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DTLA Resi Occupancy Levels Undeterred by Record Deliveries
Demand for DTLA’s vibrant urban lifestyle is working to drive residential vacancy rates down, despite five quarters of record deliveries, including 2,300 new units in Q1 2019 alone, according to the Downtown Center Business Improvement District’s (DCBID) Q2 2019 DTLA Market Report. Although more than 5,600 units opened over the past year, demand remains strong, deepening the competitive talent pool that has been attracting an increasing number of businesses from a diverse range of sectors and markets. In fact, Q2 is the seventh straight quarter of positive net absorption of Class A office space, totaling more than 750,000 square feet.
Notable companies expanding in DTLA in the second quarter include Ghost Management and TubeScience, each taking more than 100,000 square feet in the Arts District, while LA Care Health Plan signed a renewal and expansion for 370,000 square feet in City West. Coworking companies continue to take advantage of DTLA’s unique culture and variety of office environments, with WeWork opening their 5th downtown location, and NeueHouse and CommonGrounds announcing plans to join them.
DCBID’s Suzanne Holley says, “The appeal of DTLA’s unique urban lifestyle has proven itself over such a sustained period that we’ve learned not to question its long term viability. We were nonetheless impressed with how quickly the market has been able to absorb the record number of apartments that have come online in such a short period of time. More importantly, it is a testament to the power of this growing residential population, now upwards of 75,000, that it has become a driver of sustained growth across all sectors of the market.”
*Photo Credit: Hunter Kerhart Photography
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