residential market report - q4 2016 - Long Beach

residential market report - q4 2016 - Long Beach

RESIDENTIAL MARKET REPORT - Q4 2016
ABOUT DOWNTOWN LONG BEACH
DOWNTOWN LONG
BEACH ALLIANCE
MLK Jr. Ave
Oli ve Ave
Li me Ave
At lant i c Ave
Li nd en Ave
E lm Ave
Long Beach Blvd
Locu s t Ave
Pi ne Ave
Paci fic Ave
Ced ar Ave
C hes t nu t Ave
Mag noli a Ave
Dai sy Ave
9 th St
8 th St
7th St
NORTH
PINE
Gold en Ave
6 th St
5th St
EAST VILLAGE
ARTS DISTRICT
4th St
PINE
AVENUE
Broad way
WEST
GATEWAY
A ve
Th e Prom e n ad e
3rd St
it o s
1 st St
Oc ean
A la m
Ocean Blvd
Blv d
W Seaside Way
Pi n e Ave
E Seasid e Way
WATERFRONT
uar
ium Way
Sh
ore
li n
e D
r
een
swa
y
Aq
Qu
Golden Shore
Recognizing that a municipality can’t do it all is where a
Business Improvement District (BID) plays a role above
what a city provides: from coordinating events to simply
picking up litter. Downtown Long Beach’s (DTLB) first
BID was the Downtown Parking Improvement Area
(DPIA), established in 1973 by business owners, while
the second BID, the Property- Based Improvement
District (PBID), was established in 1998 by commercial
property owners and expanded to residential property
owners in 2013. The Downtown Long Beach Alliance
(DLBA) manages both of these BIDs which has resulted
in a more connected, safer and vibrant Downtown.
The DLBA is a non-profit organization whose mission is
to cultivate, preserve and promote a healthy, safe and
prosperous Downtown. It provides a plethora of services
to Downtown stakeholders and is funded by tenants
and commercial and residential property owners of the
Business Improvement Districts.
Mai ne Ave
1 0 th St
DOWNTOWN is identified as the area outlined by the
DPIA boundaries shown in the map to the right.
DPIA Boundary
PBID Boundary
DOWNTOWN CORE is identified as the area outlined by
the PBID boundaries shown in the map to the right.
SOURCES & METHODOLOGY
RESIDENTIAL SURVEY
The 2016 Downtown Long Beach
Resident Survey was an in-person-based
questionnaire developed in partnership
with California State University, Long
Beach’s Office of Economic Research and
implemented by S. Groner Associates, a
nationally recognized firm with extensive
background in public policy and applied
psychology. The survey ran from
November 7th – December 9th, 2016.
A sample of 829 completed surveys
were collected. Full survey results will
be published in DLBA’s 2017 Economic
Profile.
DLBA PEDESTRIAN COUNTS
Data for the following locations (149
Linden, 333 Pine, 441 E Broadway, 585
Pine, and Ocean Center – Ocean &
PAGE 1
Pine) are based on recordings taken from
Oct. 1 through Dec 29, 2016. Data for the
following locations (135 Pine, 210 E 3rd,
Studio One Eleven, and the Loop) are based
on recordings taken from date of installation,
Oct. 15 through Dec 29, 2016. Recording
and counting was conducted by DLBA’s
automated pedestrian counter system. For
further information regarding pedestrian
counts, please contact DLBA’s Economic
Development Department.
MULTI-FAMILY APARTMENT DATA
ANALYSIS
Information regarding the depth and breadth
of Downtown Long Beach’s multi-family
apartment market is pulled from Co-Star, a
leading provider of commercial real estate
information, analytics and online market
places.
DEVELOPMENT MAP
Information regarding the Downtown
Residential Development Map was provided
by the City of Long Beach’s Development
Services Department.
LOOKING TO INVEST IN DTLB?
Visit DTLB.org for more
economic resources, or email
[email protected]
Look for DLBA’s Annual
ECONOMIC PROFILE to be
published April 19th
RESIDENTIAL MARKET REPORT
RESIDENTIAL
MARKET UPDATE
TRAFFIC DRIVES RETAIL
DLBA launched its automated pedestrian counter system in DTLB in
mid-August. In October, four more sensors came online, two along
Pine Ave and two more on the Promenade. The program provides
24/7 pedestrian counts, and offers existing and potential Downtown
businesses greater data support for strategic planning with regards
to site selection. DLBA plans to install a total of fifteen (15) sensors
at eight (8) locations throughout the core of DTLB.
DTLB saw sustained strength with another quarter of strong
growth. From Q1 2016 to Q4 2016 rental rates per square foot
(SF) have increased by 7% from $2.12 to $2.26. Overall, rent per SF
have increased by 26% since 2012 from $1.80/SF to $2.26. With an
increase in rates occupancy has remained relatively stable at 94%,
a 2% decrease since Q1 2016 at 96%. This decrease in occupancy
is in part due to the recent openings of The Current in Q2 and The
Edison in Q3. The Current and The Edison are currently at 77% and
27% occupancy, respectively.
AN AVERAGE OF 15,087 DAILY PEDESTRIANS WALKED
THROUGHOUT THE CORE OF DOWNTOWN IN Q4. PEAK
TRAFFIC WAS GENERALLY EXPERIENCED ON SATURDAY
WITH AN AVERAGE OF
Golden Shore
CURRENT
MARKET MIX
EXPECTED
MARKET MIX
9,861
77%
12,151
79%
FOR SALE UNITS
2,896
23%
3,206
21%
TOTAL UNITS
12,757
Que
e
nsw
ay
RENTABLE APARTMENTS
15,357
Olive Ave
Lime Ave
Atlantic Ave
Linden Ave
Elm Ave
Long Beach Blvd
Locust Ave
Pine Ave
Pacific Ave
96K
3rd St
Broadway
267K
1st St
69K
Ave
Excitement for Downtown continues to grow as developers broke
ground on several projects equating to 786 units this year, and 1,893
entitled/proposed units are in the pipeline. In total, Downtown is
poised to see approximately 2,600 units come online over the next
five years. However, the majority of that development is expected
to be in the rental market with only 310 units expected to serve
the condominium or townhome space.
PAGE 2
Cedar Ave
227K
60K
4th St
Ocean Blvd
Ocean B
lvd
188K
itos
12 MONTH DELIVERIES
5th St
Alam
CONCESSIONS
In st a l l e d Au g u s t 15
In st a l l e d Oc t o be r 15
116K
6th St
The Promenade
AVG. RENTAL RATE / SF
MULTI-FAMILY HOUSING
7th St
Golden Ave
AVG. SF
8th St
Click to view interactive map
W Seaside Way
214K
Sh
o
rel
i
Aq
ne
ua ri
Dr
u m Wa
y
S. Pine Ave
AVG. RENTAL RATE / UNIT
Chestnut Ave
TOTAL OCCUPANCY
Magnolia Ave
Maine Ave
TOTAL INVENTORY
9th St
Daisy Ave
458
9,861 units
94%
$1,583
737
$2.26
0.8%
429
NUMBER OF BUILDINGS
19,354 PEDESTRIANS.
119K
E Seaside Way
Pedestrian counts are
representative of total data
collected from Oct. 1 through
Dec. 29.
During Q4 DTLB experienced 1.3 million pedestrians throughout
the Downtown, with the highest pedestrians count experienced
during November with 500,431 total pedestrians. This can likely be
attributed to the holiday season shopping and travel, with visitors
and residents taking advantage of establishments located in the East
Village, the Pike Outlets, and Shoreline Village.
PED TRAFFIC TRENDS
The graphs below illustrate pedestrian traffic trends for the period from Oct. 1 to Dec. 29, 2016. Click graphs below to view interactive maps.
TOTA L P E D E S T R I A N A C T I V I T Y
100,000
80,000
60,000
40,000
20,000
ne
Pi
5
(O
ce
58
Afternoon
T
an he
& Lo
Pi op
ne
)
O
(O ce
ce an
an C
& ent
Pi er
ne
)
Av
e
ay
Br
oa
1E
44
St
ud
Morning
dw
Av
e
ne
Pi
3
21
33
io
(2 On
45 e
E -Ele
3r v
d en
St
)
St
0
E
3r
d
Av
e
14
9
13
Li
5
Pi
nd
ne
en
Av
e
0
Evening
TOTA L P E D E S T R I A N A C T I V I T Y B Y W E E K D AY/ W E E K E N D
200,000
160,000
120,000
80,000
40,000
Weekday
T
an he
& Lo
Pi op
ne
)
O
(O ce
ce an
an C
& ent
Pi er
ne
)
ce
(O
ne
Pi
5
58
1E
44
Av
e
wa
y
Br
oa
d
Av
e
ne
Pi
3
33
io
(2 On
45 e
E -Ele
3r ve
d n
St
)
St
ud
St
3r
d
E
0
21
Li
9
14
13
5
Pi
nd
ne
en
Av
e
Av
e
0
Weekend
Source: DLBA Pedestrian Counts
PAGE 3
RESIDENTIAL SPACE FEATURE
HIGHLIGHTING RESIDENTIAL SPACES
The last decade of investment delivered transformational changes to the Downtown
skyline, and those skyscrapers and towers have contributed considerable vibrancy
at the human scale. The economy is stronger than it has been in years, and local
planners, developers, and investors have shown up in full force. Residential growth
since the implementation of the City’s Downtown plan, in 2012, has outpaced any
in the city’s history.
I was amazed to see
how much Downtown
had grown in just a
few short years.
The desire and need for residential
development has been met with
tangible progress as major real estate
developments, which include the 17-story
Current tower at Ocean and Alamitos, The
Edison, Pacific Court Lofts and the Lofts
at 6th all came online in the past year.
The growth isn’t showing any signs of
slowing either; Downtown is expected
to see 2,600 new residential units come
online over the next five years. The sevenstory Oceanaire has broken ground and
will rise near the busy intersection of
Ocean and Pine Avenues. When completed, the building will feature 216 studio,
one-, two- and three-bedroom units, in addition to a pool terrace, a fitness center
and a clubhouse. This development will increase foot traffic and better connect our
downtown core to the waterfront.
- Emron Walker,
Resident at Pine at Sixth
office space, and an adjacent “academia court”
for student galleries, performing arts, receptions
and other university-related activities.
We envision the Broadway
Block as the heartbeat of
the city, a place that brings
together unique pieces
to create a one-of-a-kind
culture and spirit.
- Cliff Ratkovich
Ratkovich Properties, President
These recent investments are a further
testimony to Downtown’s proposition as a valueadd location within the region, and are signs
that opportunities will only continue to improve
for existing and future residents who enjoy
the unique lifestyle that only Downtown Long
Beach can offer. We’re right up there with the
development frenzy that DTLA is experiencing;
with frequent skyline changes and more
waterfront homes available at attractive prices,
DTLB is preparing for its moment in the sun as
these developments grab hold.
Oceanaire groundbreaking
Photo by Larry Duncan (courtesy of Long Beach Business Journal)
Aiming to bring Long Beach’s
college community to the
Downtown corridor, the property
at Broadway and Long Beach Blvd
will break ground this year to be
developed into Broadway Block.
Broadway Block has partnered with
Cal State Long Beach’s graduate
school of fine arts and will provide
affordable housing for students
and educators, as well as creative
PAGE 4
I wanted to live on the
waterfront, but with
a Downtown vibe that
other beach cities are
missing.
- Scott Harper
Resident at The Current
Broadway Block rendering
DTLB NUMBERS
RESIDENT SURVEY
This past November, the DLBA in partnership with SGA launched its second major survey of Downtown residents. Over 829 surveys were
completed with answers covering basic demographics, attitudes about Downtown, and retail behaviors and preferences. Below are some
highlights of those findings:
D O W N TO W N R E S I D E N T D E M O G R A P H I C S
D O W N TO W N R E S I D E N T AT T I T U D E S A N D B E L I E F S
DOING BUSINESS...
DTLB saw 31 NEW BUSINESS licenses registered in the Q4. Overall, approximately 1,588 BUSINESSES in DTLB.
BIZPORT
The City of Long Beach launched its new online business portal, BizPort, on Wednesday, October 5th. Visit the link below for more information.
http://bizport.longbeach.gov/
PAGE 5
DEVELOPMENT MAP
MLK Jr. Ave
Olive Ave
Lime Ave
Atlantic Ave
Elm Ave
Long Beach Blvd
25
7th St
Locust Ave
23
Pine Ave
Pacific Ave
8th St
Cedar Ave
Chestnut Ave
Magnolia Ave
Daisy Ave
Maine Ave
9th St
Linden Ave
24
16
22
14
Golden Ave
6th St
2
20
5th St
19
4th St
11
27
5
Broadway
3
1st St
9
21
W Se
aside
u a ri
Way
a
um W
itos
17
12
Ocean Bl
vd
6
7
10
E Seaside Way
N
Sho
reli
ne
W
Dr
E
S
Que
ens
way
Aq
4
13
28
S. Pine Ave
Ocean Blvd
29
y
Golden Shore
1
18
8
Alam
15
The Promenade
3rd St
Ave
26
CURRENT ENTITLED RESIDENTIAL PROPERTIES
1
CIVIC CENTER
580 units
9
442 WEST OCEAN BLVD
95 units
17
125 LINDEN AVE
44 units
2
507 PACIFIC AVE
134 units
10
207 SEASIDE WAY
117 units
18
SECURITY PACIFIC NATIONAL
BANK BUILDING
118 units
3
BROADWAY/MAGNOLIA
141 units
11
434 E 4TH STREET
49 units
19
495 PROMENADE NORTH
20 units
4
OCEANAIRE
216 units
12
1ST & ALAMITOS
136 units
20
437 E 5TH STREET
18 units
5
PARC BROADWAY
222 units
13
227 ELM AVENUE
20 units
21
200 W OCEAN BLVD
94 units
6
OCEAN CENTER BUILDING
74 units
22
635 PINE AVE
142 units
14
137 W 6TH STREET
10 units
7
SHORELINE GATEWAY
315 units
15
230 W 3RD STREET
163 units
23
810 PINE AVE
64 units
8
300 ALAMITOS AVE
77 units
16
825 E 7TH STREET
19 units
24
927 LONG BEACH BLVD
100 units
PAGE 6
25
PACIFIC LOFTS
36 units
RECENTLY AWARDED
RDA SITES
26
3RD & PACIFIC
325 units
Potential Investment: $128M
27
BROADWAY & THE PROMENADE
132 units
Potential Investment: $52.7M
28
BROADWAY & LONG BEACH BLVD
166 units
Potential Investment: $61.7M
29
BROADWAY BLOCK SITES A & B
375 units
Potential Investment: $140M