With Residential Critical To Its Future, Downtown LA Group Envisions More Multifamily Development

Like most downtowns nationwide, Downtown Los Angeles is engaged in a process of recovery and reinvention as the changing nature of office work continues to impact central business districts.

To paint a more vivid picture of this rapidly shifting market, the DTLA Alliance is releasing its 2024 DTLA Outlook & Insights report. Formerly the Downtown Center Business Improvement District, the DTLA Alliance has been at the forefront of DTLA’s renaissance for more than 25 years.

Its annual state of downtown report is a comprehensive assessment surveying its residents, workers and visitors to gain detailed economic and demographic data. The goal is to give context to DTLA as a market and community. 

This year’s survey comes at a turning point when Downtown LA is moving on from the market conditions brought on by the early stages of the pandemic, DTLA Alliance Executive Vice President Nick Griffin said. 

“With the pandemic firmly in the rearview mirror, the focus today is on understanding how urban life is changing and how DTLA is adapting to those changes,” he said.

Griffin said that while DTLA is still a major office center, its residential sector is increasingly important. Downtown is one of the largest residential neighborhoods in the city, with a population that has grown to more than 90,000. It is a 24/7 mixed-use destination that also draws millions of visitors, he said. 

The residential market will play an even bigger role in DTLA’s future, thanks to the DTLA 2040 Community Plan, which greatly expands Downtown's residential development capacity.  

“The growth of the residential sector over the past two decades has reshaped downtown’s identity, and the current changes in the office sector will likely accelerate that transformation,” Griffin said. “Residents were critical to weathering the pandemic in the absence of office workers, and they will be increasingly influential in defining DTLA’s future.”

Alongside its growing residential community, DTLA is a vibrant social and cultural hub, he said. The area welcomes more than 17.4 million visitors every year as one of the country’s most amenity-rich tourist destinations, featuring world-class cultural attractions, quality dining, nightlife and entertainment options. 

Even with this thriving tourist population, Griffin’s “pleasantly surprised” at how quickly DTLA’s hospitality sector recovered.

The DTLA Alliance’s most recent market report illustrates these trends, with residential occupancy topping pre-pandemic levels and hospitality nearing them. Another pleasant surprise is that while the pandemic led to the closure of many food and beverage establishments, almost 100 new entries, including 37 in 2023 alone, have more than made up for those lost, he said. 

Griffin said the exception is the office sector, where uncertainty around the shifting nature of hybrid and remote office work and what those changes might mean for downtown is the top concern. 

“While it will take some time for the situation to settle, the market is already beginning to adapt,” Griffin said. “A growing consensus is emerging around hybrid work schedules, with most companies insisting on at least a part-time presence in the office from virtually all employees.”

This trend was one of several that emerged from the DTLA Alliance 2024 Survey, conducted in January. When asked about their employer’s long-term plans, 69% of the 1,500 participants indicated that they expect some degree of hybrid work. 

Another significant finding was that public perception about conditions in downtown have improved over the past year, though much work remains to be done, Griffin said. More respondents than last year said that conditions relative to homelessness, crime, cleanliness and transportation had improved over the past year.

"While these issues are still a major concern, there's still progress being made this year with 28% of respondents giving a positive rating in addressing crime and more than 45% for homelessness," Griffin said. 

Griffin said he hopes the survey will be a call to action to DTLA’s civic and community leaders to help produce more tangible results to combat these issues and produce positive outcomes. 

“We believe that the survey shows both incremental progress in addressing DTLA’s major challenges and the need to maintain momentum and be even more proactive,” he said.

This is part of the motivation behind the organization’s recent renaming, Griffin said. Resulting from a comprehensive strategic planning process undertaken in 2023, the organization is increasingly prioritizing placemaking, advocacy and community building. Incorporating the word “alliance” into the name was intended to signify the importance of partnerships and collaboration with the community.  

“Our new name reflects the importance of community and coalitions, of advocacy, and of working in partnership with downtowners and both public and private entities focused on DTLA,” he said. “It is a name that embodies our mission and philosophy.”

With all the changes downtown is facing, the DTLA Alliance has been more active than ever, creating programs to address both challenges and opportunities, Griffin said. The organization hired its first director of placemaking, with a mandate to enhance the public realm. The organization will also be launching its Inaugural DTLA Alliance News & Outlook Breakfast, a quarterly trends and outlook breakfast event to both inform and generate enthusiasm for DTLA. 

“We are continuing to work with our local community to provide unique programming and events to help reimagine and revitalize DTLA,” Griffin said. “Downtowns across the nation are facing major challenges that are forcing them to evolve. While change is never easy, it can be the source of tremendous new opportunities.” 

This article was produced in collaboration between Studio B and the DTLA Alliance. Bisnow news staff was not involved in the production of this content.

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