Investors are Bullish on West LA with Multifamily Investments Topping $404M
Despite the pandemic’s lingering effects and Omicron delaying the expected return to offices by employees in large numbers, the West LA submarket continues to experience significant development growth, fueled by expanding technology and entertainment companies. In short, the West LA multifamily market is rebounding, says Kimberly Stepp, principal, Stepp Commercial.
Vacancy rates are 4.3 percent from a high of 7.6 percent in second quarter 2020 and 12-month asking rents are up by a solid 7.7 percent, outpacing much of LA metro. Pricing per unit in the submarket is $520,000 and average cap rates of 3.8 percent are below the metro average.
“Housing prices have seen major increases over the past 20 months, leaving a significant part of the population unable to own,” says Stepp. “Spurred by these demand drivers, investors are bullish on West LA with apartment investments topping $404 million in volume in the past year, compared with the submarket’s 10-year annual average of $299 million.”
Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM.
In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.