Thank you for sharing!

Your article was successfully shared with the contacts you provided.

In the fourth quarter, a near record number of apartment units delivered in Downtown Los Angeles. For only the second time in the market’s history, more than 2,000 units hit the market in a single quarter, according to research from the DCBID. Four properties—a total of 2,011 units—came onto the market, second only to the third quarter 2018, when 2,027 units came to the market.

“It is affirming. It is the second highest number of units that have ever delivered in a quarter, and all of the properties are impressive properties,” Nick Griffin, executive director at the DCBID, tells GlobeSt.com. “It feels very impressive to have this quality of properties coming online at the same time, and it is also a continuation of the strength of the market.” The four properties include Park Fifth with 347 units; Trademark with 313 units, THEA at Metropolis with 685 units and Hope + Flower with 666 units.

The flood of deliveries will likely mean a temporary dip in apartment occupancy, but Griffin says that the impact is a mere side effect. “You cannot deliver that number of units all at once and not have occupancy rate dip,” he explains. “But, the really relevant stat to us is that if you only go back one quarter, meaning everything that has opened prior to quarter four, the vacancy rate is 91.6%. If you look at mature properties, which we define as being open for one year, the occupancy rate is at 95%. That is what we really base our judgment on. We feel pretty good about the market’s ability to absorb these new units.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author

GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.