We’ve barely hit 2016, but plans like these don’t happen over night. The Wilshire Grand Center slated for completion some time in 2017 is a $1.2 billion mixed-use project set to include a 900-room Intercontinental Los Angeles hotel, luxury restaurants, and night life attractions. It will be the tallest structure in the LA skyline positioned as a rich cultural, economical, and social epicenter. An important feature specific to LA, the building will be infused with earthquake protection securities and provide the city with new, downtown office spaces.
Growing excitement and buzz regarding the increase in office space options would suggest a stabilization in market price, however, enthusiasts must keep in mind that the boon in residential and recreational activities in the downtown area are creating what some are referring to as an “urban renaissance.”
Currently, the Downtown Center Business Improvement District estimates 1.06 million square feet of office space under construction. This is in addition to the already high office vacancy percentage of 18.4, 2.6 percent higher than the national average.
Since the 1999 grand opening of the Staples Center and the city’s reuse ordinance, Los Angeles properties have been improving every year. Office prices in the area will continue to rise as long as new businesses show interest in long-term investment. Plans to improve transportation lines linking the west side of LA to downtown also presents an appealing incentive for more businesses to move into downtown office spaces. The Metro Expo Line stretching westward to Santa Monica is scheduled for completion in 2016 and estimates 64,000 boarding passengers by 2030.
Local improvement plans paired with foreign investment has made the downtown area the most attractive it has been in years. Young, working adults are more interested in moving to the city as many are opting to have families later than previous generations. The Wilshire Grand is anticipated to create up to 11,500 high-paying local jobs during its construction, more than 1,750 permanent jobs, and generate nearly $80 million in tax revenue for the city and county until its grand opening.