2022 Annual Report

ANNUAL REPORT

DowntownLA.com/Annual22

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ABOUT THE DCBID

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Founded in 1998, the Downtown Center Business Improvement District (DCBID) has been a catalyst in Downtown Los Angeles’ transformation into a vibrant 24/7 destination. A coalition of more than 2,000 property owners in the Downtown Center, the DCBID members are united in their commitment to enhancing the quality of life in the Downtown Center, a now bustling commercial and residential hub in the heart of the city which includes Bunker Hill, the Financial District, and the Jewelry District. From 24/7 safe and clean operations to a range of economic development initiatives, marketing programs, and community events, the DCBID helps a vibrant community of business leaders, retailers, artists, and residents reach its full potential.

TABLE OF CONTENTS DEAR DOWNTOWN STAKEHOLDER .................... 4 VISITATION INSIGHTS .......................................... 6 QUARTERLY TRACKING STATS ............................. 7 DTLA BY THE NUMBERS ...................................... 8 DTLA MARKET OVERVIEW ............................... 10

Commercial ..................................................... 11

15

Residential ...................................................... 13 OPERATIONS ................................................... 14

Safety .............................................................. 15 Clean ............................................................... 16 BID Outreach .................................................. 18 Team Members of the Year ............................ 19 ECONOMIC DEVELOPMENT ............................. 20

Attraction & Promotion .................................. 22

25

Research & Reports ........................................ 24 Programs & Services ....................................... 25 MARKETING .................................................... 26

Campaigns ...................................................... 27 Events .............................................................. 29 Communications ............................................. 30 Outreach ......................................................... 31

31

FINANCIALS ..................................................... 32 2023 GOALS ..................................................... 34 2022 Annual Report I Downtown Center Business Improvement District

3

DEAR DOWNTOWN STAKEHOLDER Downtown Los Angeles began 2022 amidst California’s biggest COVID outbreak and ended it with much of the market – and more importantly the community – well on the way to recovery. Despite lingering pandemic effects – ranging from significantly reduced office occupancy to troubling public safety considerations – residential occupancy had surpassed pre-pandemic highs at 94%, hotel occupancy was near its 2019 levels, and overall visitation was hovering around the 10 million visits per month mark it had maintained prior to 2020.

as innovative new programs like mobile check-in trails and scavenger hunts. We supported local businesses – both newcomers launching in Downtown and old favorites reopening – through our promotional channels, our Local Business Alliance and Marketing Roundtable groups, and a variety of activation initiatives. We continued to expand and improve our industry-leading website, email, and social media channels to engage the local community and promote DTLA as a prime destination for visiting, shopping, working, and living.

Throughout the year, with unwavering focus, the Downtown Center Business Improvement District (DCBID) provided core services – from security and maintenance to marketing and economic development – to keep the district safe, clean, and vibrant as it reemerged from almost three years of crisis. The BID’s services have helped Downtown Center property owners recover and revitalize through several difficult periods over the almost 25 years of the organization’s existence, and this time will be no exception.

Throughout 2022, the Economic Development team helped shape the narrative and reality of DTLA, leveraging its position as the leading source of information about the Downtown market though our traditional reports and research in addition to pioneering strategies like our virtual tour platform and augmented reality program. Our attraction and promotion initiatives targeted investors, developers, and prospective commercial and residential tenants through our robust communication channels and public relations efforts, which generated extensive and positive media coverage in the local and national press.

Our Safe & Clean team maintained their steadfast commitment to the highest standards of sanitation and security across the 65-block District, 24/7, focusing on increased and enhanced cleaning initiatives and patrols to make the city sidewalks welcoming and secure for those who live, work, play, and visit in DTLA. In 2022, they responded to over 12,214 calls for service, and removed over 110,336 bags of trash and over 73,342 instances of graffiti. Our Homeless Outreach teams also continued their tireless and critical work and were instrumental in connecting unhoused individuals to housing and other much needed services.

Our Marketing team’s efforts also rallied around the community’s needs through our signature events like DTLA Halloween Festival for Kids, major campaigns for the Super Bowl, summertime, and the holidays, as well

As 2022 drew to a close, the DTLA community and much of the Downtown market was thankfully moving beyond the COVID crisis, and despite the challenges we continue to face, Downtown LA remains vital in its own right, and of great importance to the Los Angeles region – not only as its primary core of commercial activity and most significant job base, but also as a vibrant local community of over 90,000 residents; a dynamic global center of arts, culture and entertainment; and the essential hub of its mass transit system.

As we move forward to recovery and revitalization, we thank you, our property owners, for your continued commitment to our District and DTLA.

Dan Cote Chairperson, DCBID Board of Directors

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Downtown Center Business Improvement District I 2022 Annual Report

Suzanne Holley President & CEO, DCBID

2022 Annual Report I Downtown Center Business Improvement District

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VISITATION INSIGHTS DTLA AVERAGE MONTHLY VISITS Although COVID affected communities across the region, DTLA was uniquely impacted by stay-at-home orders. As people remained in their residential communities, trips to DTLA dropped dramatically. 2021 saw significant gains overall but was slowed by the Delta and Omicron variants. With the growth trend continuing in 2022, visits to DTLA are now near pre-pandemic levels.

12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000

1/ 1/ 19 3/ 1/ 19 5/ 1/ 19 7/ 1/ 19 9/ 1/ 1 11 9 /1 /1 9 1/ 1/ 20 3/ 1/ 20 5/ 1/ 20 7/ 1/ 20 9/ 1/ 2 11 0 /1 /2 0 1/ 1/ 21 3/ 1/ 21 5/ 1/ 21 7/ 1/ 21 9/ 1/ 2 11 1 /1 /2 1 1/ 1/ 22 3/ 1/ 22 5/ 1/ 22 7/ 1/ 22 9/ 1/ 2 11 2 /1 /2 2

0

MONTHLY WORKPLACE VISITATION 2022 saw meaningful gains in terms of workplace visitation, with the average number of visits per month in Q4 up by over 15% compared to Q4 2021.

400,000

18.0

3 50,000

16.0 14.0

3 00,000

12.0

250,000

10.0

200,000

8.0

150,000

6.0

100,000

4.0

50,000 0

2.0 Q42019 19 Q1 Q12020 20 Q2 Q22020 20 Q3Q32020 20 Q4Q42020 20 Q1Q1 21 Q2Q2 21 Q3Q3 21 Q4Q4 21 Q1Q1 22 Q2Q2 22 Q3Q3 22 Q4Q4 22 Q4 2021 2021 2021 2021 2022 2022 2022 2022 Total Monthl y Workplace Visitors

0.0

Average Workplace Vi sits Per Worker Per Month Source: Placer.ai

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Downtown Center Business Improvement District I 2022 Annual Report

QUARTERLY TRACKING STATS RESIDENTIAL

Residential $2,800

96%

$2,700

94%

88%

$2,400

86%

$2,300

84%

$2,200 $2,100

82% Q4 19

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Q2 21

Q3 21

Asking Rent Per Unit

OFFICE

Q4 21

Q1 22

Q2 22

Q3 22

Occupancy

Q4 22

Office 25%

$3.75

10%

$3.60

5%

$3.55 $3.50

Q4 19

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

RETAIL

Q2 21

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

Vacancy

Q4 22

0%

Source: CBRE

Retail $3.50

8%

5% $2.75

$2.50

Vacancy

RentRent

6% $3.00

Vacancy

7%

$3.25

4%

Q4 19

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Q2 21

Q3 21

Average Rent Per Square Foot

HOTEL

Q4 21

Q1 22

Q2 22

Q3 22

Vacancy

Q4 22

3%

Source: CoStar

90%

$160

80%

$140

70%

$120

60%

$100

50%

$80

40%

$60

30%

$40

20%

$20

10%

$0

Q4 19

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Q2 21

YTD RevPar

Q3 21 Occupancy

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Occupancy

$180

Occupancy

Hotel

YTD YTD RevPar RevPar

Although occupancy and RevPAR remain below pre-pandemic levels, both have made significant gains in 2022 and are now only 8% below where they were in 2019.

Vacancy

Rent Rent

15%

$3.65

Vacancy

20%

$3.70

Asking Rent Per Square Foot

Retail rents and vacancy have remained remarkably stable through the pandemic, indicating that interest in urban locations like Downtown LA remains strong among most national retail chains.

80%

Source: CoStar

$3.80

Vacancy continued to rise and rents declined slightly as uncertainty about return-towork continued to dampen leasing activity across Southern California.

Occupancy

90%

$2,500

Occupancy

92%

$2,6 00

Rent Rent

The residential market has rebounded strongly after a substantial decline during the pandemic, with current rents and occupancy levels exceeding pre-pandemic record highs due to growing demand and a relative pause in new deliveries.

0%

Source: LA Tourism & Convention Board

2022 Annual Report I Downtown Center Business Improvement District

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DTLA BY THE NUMBERS

DTLA POPULATION GROWTH

18,700

92,024

1999

2022

Source: DCBID Downtown LA Market Reports

DCBID PROPERTY VALUE

$20.9 BILLION $9.3 BILLION

$15.3 BILLION

2022

Total increase

2008

$4.8 BILLION 1999

Source: Los Angeles County Office of the Assessor

DTLA RESIDENTIAL UNITS

DTLA AVERAGE CONDO PRICE Per Sq. Ft.

53,815 11,626 1999

$678

$169 2022

1999

2022 Source: DCBID Downtown LA Market Reports

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Downtown Center Business Improvement District I 2022 Annual Report

DTLA BY THE NUMBERS

A VIBRANT COMMUNITY

$85,000

62%

Average household income of residents

Residents between the ages of 25-49

315,000 +

17.4 M

Jobs

Visitors in 2022

63%

Residents with postsecondary education

184

Food & Beverage Businesses Per Square Mile

Source: DTLA 2023 Outlook & Insights Report

CONTINUED GROWTH Current Inventory

Under Construction

Pipeline

HOTEL ROOMS

9,945

2,250

6,695

RESIDENTIAL UNITS

53,815

5,192

28,863

Source: DCBID Downtown LA Market Report, Year-End 2022

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DTLA MARKET OVERVIEW INVESTMENT IN DOWNTOWN LA 1999–2022 $2.5 billion

Arts & Entertainment Civic & Institutional

$5 billion

$2.5 billion

Commercial

$8 billion

Mixed-Use

$15 billion

Residential

$2 billion

Figueroa Corridor/Expo Park

DCBID PROPERTY VALUES 1999-2022 Billion dollars 21

$20.9B

20 19

336%

18 17 16 15

Total increase 1999-2022

14 13 12 11 10 9 8 7

4.9%

6 5 4 3

Total increase 2021-2022

$4.8B

2

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1

Source: Los Angeles County Office of the Assessor

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Downtown Center Business Improvement District I 2022 Annual Report

DTLA MARKET OVERVIEW: COMMERCIAL SIGNIFICANT OFFICE LEASES 2022 TENANT

BUILDING

ADDRESS

TYPE

SQ FT

SPARC

CMC

110 E. 9th St.

New

164,000

Buchalter

Wedbush Center

1000 Wilshire Blvd.

Renewal

82,335

Musick, Peeler & Garrett

Bank of America Plaza

333 S. Hope St.

New

52,966

Virgin Hyperloop

ROW DTLA

777 S. Alameda

Expansion

49,800

Alston & Bird

City National 2Cal

350 S. Grand Ave.

New

47,567

HOK

ROW DTLA

777 Alameda St.

New

40,000

Lucas Museum of Narrative Art

The Bloc

700 S. Flower St.

New

25,400

KEY COMMERCIAL STATISTIC

2.2M

Total square feet office space leased in 2022 Source: CoStar

OFFICE VACANCY & RENT TRENDS 2001-2022 25%

$50

$44.04

l = DIRECT AVERAGE RENT PER SQ FT l = DIRECT VACANCY

21.0%

$40

$30

$20

20%

12.9%

15%

$24.84

10%

5%

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

$10

Source: DCBID Downtown LA Market Reports

2022 Annual Report I Downtown Center Business Improvement District

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DTLA MARKET OVERVIEW: COMMERCIAL DCBID SIGNIFICANT COMMERCIAL SALES 2022 ASSET

ADDRESS

BUYER

BUILDING SQ FT

$ PER SQ FT

THEA at Metropolis

1000 W. 8th St.

Northland

Greenland USA

$504m

SB Apartments Portfolio (5 properties)

Multiple

Laguna Point Properties

Royalty Realty

$402m

6th & Alameda Food & Produce Center

1205-1321 Wholesale St.

East End Capital

SunCal Companies

$240m

The Aliso

950 E. 3rd St.

Legendary Development

Brookfield Properties

$155m

800 S. Hope

800 S. Hope St.

Verizon

CalSTRS

$130m

FOOD AND BEVERAGE OPENINGS Agua Viva Asterid Bar Clara Basil and Cheese Café Bike Shed Moto Co. Bond Collective Bossa Nova Brazilian Cuisine Asterid

Café Basque Civil Coffee El Patron Cantina Frank Coffee Gusto Green Guzzu Bento-ya Gyu-Kaku Japanese BBQ Hansei

Marlou DTLA

Hearts & Flame

Inka Wasi Peruvian Jollibee La Conde Mandolin Taverna Marlou DTLA Millet Crepe Nakara Native Son Pine & Crane Pizzeria Bianco Polanco DTLA Rosemary Grill San Laurel Sawa Smoke City Char Bar Te Isshoku White Elephant

KEY DTLA RETAIL & HOTEL STATISTICS

900K

2,250

Square feet of retail space under construction

New hotel rooms under construction Source: DCBID Downtown LA Market Reports

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Downtown Center Business Improvement District I 2022 Annual Report

DTLA MARKET OVERVIEW: RESIDENTIAL NEW DTLA RESIDENTIAL OPENINGS IN 2022 ASSET

ADDRESS

NUMBER OF UNITS

The Grand by Gehry

151 S. Olive St.

436

SP7

519 E. 7th St.

81

DTLA AVERAGE CONDO PRICE & RENT

$678 $3K

$700 l = AVERAGE CONDO PRICE PER SQ FT l = AVERAGE EFFECTIVE RENT PER UNIT

$2,822

$600

$2.5K $500

$400

$300

$2K

$1,917 $1.5K

$200

$191 $100

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

$1K

KEY DTLA RESIDENTIAL STATISTICS

93%

28,863

5,192

Downtown residential occupancy rate

Proposed residential units

Units under construction Source: DCBID Downtown LA Market Reports

2022 Annual Report I Downtown Center Business Improvement District

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Operations Keeping the District Safe and Clean The Downtown Center Business Improvement District (DCBID) takes pride in ensuring that the District remains vibrant through the provision of safe and clean streets. To achieve this, the Safety and Clean Teams are committed to providing supplementary services to those who live, work, play, and visit the 65-block District on a daily, 24hour basis. In 2022, the Teams were able to address 89,813 District issues, including responding to 12,214 calls for service. Additionally, the PATH Outreach team, which is specifically trained for this purpose, was able to assist those experiencing homelessness and connect 62 individuals with housing services. n OPERATIONS OVERVIEW SAFETY The members of our Safety Team are contracted employees of Allied Universal Services and have undergone various training programs, including enhanced customer service and assisting those in need, among others. They act as an extension of local law enforcement and city entities by providing additional surveillance and information-gathering.

CLEAN To ensure the cleanliness of sidewalks and public areas in the District, we have a dedicated Clean Team. These team members are contracted through Chrysalis, a non-profit organization that provides transitional employment opportunities to individuals who were previously unhoused or economically disadvantaged. By working with Chrysalis, we aim to support these individuals as they regain their footing and build a more stable future.

BID A.C.T.I.O.N. Shortly after the DCBID was formed in 1998, we developed the BID A.C.T.I.O.N. (Ambassador Community Training for Intervention, Wellness, Outreach & Networking) program to better engage and provide services to individuals experiencing homelessness in the Downtown Center neighborhood. In 2015, we expanded this program by partnering with PATH (People Assisting the Homeless), an organization with more than 35 years of experience in helping homeless individuals find a path towards stable housing. Through this collaboration, we strive to make a positive impact on the lives of those in need in our community.

KEY OPERATIONS STATISTICS

12,214 Calls for service

14

89,813

District issues addressed

Downtown Center Business Improvement District I 2022 Annual Report

2,222

Homeless services provided

SAFETY In 2022, the DCBID Safety Team strategically increased its visibility and deployment to best support the continued return of office workers and visitors to the District.

The goals were to act as a deterrent for illegal activity, quickly respond to individuals and properties in need, and promptly report maintenance-related issues. The team continued to patrol the District, ensuring that the area remains safe and clean for everyone who lives, works, and plays in the neighborhood.

n DISTRICT SAFETY In response to changing pedestrian activity throughout the year, the DCBID Safety Team deployments were continually adjusted to enhance public safety by providing higher visibility - both in vehicles and on foot.

Additionally, the DCBID designed new signage that was posted on trash cans throughout the District featuring the 24-hour Safety Hotline number in a larger, easily readable font. The DCBID purchased 15 new electric bikes to help our safety team more effectively navigate hills and increase patrols throughout the District. Also, in partnership with CD14, LAPD, and the City Attorney’s Office, we presented safety awareness meetings for residents and office workers in multiple locations throughout the District.

n SAFETY TRAINING The DCBID contracts for safety services through Allied Universal Services (AUS) who provides up-to-date training to the Safety Team. In 2022, this included COVID-19 safety measures, scenario-based exercises, E-Bike safety, CPR/First Aid, and Fentanyl awareness.

Additionally, all our Safety Team members are trained in the Management of Aggressive Behavior (MOAB). This 16-hour course specifically trains our team in how to respond to aggressive behavior using de-escalation techniques to effect peaceful resolutions.

2022 Annual Report I Downtown Center Business Improvement District

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CLEAN In 2022, the DCBID Clean Team continued to address various maintenance issues throughout the District, focusing on trash removal, pressure washing, tree trimming, and graffiti removal. As more office workers returned to work, the need for additional cleaning services also increased. To help address this need, a second mobile pressure washing club car was purchased, making it easier and safer to clean hard-to-reach spots throughout the District. Additionally, the DCBID leased a MadVac LS175 drivable street sweeper that is able to clean the curb line within the new bike lanes. n THE NEW MADVAC LS175 The DCBID Clean Team upped their street sweeping game with the addition of the Macvac LS175 street sweeper. Increased cleanliness has always been a priority for our stakeholders and this new addition to the fleet is here to meet that need. With the addition and expansion of bike lanes within the Downtown Center, curb line sweeping has become increasingly important to ensure that lanes are clean and safe for commuters. The Madvac easily navigates these narrow lanes and supplements the Clean Team’s people-powered street sweeping operation.

n PRESSURE WASHING To handle the increase in pedestrian traffic, the Clean Team carried out significant pressure washing efforts, resulting in 181,820 sidewalk cleanups in 2022. To ensure that all parts of the District were covered, a second pressure washing club car was added to the Clean Team’s vehicle fleet. This specialized club car comes equipped with a 100-gallon water tank that can spray a powerful 4000 PSI stream of water, making it capable of cleaning a variety of surfaces and helping to respond to a consistently high level of calls for washdowns from the community. The addition of this club car, coupled with expanding water capacity on the power washing trucks, and adding power washing equipment to the cleaners’ carts, has allowed the DCBID to be able to consistently increase its cleaning efforts every month.

KEY CLEAN TEAM STATISTICS

110,336 Bags of trash removed

16

73,342 Graffiti clean ups

Downtown Center Business Improvement District I 2022 Annual Report

181,820 Sidewalk wash-downs

CLEAN

n TREE TRIMMING Tree trimming is essential to managing overgrown trees that may block streetlights or grow into the sides of buildings and improves the cleanliness of the sidewalks below. In 2022, the DCBID trimmed 153 trees in the District. Since the DCBID began providing this service in 2014, over 1,600 trees have been trimmed within the Downtown Center.

n GRAFFITI CLEANUP Property and business owners in the District continue to face the challenge of graffiti. To address this issue, the Clean Team removed 73,342 instances of graffiti and stickers on buildings, fixtures and light poles throughout the District.

n TRASH CANS Twenty-five new waste receptacles were purchased and placed throughout the District. In an effort to improve District cleanliness and promote recycling, decals were placed on the top rim of selected trash receptacles identifying an easily accessible area where recyclables could be placed.

2022 Annual Report I Downtown Center Business Improvement District

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BID OUTREACH n DCBID OUTREACH

KEY PATH PARTNERSHIP STATISTICS

2,222 Services provided

62

Individuals connected to housing services

416 New individuals contacted

968 Contacts made

18

The BID A.C.T.I.O.N. (Ambassador Community Training for Intervention, Wellness, Outreach & Networking) program was developed in 2000 to provide the skills and tools necessary for DCBID personnel to engage and provide services to the homeless. In 2015, the program was expanded through a contract with PATH (People Assisting the Homeless). For over 35 years, PATH has been helping the homeless throughout California “find a path home” by providing permanent supportive housing, case management, medical and mental healthcare, employment training, and other services to help individuals maintain their homes.

Since 2013, PATH has connected more than 16,000 people to permanent housing. The DCBID contracts with PATH to provide two full-time mobile outreach teams to connect those experiencing homelessness within the District to a variety of services—ranging from giving clothing, blankets, and transportation, to accessing medical services, rehabilitation programs, and temporary and permanent shelter. The DCBID has dedicated nearly $3 million on homeless outreach since 2000 and budgets over $250,000 a year for these services.

n CHRYSALIS PARTNERSHIP For over 20 years, the DCBID has contracted with Chrysalis to staff the DCBID’s Clean Team. The contract relationship between the DCBID and Chrysalis provides approximately 36 ongoing transitional employment positions. These positions provide valuable work experience which helps to remove barriers to permanent employment for individuals who have recently overcome life challenges, like incarceration, homelessness, or drug addiction. Since its formation in 1998, the DCBID has invested approximately $22 million with Chrysalis Enterprises which has provided approximately 2,400 Chrysalis clients with transitional employment opportunities with the DCBID. Those clients have worked more than one million hours, and 70% of those who transition to permanent employment remain employed after six months.

Downtown Center Business Improvement District I 2022 Annual Report

TEAM MEMBERS OF THE YEAR Each quarter, the DCBID recognizes Safety and Clean Team members who have gone above and beyond the call of duty.

Leonard McCaffrey, Safety Team

Willie Montoya, Clean Team

Leonard has been with the DCBID since November 2021. He currently works as a Bike Patrol Officer on the early morning shift. Since he joined the Safety Team, he has been eager to learn every aspect of the job and has proven to be an exceptional communicator.

Jesus Rendon, Safety Team

Since joining the DCBID in March 2021, Willie has been a huge asset for the morning maintenance team.

He has great attention to detail and is very willing to train new workers, offering helpful cleaning tips and tricks. He is committed to keeping Downtown clean.

Carlton Miller, Clean Team

Jesus has been with the Safety Team since June 2021 and has excelled at his role. His continued growth and willingness to learn every part of the job has made Jesus a fantastic mentor for incoming trainees. He has shown an ability to take initiative within a group setting.

Daniel Ayon, Safety Team

Carlton joined the Clean Team in May 2021 and was promoted in 2022 to a maintenance vehicle driver due to his exemplary work performance. Carlton has brought his enthusiastic attitude and strong work ethic to every position he has filled with the DCBID. Elijah Gonzalez, Clean Team

Daniel has been with the Safety Team since March 2022. He has proven himself to be reliable and professional with his coworkers and citizens, extending a helping hand whenever needed. Daniel has recently taken the opportunity to mentor incoming employees.

Cruz Diaz, Safety Team

Elijah joined the Clean Team in August 2022. Elijah’s strong work ethic has made him an invaluable asset to our team. His passion for our district transcends maintenance as he promotes positive energy. His insatiable desire to provide optimal service to the community is inspiring.

Nikkita Jordan, Clean Team

Cruz joined the DCBID as a dispatcher in September of 2021 and has shown great dedication since day one. He exhibits many qualities that are essential to daily operations and maintains a calm demeanor when dealing with both routine calls and high-priority incidents.

From the first moment that Nikkita Jordan joined the DCBID Clean Team as a sweeper in October 2022, her positive attitude was an inspiration to those around her.

She is always prepared to work and approaches her day with a sense of responsibility and urgency.

2022 Annual Report I Downtown Center Business Improvement District

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Economic Development Supporting Recovery & Revitalization While 2022 began amid a major COVID outbreak, by year’s end, much of the Downtown market was well on the way to recovery with the residential, hospitality, and retail sectors at or near pre-pandemic levels. The office sector, however, continued to struggle, with uncertainty about how lower occupancy levels and fewer daytime workers might impact DTLA’s overall vitality. Downtowners also continued to have concerns about public realm conditions and public safety.

In response to these challenges, the Economic Development team developed innovative strategies for attraction and promotion: expanding our award-winning DTLA Virtual tour program to include consumer- and hospitality-focused tours; and launching our new DTLA Augmented platform to attract visitors, showcase our major cultural institutions, and activate our public spaces.

The team also continued to build on our position as the leading source of information about DTLA: we continued to publish our quarterly market reports throughout the year; updated our industry-specific reports; and produced our first annual DTLA Outlook & Insights “state of Downtown” report, which included our signature survey of Downtown residents, workers, and visitors.

We promoted these and other DCBID research and reports through our social media channels, our monthly newsletter: “DTLA Business News & Insights,” and our public relations efforts which helped generate positive media coverage in publications ranging from The Wall Street Journal to the Los Angeles Times.

To better serve our local businesses, we merged our newly established Local Business Alliance with our long-standing Marketing Roundtable.

Despite the challenges we continue to face, Downtown remains vital to the LA region - not only as its primary core of commercial activity and most significant job base, but also as a vibrant local community of over 90,000 residents; a dynamic global center of arts, culture, and entertainment; and the critical hub of its regional mass transit system. Maintaining that vitality continues to be the economic development team’s core mission.

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Downtown Center Business Improvement District I 2022 Annual Report

Regional Connector station: Grand Av Arts/Bunker Hill 2022 Annual Report I Downtown Center Business Improvement District

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ATTRACTION & PROMOTION

n DTLA VIRTUAL

The DCBID’s award-winning DTLA Virtual tour platform provides the BID – as well as real estate brokers, developers, prospective tenants, and visitors – with a cutting-edge tool to showcase and explore DTLA nationally and globally. In 2022, we added three new curated tours: “OFFICE,” which is a companion to our DTLA Works report; “STAY,” which focuses on hospitality; and “PLAY,” which showcases arts & culture, dining, and entertainment. We also continue to expand our integration of DTLA Virtual with other BID marketing and economic development content and communications, programs, promotions, and events.

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Downtown Center Business Improvement District I 2022 Annual Report

ATTRACTION & PROMOTION n DTLA AUGMENTED

In October, the DCBID launched Grand Ave Augmented, a pioneering augmented reality (AR) experience in conjunction with the annual Grand Ave Arts All Access event. The program was designed to: attract visitors; activate Grand Avenue; showcase its major cultural institutions, properties, public spaces, and businesses; support local artists; and promote DTLA as a place of innovation and creativity.

The program included over 40 AR activations featuring the work of more than 25 artists and creators and the participation of two dozen stakeholder partners. On opening day, 500 people downloaded the app and generated over 5,000 views of the activations.

The project also garnered over 100,000 impressions on our digital and social media channels.

2022 Annual Report I Downtown Center Business Improvement District

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RESEARCH & REPORTS SECOND QUARTER,2O22 2O22 FIRST QUARTER,

DOWNTOWN LA

MARKET

REPORT

SECOND QUARTER, 2O22

THIRD QUARTER, 2O22

n INDUSTRY REPORTS

The DCBID creates and maintains industry-specific reports – including those for the office, retail, and arts & culture sectors – that provide investors, brokers, other professionals, and businesses with a deeper understanding of the Downtown LA market. In 2022, we published updated and redesigned issues of our office and retail reports.

Photo by Vistity

Photo by Vistity

Photo by Vistity

n QUARTERLY

MARKET REPORTS

Each quarter we produced and published our Downtown LA Market Report – including key market stats, development updates, and visitation data. The reports and related interviews received coverage in a variety of media outlets including the Los Angeles Times, Los Angeles Business Journal, LA Downtown News, Urbanize, Commercial Observer, Bisnow, and Connect CRE. The reports were also promoted on our website, newsletters, and social media channels.

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n DTLA 2022 OUTLOOK & INSIGHTS Building on the DCBID’s signature biennial Survey of Downtown Residents, Workers, and Visitors, we produced DTLA 2022: Outlook & Insights – our first annual “state of Downtown” report, incorporating demographic and economic data, consumer behavioral trends, market analysis, location and visitation data, and information from our proprietary targeted survey to provide a comprehensive and detailed picture of Downtown LA as a market and a community.

Downtown Center Business Improvement District I 2022 Annual Report

PROGRAMS & SERVICES n STREETLIGHT BANNERS & STOREFRONT BILLBOARDS

The DCBID’s streetlight banner program is designed to beautify and promote the District, with the theme of DTLA: Today Meets Tomorrow. In 2022, we had a total of 77 banners displayed in key locations around the District. Our Storefront Billboards program is meant to enhance the streetscape and showcase available retail spaces with window displays publicizing the best of DTLA and DCBID programs.

n OUTREACH, RECRUITMENT & CONSULTING SERVICES

To promote Downtown’s economic vitality, the DCBID supports investment and development, and works to attract and promote businesses, by providing information, insights, and general assistance to a wide range of companies and individuals, including: •

Residential, Office, Retail, and Hospitality Investors and Developers

•

Prospective Office, Retail, and Residential Tenants

•

Existing Retailers, Restauranteurs, and Service Providers

•

Cultural, Educational, and Non-Profit Institutions

•

Commercial and Residential Real Estate Brokers

2022 Annual Report I Downtown Center Business Improvement District

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Marketing Fostering Community and Supporting Businesses Downtown LA is a diverse community of businesses, workers, visitors, and residents who are still greatly impacted by the aftermath of the pandemic. Our marketing efforts rallied around using our email, social media, and digital marketing channels to engage the local community and support District businesses with strategic programs, campaigns, and events.

To that end, we launched two mobile check-in trails: DTLA Food Hall Favorites and DTLA Coffee Trail, which encouraged participants to check into local businesses on the trail to earn prizes, and two seasonal scavenger hunts: DTLA Summer Adventure and DTLA Holiday Adventure, with 30-40 fun and festive challenges around Downtown Center with a combined 800 participants. We also produced marketing campaigns for the Super Bowl, Summer and the Holidays, and continued our return to in-person events with the perennial favorite DTLA Halloween Festival for Kids and the addition of a series of Holiday Ice Skating events at Pershing Square.

Our website, DowntownLA.com, continued to exceed prepandemic traffic with over 657,800 website users – up by 93.4% compared to 2019. The website continues to be a valuable resource to learn about exploring, living, and working in DTLA. On our social media platforms (Facebook, Instagram, Twitter, and LinkedIn), we had over 7.1 million impressions and video became our best performing content with over 435,280 video views (up 317% from 2021). We launched our presence on TikTok in September 2022 to increase our reach and to target new audiences. With 36 TikToks posted, we had over 41,000 video views and 4,000 engagements. Our email series, “This Week in DTLA," amplifies all that is happening Downtown including an adventure of the week, happy hours, upcoming events, and highlights on businesses.

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Downtown Center Business Improvement District I 2022 Annual Report

SOCIAL MEDIA FOLLOWERS

44,754 Facebook

72,781 Instagram

40,072 Twitter

1,274 LinkedIn

2,716 TikTok

CAMPAIGNS

n DTLA Coffee Trail n DTLA Food Hall Favorites This mobile pass highlighted the best dishes from vendors in food halls in the Downtown Center. From April through August, people could sign-up for the DTLA Food Hall Favorites pass and see a list of vendors from Grand Central Market, Halo, TASTE at FIGat7th, and St. Vincent Court. Each vendor showcased a favorite dish and people checked in to each vendor. For prizes, people won stickers, tote bags, and gift cards based on their number of check-ins. In total, we had 539 signups and 696 check-ins.

This mobile pass highlights the coffee shops within the Downtown Center.

When someone visits a coffee shop, they can check-in on the mobile pass, which uses GPS technology to ensure a visitor is at the location. After 5 check-ins, a person wins a $10 gift card to a DTLA coffee shop. To date, we have had 463 sign-ups and 479 check-ins.

n DTLA Summer Adventure

n DTLA Holiday Adventure The DCBID launched its 2nd annual DTLA Holiday Adventure with over 40 fun and festive challenges to complete around Downtown Center, like taking a photo in front of the holiday lights at THE BLOC or viewing AR activations in Pershing Square. The Holiday Adventure attracted 248 participants who completed over 3,700 challenges.

Following the success of the DTLA Holiday Adventure in 2021, the DCBID launched its first DTLA Summer Adventure with 30 fun and summery challenges such as taking a photo by a pool and sharing their favorite summer beverage. The Summer Adventure attracted 561 participants who completed over 3,400 challenges.

2022 Annual Report I Downtown Center Business Improvement District

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CAMPAIGNS n Game Day in DTLA 2022 kicked off with the Super Bowl and DCBID launched a Game Day in DTLA campaign to welcome visitors and drive traffic to District businesses. The campaign included: deployment of our Downtown Guides in strategic locations with Super Bowl-branded hats and buttons; a landing page highlighting businesses, events, and a “Your Tab is on Us” giveaway; and a paid ad, social media, and email campaign.

n DTLA for the Summer After a hiatus in 2020 and 2021, the DTLA for the Summer campaign resumed this year with the goal of driving traffic into Downtown and generating positive messaging through our promotional programs. This campaign included: a dedicated landing page; DTLA Summer Adventure scavenger hunt; and a DTLA Summer Photo Contest. Paid advertising included Instagram, Facebook, LA Downtown News, and Los Angeles Magazine - all of which garnered over 1.5 million impressions.

n DTLA for the Holidays Our annual DTLA for the Holidays campaign launched in November with the goal of driving traffic into Downtown during the holidays. Our dedicated campaign page promoted retail, events, and dining for the holidays, in addition to our DTLA Holiday Adventure scavenger hunt and our partnership with Holiday Ice Pershing Square. Advertising ran on Instagram, Facebook, LA Downtown News, and Los Angeles Magazine totaling nearly 950,000 impressions.

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Downtown Center Business Improvement District I 2022 Annual Report

EVENTS n Halloween The 15th Annual DTLA Kids Halloween Festival returned to FIDM Grand Hope Park with over 1,000 attendees. This year’s event featured all new trick-or-treat doors for kids, beloved character meetand-greets, live puppet and magic shows, and candy, hot dogs, and snacks for all eventgoers. Several families expressed their gratitude for providing a safe space for kids to experience Halloween in DTLA, and we want to extend a special thank you to our longtime event partner FIDM.

n Other Events Throughout the year, the DCBID supported and collaborated with various events, such as the YMCA Stair Climb Block Party, Best New Restaurants at Halo, Music at the FIGat7th Farmers Market, Whiskey Festival DTLA at THE BLOC, National Night Out, and co-hosted quarterly blood drives at THE BLOC in partnership with the American Red Cross. We also partnered with Holiday Ice Rink Pershing Square, offering DJ nights every Wednesday and at the three lunchtime skates for office workers.

n Worker Appreciation Lunch Break Skate The DCBID hosted an office worker skate at Pershing Square Holiday Ice Rink throughout the month of December, welcoming over 450 attendees over the course of three sessions. 83% of attendees rated the experience a 5 out of 5 with 67% reporting that the Lunch Break Skate was part of their decision to work in DTLA that day – compared to just 14% that work in the office daily. As a result of our first successful office worker event, we recognize the importance of continuing to create opportunities that encourage workers to return to offices in DTLA. 2022 Annual Report I Downtown Center Business Improvement District

29

COMMUNICATIONS See what’s happening in your district

FIRST QUARTER, 2O22

See what’s happening in your district

SECOND QUARTER, 2O22

DISTRICT BUSINESSES

’s DT L A

BACK COME THIRD QUARTER, 2O22 NEW DISTRICT

See what’s happening in your district

HOORAY FOR DTLA

The data is there. DTLA’s comeback is here.

The momentum of Downtown LA’s recovery is accelerating as more restaurants open, more office workers return, and more large-scale events appear on the horizon. The DCBID launched its DTLA Comeback campaign to highlight these exciting developments, as chronicled in our Year-End 2021 Market Report and DTLA 2022: Outlook & Insights report, both of which were released at a DCBID-sponsored in-person event showcasing DTLA’s resurgence. Read more inside!

Kippered

BY THE NUMBERS

people visited DTLA in 2021

93%

of DTLA workers plan to return to the office

themarlou.com

361NEW S Broadway FOURTH QUARTER, 2O22 DISTRICT

See what’s happening in your district

15M+

OPENING BUSINESSES Marlou DTLA 819 S. Flower St. New upscale brunch, lunch, and dinner destination from Chef Louis & Chef Marcos.

94%

record-breaking residential occupancy

DTLA FOR THE SUMMER! Soak up the sun in Downtown LA

to share pictures of their time spent The DCBID kicked off our DTLA for the exploring Downtown. Thirty winners Summer promotional campaign with a will be selected over the summer to scavenger hunt, photo contest, and food each win $100 in gift cards to Downtown hall adventure. All the details can be businesses and winning photos will be found at DowntownLA.com/Summer, DCBID wraps up our seasonal promotional campaign on display on the DTLA for the Summer which also highlights exciting Downtown with 80% saying participating in the This summer, theoutdoor DCBID hosted very webpage.

Finally,that download the Food summer events, dining aoptions, adventure improved of popular DTLA Summer Hall Favorites Pass totheir your perception mobile phone and a shopping guide. Adventure Downtown.

Many also shared that mobile-app hunt as part to get curated listsusers of stand-out dishes The DTLA scavenger Summer Adventure is aof the challenge encouraged themAs to an spend our seasonal promotional from DTLA’s popular food halls. mobile scavenger hunt thatcampaign. sends users more time enjoying DTLApoints and the local Designed be a 3-mile loop gems through added bonus, users earn with on a path to discover hidden and attractions—with 94% indicating thatfor the Downtown the adventure every check-in at featured locations must-sees in theCenter, Downtown Center. theychance dined, to shopped, orswag. visitedThe a museum included 30 fun, summer-themed the win DTLA pass Adventurers complete challenges along or a performance in the area.

Scavenger challenges fromtoGPS features restaurants from Grand Central the way forranging the chance wincheck-ins DTLA hunt winners were awarded gift and cards to triviagift questions to more. submitting user Market, TASTE Food Hall, Halo, St.to prizes, cards and The Summer various in-district photos and videos.

In total, over 550 Vincent Court. businesses and DTLA Photo Contest invites the community prizes like tote bags and sunglasses. participants completed 3,477 challenges Overall, the challenge proved to be a including 1,000 photos submitted great way to inspire the public to explore and 330 videos recorded.

Those that The Intersection of Art, Technology & Place Downtown this summer. participated provided great feedback On October 22nd, the DCBID unveiled Grand Ave Augmented, a pioneering augmented reality experience featuring more than 40 AR activations by over 30 artists and Here is– some of the feedback shared with the DCBID: creators including original art works, virtual performances, interactive holograms, and“It immersive theplaces boundaries art and tech. Part made360° meenvironments realize a that lot push more inofdowntown exhibition, part walking tour, the project designed to attract and engage had reopened.

Also, tried was a lot of new places!”

Downtowners and visitors and showcase the world-class arts and culture of Grand “I loved discovering places I had notspaces. seen This andunprecedented seeing Avenue, along with its beautiful architecture and public the incredible in the Bunker Hillandarea partnership of over two developments dozen cultural institutions, property owners, businesses includes fromthere.” the Central Library and Maguire Gardens on the south since25Ilocations was last end to the Music Center and Grand Park on the north. The inaugural program of the DCBID’s new DTLAugmented channel is hosted on the AR publishing platform Hoverlay.

Grand Ave Augmented is open to all and will be on display throughout 2023. Be sure to explore Grand Ave Augmented at DowntownLA.com/AR.

GOODBYE TO SUMMER

GRAND AVE AUGMENTED

AR activations include “California Oasis” (left) and “Angels of LA”.

FromBUSINESSES the owners of DTLA Cheese, Kippered is a new bar with a focus on sparkling wine and tinned fish served with baguettes, olives and, NEW DISTRICT of course, cheese.

RE-OPENING BUSINESSES instagram.com/get_kippered Little Sister 523 W. 7th St. Funky bistro serving unforgettable Vietnamese food, craft beers & wines. littlesisterla.com La Conde 800 W 6th St

laconderestaurants.com

Asterid INKA WASi 141 SW. Grand Ave 605 7th St. Chef Ray Garcia is back with inkawasi.com his newest endeavor with a California-inspired menu on the Te Isshoku Sushi ground floor of of Walt Disney 633 W. 5th St. Concert Hall.

Hotel Per La te-isshoku.square.site asteridla.com 649 S Olive St hotelperla.com

Conrad Los Angeles

100 S Grand Ave DTLA HALLOWEEN thegrandla.com FESTIVAL FOR KIDS The DCBID hosted the 15th Annual DTLA Kids Halloween Festival this October with over 1,000 attendees.

This successful event featured special trick-or-treat doors for kids, beloved character meet-and-greets, live puppet and magic shows, and candy, hot dogs, and snacks for all eventgoers. Several families expressed their gratitude to the DCBID for providing a safe space for kids to experience Halloween in DTLA, and we want to extend a special thank you to our longtime event partner FIDM.

n NEWSLETTERS Quarterly District News The DCBID published and mailed four quarterly newsletters to all property owners within the District. The District News newsletters provided information on DCBID programs, events, and Operations statistics to keep our stakeholders informed.

This Week in DTLA Email Newsletters 2022 was the first full year of sending out “This Week in DTLA” every week, having transitioned from “This Month in DTLA.” The weekly newsletter highlights new businesses, events, seasonal marketing campaigns, and exclusive specials. To date, over 194 in-district businesses have been featured. The emails are sent to over 28,000 subscribers weekly and had an average 34% open rate in 2022.

n MEDIA COVERAGE – KEEPING DTLA IN THE NEWS DCBID programs and initiatives resulted in 171 media placements (a 90% increase from 2020) garnering 651 million impressions valued at $15.78 million. Our PR efforts resulted in story generation, as seen by articles such as Despite pandemic, DTLA showing ‘remarkable growth’ report says that was produced as a result of pitching our Economic Development reports, and shaping a positive narrative about DTLA, as seen through articles such as Downtown Los Angeles ready to welcome workers back to the office that provided positive messaging around DTLA’s readiness to welcome office workers back. The DCBID is continuously a leading source of information as demonstrated by publications quoting our market reports including Bloomberg, Los Angeles Business Journal, Bisnow, and the Los Angeles Times.

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Downtown Center Business Improvement District I 2022 Annual Report

OUTREACH

n DOWNTOWN GUIDES As residents, workers, and visitors kept returning to Downtown, our Downtown Guides were prepared to receive them warmly. The Downtown Guides play a crucial role in establishing a supportive community in our District for businesses and individuals. Additionally, the Guides extended further assistance for various DCBID and partner events throughout the year. In terms of safer streets, the Guides act as an additional set of eyes and ears for our Safety Team.

KEY MARKETING STATISTICS

1.27 Million

35,302

Website page views

Email subscribers

657,826

34.6%

Website users

Email open rate

2022 Annual Report I Downtown Center Business Improvement District

31

Financials Statement of Activity (For the Year Ending December 31, 2022) REVENUES

EXPENSES

Other Income 0.3%

Maintenance 32.8%

Assessment Revenues 99.7%

Assessment Revenues Other Income Total Revenue

$7,506,988 $23,915 $7,530,903

Downtown Center Business Improvement District I 2022 Annual Report

Destination Marketing 11.9%

Economic Development 8.8%

Public Safety 30.1% Administration 13.6%

Total Revenue $7,530,903 Total Expenses $7,823,819 Decrease in Net Assets $292,916

$255K 32

Community Service 2.8%

YEAR-END NET ASSETS

REVENUES & EXPENSES DCBID ASSESSMENT REVENUES 2022 VS. 2021

$7.5 M $7.4 M

2022 2021

DCBID PROGRAM EXPENSES BREAKDOWN 2022 VS. 2021 PUBLIC SAFETY $2,352,236 $2,228,918

MAINTENANCE $2,561,007 $2,585,964

COMMUNITY SERVICE $222,148 $220,586

DESTINATION MARKETING $931,904 $857,376

ECONOMIC DEVELOPMENT $691,944 $673,411

ADMINISTRATION $1,064,580 $1,005,210

2022 Annual Report I Downtown Center Business Improvement District

33

2023 GOALS As we emerge from the pandemic, our goals - to provide a safe, clean, and vibrant District - do not change but our efforts are evolving to respond to continually changing conditions.

OPERATIONS • Continue to provide exemplary safety and cleaning services to keep our District safe and healthy.

• Through our various partnerships, address the unique challenges facing individuals experiencing homelessness in our District.

• Strengthen community engagement with DCBID stakeholders, residents, and visitors as workers continue to return and foot traffic increases.

ECONOMIC DEVELOPMENT • Leverage our position as the leading source of information about Downtown to support and promote District properties, businesses, and organizations.

• Use inventive strategies and new technologies to promote DTLA as a place of innovation and creativity.

• Shape the narrative about and perception of DTLA. MARKETING • Drive traffic to Downtown LA through innovative campaigns and promotions.

• Amplify community engagement through events, activations and partnerships.

• Grow our audiences through authentic and cutting-edge content that shapes the perceptions of Downtown LA.

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Downtown Center Business Improvement District I 2022 Annual Report

BOARD OF DIRECTORS EXECUTIVE OFFICERS Dan Cote, Chair The Bloc Robert Cushman, Past Chair Brookfield Properties Cari Wolk, Secretary Athena Parking, Inc. Sauli Danpour, Treasurer Xyvest Holdings, Inc.

ALTERNATES

Eric Grossman Equity Residential

Travis Addison CommonWealth Partners

Simon Ha Steinberg Hart

Alex Arroyo Related Properties

Robert Hanasab Robhana Group, Inc. Niles Harris InterContinental Los Angeles Downtown

Andrew Daneshgar Langdon Street Capital

Jeff Herrera Rising Realty Partners

Sandra Dickson Manulife Investment

Suzanne Holley, President & CEO Downtown Center BID

Bonny Kirin-Perez Westin Bonaventure

Meredith King MOCA

BOARD MEMBERS

Stacy Lieberman Library Foundation of Los Angeles

Kira Perez Rising Realty Partners

Nejdeh Avedian Los Angeles United Investment Co. Joy Brathwaite MOCA Barbara Bundy FIDM

Joan McLane USC Institute of Urology Stuart Morkun Mitsui Fudosan America, Inc. Carol Pfannkuche YMCA of Greater Los Angeles

William Dacunto Silverstein Properties

Mark Spector Onni Group

Adam Daneshgar Langdon Street Capital

Michael Wilson Related Companies

Evan Grobecker CommonWealth Partners

Jeffrey Yamashiroya Manulife Investment

Susan Perlas Silverstein Properties Peklar Pilavjian Los Angeles United Investment Co. Brittny Sovich The Bloc Peter Zen The Westin Bonaventure Hotel and Suites

DCBID STAFF Suzanne Holley President & CEO

Johnna Hughes Senior Content Marketing Specialist

Nick Griffin Executive Director

Gerald Pierce Maintenance Superintendent

Michael Ashkenasi Senior Director, Administration & Policy

Elan Shore Director of Economic Development

Kevin Begovich Art Director

Kevin Thomas Executive Assistant

Jorge Castro Director of Operations

Bree von Faith VP of Marketing & Communications

Maria Elena Hewett Program & Communications Manager

As of 5/1/23 2022 Annual Report I Downtown Center Business Improvement District

35

600 Wilshire Blvd., Suite 870 Los Angeles, CA 90017 P: 213 624 2146 | F: 213 624 0858 DowntownLA.com Digital download available at DowntownLA.com/Annual22 DowntownLA.com Downtown_LA Downtown_LA