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DTLA’S Booming Economy Highlighted by Global Brands, Landmark Deals
The Los Angeles Downtown Center BID’s (DCBID) Downtown LA Q3 Market Report revealed a thriving economy marked by high-profile deals from leading brands in every market sector. In the biggest news of the quarter, if not the year, Apple revealed their plans for a flagship retail outlet and event space at the historic Tower Theater on Broadway, bringing perhaps the most sought-after retailer to DTLA.
DCBID’s Suzanne Holley says, “Fueled primarily by unprecedented residential growth, the DTLA economy has reached a tipping point where all market sectors are driving forward independently while also feeding off each other, resulting in landmark deals from the nation’s leading companies and brands.”
Other deals included West Elm celebrated a third-quarter opening of its newest design and furniture showroom at the Broadway Palace Apartments, across from the Ace Hotel on Broadway. South Korean specialty grocer Emart, signed a 51,700 square-foot lease to open the first American outpost of its hip PK Market on three floors at the LA Jewelry Mart.
Office:
• 17.0% Office Vacancy; 3.4% decrease YOY
• $3.66 PSF Class-A Lease Rate; 5.2% increase YOY
• 2.3M SF YTD Leasing Activity; 25% increase YOY
• 230,010 SF Net Absorption; 486% increase YOY
Retail:
• 4.7% Vacancy Rate; 6.8% increase YOY
• $2.48 PSF Lease Rate; 4.2% decrease YOY
• 11,294 SF Net Absorption; 127% increase YOY
Hospitality:
• 77.9% YTD Occupancy Rate; 0.1% decrease YOY
• $222.18 YTD Average Daily Rate; 2.1% increase YOY
• $172.99 YTD Average RevPAR; 1.9% increase YOY
Residential:
• 90.5% Occupancy rate for Apartments; 1.5% increase YOY
• $3.10 PSF Average for Apartments; 3.33% increase YOY
• $2,763 Average Effective Rent per Unit; 34.5% increase YOY
• 99 Condo Sales; 25.6% decrease YOY
• $723 PSF Condo Price; 6.5% increase YOY
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Lease




