After a record-breaking 2017 with over 2,800 new residential openings, the Downtown market remained strong in Q1, with news in all sectors reinforcing confidence in DTLA's continued growth.
Quickly absorbing the unprecedented amount of new inventory, the residential occupancy rate rebounded to 92.7%, while rents remained stable. 546 new units broke ground, including Six Four Nine Lofts, the first new affordable housing project in DTLA since the passage of Measure H.
The office sector was very active in Q1, with the $196 million sale of the Wedbush Building demonstrating the enduring value and renewed appeal of Downtown's Class A office towers. In leasing, Rising Realty announced new tenants H&M Innovation Labs and TubeScience at The CalEdison. Finally, Brookfield, DTLA's largest property owner, opened their first two Convene locations and started construction on a $60 million renovation of the plaza at Wells Fargo Center.
Q1 2018 Market Report Highlights:
- 17.3% Office Vacancy; 4.8% increase YOY
- $3.61 PSF Class-A Lease Rate; 6.2% increase YOY
- 818,675 SF YTD Leasing Activity; 53% increase YOY
- 4.3% Vacancy Rate: 2.3% decrease YOY
- $3.55 PSF Lease Rate; 6.6% increase YOY
- 51,822 SF Net Absorption; 137,913 SF increase YOY
- 79.9% YTD Occupancy Rate; 3.2% increase YOY
- $219.23 YTD Average Daily Rate; 2.1% increase YOY
- $175.23 YTD Average RevPAR; 5.0% increase YOY
- 92.7% Occupancy rate for Apartments; 4.7% increase YOY
- $2.95 PSF Average for Apartments; 2.4% increase YOY
- $2,515 Average Effective Rent per Unit: 1.5% increase YOY
- 95 Condo Sales; 7.9% increase YOY
- $731 PSF Condo Price; 12.5% increase YOY