EXECUTIVE SUMMARY

RETAIL REPORT

EXECUTIVE SUMMARY

T he retail industry has been evolving over the last decade – and so has Downtown Los Angeles. During the pandemic, retail’s shifts accelerated dramatically – coming out of it, DTLA is poised for its new dynamics. With the inexorable rise of e-commerce, the role of physical stores is increasingly about branding, experience, convenience, and personal service. These align with the DTLA value proposition centered on density and walkability. Downtown has 743 retail businesses per square mile – and 157 food & beverage businesses – and not only can you walk from one to the next, you can talk to a real person in all of them. And you can do all of it in one of the most dynamic and exciting urban centers in the country. This report arrives at a unique moment – for the retail industry and city centers like DTLA – but is intended not as a snapshot of a static time and place, but as a mosaic image of a dynamic environment that continues to grow, adapt, and improve. As such, we began this report with an examination of DTLA and the Future of Retail. Critical to this is understanding the importance of the trend towards “omnichannel retail” and how it is changing the role of physical stores, making them less about making purchases and more about creating engaging experiences and reinforcing brand identity. It is in this context that we consider the DTLA “brand” and what it offers to retailers who locate here. From there we break down the retail market into several categories to demonstrate the broad and varied brands that have already been drawn to DTLA. For retail, we outline the Signature Locations, Boutiques, Local Flair, and New Retail sectors that comprise the broader market. On the F&B front, we spotlight Fine Dining and Local Dining Experiences, Artisans & Crafts, the most popular Familiar Favorites, and of course the vibrant Bar & Nightlife scene. Downtown’s diverse and eclectic nature extends to its neighborhoods, which are an amalgam of distinct communities, each one offering a different vibe and appealing to different kinds of retailers. This report includes profiles of six of these neighborhoods, which are Bunker Hill, Financial District, South Park, Historic Core, Fashion District, and Arts District. The last section of the report is a deep dive on the DTLA consumer market, with breakdowns for each of the major segments. While historically, DTLA retailers have relied heavily on office workers, today’s Downtown market is defined by its diversity – including over 80,000 residents, plus thousands more in the surrounding neighborhoods, and over 15 million visitors per year. As a result, even with a reduced number of office workers, there are still around 500,000 people in Downtown LA on an average day. DTLA is high-profile, influential, and trend-setting – all the things that build great brands. DTLA is IRL – not virtual – it’s a place to be, and do, and eat, and meet – all the things that make life rich, that you can’t do online. Combined with its central location, wealth of infrastructure, transit accessibility, and public spaces, DTLA is a place where people and businesses thrive. In a future less constrained by where you have to be – and more defined by where you want to be – increasingly that place will be Downtown LA.