Market Report: Los Angeles

Over the past twenty years, the local residential community has significantly grown due to the continuous construction of multifamily buildings. This long-term trend has helped mitigate the impact of reduced office utilization. Although many workers have yet to return to the office, there has been a noticeable return of patrons to theaters and sporting events. Moreover, there is growing interest in the vacant restaurant spaces that were left behind during the initial stages of the pandemic. Additionally, the expansion of multifamily housing has remained steady.

The vacancy rate in the area is generally higher than the average for the metropolitan region. This is primarily due to the presence of outdated and nearly obsolete properties. However, some of the restaurant spaces in the Financial District, Arts District, and South Park that were vacated at the beginning of the pandemic have been leased out. It’s worth noting that more restaurants have closed than originally planned to open.