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Downtown Adds 54 Percent of County's Apartments in 2010

By Eric Richardson
Published: Thursday, December 02, 2010, at 09:59AM
Historic Core at Dusk Eric Richardson

DOWNTOWN LOS ANGELES — Downtown will have added nearly 1,800 apartment units by the time 2010 closes, approximately 54 percent of all units opened in Los Angeles County over the year.

Despite that, rents have gone up 0.7 percent since 2009, according to a report released this week by . Effective rents — asking rents minus incentives — rose 1.2 percent over the year.

Downtown's average asking rent is now $1,342, though that number may leave residents asking where exactly they can find those deals.

For those curious about what's on the market right now, Downtown Center BID's housing tour will visit three rentals (Medici, Title Guarantee and SB Tower) and three for-sale buildings (Rowan, El Dorado and "surprise resale units"). Reservations .

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Conversation

Chris Loos on December 02, 2010, at 11:02AM – #1

Go downtown!


Guest 1

Guest on December 02, 2010, at 11:33AM – #2

Yeah, everywhere I go in the city, everyone talks about Downtown. It's really amazing.

I'm a little worried, as a renter, because so few new construction/adaptive reuse projects have started in the past two years that we'll see a period in the next two to three years of no new units coming on the market. Meanwhile, people are still moving Downtown in droves. Rents will probably be going up.


Guest 2

Guest on December 02, 2010, at 12:40PM – #3

are people really moving DT "in droves". i thinks it's more of a trickle. i still find when i mention to people living in other parts of LA that they are wary and scared of DT. they like the "idea", and many that have toured it say "it need many more amenities" to be a good place to live.

i like it fine now, but i still encounter some really weird reactions when i mention where i live.


Guest 3

Guest on December 02, 2010, at 02:05PM – #4

That average is about right for a studio or a small loft. We live in DTLA to cut the cots of commuting and parking + the added conveniences of living and working Downtown. But the rents ain't exactly cheap or negotiable for the regular working class.


Guest 1

Guest on December 02, 2010, at 02:41PM – #5

@Guest 2: I work in different legal offices every day across the county. One day in Century City, the next in Pasadena, the next in K-town, etc. Usually small talk before the day's proceedings begins starts with "So where did you drive in from this morning?"

That's when I mention that I live Downtown, and many times take the subway to work. Nearly everyone says something along the lines of "Wow, I hear that it's really changed a lot over the past few years." A lot of people know people who have moved Downtown, or they attend events at LA Live, Staples or Grand Ave, and so on.

Downtown living is not for everyone, nor should it be. But at least the recognition that the central city has come a long way is now common knowledge.

And yes, people are moving here in droves. Even with all the new buildings that have opened up, a lot of buildings are at 95% occupancy or higher. My building has 320 units and the occupancy last month was nearly 99%.


Chris Loos on December 02, 2010, at 03:09PM – #6

We just leased a loft at SB Tower, and it was at 70% occupancy already at the time when we put down the deposit. Not bad for a building that only opened a few months ago.


Guest 4

Guest on December 02, 2010, at 04:30PM – #7

and i can add that my building is at 98% occupancy.

Guest 1, i have also had the same experiences with friends, family and my networking group.

D


Guest 5

Guest on December 02, 2010, at 05:18PM – #8

I live in a loft I own and rent out another. I never have a problem renting it. Downtown is a great investment long term. If you really want to save on your property taxes, buy in a historic building with the Mills Act offering around 70% plus off on your property taxes. I am very optimistic on the future of downtown...to see all of these new residents is amazing...and this is in a down econony. I am still waiting for a Trader Joes....but for now I take the subway to the the new Hollywood and Vine location. One thing I love about Downtown is that it has the best transportation options around.


User_32

SteelPulse on December 03, 2010, at 09:57AM – #9

Guest 5: Thanks for your optimism about DT. I too own a unit in downtown. I have rented and lived in it over the past 6 years.

I agree that finding renters was never that hard (at the right price) given the increased amenities and DT's location at the nexus of the county's transit hub.

Despite all the good....the never ending supply of units makes it harder for me to see anything but stagnat FOR SALE prices over the next 3 to 5 years. Plenty of these so called "rentals" are mapped as condos.

Am I being too pessimistic?


on December 04, 2010, at 09:31AM – #10

Banks better start lending to developers or in a year or two the demand vs supply is going to be far exceeded. We need more housing under construction!! We have a LONG way to go, we are still a tiny residential community for our size!


() on December 04, 2010, at 10:49AM – #11

No one has mentioned that LA County has an estimated 10,500,000 residents. And even just using the 10,000,000 figure, 1/2 of 1 percent of that number is 100,000 while Downtown's population is estimated at about 40,000.

So Downtown has less than four-tenths of one percent of the county's population - and 54% of the new units. And yet, even with all those new units, most buildings opened prior to this year are close to fully leased (95% being considered the highest occupancy level of a healthy market) while some buildings - including the just opened Blackstone - already have waiting lists.


Guest 6

Guest on December 04, 2010, at 12:51PM – #12

I think the Orsini has a lot of units available. There have been "for lease" signs draped over thier buildings for years.


User_32

Customerservicesm on December 05, 2010, at 11:22AM – #13

DT is a great place to live, for those like me who do business in Hollywood, Long Beach, and Orange County. 20 minutes to Disneyland, 20 minutes to DTLB, and 10 minutes to Hollywood. Oh did I mention I can also take great public transportation to either of those places I mentioned right from DT? I feel though the rents are too high already for the amenities offered to DT residents. I know the SB's offer probably the lowest rent options, or one of, and then they slap you with the parking fees, etc... Realistically, one cannot live in DTLA for less than $1500 a month if you want to live in anything bigger than a box. For $1500 a month, I have a hard time being OK with how little shopping options we have.

As a side note, I am also not OK with the mom/pop shops who gouge us with things like a bottle of wine, etc... The other day, I bought a $3 bottle for $8. You want me to shop at mom/pop shops? Well then mom and pop need to ease up on their gouging.


Guest 1

Guest on December 05, 2010, at 02:51PM – #14

@Customerservicesm: I have more issues with Ralphs gouging on prices, including alcohol/wine, rather than the mom & pop shops. Try Gourmet Wines & Spirits at Wilshire and Hope.


John Swartz on December 06, 2010, at 09:20AM – #15

I've been saying for years now that Downtown LA is a machine that will keep going no matter what the overall economy is doing! Way to go Downtown!


User_32

on December 06, 2010, at 11:44AM – #16

You can also live in the downtown area and not own a car with a new carshare service, LAXCarShare. They provide the hourly use of a car with gas and insurance included. They have locations at union station, pershing square, OBD and 8th & Flower!



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