Los Angeles Hotel Market Remains Strong
Downtown Los Angeles hotels are seeing significant increases in occupancy because of renovated rooms and a renewed interest in staying downtown, according to report by PKF Consulting. The L.A. firm, which tracks the hospitality market, expects downtown’s average hotel occupancy rate to hit about 73%, compared to 51% in 2003. Hotel occupancy for the 10-county region is hovering just under 80%.

Los Angeles Office Rents on the Rise
Office rents in Los Angeles County continued their climb in Q3, according to data from Cushman & Wakefield. Average asking rents rose 7% from a year earlier, to $27/sf. At the same time, the vacancy rate for the county dropped to 10.7% from 13.1%. Some markets are seeing rent levels as high as during the dot-com boom. In Santa Monica, for instance, rents hit $44.76/sf, up from $39.12/sf in ‘05, with a vacancy rate of 5.4%.

Apartment Demand in Detroit Exceeds Supply
The demand for lofts and apartments in downtown Detroit is exceeding the supply, according to a report by the urban planning firm Katherine Beebe & Associates. The report also indicated that in the next five years some 1,700 residential units could be developed and occupied in Detroit’s central downtown area. Detroit’s downtown population has increased by 3% between 2000 and 2005, while the city as a whole lost 6% of its population in the same period.

Boston’s Office Vacancy Continues Decline
Boston’s office vacancy rate is at its lowest level in four years, according to CB Richard Ellis. The real estate firm’s third-quarter report found office vacancy declines and rent hikes for commercial space throughout the Boston area. For Boston office space, the vacancy rate stands at 8.2% and the average rent is $38.19/sf. In Cambridge, the office vacancy is 9.1% and the average rent is $30.78/sf, while lab space vacancy is 7.2% and average rent is $39.12/sf. In suburban Boston, the office vacancy rate fell to 17.1% and the average rent rose to $18.86/sf. For industrial space, the vacancy is 15.3% and the average rent is $6.66/sf.

Commercial Vacancy Drop in Colorado Springs
Commercial real estate vacancy rates in Colorado Springs, CO fell to a six-year low in the third quarter, as leasing reached near record levels, according to a report from Turner Commercial Research. The combined vacancy rate for office, industrial and retail buildings fell to 7% as of Sept. 30, the lowest since 2000, according to the Colorado Springs firm. Much of the change came from large industrial buildings being converted to other uses such as entertainment centers or schools, and an expansion by commercial lumber wholesaler BMC West.

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