DOWNTOWN LA MARKET REPORT
Photo
“Soaring Higher” by Emily Ding, located at Figueroa Eight
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
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.
DOWNTOWN CENTER
EXECUTIVE SUMMARY
DTLA’s ongoing evolution as a livable, mixed-use city center continued in the second quarter of 2025, with new investments in housing, pedestrian infrastructure, and local businesses.
This trend was evident in the various residential projects moving through the planning process, with developers appearing eager to take advantage of the opportunities opened up by the new DTLA 2040 Community Plan. For example, Onni Group filed new plans for their project at 2143 East Violet, which would remove 187K SF of office space and increase the number of residential units from 347 to 474. Meanwhile, the City Council approved almost 1,000 new residential units in projects across DTLA in the Financial District, Arts District, and South Park.
Underscoring the city’s focus on affordable housing, the Related Companies’ eagerly-awaited 600 San Pedro project officially opened its doors. Located in the Industrial District, the development brings over 302 units of permanent supportive housing to Downtown, making it the largest 100% permanent supportive housing development in the City of LA.
While the office market is still in a state of transition, the enduring appeal of trophy Class A space for institutional tenants was reinforced in one of the largest lease transactions of the year, with Oaktree Capital taking 220K SF at City National Plaza, in a relocation from Bunker Hill. Also in Q2, another new investor entered the office market with Uncommon Developers’ $210M acquisition of Figueroa at Wilshire.
In the public realm, major infrastructure improvements advanced with the redesign of Chick Hearn Court at LA Live as a pedestrian-friendly plaza. The transformation of this central corridor enhances safety, walkability, and the overall experience for visitors and residents alike in advance of major global events in the years ahead.
Finally, on the culinary front, DTLA’s food and beverage scene continued its exciting growth with a slate of fresh offerings, including Malbec Argentinian in the Arts District, Alfred Coffee near SCI-Arc, Boichik Bagels on Broadway, Happies Hand Made on Main Street, and Pizzeria Republica, a fast-growing local brand known for its sourdough pies.
Q2 KEY STATS
2 , 356 RESIDENTIAL UNITS UNDER CONSTRUCTION
29,918 PROPOSED
10 , 751
HOTEL ROOMS IN DTLA 1, 237 UNDER CONSTRUCTION
5 ,923 PROPOSED
HIGHLIGHTS
600 San Pedro opened with 302 units of permanent supportive housing.
Oaktree Capital signed a 220K SF lease at City National Plaza.
Chick Hearn Court had its pedestrian conversion completed.
MARKET OVERVIEW Visitation Insights
DTLA MONTHLY TOTAL VISITS
After a collapse and recovery in 2020 and 2021, 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.
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.
Source: Placer.ai
MARKET OVERVIEW
MARKET OVERVIEW
RETAIL AND F&B OPENINGS
Alfred Coffee
Banh Mii Sandwiches and Food Togo
Boichik Bagels
Bomb Hot Dog
Happies Hand Made
Izakaya Go LA
Malbec
One Piece Café
Pizzeria Republica
Smack Em
FEATURED OPENINGS
MALBEC ARGENTINIAN CUISINE
BOICHIK BAGELS
Situated at 899 Traction Avenue in the Arts District, Malbec offers elevated Argentine Italian Steakhouse dining in a sleek, refined space. Its extensive menu showcases wood-fired steaks like skirt, rib eye and short ribs, alongside seafood pastas, arroz con mariscos, empanadas, and hearty South American wines.
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. The menu features hand-rolled bagels, schmears, smoked fish, and hearty breakfast sandwiches.
FEATURED OPENINGS
HAPPIES HAND MADE
ALFRED’S COFFEE
Happies Hand Made, tucked into the Arts District on Hewitt Street, is a bold new fast-casual spot from acclaimed chef Joshua Skenes. Specializing in Sichuan-inspired fried chicken, the menu features doublefried tenders served over liquid waffles, soft milk bread, or fresh greens. Crisp potato sticks, house-made sodas, and inventive desserts like soft serve with passion fruit or honeycomb round out the playful offerings.
Alfred’s Coffee in the Arts District is a stylish, sunlit café offering a vibrant take on the classic coffeehouse. With floor-to-ceiling windows and minimalist design, the space invites creatives and coffee lovers alike. The menu features house-roasted beans expertly pulled espresso drinks, pourovers, and seasonal lattes, alongside light bites like avocado toast and pastries.
QUARTERLY TRACKING STATS
RESIDENTIAL
The residential market rebounded strongly after a short-term decline in 2020. 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 at that level through Q2 2025. Meanwhile, asking rents, have shown no clear pattern, indicating that the market is still adjusting.
Source: CoStar
QUARTERLY TRACKING STATS
RETAIL
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 of the closure of Macy’s at The Bloc.
Both occupancy and RevPAR made significant gains in 2022, ticking up further in 2023 before reaching a stable level that has been maintained ever since.
Commercial Development
n Existing
n Under Construction/Renovation
n Proposed
As of 6/30/2025
Residential Development
n Existing
n Under Construction/Renovation
n Proposed
As of 6/30/2025
UNDER CONSTRUCTION
LITTLE TOKYO
UNDER CONSTRUCTION
BUNKER
BUNKER
SOUTH PARK
FEATURED PROJECTS Under Construction
ARTS & CULTURE
COLBURN CENTER
Developer: The Colburn School
Topping out in Q2, 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
55,000 SF expansion that 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
RESIDENTIAL
OLYMPIC & HILL
Developer: Onni Group
At over 760 feet and 60 stories, this will be 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
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 nearing completion in Q2. Phase 2 will include similar improvements along Hill St., with existing structures being replaced with new landscaping, and a more open design.
FEATURED PROJECTS
RESIDENTIAL THE BLOC
Developer: National Real Estate Advisors I 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 I 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.
FEATURED PROJECTS Proposed
HOTEL
JW MARRIOTT LA CONVENTION CENTER EXPANSION
Developer: AEG and Plenary Group I Design: Gensler, Populous, Olin
700,000 SF expansion of the existing hotel will add 861 new hotel rooms at LA Live.
MAJOR MIXED-USE
670 MESQUIT
Developer: V.E. Equities I 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.
SPOTLIGHT ON DTLA
DOWNTOWN’S EVOLUTION
Approximately 75% of Los Angeles is comprised of single-family housing, and in these communities, it is extremely challenging to obtain approval for large-scale apartment complexes. DTLA welcomes those new complexes. Over the past 15 years, Downtown, which is just 1.4% of the city’s overall land size, has had 22% of new housing development. —LA Downtown News, 05/19/25
METRO MOVES FORWARD WITH PLANS TO UNDERGROUND SOUTHEAST GATEWAY LINE IN DTLA
The motion from Los Angeles County Supervisors and Metro board member Hilda Solis directs staff to study an underground alignment, identifying an enhanced infrastructure financing district as a means to facilitate the proposed subway. —Urbanize, 05/28/25
BROOKFIELD SELLS LA OFFICE FOR $210 MILLION IN YEAR’S BIGGEST DEAL
Uncommon Developers, a private real estate firm based in the San Fernando Valley, plans to reposition the property, tapping Colliers to lead property management and leasing. The company is betting that competitive rates and fresh amenities will lure back tenants. —CoStar, 6/4/25
WITH A SURGING RESIDENCY RATE, THIS NEIGHBORHOOD IS TRANSFORMING LA
Many residents say they are drawn to downtown’s urban lifestyle with stores, restaurants and cultural attractions such as the Broad or Walt Disney Concert Hall within walking distance. And unlike dwellers of most parts of L.A., they want their blocks to get busier. —Los Angeles Time, 6/17/25
HOW ROW DTLA BECAME LA’S QUIET CULINARY POWERHOUSE
Originally brought to life as the LA Terminal Market in 1923, the site served as a major distribution hub for regional produce. Today, the 30-acre compound on the edge of the Arts District has been reimagined as a walkable maze of industrial buildings—transformed into a self-contained urban ecosystem that now houses some of Los Angeles’ most celebrated restaurants. —Fine Dining Lovers, 6/20/25
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Nick Griffin, Executive Director (213) 416-7522 I ngriffin@downtownla.com
Elan Shore, Director of Economic Development (213) 416-7518 I eshore@downtownla.com