Downtown's counter economy

I've been spending a lot of time downtown lately, and maybe I'm crazy, but I seem to be seeing an economic trend that is counter to what's going on everywhere else.

For years, downtown Los Angeles has been the embarassing step-child of the rest of Los Angeles.

But the real estate boom has seemed to create something that hasn't slowed down, and doesn't really seem to be slowing down. And when you think about what's still coming, downtown could really end up being a bright spot in this recession.

Here's what I mean:

1) There was a building boom in downtown condos. Many have now gone rental because they can't sell to people who can't get loans, and prices for the remaining condos have come way down.

2) But regardless -- owners or renters -- this unit boom brought many more residents downtown.

3) There wasn't enough retail to serve these residents. And it was slow to develop. Much of this retail is just coming into downtown, and this retail expansion is continuing unabated despite the economic downturn. That's why:

* More than a dozen restaurants open downtown in the last two months of 2008.

* That's why there's tremendous lines at the L.A. Live restaurants.

* That's why Famima! seems to opening new stores constantly.

That's why Urth Caffe just opened at the Barker Block and has already expanded its hours

4)All this new stuff has really made downtown even more attractive as a place to live. That's why, even in this economy, there seems to be a counter-trend with some buildings in downtown:

* EVO sales strong
* EVO closes priciest dowtown condo ever
* Gas Company Lofts planning to go from rental to sale

5) And downtown residents will invariably tell you there's still a need for more retail downtown.

I don't know about you, but whenever people talked about L.A. Live as the "Times Square of the West," I just rolled my eyes. But when you see things like the following, clearly something has been created downtown and it isn't going away:

* Thousands Turn Out for Inauguration Event at L.A. Live

The truth is, if you believe in this downtown momentum will continue, there are tremendous deals in downtown right now, not only for residential real estate but also for future development projects. If I had the cash, I would buy one of a number of lots for a boutique hotel. But like I said, maybe I'm crazy.