From Crisis To Opportunity: Adaptive Reuse And The Future Of Downtown LA

Downtown Los Angeles, like many central business districts across the country, is facing vital questions about its future, largely driven by shifts in office work sparked by the pandemic.

In response, the Downtown Center Business Improvement District, an organization at the forefront of DTLA’s transformation into a vibrant, 24/7 neighborhood, produced a report on adaptive reuse as a strategy to address these challenges by converting office buildings to residential and other uses. 

The report — part of the DCBID’s DTLA Re.Imagined series — covers the past impact and future potential of adaptive reuse, highlighting the best practices, ideas, opportunities and challenges. 

“While adaptive reuse is not a panacea for office or residential, it has the potential to transform neighborhoods and DTLA is a prime example,” DCBID Executive Director Nick Griffin said.

Adaptive reuse is in DTLA’s DNA, having played a key role in its evolution from a traditional business district to a pioneering mixed-use neighborhood — a transformation catalyzed by the conversion of historic commercial buildings to modern residential lofts through the Adaptive Reuse Ordinance, or ARO, passed in 1999. 

Griffin said that over the past 20 years, adaptive reuse accounted for more than 12,000 new housing units, accommodating more than 20,000 new residents. 

“That spark led to further development and a total population growth of over 75,000, along with 1,500 new bars and restaurants, 6,000 hotel rooms and a wide range of attractions, amenities, arts and culture that today draws over 22 million annual visitors in DTLA,” he said.

The situation today is different from 1999, but the lesson is that adaptive reuse can once again be a catalyst for growth and change. 

Griffin said that converting office space to residential is appealing because of its potential to address two of Los Angeles’ most critical issues at once: reducing the stock of underutilized office space and increasing the inventory of much-needed housing. 

He added there are currently 65M SF of vacant office space in LA County, an increase of 41% since 2020. Over the next two years, another 14.5M SF are expected to go vacant, pushing the countywide vacancy rate from just under 10% in 2018 to almost 18% by 2024. 

From 1980 to 2010, LA County built 1 million fewer homes than were needed. Looking forward, Los Angeles must increase the annual production of new housing from 8,800 to 57,000 per year to meet the expected demand by 2029. 

“Expanding the potential for adaptive reuse can be a primary recovery strategy to allow buildings and neighborhoods to nimbly respond to rapidly changing circumstances and needs, sustaining economic activity in cities over the long term,” according to the Central City Association.

Griffin said that as compelling as the opportunity to convert office space into residential units may be, it still involves a complex set of considerations that determine the feasibility of any given project. 

“These factors fall into three basic categories: design and engineering, from floor plates and windows to building systems; regulation, including zoning, building codes and city policies; and financial, such as basis price, conversion costs and occupancy,” he said.

Since outright conversion is challenging and expensive, office owners are looking for alternative methods to reposition properties, Griffin said, adding the main focus is reconfiguring workspaces, common areas and amenities to support the needs of tenants and workers.

“In addition to physical improvements, properties are offering a broader range of services, from catering and concierge to event support, creating a model more akin to a hotel than an office tower,” he said. “Property owners are also exploring commercial uses beyond traditional office tenants, such as education, medical, fitness and personal services typically found in more specialized buildings.”

Not only are office buildings being reimagined, office districts are as well. As workers have more options and flexibility, CBDs like DTLA need to adapt and leverage their assets and advantages to be the most appealing and convenient places for people to work, live, visit, shop, dine and play. 

Downtown LA’s central location at the hub of the city's public transit and freeway systems has long made it accessible for commuters, but the same holds true for visitors from around the county, including Downtown residents traveling to other parts of the city. The newly opened Regional Connector is a great facilitator of this, providing better access to more places both within Downtown and around the region.

Another major advantage for DTLA is the density and diversity of its retail, dining and cultural offerings, all conveniently clustered in an accessible and walkable Downtown environment for residents, workers and visitors alike. The fullest expression of this concept is found in the community of people who both live and work in DTLA, who consistently report the highest level of satisfaction with DTLA on the DCBID’s annual surveys, Griffin said.

DTLA is at an inflection point, most immediately because of shifts in the office sector, but more broadly because of how it has grown and changed over the last 20 years, Griffin said.

“DTLA’s population more than quadrupled over the last two decades, from under 18,000 to over 90,000,” he said. “And with the recently approved DTLA 2040 Community Plan projects, it will double again over the next two decades to more than 200,000, making DTLA the equivalent of an average midsized American city unto itself.”

Griffin notes that, unlike your average midsized city, DTLA is also an influential center of commerce and culture, and a global destination in its own right, and that its future will be shaped as much by those factors as by the current trends impacting the office sector.

DTLA’s resilience allows the city to continue to adapt, from converting historic buildings into hip lofts, iconic theaters to flagship retailers or newspaper headquarters into university campuses. 

“The current changes roiling the office sector will be a catalyst for the next cycle of DTLA’s transformation, driven by the spirit of reinvention that has fueled its growth through multiple eras and will propel it into the future,” he said.

This article was produced in collaboration between Studio B and the Downtown Center Business Improvement District. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to [email protected].