Market: As the month of October comes to an end, the Mid-Wilshire multi-family market continues to be a seller’s market. Over the last four quarters, the average price per square foot and price per unit both increased as average capitalization rates decreased.

Interest Rates: The Federal Reserve is keeping its benchmark interest rate near zero, while interest rates for five- and 10-year fixed loans have decreased since August.
 
Valuation Metrics: Over the last four quarters, average price per square foot and average price per unit increased by 10.7% and 2.7% respectively. Capitalization (CAP) rates for the period averaged 4.10%.
 
Rents: On average, year-to-date rents have decreased across almost all unit types, while year-over-year occupancy has decreased by 4.00%.
 
Outlook: With the Proposition 21 vote coming up next week on November 3rd., apartment owners in Los Angeles are again facing the prospect of vacancy control. The outlook for the immediate and long-term future of the apartment market greatly hinges on the outcome of this vote.

Owners: Call us if you would like to receive offers for your investment property, or if you would like to know the current value of your property.

Buyers: Give us a call and let us know your buying criteria.

Referrals: If you know anyone who is considering selling their property, please don't hesitate to make an introduction or forward this email.
Rental Rates Overview
Small Balance Freddie Mac Lender Rates
Average Price Per Square Foot - Mid-Wilshire
Trailing four quarters averaged $442 vs $399 for the same period in 2019.
Average Price Per Unit - Mid-Wilshire
Trailing four quarters averaged $369,672 vs $359,787 for the same period in 2019.
Average Cap Rate - Mid-Wilshire
Trailing four quarters averaged 4.10% vs 4.35% for the same period in 2019.
John Swartz | Managing Director | 213.430.2526 | CA Lic 01873487 | email me
Josh Kaplan | Managing Director | 213.430.2538 | CA Lic 01934177 | email me
Troy Lucero | Senior Associate | 213.457.1656 | CA Lic 02015705 | email me
601 S. Figueroa Street | Suite 3650 | Los Angeles, CA 90017
P: 213.624.5700 | F: 213.624.9203