Downtown Looks to Build on Post-Covid Momentum

Downtown Los Angeles is continuing to climb out of the Covid slump amid some mixed vacancy rate data, according to Downtown Center BID’s (DCBID) 2021 Q4/Year-End Downtown LA Market Report – and significant builds are already underway.

On Bunker Hill, The Related Companies’ The Grand LA is nearing its 2022 completion; in the Arts District, Carmel Partners’ 520 Mateo continues to reach skyward as the area’s first high-rise; in South Park, construction on Lightstone Group’s 1,000+ room, dual branded hotel (Moxy and AC Hotels) has reached its peak; and in the Downtown Center, Brookfield’s 64-story 755 South Figueroa St. is racing Mitsui Fudosan’s neighboring 41-story apartment tower, according to a news release.

Those builds dovetail with a boom in the hospitality industry downtown, as well, according to recent research and analysis from DCIB’s 28-page report:

Some key takeaways from DTLA’s report include almost uniform rises in :

Office:

• 19.8% Office Vacancy; 17.2% increase YOY
• $3.80 PSF Class-A Lease Rate; 1.3% decrease YOY

Retail:

• 6.0% Vacancy Rate; 3.2% decrease YOY
• $3.01 PSF Lease Rate; flat YOY
• -34,509 SF Net Absorption; 16.4% increase YOY

Hospitality:

• 53.8% Occupancy Rate; 51.1% increase YOY
• $179.00 YTD Average Daily Rate; 2.9% Increase YOY
• $96.00 YTD Average RevPAR; 53.4% increase YOY