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DTLA Multifamily Vacancy Hits 12%

With new multifamily supply hitting the market, occupancy rates in Downtown Los Angeles drop below 90% for the first time in years.

By Kelsi Maree Borland | Updated on November 30, 2017

Nick Griffin Nick Griffin is the director of economic development at the DCBID.

The multifamily vacancy rate has climbed above 12% in Downtown Los Angeles. According to the third quarter report from the DCBID, the multifamily occupancy in 87.5%, a 4.4% decrease from the same time last year. The DCBID, however, says that this shouldn’t cause concern because during the quarter 1,380 rental units delivered were delivered and 2,700 units have been delivered so far this year.

“Multifamily still looks very strong to me. It is totally a supply issue. There have been a lot of headlines that have gotten it wrong,” Nick Griffin, VP of economic development at the DCBID, tells GlobeSt.com. “If you bring twice as much inventory to market at the same time of buildings that have 300 or 400 units each, there is naturally going to be an increase in vacancy. It takes 12 to 18 months to lease up these buildings, and that is a basic function of real estate.”

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