LOS ANGELES—The retail market in Downtown Los Angeles is on fire, and market experts say that the activity in the sector is one of the final crowning moments in the market's evolution. According to the latest report from the DCBID, the market has attracted several new and established retailers to the market. Shake Shack, Starbuck's Reserve, Chipotle and PopBar are among the retailers to sign leases in the first quarter.
“The market has hit a point of maturity in terms of being its own trade area. National retailers and restaurants that might be situated outside of Downtown are now determining that they need to be downtown,” Carol Schatz, the president of the DCBID, tells GlobeSt.com. “It also reflects this unbelievable growth in residential that we have experienced since 1999. We have almost 70,000 people living downtown. Before 1999, we were talking about 18,000 people living here. It is unbelievable, and the new residents that have come to downtown have a strong demographic and income. It has been holding steady at about 100,000 per year.”
The report shows that retail lease rates are up to $2.63 per square foot, a significant 3.5% increase year-over-year. The market currently has 2 million square feet of retail space under construction and another 2.4 million square feet plus in the approval process. While that sounds like a significant amount of absorption, the market had 109,000 square feet of absorption in the first quarter of the year alone.
Residential and hospitality brands have excelled in the market, and office is gaining momentum with new creative office leases, like the Warner Borthers lease. “I think it is one of the final pieces of the puzzle, but office is also a final piece of the puzzle. But, that is also coming back,” says Schatz. “Those two pieces will allow us to tie the bow. All of the indicators says that every market is on fire downtown. It isn't just residential. As downtown becomes a place that is known across the region, people want to be here. We became a 24-7 downtown five years ago.”
In fact, Schatz credits the growth in the market with the success of the residential market and the onslaught of people that have recently moved to the market.
LOS ANGELES—The retail market in Downtown Los Angeles is on fire, and market experts say that the activity in the sector is one of the final crowning moments in the market's evolution. According to the latest report from the DCBID, the market has attracted several new and established retailers to the market. Shake Shack, Starbuck's Reserve, Chipotle and PopBar are among the retailers to sign leases in the first quarter.
“The market has hit a point of maturity in terms of being its own trade area. National retailers and restaurants that might be situated outside of Downtown are now determining that they need to be downtown,” Carol Schatz, the president of the DCBID, tells GlobeSt.com. “It also reflects this unbelievable growth in residential that we have experienced since 1999. We have almost 70,000 people living downtown. Before 1999, we were talking about 18,000 people living here. It is unbelievable, and the new residents that have come to downtown have a strong demographic and income. It has been holding steady at about 100,000 per year.”
The report shows that retail lease rates are up to $2.63 per square foot, a significant 3.5% increase year-over-year. The market currently has 2 million square feet of retail space under construction and another 2.4 million square feet plus in the approval process. While that sounds like a significant amount of absorption, the market had 109,000 square feet of absorption in the first quarter of the year alone.
Residential and hospitality brands have excelled in the market, and office is gaining momentum with new creative office leases, like the Warner Borthers lease. “I think it is one of the final pieces of the puzzle, but office is also a final piece of the puzzle. But, that is also coming back,” says Schatz. “Those two pieces will allow us to tie the bow. All of the indicators says that every market is on fire downtown. It isn't just residential. As downtown becomes a place that is known across the region, people want to be here. We became a 24-7 downtown five years ago.”
In fact, Schatz credits the growth in the market with the success of the residential market and the onslaught of people that have recently moved to the market.
© 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.