LOS ANGELES—Despite the tremendous apartment deliveries last year in Downtown Los Angeles, rents are not falling. According to the fourth quarter report from the Downtown Central Business Improvement District, rents in the market are up 4.5% year over year even with 11 apartment deliveries totaling more than 2,600 units in 2016. While markets are always affected by supply and demand ebbs and flows, Carol Schatz, the president of the DCBID, says that the huge demand in Downtown Los Angeles and housing shortage in Los Angeles is keeping rents from dropping. To find out more, we sat down with Schatz for an exclusive interview.
GlobeSt.com: A lot of experts anticipated concern about several residential projects coming online at once. How have these been absorbed and has demand remained strong?
Carol Schatz: The allure of Downtown continues to draw increasing numbers of residents to the heart of our city and largely has been keeping pace with deliveries. The occupancy rate has remained consistent at around 90%, even as new apartments come online in ever-increasing numbers. We are also encouraged by what is happening in the office sector. Vacancy rates are dropping, with space being filled by a new mix of tenants. For example, Warner Music Group is relocating to the Arts District bringing hundreds of employees, many of who will look for condos and apartments Downtown.
GlobeSt.com: Do you expect rents to waiver as a result?
Schatz: All markets are affected by supply and demand and Downtown is no different. To continue absorbing as many apartments and condos that are due to deliver over the next 12-24 months without stressing or affecting rent growth is a tall task. However, given the housing crisis in LA, the growing appeal of Downtown, and the continued high occupancy rate, rents are unlikely to fall.
GlobeSt.com: What is the DCBID's role in helping fill these projects?
Schatz: Since we formed the DCBID nearly 20 years ago, our core mission has been to make downtown a better place to not only work and play, but to live. Our clean and safe teams, known locally as the Purple Patrol, provide neighborhood cleaning and security to supplement the city's resources. More importantly, they provide peace of mind to residents that they have neighbors and leaders who truly care about the quality of life in the neighborhood.
The DCBID's business development and marketing programs, including our website DowntownLA.com, promote and showcase all of the great things that are happening in the neighborhood, and invite others to join in. We also offer a monthly DTLA Housing Tour, highlighting the newest projects as they open with a focus on our district.
LOS ANGELES—Despite the tremendous apartment deliveries last year in Downtown Los Angeles, rents are not falling. According to the fourth quarter report from the Downtown Central Business Improvement District, rents in the market are up 4.5% year over year even with 11 apartment deliveries totaling more than 2,600 units in 2016. While markets are always affected by supply and demand ebbs and flows, Carol Schatz, the president of the DCBID, says that the huge demand in Downtown Los Angeles and housing shortage in Los Angeles is keeping rents from dropping. To find out more, we sat down with Schatz for an exclusive interview.
GlobeSt.com: A lot of experts anticipated concern about several residential projects coming online at once. How have these been absorbed and has demand remained strong?
Carol Schatz: The allure of Downtown continues to draw increasing numbers of residents to the heart of our city and largely has been keeping pace with deliveries. The occupancy rate has remained consistent at around 90%, even as new apartments come online in ever-increasing numbers. We are also encouraged by what is happening in the office sector. Vacancy rates are dropping, with space being filled by a new mix of tenants. For example,
GlobeSt.com: Do you expect rents to waiver as a result?
Schatz: All markets are affected by supply and demand and Downtown is no different. To continue absorbing as many apartments and condos that are due to deliver over the next 12-24 months without stressing or affecting rent growth is a tall task. However, given the housing crisis in LA, the growing appeal of Downtown, and the continued high occupancy rate, rents are unlikely to fall.
GlobeSt.com: What is the DCBID's role in helping fill these projects?
Schatz: Since we formed the DCBID nearly 20 years ago, our core mission has been to make downtown a better place to not only work and play, but to live. Our clean and safe teams, known locally as the Purple Patrol, provide neighborhood cleaning and security to supplement the city's resources. More importantly, they provide peace of mind to residents that they have neighbors and leaders who truly care about the quality of life in the neighborhood.
The DCBID's business development and marketing programs, including our website DowntownLA.com, promote and showcase all of the great things that are happening in the neighborhood, and invite others to join in. We also offer a monthly DTLA Housing Tour, highlighting the newest projects as they open with a focus on our district.
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