Rents are falling fast at LA’s priciest apartments

Newer properties in Mid-Wilshire, Downtown have seen sharpest reductions, but neighborhood perks have also disappeared

Los Angeles /
Aug.August 11, 2020 10:04 AM
Downtown LA (Credit: iStock)
Downtown LA (Credit: iStock)

Residential rents continue to fall across Los Angeles, particularly at the top end of the market.

Average asking rent for Class A properties that are new and loaded with amenities fell around 4.3 percent from March to last week, according to the Los Angeles Times, citing Costar data. Rents in two of L.A.’s pricey submarkets, Mid-Wilshire and Downtown, fell 10 percent and 8 percent respectively over that period.

At Class B properties, which are slightly older but have been renovated, were down around 2 percent from March.

Meanwhile, at Class C properties, which are older and have few amenities, prices were essentially flat, inching down 0.2 percent, the report found. But that could change. Rents for Class C buildings tend to decline later in a recession, RealPage chief economist Greg Willett told the Times.

At the top end of the market, the unique nature of the pandemic is accelerating declines, John Pawlowski with Green Street Advisors told the outlet. Many of the amenities and perks of living in a pricey Downtown apartment building don’t factor in now, such as easy access to bars and entertainment, as well as in-building perks like pools, all of which are closed.

“There is no good reason to sign a luxury lease right now in a city,” he said.

Despite the falling prices, it’s difficult to pin down how bad landlords are hurting. Some have reported moderate declines in rent collections, while others have seen significant drops.

Daniel Tenenbaum, founder of Pacific Crest Real Estate, said that his company has cut rents by as much as 6 percent in some buildings because tenants, particularly young service workers, were moving out, he told the Times. In some other buildings where tenants are staying, the firm has cut rent by around 3 percent. [LAT]Dennis Lynch 


Related Articles

arrow_forward_ios
Disney Store at Montebello Town Center (Disney, Shops at Montebello)
Mall vs. The Mouse: UBS sues Disney store for $275K in back rent
Mall vs. The Mouse: UBS sues Disney store for $275K in back rent
The L.A. County median of $790,000 was 23 percent higher than last June (Getty)
SoCal home prices reach yet another record high in June
SoCal home prices reach yet another record high in June
California will use nearly $3 billion from the federal government to convert motels into housing for homeless over next two years, part of a $5 billion budget package to address homelessness (Getty)
Project Homekey gets $2.75B in fed funding
Project Homekey gets $2.75B in fed funding
L.A. County property assessor Jeff Prang (iStock, L.A. County Assessor)
Despite pandemic, LA County property values rise by $63B
Despite pandemic, LA County property values rise by $63B
The latest measure comes a month after the state lifted most restrictions. (Getty)
LA County retailers, indoor venues must mask (back) up
LA County retailers, indoor venues must mask (back) up
Street performers on Hollywood Boulevard as retail and tourism recovers in the state (Getty)
Newsom signs small business grants as part of relief package
Newsom signs small business grants as part of relief package
California added more than 100,000 jobs for the fourth month in a row, bringing employment up to 16.35 million jobs. (iStock)
California’s hospitality industry adds jobs in May, but construction lost more than any other sector
California’s hospitality industry adds jobs in May, but construction lost more than any other sector
720 S. Normandie Avenue and 709 S. Mariposa Avenue (Google Maps)
Jamison sells 3 Ktown properties, including shovel-ready site
Jamison sells 3 Ktown properties, including shovel-ready site
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...