The Downtown Los Angeles market had another record-breaking year for apartment development, according to the latest quarterly report from the Downtown Central Improvement District. In 2017, the downtown market had 2,831 units deliver in a total of 11 projects and a pipeline of nearly 10,000 more units under construction and 30,000 proposed units.
“Without a doubt, DTLA is benefiting from the long and sustained renaissance that has reestablished it as the heart of the Los Angeles,” Carol Schatz, president of the DCBID, tells GlobeSt.com, adding that all signs point to continued growth. “DTLA now boasts a residential population of roughly 65,000, and that is projected to double in the next 10 years. The market has a truly world-class arts and culture program, a roster of hotels, restaurants, bars, and clubs second to none and a growing metro system connecting it to the rest of the city and the sea. There is still so much opportunity here.”

Schatz says that a strong economy and healthy real estate fundamentals are also driving the activity in the market; however, the development pipeline, which has steadily increased each year, underscores a bullishness from investors that hasn't waned. “The sheer fact that there continues to be such an incredible number of projects under development and in the planning stages, after a year in which DTLA delivered and absorbed the largest number of residential units in its history, illustrates the might of the market,” explains Schatz. “This resiliency demonstrates to investors that DTLA is here to stay, and if you want to be a part of this special story, the time to act is now.”

The unrelenting investment in and fervor for this submarket has been an important aspect of the city's ongoing evolution; however the recent exit of Chinese capital from the market has caused some concern about how L.A. will be impacted. Although DTLA has a handful of substantial Chinese developments, Schatz says that the market diversity will mitigate any potential impact from the Chinese exit. “While DTLA does feature a couple of notable Chinese developments, it continues to enjoy a deep and diverse pool of investors from around the country and around the globe, and welcomes more each year,” she explains. “Further, the Chinese pull back is more a response to government direction than a reaction to changing market conditions or a change in perception of US real estate.