Downtown LA's momentum shows no sign of slowing, with significant progress across all sectors in Q2. The highlight was the long-awaited opening of the Intercontinental Hotel at the Wilshire Grand, a game-changing project that captured the attention of the world.
Over 1,000 new rental units opened in Q2 at Atelier, WREN, and G12. While occupancy rates dipped slightly as a result of the sudden influx of new inventory, they have already rebounded just one month into Q3 to almost 89%. Such fluctuations are expected to continue throughout 2017 and into 2018 as more inventory comes online.
Brookfield, already the largest property owner in Downtown, expanded into a new area with their $220 million purchase of a 50% stake in the California Market Center, with over 2 million square feet of rentable space in the Fashion District. Significant new leases this quarter included Cobird, who took over 50,000 SF at the LA Times building, and Marsh & McLennan who will occupy three full floors at the US Bank Tower.
The retail scene got two big boosts with the announcement of Nike's Michael Jordan brand coming soon to Broadway and confirmation that the Alamo Drafthouse Cinema is moving forward at The BLOC. Several new restaurants opened their doors in Q2 including Rossoblu at City Market South and Astro Doughnuts and Fried Chicken in the Financial District.
Now accounting for more than 10% of the total inventory, the new Intercontinental Hotel at the Wilshire Grand has set a new standard for DTLA hospitality and luxury. Meanwhile, just a couple of blocks away, The Freehand revealed its 250 rooms, including both private and shared accommodation, along with a stunning new restaurant and lobby restoration.
The greening of DTLA continued in Q2 with the opening of the 34 acre LA State Historic Park near Chinatown. Work on the MyFig streetscape improvement moved into South Park, with construction now underway along the 11th street spur connecting Figueroa with Broadway.
- 1,072 New Residential Units Opened
- 423 Condominium Units Sold
- Intercontinental Hotel opened with 900 rooms at the Wilshire Grand
- Brookfield purchased a 50% stake in the California Market Center for $220 million
- Nike announced new Michael Jordan brand store on Broadway
- $3.39 Average Class A Rent Per Square Foot
- $2.92 Apartment Asking Rent Per Square Foot
- 16.8% Office Vacancy Rate
- 61,312 YTD office net absorption
- $175.11 Hotel RevPar
Download our Q2 Market Report for all of the key stats and projects, then join our Development Download Tour to experience it all in person!
The DCBID's Development Download Tour is your crash course on (almost) every project currently under construction or in the pipeline. Along the way, we will take a closer look at some recently completed projects and explore how Downtown is evolving and reclaiming its place as the center of Los Angeles.
This tour is free to attend, but space is limited and RSVP is required.