14 ms·

A 2 bedroom in my building dropped from $3950 to $3250 over the past few weeks. The landlord can't unload it. And today I got a notice that they're raising my r

by freyir 10y ago

A 2 bedroom in my building dropped from $3950 to $3250 over the past few weeks. The landlord can't unload it. And today I got a notice that they're raising my rent. Shortsighted -- they'll have another vacant apartment on their hands soon.

onlyrealcuzzo 10y ago
Ha, I'm in Hollywood, and my complex has been sending out emails offering promotions to recommend friends on a bi-weekly basis for a few months now. Vacancy has got to be around 20%. Meanwhile, there's 6 new luxury complexes with over 1500 units opening or that have opened this year--JUST ON MY BLOCK ALONE [2,3,4,5] (for reference, the entire population of Hollywood is roughly 22k [1]). The new complexes are practically ghost towns, Eastown in particular was offering a free month for ages before finally dropping rents 10%. Sunset Gordon Tower is literally kicking everyone out that moved in, which was only 17% occupied anyway [5]. Meanwhile, my lease is set to expire, and the renewal offer comes with a 10% bump in my rent (as it has for the last two years). The sad part is, I feel like it's working from an economic standpoint. Vacancy was close to zero when I moved in (literally got the only apartment available). Even though it's now got to be around 20%, the rent has risen by over 30%. Pretty sure that means they're making 4% more over the course of 3 years, which given the dismal global economic growth, that yield isn't too shabby. With all the vacancy, you'd think development would be slowing, but it's actually picking up even more. There's 7 new hotels planned for the block [6]. And there's several other residential towers planned for the block [7], 750 new units by 2018 just in one, the Palladium Towers [8]. Keep in mind that this is just one block. Roughly the same thing is happening a mile up Hollywood Blvd at Highland. And to a lesser degree a mile down the street at Western. All of this is great. We desperately need the new units. The mixed-use walkability will be an example to the entire city for how great Los Angeles can be. But where are this many luxury renters suddenly going to appear from? Wishful thinking? [1] https://en.wikipedia.org/wiki/Hollywood https://en.wikipedia.org/wiki/Hollywood - 22k population [2] http://la.curbed.com/2016/7/16/12206104/camden-apartments-hollywood-mixed-use-luxury http://la.curbed.com/2016/7/16/12206104/camden-apartments-ho... - Camden 287 units [3] http://la.curbed.com/2014/3/9/10134626/6201-hollywood-christened-eastown-readies-for-summer-opening http://la.curbed.com/2014/3/9/10134626/6201-hollywood-christ... - Eastown I 535 units [4] http://urbanize.la/post/eastown-apartments-phase-ii-moving-ahead http://urbanize.la/post/eastown-apartments-phase-ii-moving-a... - Eastown II 515 units [5] http://la.curbed.com/2015/9/14/9921562/sunset-gordon-cim-group-eviction http://la.curbed.com/2015/9/14/9921562/sunset-gordon-cim-gro... - Sunset Gordon Tower - 299 units (quite the circus). [6] http://la.curbed.com/maps/hollywood-hotels-map http://la.curbed.com/maps/hollywood-hotels-map - Hollywood Hotels Map [7] http://la.curbed.com/maps/a-guide-to-the-nearfuture-of-the-hollywood-skyline-1 http://la.curbed.com/maps/a-guide-to-the-nearfuture-of-the-h... - Hollywood Future Skyline Map [8] http://la.curbed.com/2016/3/22/11286562/hollywood-palladium-towers-approved http://la.curbed.com/2016/3/22/11286562/hollywood-palladium-... - Hollywood Palladium Tower (planned)
- chrisabrams 10y ago
  Most of these projects were planned and approved many years ago. One of the challenges with development is that you start a project knowing people won't move in for 3-5 years (when construction completes).

by freyir 10y ago

onlyrealcuzzo 10y ago

Ha, I'm in Hollywood, and my complex has been sending out emails offering promotions to recommend friends on a bi-weekly basis for a few months now. Vacancy has got to be around 20%. Meanwhile, there's 6 new luxury complexes with over 1500 units opening or that have opened this year--JUST ON MY BLOCK ALONE [2,3,4,5] (for reference, the entire population of Hollywood is roughly 22k [1]). The new complexes are practically ghost towns, Eastown in particular was offering a free month for ages before finally dropping rents 10%. Sunset Gordon Tower is literally kicking everyone out that moved in, which was only 17% occupied anyway [5]. Meanwhile, my lease is set to expire, and the renewal offer comes with a 10% bump in my rent (as it has for the last two years). The sad part is, I feel like it's working from an economic standpoint. Vacancy was close to zero when I moved in (literally got the only apartment available). Even though it's now got to be around 20%, the rent has risen by over 30%. Pretty sure that means they're making 4% more over the course of 3 years, which given the dismal global economic growth, that yield isn't too shabby. With all the vacancy, you'd think development would be slowing, but it's actually picking up even more. There's 7 new hotels planned for the block [6]. And there's several other residential towers planned for the block [7], 750 new units by 2018 just in one, the Palladium Towers [8]. Keep in mind that this is just one block. Roughly the same thing is happening a mile up Hollywood Blvd at Highland. And to a lesser degree a mile down the street at Western. All of this is great. We desperately need the new units. The mixed-use walkability will be an example to the entire city for how great Los Angeles can be. But where are this many luxury renters suddenly going to appear from? Wishful thinking? [1] https://en.wikipedia.org/wiki/Hollywood https://en.wikipedia.org/wiki/Hollywood - 22k population [2] http://la.curbed.com/2016/7/16/12206104/camden-apartments-hollywood-mixed-use-luxury http://la.curbed.com/2016/7/16/12206104/camden-apartments-ho... - Camden 287 units [3] http://la.curbed.com/2014/3/9/10134626/6201-hollywood-christened-eastown-readies-for-summer-opening http://la.curbed.com/2014/3/9/10134626/6201-hollywood-christ... - Eastown I 535 units [4] http://urbanize.la/post/eastown-apartments-phase-ii-moving-ahead http://urbanize.la/post/eastown-apartments-phase-ii-moving-a... - Eastown II 515 units [5] http://la.curbed.com/2015/9/14/9921562/sunset-gordon-cim-group-eviction http://la.curbed.com/2015/9/14/9921562/sunset-gordon-cim-gro... - Sunset Gordon Tower - 299 units (quite the circus). [6] http://la.curbed.com/maps/hollywood-hotels-map http://la.curbed.com/maps/hollywood-hotels-map - Hollywood Hotels Map [7] http://la.curbed.com/maps/a-guide-to-the-nearfuture-of-the-hollywood-skyline-1 http://la.curbed.com/maps/a-guide-to-the-nearfuture-of-the-h... - Hollywood Future Skyline Map [8] http://la.curbed.com/2016/3/22/11286562/hollywood-palladium-towers-approved http://la.curbed.com/2016/3/22/11286562/hollywood-palladium-... - Hollywood Palladium Tower (planned)

chrisabrams 10y ago
Most of these projects were planned and approved many years ago. One of the challenges with development is that you start a project knowing people won't move in for 3-5 years (when construction completes).