Growth in Downtown LA Rebounds

Downtown is quickly bouncing back from the economic hardships of the COVID epidemic according to the 2022 year-end market report just issued by the Downtown Center Business Improvement District. Apartment rentals in the fourth quarter were at 93.1 percent with asking rents of $3.33 per square foot, essentially identical to the fourth quarter of 2021.

         The report also points to new construction as an indicator of healthy demand for downtown living citing the new Onni Group tower that is under construction in South Park at Olympic and Hill.

         Hotel occupancy is rebounding with fourth quarter occupancy at 68.2 percent, almost a 15 percent increase over 2021. The average daily rate is $230 as opposed to $180 this time last year.

         Meanwhile, office rates, while stronger than many markets, have a 21 percent vacancy rate. The Class A office rental rate is $3.82, almost identical to last year.

         The report also cites 8,878 residential units under construction of which 504 are condos and 621 are affordable units.

         Meanwhile, retail is rebounding after a loss of more than 100,000 square feet in 2021. In 2022,  91,288 square feet of retail was added.

         The report also details projects opened, commercial real estate sales, office leases signed, and food and beverage openings.

         The full report can be found here https://downtownla.com/business/reports-and-research/market-report.

By Debra Shrout