Quote:
|
Originally Posted by colemonkee
In terms of housing right now, yes, there is more capacity than demand, but keep in mind there is more demand than supply for new condos right now, especially in South Park. That's the figure you should be looking at, not capacity. Theoretically, capacity is unlimited, since it can be expanded by redevelopment and rezoning.
|
I used the term "capacity" as interchangeable with supply, although I can see why ppl would define them as not necessarily one & the same thing. I was thinking of maximum capacity for 2005, then 2006, then 2007, etc, meaning how much total demand there will be over the next X number of yrs.
The max capacity of the hood in terms of devlpt only, without adjusting for the upper limit of demand, would be a big condo/apt bldg on almost every piece of land in South Pk, or dozens & dozens of new bldgs. Of course, I don't think even the biggest optimist believes there's enough demand to support that amt of devlpt.
As for the capacity for hotels in DT, the hood still is suffering from a hangover that dates back a long time. 71% for a prime summer month is pretty low, & it shows why there's still a dog eat dog attitude of ppl like Peter Zen, owner of the Bonaventure.
Downtown hotels posted double-digit occupancy gains in July compared to 2004. Yet the local hospitality industry still recorded the lowest overall occupancy rates of the month in Los Angeles County, according to a study released by hotel industry tracking firm PKF Consulting. Occupancy rates for Downtown hotels that charge more than $105 a night stood at 71.25% during July, compared to a countywide average of about 80%, according to the report. While the comparatively low level continues a long trend, the Downtown hotels' average room rate of $105 a night marked a 13% increase over July 2004. Countywide the climb was just 3.2%.
I'll say again that because it's taken so long to clean up & improve DT, many ppl have an ingrained habit of avoiding the hood. IOW, LA Live should've been built 15 yrs ago, the Elleven condo bldg should've been built 20 yrs ago, the clean up of the OBD should've taken place 25 yrs ago, the Ralphs/condo proj should've broken ground 10 yrs ago, the highrises built in the 1980s should've been completed in the 1960s, etc, etc. That's why everyone should want to see the fastest timelines possible, & why ppl who visit DT nowadays, as I did not long ago with some out of town guests, shouldn't have to see all the raunchiness of graffiti, vagrants & hole in the wall bldgs & wasteland parking lots.