News Summary
Community leaders and business owners in downtown Los Angeles are advocating for a recovery plan to revitalize the area severely impacted by the pandemic, homelessness, and increasing vacancy rates. With over 32% of office space vacant, the Central City Association proposes focused actions including converting office buildings to housing and improving public safety. Although issues persist, investments are rising ahead of the 2028 Olympics, highlighting the need for comprehensive strategies to restore businesses and community confidence.
Los Angeles city and community leaders are advocating for an urgent recovery plan to restore businesses and confidence in downtown LA, which has been deeply affected by a series of compounding issues. A gathering of downtown LA business owners at Grand Central Market identified the crises, including the ongoing effects of the pandemic, immigration raids, tariffs, curfews, and the pervasive issue of homelessness.
Nella McOsker, president of the Central City Association, highlighted that downtown LA has experienced more severe impacts from these issues than any other area within the city. This region, despite accounting for only 1% of Los Angeles’ landmass, contributes a significant one-third of the city’s business, parking, and hotel tax base. However, high vacancy rates in office towers, particularly on Bunker Hill, have led to a notable decline in property values, which has affected established restaurants and businesses in the area.
Graffiti has become rampant throughout downtown LA, including on abandoned construction sites, contributing to a public perception of the area as dirty and neglected. To combat these issues, the Central City Association is proposing 90 focused calls to action, which feature strategies like increasing police foot patrols and enhancing interventions for the homeless population. Additionally, the organization is pushing for the conversion of unused office towers into housing, both market-rate and affordable, as part of their revitalization strategy.
Despite the challenges, investments in downtown LA have seen an uptick. This is partially due to the city’s $2.62 billion plan to expand the Convention Center in anticipation of the 2028 LA Olympics. However, the current statistics paint a concerning picture: more than 32% of office space in downtown LA is vacant, notably exceeding the national average. Each vacant office desk means less foot traffic and diminished spending in local businesses, which subsequently leads to reduced property values and a weakened tax base.
A study conducted by Downtown Works in collaboration with Gensler, CBRE, and BAE Urban Economics reported alarming projections, indicating that downtown could incur a loss of up to $84 billion in economic value over the next decade if current trends persist. The report also proposed that converting ten underused office buildings into housing could reclaim $12 billion in assessed value and stimulate $2 billion in economic activity.
The adaptive reuse of buildings has been shown to foster job creation, generating over 1,600 jobs annually and addressing the urgent housing crisis in Los Angeles. Past successes in this area include the 1999 Adaptive Reuse Ordinance, which successfully created over 12,000 housing units and expanded options for affordable housing.
The plan to modernize downtown includes updating zoning and building codes, offering tax incentives, and promoting collaboration between the public and private sectors. Upcoming legislation from Assembly member Matt Haney seeks to establish statewide strategies to facilitate downtown revitalization across different California cities. This legislation aims to promote communication and support among cities, proposing incentives for universities to build housing and loosen restrictions on nightlife.
Nonetheless, public perception remains a significant barrier to these revitalization efforts, with many viewing downtown as unsafe and unclean. Haney’s proposed bill intends to tackle structural challenges, renew community pride, and promote the cultural and historical significance of buildings instead of viewing them merely as economic figures.
In summary, downtown LA is at a crossroads, facing critical challenges while pushing towards a potential recovery. The initiatives proposed may not only revive business activity but also improve living conditions for residents, highlighting the urgent need for action in one of the city’s most vital economic areas.
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Additional Resources
- Daily News: The Answer to Downtown Recovery Lies Within Its Own Walls
- Los Angeles Times: How to Revive California’s Downtowns
- Commercial Observer: Downtown LA
- Bloomberg: California Politicians Push Rescue Downtowns Bill Package
- WWL-TV: Los Angeles Mayor Lifts Downtown Curfew
- Wikipedia: Downtown Los Angeles
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
