DTLA Market Report

DOWNTOWN LA MARKET REPORT

ABOUT DTLA ALLIANCE

Founded in 1998, the DTLA Alliance has been a catalyst in Downtown Los Angeles’ transformation into a vibrant 24/7 mixed-use destination for over 25 years. A coalition of more than 2,000 property owners in the Downtown Center, the DTLA Alliance is committed to enhancing the quality of life in Downtown LA.

The mission of the Economic Development team is to ensure that DTLA remains the premier choice for office, residential, hospitality, retail, and cultural investment. We provide services to support and promote investment and development in DTLA, including:

• Market & Research Reports

• Tours & Events

• Development Consulting

• Requests for Information

• Press & Media Inquiries

Whether you need information on construction and development, insights on the DTLA market, finding a location for your business, or you just want to learn more about Downtown’s market sectors and dynamics, we are your best source for information about DTLA

To learn more about the Downtown LA and the DTLA Alliance, visit DowntownLA.com

DOWNTOWN CENTER

DEFINITION OF DOWNTOWN LA

The DTLA Alliance defines Downtown Los Angeles as the area bounded by the 110, 101 and 10 freeways and the LA River, plus Chinatown, City West, and Exposition Park. The projects contained in this report are within a portion of Downtown Los Angeles, shown on the map to the left.

EXECUTIVE SUMMARY

As 2025 ended, media coverage of the DTLA market began to shift. One article described DTLA as having “a foundation of strong assets, creative leadership, and forward-looking investments that signal opportunity for developers, investors, and businesses,” while another referred to the “improving investment market.” Finally, the outgoing Chairman and CEO of Related California said DTLA is “better than you think it is.” These shifts are also evident across DTLA’s key market sectors.

In office, the most notable transaction was Banc of California increasing its DTLA footprint to 40,000 SF and securing naming rights for its new home at 865 S. Figueroa. Discussing the lease, Banc of California CEO Jared Wolff said, “expanding our presence in Downtown demonstrates how committed we are to serving the greater L.A. market.”

In residential, a year that included the opening of nearly 1,000 new market-rate apartments and over 700 new affordable units, closed with signs of even bigger things to come. Alveare, a multi-family building that will include more than 300 affordable units, broke ground at 1405 S. Broadway, while the LA City Planning Commission approved the massive 4th and Central project, expected to be the largest development in DTLA history.

On the hospitality front, following approval of the $2.6-billion LA Convention Center expansion, AEG revealed plans for a 49-story tower with 334 hotel rooms and 364 residential units at 917 W Olympic Blvd., currently a surface parking lot. Also moving forward is JADE Enterprises’ South Park Towers, which includes a 300-room hotel and 250 residential units.

Finally, DTLA’s wave of new food and beverage openings shows no sign of slowing, with seven new openings, including Chef Amar Santana’s VACA. The biggest retail story of the quarter came in October, when luxury resale company Fashionphile opened its largest West Coast flagship at ROW DTLA in the Arts District.

Q4 KEY STATS

$3.86 Average Class A

$3.32

1, 816

RESIDENTIAL UNITS UNDER CONSTRUCTION 30 , 234 PROPOSED 10 , 751

HOTEL ROOMS IN DTLA 1, 237 UNDER CONSTRUCTION

6 , 257 PROPOSED

Q4 KEY HIGHLIGHTS

Banc of California expanded their DTLA presence with a 40K SF lease.

AEG revealed plans for a 49-story tower with hotel and residential units.

Fashionphile opened their largest flagship store on the West Coast at ROW DTLA.

SPOTLIGHT ON DTLA

DOWNTOWN LOS ANGELES: A MARKET WORTH A SECOND LOOK

DTLA is home to some of Southern California’s most valuable real estate and cultural anchors. From historic buildings with architectural character to modern mixed-use developments, the area offers a unique combination of scale and density unmatched elsewhere in the region. —LA Business Journal, 11/3/25

$2-BILLION MEGA-DEVELOPMENT CLEARS MAJOR HURDLE WITH L.A. OFFICIALS

A proposed mega-development in Downtown Los Angeles, which would replace a cold storage facility with a $2-billion residential and commercial complex, cleared a major hurdle last week when the city Planning Commission backed it. —Los Angeles Times, 10/15/25

PLANNED 7th STREET/METRO CENTER MAKEOVER TAKES A STEP FORWARD

The planned improvements to 7th Street/Metro Center are part of a larger effort to improve upon existing several transit stations which are expected to serve key roles during the 2028 Summer Olympics - the others being Union Station and Pico Station. —Urbanize LA, 10/3/25

BANC OF CALIFORNIA SET TO CHANGE L.A. SKYLINE WITH DOWNTOWN EXPANSION

Banc of California has leased 40,000 square feet at 865 S. Figueroa St. and secured the rights to emblazon its name atop the 35-story tower just north of L.A. Live, the bank recently announced. —Los Angeles Times, 10/22/25

LA INSTITUTION RETURNS: THE ORIGINAL PANTRY CAFE, CLOSED

AFTER 100 YEARS,

IS COMING BACK IN APRIL

The closing cut deep impacting folks ranging from regulars to nostalgic former customers. However, the grills will be turned on again thanks to Hancock Park real estate investor Leo Pustilnikov, who bought the property in September. —LA Downtown News, 1/12/26

MARKET OVERVIEW

LA CONVENTION CENTER

The Los Angeles Convention Center is set for a major $2.6-billion expansion that will connect its South and West Halls with a new 325,000-square-foot structure over Pico Boulevard. The project adds 190,000 square feet of exhibit space and a 98,000-square-foot rooftop ballroom, bringing total exhibit space to over 1 million square feet, enabling L.A. to host larger, high-profile events. The expansion is scheduled for completion in 2029.

LA28: DTLA WELCOMES THE WORLD

DTLA’s growth into a major hospitality center has set the stage for it to play a starring role in the biggest of all events coming to LA, the 2028 Olympic Summer Games. Not only will the area host several sporting events, it will also play host to the “Olympic Family”, the leaders of the global Olympic movement, who will be staying in Downtown throughout the games.

OLYMPIC FAMILY HOTELS

The LA28 proposed Olympic Family Hotels will be located in in the Downtown Sports Park at the heart of the LA28 Games Plan. This central location in DTLA is just steps away from a number of exciting LA28 venues as well as Downtown restaurants, entertainment venues, and nightspots.

PROJECTS IN THE WORKS:

• LA Metro Station Improvements already underway at 7th Street/Metro Center Station

• Convention Center modernization and expansion

• Olympic Legacy Street Improvements Plan

• Purple Line extension to Westwood (Athletes Village)

• LAX Automated People Mover and Rent-A-Car facility

• Airport Metro Connector: K Line—connects to Expo Line for all-rail access to DTLA

WORLD-CLASS DESTINATION: DTLA

Since the beginning of LA’s history, Downtown has been the region’s hub for culture and commerce. With the phenomenal growth of its revitalization, DTLA has re-emerged as the city’s epicenter for investment and innovation. Today it is home to a world-class dining and nightlife scene and several of LA’s most notable arts & culture and entertainment destinations. It is distinct from the broader LA area in its walkability, density and diversity of amenities, and unparalleled access to transit.

Source: Placer.ai, ESRI

HEAT MAPS

This heat map shows the most popular locations for DTLA’s 18+ million visitors in 2024. Several noteworthy areas, identified in dark yellow, had between 500K and 1M visits during the year, while the top three locations in red each saw over 1M visits.

VISITATION INSIGHTS

DTLA MONTHLY TOTAL VISITS

After a significant recovery in 2020 and 2021, monthly visits to DTLA have remained within a range of 8-10 million per month, which is just slightly below the average experienced prior to the pandemic. However, compared to 2024, the monthly average is about 5% lower following the wildfires and civil unrest earlier this year.

DTLA VISITOR HOME LOCATIONS

As the heatmap below indicates, the largest concentration of visitors to DTLA lives within just a few miles, demonstrating that in addition to being a draw for tourists and people attending major events, Downtown plays a vital role in providing shopping, dining, and entertainment options for residents in the surrounding neighborhoods.

NATIONAL VISITATION INSIGHTS

In 2024, 2.7 million visitors who live more than 250 miles away stayed overnight in DTLA. The total number of visits was 12% higher than for 2023 and 40% higher than for 2021. These visitors spent an average of 2.2 days in DTLA, with 30% staying for 3 or more days. July was the most popular month with 343K trips to DTLA, which is 37% higher than the monthly average for the year.

2.4

TRIPS BY MONTH

TOP 10 DTLA TRIP ORIGINATION LOCATIONS (Number of Visitors)

Q4 FEATURED OPENINGS

VACA DTLA

Bold, high-energy, and unmistakably indulgent, Chef Amar Santana’s VACA brings the excitement of a modern Spanish steakhouse to DTLA. Premium cuts, classic tapas, and a buzzing dining room make it a favorite for celebrations and power dinners alike.

FASHIONPHILE FLAGSHIP

Luxury resale takes center stage at Fashionphile’s flagship at ROW DTLA. Part boutique, part gallery, the space showcases authenticated designer handbags, watches, and jewelry in an elevated yet welcoming retail environment.

Q4 FEATURED OPENINGS

At Hojokban, Korean comfort food meets late-night social energy. Known for its shareable plates and playful takes on traditional flavors, the restaurant delivers a lively, communal dining experience that thrives after dark.

LE DRÄQ

Refined without feeling formal, the newest offering from Josef Centeno offers a contemporary take on the French bistro. Thoughtful cocktails, polished dishes, and an intimate atmosphere make it equally suited for date nights, lunches, or client meetings.

2025 FEATURED OPENINGS

CASA IPANEMA

A vibrant dining destination inspired by the energy and elegance of Rio de Janeiro, opened in the historic Millennium Biltmore Hotel in the Financial District. The menu showcases tropical dishes and handcrafted cocktails that celebrate the creative and fresh essence of Latin America.

SANDCOUCH CAFÉ

A charming all-day café and kitchen located at the corner of 7th & Grand in the Financial District, it offers a sunlit, open-air space ideal for casual meetings, remote work, or a relaxing coffee break. The menu features breakfast, brunch, and lunch options, along with handcrafted espresso drinks.

2025 FEATURED OPENINGS

BOICHIK BAGELS

Boichik Bagels brings its celebrated New York–style bagels to Downtown Los Angeles with a sleek, modern shop in the heart of the Historic Core. Known for their perfectly chewy texture and classic boiled-bake method, Boichik offers a nostalgic yet elevated take on the traditional deli experience.

On the rooftop of AC Hotel in the Historic Core, ÜCA Terraza channels the atmosphere of the Riviera Maya with sweeping city views. A menu of Latin-inspired dishes pairs with a cocktail program rooted in agave spirits.

2025 MARKET HIGHLIGHTS

OFFICE LEASES SIGNED

2025 MARKET HIGHLIGHTS

RETAIL AND F&B OPENINGS

Q4 Openings:

Awesome Coffee

Café Knotted

FASHIONPHILE Flagship

FUNHOUSE

Hojokban

Kar Son

Le Draq

VACA

Q1-Q3 Openings:

33 Taps

7 Flag Restaurant & Café

Alfred Coffee

Banh Mii Sandwiches and Food Togo

Berenjak

Bianca Sicilian Trattoria

Boichik Bagels

Bomb Hot Dog

Bookoff

Café 2001

Casa Ipanema

Culturas

Firstborn

Florentin Rooftop Bar

Freddo

Glory Burger

Happibara Station

Happies Hand Made

Inanna Bar

Izakaya Go LA

Mala Master

Malbec

One Piece Café

Pizzeria Republica

REDWHITE BONELESS RAMEN

Restaurant Ki

Sandcouch Café

Smack Em

SmashMasters

The Schnitz

UCA Terraza

Whiskey Stiletto

QUARTERLY TRACKING STATS

The residential market rebounded strongly after a short-term decline during the pandemic, with rent and occupancy returning to pre-pandemic levels. Although occupancy dipped in 2023 due to delivery of over 2,000 new units, it has remained over 90% ever since.

Lingering uncertainty about return-to-work was felt across the region, with vacancy rates reaching a historic high in 2024 and remaining above 30% through 2025. However, asking rents have stayed above $3.70 for three straught quarters, suggesting that a recovery is underway.

QUARTERLY TRACKING STATS

Retail rents have remained remarkably stable, indicating that interest in urban locations like Downtown LA has stayed strong. Although the vacancy rate has ticked up, much of that is due to the introduction of new inventory and the closure of Macy’s at The Bloc.

Both occupancy and RevPAR made significant gains in 2022, ticking up further in 2023 before flattening out at around 10% below their pre-pandemic levels through 2024 and into 2025.

Commercial Development

n Existing

n Under Construction/Renovation

n Proposed

As of 12/31/2025

Residential Development

n Existing

n Under Construction/Renovation

n Proposed

As of 12/31/2025

UNDER CONSTRUCTION

MAJOR MIXED-USE

UNDER CONSTRUCTION

PROPOSED

MAJOR MIXED-USE

PROPOSED

SOUTH PARK

FEATURED PROJECTS Now Open

RESIDENTIAL

OLYMPIC & HILL

Developer: Onni Group

At over 760 feet and 60 stories, this is now the city’s 4th tallest building and tallest residential highrise.

RESIDENTIAL THE UMEYA

Developer: Little Tokyo Service Center

Transit-oriented mixed use development with 175 affordable units and 13,000 SF of community space.

FEATURED PROJECTS Under Construction

CIVIC

LOS ANGELES CONVENTION CENTER EXPANSION

Developer: City of Los Angeles

$2.6B expansion will modernize the facility and add over 200K SF of space, bringing the total to over 1.1M SF.

FEATURED PROJECTS Under Construction

ARTS & CULTURE

COLBURN CENTER

Developer: The Colburn School

Topping out in earlier this year, this 100,000 SF expansion designed by Frank Gehry will include new studios, public spaces, and a 1,000-seat performance venue.

ARTS & CULTURE

THE BROAD EXPANSION

Developer: The Broad I Design: Diller Scofidio + Renfro

Breaking ground in Q2 2025, this 55,000 SF expansion will increase The Broad’s gallery space by 70%, add two top-floor open-air courtyards, and flexible ground-floor event space.

FEATURED PROJECTS Under Construction

UNDER CONSTRUCTION

SIXTH STREET PARC

Developer: City of Los Angeles

12 acres of new park space at both ends of the Sixth Street Viaduct will feature basketball, soccer, and volleyball courts, event space, and performance facilities.

CIVIC PERSHING SQUARE

Developer: City of Los Angeles

The first phase of Pershing Square’s renovation along the Olive St. side of the park was completed in earlier this year. Phase 2 will include similar improvements along Hill St., with existing structures being replaced with new landscaping, and a more open design.

FEATURED PROJECTS Proposed

RESIDENTIAL THE BLOC

Developer: National Real Estate Advisors Design: Handel Architects

41-story tower will sit atop the existing 12-story parking garage and create up to 466 apartments.

MAJOR MIXED USE FOURTH & CENTRAL

Developer: Continuum Partners

Design: Studio One Eleven & Adjaye Associates

10-building project to include over 1,500 residential units, 400,000 SF of office space and 100,000 SF of restaurant/retail space.

MAJOR MIXED-USE

670 MESQUIT

Developer: V.E. Equities

Design: Bjarke Ingels

LA City Council has given their approval to this Arts District project that would add 894 residential units, over 600K SF of commercial space, and a 271-room hotel.

DTLA 2040

The new Downtown Community Plan that was adopted in 2024 provides a blueprint for the next phase of residential growth. It not only increases Downtown’s overall capacity for new residential development, it includes several key provisions that will encourage increased density by providing incentives and eliminating requirements.

KEY FEATURES OF NEW COMMUNITY PLAN

• Increase the portion of Downtown where housing can be built by-right from 33% to 60%

• Updated zoning and land use designations are more tailored to current uses

• 3-level Community Benefits Program provides density bonuses for including affordable housing, open space/community facilities, and contributing to a community benefits fund

• Elimination of parking requirements, allowing developer to assess their needs

• Expansion of adaptive reuse to include any building that is more than 25 years old

EXPANSION OF BY-RIGHT RESIDENTIAL DEVELOPMENT

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Nick Griffin, Executive Vice President (213) 416-7522 I ngriffin@downtownla.com

Elan Shore, Director of Economic Development (213) 416-7518 I eshore@downtownla.com