DOWNTOWN LA MARKET REPORT
Photo by: adidas
ABOUT DTLA ALLIANCE
Founded in 1998, the DTLA Alliance has been a catalyst in Downtown Los Angeles’ transformation into a vibrant 24/7 mixed-use destination for over 25 years. A coalition of more than 2,000 property owners in the Downtown Center, the DTLA Alliance is committed to enhancing the quality of life in Downtown LA.
The mission of the Economic Development team is to ensure that DTLA remains the premier choice for office, residential, hospitality, retail, and cultural investment. We provide services to support and promote investment and development in DTLA, including:
• Market & Research Reports
• Tours & Events
• Development Consulting
• Requests for Information
• Press & Media Inquiries
Whether you need information on construction and development, insights on the DTLA market, finding a location for your business, or you just want to learn more about Downtown’s market sectors and dynamics, we are your best source for information about DTLA
To learn more about the Downtown LA and the DTLA Alliance, visit DowntownLA.com
DOWNTOWN CENTER
DEFINITION OF DOWNTOWN LA
The DTLA Alliance defines Downtown Los Angeles as the area bounded by the 110, 101 and 10 freeways and the LA River, plus Chinatown, City West, and Exposition Park. The projects contained in this report are within a portion of Downtown Los Angeles, shown on the map to the left.
EXECUTIVE SUMMARY
The third quarter of 2024 featured big moves signaling a new phase of Downtown’s evolution. Particularly exciting was news that The Grand LA had secured two major tenants with innovative uses representing increasingly important sectors of the DTLA ecosystem – arts and education. Dataland, described as the world’s first “Museum of AI Arts,” and the University of Michigan’s Ross School of Business, which is establishing a Los Angeles campus for its Executive MBA and other programs, are each taking 20,000 SF at the $1-billion mixed-use complex on Bunker Hill.
Moving to the office sector, there were several transactions that may be indicative of a shift among investors, who had been mostly staying on the sidelines. Specifically, Union Bank Plaza and 801 Figueroa changed hands, while LA County moved closer to completing their purchase of The Gas Company Tower. With that sale on tap, SoCalGas announced their relocation from their namesake building to City National 2Cal, taking almost 200K SF. The Bloc also landed a new fashion tenant, Finesse, which bills itself as “the first AI-Driven fashion house” subleasing 23K SF.
In the residential market, DTLA added 147 more units of much-needed permanent supportive housing with the opening of Vida DTLA in South Park. LAHSA (Los Angeles Homeless Services Agency) has signed a master lease for the property, which will feature on-site services provided by PATH (People Assisting the Homeless).
The hospitality market saw a very slight decline in RevPAR and ADR that mirrors the trend observed in the broader LA market where both indicators are down about 2% this year. Nevertheless, with the 2028 Olympics on the horizon, new inventory is in the pipeline. Next up, work will begin on the Mama Shelter hotel, which will be the European chain’s second LA location, located at the former Mart South Building at Olympic and Los Angeles streets.
Finally, the influx of new F&B options to DTLA continued with seven openings in Q3, including Chinese dumpling house Northern Cafe and Taco Bell Cantina, the chain’s urban concept that offers a custom menu and full bar. Even more exciting is the first new major retail opening since the pandemic with adidas Originals DTLA, a flagship store location at the corner of 9th and Broadway, across from the Apple Tower Theater. Also arriving in Q3 is cutting-edge menswear store Departamento, which joins an impressive roster at the recently renovated Signal LA property in the Arts District.
Q3 KEY STATS
4 ,116 RESIDENTIAL UNITS UNDER CONSTRUCTION
28 , 866 PROPOSED
10 , 751 HOTEL ROOMS IN DTLA
1, 088 UNDER CONSTRUCTION
6 ,105
Q3 KEY HIGHLIGHTS
The Grand LA announced Dataland and University of Michigan as new tenants
Vida DTLA opened in South Park with 147 units of permanent supportive housing adidas Originals DTLA opened at the corner of 9th & Broadway
MARKET OVERVIEW Visitation
After a significant recovery in 2020 and 2021, visits to DTLA have remained within a range of 8-10 million per month, which is just slightly below the average experienced prior to the pandemic.
MONTHLY WORKPLACE VISITATION
After mostly stalling in 2023, workplace visitation showed some positive signs in 2024. Not only did the total number of workers per month reach a new post-pandemic high, but monthly visits per workers increased for three quarters before staying flat in Q3.
MARKET OVERVIEW
Source:
RETAIL
Source: CoStar
INVENTORY
MARKET OVERVIEW
QUARTERLY TRACKING STATS
The residential market rebounded strongly after a short-term decline during the pandemic, with rent and occupancy returning to pre-pandemic levels. Although occupancy dipped in 2023 due to delivery of over 2,000 new units, it has remained over 90% for three straight quarters.
$3,000
$2,900
$2,800
$2,700
$2,600
$2,500
$2,400
The impact of continuing uncertainty about return-to-work was felt across the region, with vacancy rates reaching a historic high. While asking rents fell through 2023 and into Q1 of 2024, they bumped back up in Q2 and Q3, illustrating volatility.
QUARTERLY TRACKING STATS
Retail rents have remained remarkably stable, indicating that interest in urban locations like Downtown LA has stayed strong. Although the vacancy rate has ticked up, much of that is due to the introduction of new inventory.
$2.50
Both occupancy and RevPAR made significant gains in 2022 and ticked up even further to start 2023. Since then, both have remained mostly flat, sitting roughly 10% below their pre-pandemic levels.
FEATURED OPENINGS
ADIDAS ORIGINALS DTLA
Spanning two levels, this flagship location will function as a community hub, hosting workshops, events, and collaborations with local artists. The new store honors its heritage with a stunning architectural revival, blending raw historical elements with bold use of adidas’ iconic blue and distinctive branding.
TACO BELL CANTINA
As part of the chain’s urban quick service concept, the DTLA location has a custom designed LA theme with vibrant stained glass, rustic brick walls, an array of vintage concert posters and memorabilia, plus a full bar featuring mixed drinks and a variety of “spiked” freezes.
FEATURED OPENINGS
LOST DTLA
The owners of Hilltop Coffee + Kitchen, inspired by their travels to Mexico, have opened this rooftop night-time spot above their daytime location on Hill St. between 7th and 8th. It includes a drink menu featuring mezcal, rum, and tequila, and a food menu by chef Greter Atienza, former chef de cuisine at Broken Spanish, a previous DTLA favorite.
DEPARTAMENTO
Labeled “the coolest menswear store in Los Angeles” by Vogue when they opened their first Arts District location in 2019, the luxury fashion retailer’s second store is accessible through a hidden entrance inside Concierge Coffee at Signal LA in the Arts District.
Commercial Development
n Existing
n Under Construction/Renovation
n Proposed
Featured Project
As of 9/30/2024
Residential Development
n Existing
n Under Construction/Renovation
n Proposed
As of 9/30/2024
UNDER CONSTRUCTION
MAJOR MIXED-USE
UNDER CONSTRUCTION
BUNKER HILL
FEATURED PROJECTS
Under Construction
MAJOR MIXED-USE ALLOY
Developer: Carmel Partners
The first high-rise development in the Arts District will feature 475 apartments and over 100k SF of office space.
ARTS & CULTURE COLBURN CENTER
Developer: The Colburn School
This 100,000 SF expansion designed by Frank Gehry will include new studios, public spaces, and a 1,000-seat performance venue.
FEATURED PROJECTS Under Construction
AFFORDABLE HOUSING WEINGART TOWER 1A
Developer: Weingart Center Foundation
One of the largest permanent supportive housing projects in DTLA, this 19-story development includes 278 units.
CIVIC
PERSHING SQUARE
Developer: City of Los Angeles
The first phase of Pershing Square’s renovation is now under construction with work beginning on the Olive Street side of the park where existing structures are being replaced with new landscaping and a street-level entry plaza.
FEATURED PROJECTS Under Construction
RESIDENTIAL
OLYMPIC
& HILL
Developer: Onni Group
At over 760 feet and 60 stories, this will be the city’s 4th tallest building and tallest residential highrise.
UNDER CONSTRUCTION
SIXTH STREET PARC
Developer: City of Los Angeles
12 acres of new park space at both ends of the Sixth Street Viaduct will feature basketball, soccer, and volleyball courts, event space, and performance facilities.
FEATURED PROJECTS Under Construction
CIVIC & CULTURAL
CALIFORNIA HOSPITAL MEDICAL CENTER
Developer: Dignity Health California
The hospital campus is adding a four-story, 150k SF patient tower to expand its ER, trauma, and maternity departments.
RESIDENTIAL THE UMEYA
Developer: Little Tokyo Service Center
Transit-oriented mixed use development with 175 affordable units and 13K SF of community space.
FEATURED PROJECTS Proposed
ARTS & CULTURE
THE BROAD EXPANSION
221 S. Grand Ave
Developer: The Broad Design: Diller Scofidio + Renfro
55,000 SF expansion that will increase The Broad’s gallery space by 70% and add two top-floor open-air courtyards.
HOTEL
JW MARRIOTT LA CONVENTION CENTER EXPANSION
900 W. Olympic Blvd.
Developer: AEG and Plenary Group
Design: Gensler, Populous, Olin
700k SF expansion of the existing hotel will add 861 new hotel rooms at LA Live.
MAJOR MIXED USE FOURTH & CENTRAL
Developer: Continuum Partners
Design: Studio One Eleven & Adjaye Associates
10-building project including over 1,500 residential units, 400,000 SF of office space and 100,000 SF of restaurant/retail space.
MAJOR MIXED-USE ANGELS
LANDING
361 S. Hill St.
Developer: Peebles Corporation, Macfarlane Partners, Claridge Properties
Design: Handel Architects
Planned two-tower development to feature luxury hotel venues, spacious condos & apartments featuring panoramic views, and an open-air public plaza.
SPOTLIGHT ON DTLA
INSIDE THE NEW ADIDAS STORE IN DOWNTOWN LOS ANGELES
The company’s new DTLA store, which opened on Sept. 12, is dedicated to the Adidas Originals label and “serves as a tribute to the city’s roots while pushing forward with cutting-edge design.” —Footwear News, 9/13/24
FASHION COMPANIES SEEKING OFFICE SPACE ARE FLOCKING TO DTLA
The latest and largest is Finesse, a startup that uses artificial intelligence and online surveys to determine what clothes its fans want to buy. Finesse subleased 23K SF of office space in The Bloc LA, a mixed-use property renovated in 2016. —BISNOW, 10/2/24
MEGA-DEVELOPMENTS LIKE FOURTH & CENTRAL ARE L.A.’S FUTURE
Covering a block and a half of industrial land, Fourth & Central represents a shift in how downtown has historically been zoned. Currently a cold storage facility with three large warehouses for storing frozen food, the property is in an area that was once the city’s logistical hub for rail transportation. —Los Angeles Times, 08/28/24
SIGNS OF PROGRESS FOR NEW PARK BELOW SIXTH STREET VIADUCT
PARC - short for “Park, Arts, and River Connectivity” - is an $82-million project which will create 12 acres of new public green space below the viaduct. That total includes seven acres on the west bank of the Los Angeles River in the Arts District and five acres in Boyle Heights to the east. —Urbanize, 8/14/24
GET LOST IN DOWNTOWN LA’S SLEEK NEW ROOFTOP BAR
Owners Ajay Relan and Yonnie Hagos of GVO Hospitality took inspiration from their travels to Mexico City when the building’s landlord approached them to take over the space above their daytime operation. —Eater LA, 9/24/24
AN L.A.-THEMED TACO BELL CANTINA WITH A FULL BAR IS OPEN DOWNTOWN
The space at 801 West 7th Street feels like an homage to the city’s music scene, and that’s on purpose: The eight other Taco Bell Cantina locations around the country, including one in Hollywood, all embody the unique character of their respective communities. —Time Out, 7/23/24
LOS ANGELES COUNTY AGREES TO BUY DOWNTOWN SKYSCRAPER
The county of Los Angeles has tentatively agreed to buy the Gas Company Tower, a prominent office skyscraper in downtown Los Angeles. If completed, the purchase could move workers and public services out of existing county offices, including the well-known Kenneth Hahn Hall of Administration. —Los Angeles Times, 08/01/24
Nick Griffin, Executive Vice President (213) 416-7522 I ngriffin@downtownla.com
Elan Shore, Director of Economic Development (213) 416-7518 I eshore@downtownla.com