Population Growth Drives Incredible Activity in DTLA

Nick Griffin

Downtown Los Angeles is hitting a stride. Recently, several major retailers have moved to the market, the office vacancy rate is trending downward, and despite the massive multifamily construction activity, apartment absorption remains healthy, according to the third quarter report from the Downtown Central Business Improvement District. Population growth is behind the activity across asset classes, particularly in the residential market, which continues to be the driving force in the market.

“The population growth continues to be the underlying engine that drives growth. The more people that are living down here makes the retail market so much more viable,” Nick Griffin, executive director for the DCBID, tells GlobeSt.com. “Residential continues to be the catalytic under current for the growth. We have hit the tipping point in terms of perception. Downtown is being recognized as a viable and appealing market unto itself. That is why you are seeing these new retailers coming in. There is a recognition of the strength and appeal of the market.”