Carol Schatz Carol Schatz is the president and CEO of the DCBID.

The Downtown Los Angeles market closed 2017 with a whimper. The market—which experienced a phenomenal year—saw vacancy rates increase in office and retail asset classes. Office vacancy rates increased 5.4% to 17.7%, and retail vacancy was up 9.8% to a rate of 4.5%, according to the fourth quarter report from the DCBID. Occupancy rates in hospitality market remained flat, while multifamily occupancy rates climbed 1% amid significant new development. While vacancy rates fell, absorption for both office and retail markets was positive, and office continued to see increases in rental rates.