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Real Estate

Commercial Real Estate

What types of macroeconomic variables contributed to the developers’ ultimate decision to invest in the project?

Aside from the positive return the project may provide, experts at The Wall Street Journal suggest developers are trying to ride the wave of downtown and urban revitalization projects, as well as take advantage of specific market conditions. During 2008 to 2013, developers constructed approximately 3,400 units, while 5,100 units remained under construction, and 3,000 units were approved for construction. In Los Angeles, a city of approximately 3.8 million people, only approximately 14,000 apartments were available to rent. In late 2013 only a reported 17 condominium units were for sale, and only 68 under construction. According to a report obtained by The Wall Street Journal, the downtown vacancy rate is only 3%, and average rents are approximately $1,970/month, while national vacancy rates average 4.2%, and average rents are $1,073/month.



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