There may be good news for those who are looking to invest in downtown Los Angeles. The real estate market seems to be flourishing, and residential and commercial leases are becoming a hot commodity. The recent purchase of a prestigious 15-story building by a group of local investors brought top dollar, and real estate brokers see this as positive evidence of the revitalization of the once stagnant downtown area.
In the 1970s, overbuilding left Los Angeles with a glut of skyscrapers and plummeting rents. Developers had demolished the dilapidated Victorian mansions in Bunker Hill and replaced them with office-building skyscrapers which they struggled to fill. At times over the past few decades, vacancy rates averaged over 17 percent. One of the smaller of those high rises just sold for over $50 million, the largest amount for which a downtown office building has sold in over a decade.
Millennials are now moving into downtown residential properties, and public transportation in Los Angeles and beyond is expanding and improving. These elements make the downtown area attractive for local, national and international commercial investors. Mixing commercial and residential properties is a growing trend in many cities because of the convenience it provides.
The family who purchased the high rise has long term plans for the property. While those plans have not been made public, they may include residential or commercial leases. Those who are eager to participate in the downtown real estate surge, or any real estate transaction, can consult their attorneys for the best advice based on years of experience.
Source: Los Angeles Times, "'A very, very hot market': Downtown L.A. high-rise sells for $50 million as residential building booms", Andrew Khouri, Sept. 30, 2016