Upscale Neighborhoods Near the Urban Core Begin to Shine in Los Angeles
After apartment revenue growth in metro Los Angeles trailed the U.S. norm by a fairly sizable margin in 2010-2011, the area’s stats moved about in line with national results during 2012. Effective rents for new leases improved 2.7% locally over the course of the calendar year, and LA occupancy firmed by 30 basis points. Those figures are very similar to the average U.S. rent bump of an even 3% and the national occupancy upturn of 20 basis points.
There was quite a bit more performance momentum in some Los Angeles neighborhoods than in others during the past year, with one of the real stand-out pockets comprised of the higher-end submarkets that are near the urban core, but not truly in downtown.
Leading the way, Hollywood achieved revenue growth just a hair under 8%, and increases were nearly as notable at roughly 5% to 6% in the nearby Mid-Wilshire corridor and in the Burbank, Glendale and Pasadena areas. The Palms/Mar Vista submarket, which also is fairly close to downtown LA and attracts renters somewhat similar to those in Hollywood, the Mid-Wilshire neighborhood, and the Burbank/Glendale/Pasadena cluster, also posted some of the metro’s strongest submarket-level results.
These same neighborhoods look like good prospects to continue to outperform most other spots across metro Los Angeles during 2013. They offer strong lifestyle appeal for those seeking apartments, and none of them will have to deal with much new supply to be delivered specifically in the coming year.
Performance by neighborhood is just one of the topics that will be explored for Los Angeles, Orange County, San Diego, and the Inland Empire at MPF Research’s half-day Southern California Apartment Markets Conference coming up on March 27 in Newport Beach, California.
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