I see this strong leasing activity continuing with newly opened buildings, specifically in South Park and several other surrounding downtown submarkets.

GlobeSt.com: Sounds like some positive development projects are happening. What type of activity is happening in South Park?

McCarthy: Currently, we are moving into the next phase in South Park where there are now full city blocks that are maturing into vibrant pedestrian-oriented and urban lifestyle hotspots and becoming attractive to the high-quality residents who want to live downtown. In addition to South Park, I am continuing to see demand for residential in neighborhoods that already have their own unique character and story.

GlobeSt.com: Interesting, what other areas?

McCarthy: To name a few, the Arts District, Little Tokyo and South Broadway. Many of these areas are developing a truly walkable feel, each unique from one other. In the Arts District you have a neighborhood that is home to an affluent population base with vibrant street art, rich lifestyle amenities and artisanal businesses that create its own eclectic vibe. Little Tokyo has one of the most attractive retail and restaurant scenes in downtown. South Broadway has terrific historic charm and boutiques.

All of these submarkets are also starting to come into their own with new residential and transit-oriented development. The diversity of these submarkets within downtown is a great asset. They are beginning to provide tremendous variety to the people who live, work and play there.

GlobeSt.com: It sounds like there is a lot of housing that may develop over the next few years. What do you see happening to the vacancy rate? Do you think there will be too much available or the appropriate amount?

McCarthy: There's a solid amount of new residential units in the pipeline for downtown Los Angeles. If one was unfamiliar with demographics, economics and housing needs of downtown, then I could see where there might be concern about an issue of supply. However, downtown is Los Angeles' largest job center with over half a million jobs, and we have a population base that continues to grow at a rapid pace. We simply do not have enough places to live currently. It's possible that we could see a short term concessionary rental environment when multiple projects are leasing up at the same time. But that will be a limited phenomenon.

There is an undeniable trend of urbanization happening in downtown Los Angeles as well as many other major metropolitan cities in the United States. Continued migration of an affluent population base into downtown Los Angeles will absorb these new units over a reasonable period of time. One of the most exciting parts of all of this activity is that downtown, now more than ever is a destination. People are coming here because they want to be a part this diverse urban environment.