The mood in beleaguered downtown Los Angeles may — at last — be starting to shift.
Years of gloom, exacerbated by the COVID-19 pandemic, emptied office skyscrapers and sidewalks, but some data and deals suggest downtown could be staging a comeback.
Some signs are easy to spot, like construction on the $2.6-billion expansion of the Convention Center and the long-delayed cleaning of buildings dubbed Graffiti Towers, which had become an embarrassing symbol of neglect.
The exodus of office tenants has waned.
Vacant offices have been perhaps the biggest drag on downtown since its signature skyscrapers were temporarily closed by health decree during the pandemic. Many companies have returned on fewer days of the week than before and reduced the amount of space they occupy, as workers often do their jobs remotely. Other firms left downtown, in part because their employees no longer found the streets safe and appealing.
More than a third of office space has been vacant for the past few years, but the decline stopped in the third quarter, as slightly more space was rented than vacated, with the market seeing a net gain of 85,000 square feet, according to real estate brokerage CBRE.
“Finally we have hit the bottom and we’re on the upswing,” said CBRE office broker Chris Penrose. “We’re starting to see some positive momentum.”
“Solid” tenants with good credit are signing long-term leases, he said. “They wouldn’t be making those decisions if things were really as bad as a lot of people like to paint that picture of downtown.”
Beloved historic restaurants thought lost are reopening under new management. A new concert hall designed by legendary architect Frank Gehry will be completed next year at one of the country’s top classical music schools. Nearby, a $100-million expansion of the popular Broad Museum of contemporary art is also under construction.
This year, the University of Michigan and UCLA joined Arizona State University by opening downtown classrooms. Apartment occupancy surpassed pre-COVID levels at more than 90%.
Los Angeles Police Department foot patrols have been assigned to downtown and mental-health teams are being deployed in priority areas such as the Historic Core, alongside coordinated efforts focused on graffiti removal, trash and the cleanliness of major streets and public spaces.
Mayor-elect Nithya Raman said downtown health will be a priority.
“Everything about the future of Los Angeles is currently being bet on downtown L.A.,” she said at a preelection event.
