DTLA Investment Shows Signs of Recovery in Q3

Investment activity in Downtown Los Angeles in the third quarter could indicate the initial signs of recovery. Two major deals closed in the third quarter, most notably Silverstein Properties’ purchase of the US Bank Tower for $430 million. In addition, two new projects broke ground in the third quarter and an additional eight new projects are ongoing in the construction pipeline.

“In Q2, the market was understandably paralyzed by uncertainty, which was clearly reflected in our Q2 DTLA Market Report,” Nick Griffin, executive director of the Downtown Center Business Improvement District, tells GlobeSt.com. “By Q3, however, and despite the pandemic constraining leasing and other economic activity, there was growing recognition that we were not looking at collapse, and that while there will certainly be changes in the market, the fundamental appeal of the city center is still strong, and Downtown is still a solid market and good investment. This perspective was already evident in Q2, with many of the biggest players amassing capital for opportunistic investments, on the assumption that short-term disruption would not change the long-term outlook. And now we’re seeing that capital being deployed.”