LOS ANGELES—Development in the Arts District may be taking off, but the micro market is only in its infancy. Brandon Gill, a broker at CBRE and market expert, expects that the Downtown Los Angeles neighborhood is going to see tremendous growth, much like South Park has. With the prominent developers that are looking for opportunities in the market, wee might start calling it the Downtown Renaissance 2.0.
“I still think that it is in its infancy,” Gill, who recently sold a development site in the market to the Onni Group, tells GlobeSt.com. “If you drive around this neighborhood, you can see the change. Developers are really doing an amazing job of creating new projects that are going to speak to the fabric of the neighborhood and making it functional for the needs of the neighborhood. Developers have some obvious understanding of their obligation to keep this neighborhood the same.”
The new development projects are reminiscent of the development in the South Park district, which has seen the majority of the new development in Downtown Los Angeles. Gill, however, says the Arts District is very different from the South Park neighborhood, and it will continue to have its own identity. “The main difference between the Arts District and South Park is that it is a more walkable neighborhood and it has a more pedestrian-friendly feel,” says Gill. “The characteristics of the neighborhood from an authenticity vibe make it very unique. There are older industrial buildings that were built over 100 years, and they are all really interesting buildings that are now getting repurposed into creative office, retail and residential. People are ascending on this neighborhood from all over L.A. This neighborhood has really been awakened, and it is exciting to see.”
The few projects that have been delivered have seen huge success. One Santa Fe is the best example. The property completed a lease-up only a year after opening and at rents that exceeded the developer's pro forma. The success of On Santa Fe has attracted more developers to the market, and has sparked this new phase of development in the Downtown renaissance. “You are getting new residents and millennials and they all have a draw for this urban feel and this creative experience,” says Gill. “It is very exciting to see what is on the horizon in this neighborhood because you are going to see some great projects being built.”
LOS ANGELES—Development in the Arts District may be taking off, but the micro market is only in its infancy. Brandon Gill, a broker at CBRE and market expert, expects that the Downtown Los Angeles neighborhood is going to see tremendous growth, much like South Park has. With the prominent developers that are looking for opportunities in the market, wee might start calling it the Downtown Renaissance 2.0.
“I still think that it is in its infancy,” Gill, who recently sold a development site in the market to the Onni Group, tells GlobeSt.com. “If you drive around this neighborhood, you can see the change. Developers are really doing an amazing job of creating new projects that are going to speak to the fabric of the neighborhood and making it functional for the needs of the neighborhood. Developers have some obvious understanding of their obligation to keep this neighborhood the same.”
The new development projects are reminiscent of the development in the South Park district, which has seen the majority of the new development in Downtown Los Angeles. Gill, however, says the Arts District is very different from the South Park neighborhood, and it will continue to have its own identity. “The main difference between the Arts District and South Park is that it is a more walkable neighborhood and it has a more pedestrian-friendly feel,” says Gill. “The characteristics of the neighborhood from an authenticity vibe make it very unique. There are older industrial buildings that were built over 100 years, and they are all really interesting buildings that are now getting repurposed into creative office, retail and residential. People are ascending on this neighborhood from all over L.A. This neighborhood has really been awakened, and it is exciting to see.”
The few projects that have been delivered have seen huge success. One Santa Fe is the best example. The property completed a lease-up only a year after opening and at rents that exceeded the developer's pro forma. The success of On Santa Fe has attracted more developers to the market, and has sparked this new phase of development in the Downtown renaissance. “You are getting new residents and millennials and they all have a draw for this urban feel and this creative experience,” says Gill. “It is very exciting to see what is on the horizon in this neighborhood because you are going to see some great projects being built.”
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.