In the bustling heart of Los Angeles, Downtown Works (DTWX), the non-profit arm of the Central City Association (CCA), is spearheading a transformative initiative to breathe new life into the city’s underutilized office spaces. With a mission to enhance the vibrancy of Downtown Los Angeles (DTLA) and expand opportunities across the region, DTWX is at the forefront of innovative urban development.
Their latest endeavor, the Downtown Los Angeles Office-to-Residential (OTR) Adaptive Reuse Study, conducted in collaboration with BAE Urban Economics, Gensler, and CBRE, is a testament to their commitment to addressing the pressing need for housing in DTLA. As the post-pandemic office market struggles to recover, many office buildings remain underutilized, presenting a unique opportunity for adaptive reuse strategies to meet the growing demand for residential spaces.
The study, funded by a $100,000 grant from JPMorganChase, focuses on evaluating the current DTLA office market and identifying the potential benefits of converting ten office buildings into residential spaces. “Affordable housing is a critical issue in Los Angeles, and we are committed to finding innovative land use and construction solutions to increase the supply and address this shortage,” said Corey Matthews, Vice President of Global Philanthropy in Los Angeles JPMorganChase.
Recognizing the transformative potential of this initiative, Nella McOsker, DTWX board member and president and CEO of the CCA, highlights the importance of collaboration in driving meaningful change. “With JPMorganChase’s partnership, we have quantified how adaptive reuse can deliver housing, support jobs, boost tax revenue for local governments, and revitalize underutilized buildings to bolster an already dynamic residential market like Downtown,” said McOsker.
Key findings from the study reveal that without intervention, DTLA could face a staggering $69.5 billion loss in assessed property value and $353 million in potential lost property tax revenue over the next decade. However, a targeted 10-building adaptive reuse plan could recover $12 billion in assessed property value, generate $2 billion in local economic activity, unlock $46 million in tax revenue, support almost 17,000 jobs, and create thousands of new homes.
The economic impact of a targeted conversion scenario is significant, with potential annual economic impacts ranging from $169 million to $233 million for the City of Los Angeles during the construction phase. This initiative could support between 1,421 to 1,964 jobs annually over the construction period, with cumulative economic impacts for the City approaching $643 million.
DTWX’s efforts are not just about numbers; they are about reimagining the future of DTLA. By converting underutilized office spaces into vibrant residential areas, DTWX aims to create a more dynamic and inclusive community. “We’reexcited about the potential of adaptive reuse to revitalize the Downtown Los Angeles area with the types of affordable housing that foster community and stability for Angelenos,” said Matthews.
As DTWX continues to engage with stakeholders and facilitate dialogue on systems change efforts, the potential for a revitalized DTLA becomes increasingly tangible. Through adaptive reuse, DTWX is not only preserving the past but also paving the way for a brighter, more sustainable future for Downtown Los Angeles.
