DTLA & THE FUTURE OF WORK

The renaissance of Downtown Los Angeles over the last two decades has restored and revitalized the foundational assets and fundamental qualities that make it both timeless and trendy. It is a place with enduring appeal that is also highly adaptable – critical attributes in this unique moment of change. The inherent value of its authentic culture, iconic buildings, vibrant social life, and abundant amenities cannot be overstated. Combined with its central location, wealth of infrastructure, transit accessibility, and public spaces, DTLA is a place where workers and companies thrive. And a future less constrained by where you have to be for work, may be more defined by where you want to be. A survey by JLL in December of 2021 found that the #1 priority for the workforce (ahead of salary) is work-life balance, 73% of workers want to work from places that offer a destination for human connection, and 63% prefer a hybrid model vs. working from the office or home exclusively. (1)

WORK-LIFE BALANCE & INTEGRATION

The convenience of DTLA’s central location supports both work-life balance and hybrid modes of work, with 50% of DTLA workers commuting less than 7 miles, and 62% of DTLA residents traveling less than 5 miles to work, while 41% walk, bike, or take transit. The area’s social and cultural diversity, exciting dining, nightlife, and entertainment, and robust health and wellness offerings, create unparalleled opportunities for the integration of lifestyle and work. The consensus “among investors, occupiers and placemakers is that location strategy is not likely to change significantly in the wake of the pandemic. Walkable submarkets – in urban and suburban settings – are going to continue to be coveted by employees. In a world where people are in the office less frequently and are looking to the office – and the surrounding neighborhood – to provide what they cannot get when working remotely, the argument could be

made that these settings are more important than ever.” (2) The evolution of DTLA has been fueled by the growing residential population. Neighborhoods like South Park and the Fashion District have blossomed, bringing 24/7 life to what was once a 9-to-5 area. With those residents have come restaurants, retail, and services that make it a more convenient and appealing place to work as well. With a walkability score of 93, DTLA is uniquely pedestrian-friendly for Los Angeles, which is a big draw for both residents and workers, as are its collection of parks and public spaces for relaxing, recharging, eating al fresco, or just getting a change of scenery.

HUMAN CONNECTION & COLLABORATION

“Employers increasingly view the office as a place for collaboration and meaningful employee connection. Amenities that meet the daily needs of employees, help them establish and maintain relationships, and offer experiences that represent the company’s brand and values will become more important. The shifting role of the office will likely accelerate a flight to quality, with office buildings that offer the most desirable technology, amenities, and flexible space capturing a growing share of demand.” (3)

With all the digital and virtual capabilities companies and workers developed during the pandemic, one of the key insights of this period is the irreplicable value of face-to-face interaction – for productivity, efficiency, professional development, and just plain human well-being. Social interaction, creative brainstorming, opportunities for mentoring, and organizational culture – these are the intangible but invaluable things we missed working remotely, and there is clear agreement on their critical importance. This was no surprise to forwardthinking corporate leaders and property owners, but the pandemic brought it into stark relief and increased its immediate relevance. Over the last decade, office owners in Downtown LA have made significant investments in upgrading their properties – adding common areas, outdoor spaces, amenities, and services that increase their appeal. These improvements have enabled them to adapt and accommodate differing needs across industries, companies, and individuals, which has become even more important as modes of work have shifted over the past two years.

HYBRID, FLEXIBLE, EFFICIENT

One overarching lesson from the unprecedented work-from-home experiment of 2020-21 – that hopefully will not be lost in the rush of return-to-office in 2022 – is that no one-size-fits-all. Challenges and solutions range across individuals, companies, and industries. “Flex arrangements foster innovation through increased employee interaction, exposure to new business concepts, and crosspollination of ideas.” (4) “With hybrid the new normal, office properties with amenities that enhance employee collaboration, connection, and wellness will fare best.” (5) Techenabled organizations and individuals with access to the latest IT infrastructure, tools, and support have taken great leaps forward in terms of efficiency and capabilities during this period – gaining competitive advantages, and personal benefits, that might previously have been inconceivable. DTLA office properties, ranging from state-of-the-art Class A towers to one-of-a-kind historic buildings, have reinvented themselves over the past decade. Coming out of the pandemic, they have an increased focus on health and wellness, innovative work models and space designs, and lifestyle amenities, services and programming. Forward-thinking tenants in those buildings have reconceptualized their own spaces and practices, supporting the shifting needs and desires of their teams and talent.

MEETING THE MOMENT

Downtown Los Angeles is a place of great resilience and adaptability, the dynamic vitality of its people, places, and spaces has enabled it to overcome challenges in the past, and those qualities will serve it well in a new era in which work-life balance and integration, human connection and collaboration, and above all, flexibility, will define not so much where we have to work, but where we want to be.

Sources: (1) JLL, The Future of Flex, 2021; (2) Cushman & Wakefield, Workplace Ecosystems of the Future, 2020; (3) CBRE 2022 U.S. Real Estate Market Outlook; (4) JLL, Flexible Space Report, 2021; (5) CBRE 2022 U.S. Real Estate Market Outlook