The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Paul Viapiano who wrote (5711)	9/30/2002 8:09:59 PM
From: Elroy Jetson	Read Replies (1) of 306849

Residential rents in Los Angeles have declined significantly over the past year. As in most regions higher end rents have declined 30% while economy accommodations have remained flat. Watch what happens when we see significant job losses. Your anecdote of $2 per sq ft for a loft rehab is quite expensive. A developer may ask $2 per sq ft but is unlikely to find more than a handful of suckers. To lease the entire building will require a 50% decrease in rents. The attached link is a new loft rehab in the same area with rents of $0.75 to $0.91 depending on floor and amenities. The most prestigious 14th floor unit is 2,200 sq ft for $2,000 / mo ($0.91). A less expensive unit on the 6th floor is $1,380 / mo for 1,850 sq ft ($0.75). loftsonline.us Casden Development is asking $4,500 for 2 bedroom apartments adjacent to the new Grove shopping area (3rd & Fairfax). But leasing in this project is almost non-existant which is not a surprise given that comparable 2 bedrooms in this neighborhood can be had for $1,800. Alan Casden was smart enough to sell this project last March to the AIMCO REIT. It's good to find a bag-holder.

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