduct began construction
“Since the Downtown renaissance began, we have seen $24 bil in investment, a 224% increase in property values, and a tripling of the residential population,” said Schatz. “Yet with the scale of development so visible today, and investment opportunities abounding in all sectors, it feels like we are just getting started,” she added. “The sky is the limit for DTLA.”
|
|
 Return to the Archive page
|
|
|
|
|
Printer-friendly Version
Email an Associate
