The Changing Face of Downtown Los Angeles
The towering office buildings that define the Los Angeles skyline once symbolized corporate success and economic vitality. However, in the wake of the COVID-19 pandemic, many of these buildings now stand largely unoccupied. With remote work becoming the norm, office spaces have lost their appeal, leaving landlords searching for alternatives. The once-bustling financial district is now grappling with declining property values, rising foreclosures, and an urgent need to repurpose millions of square feet of unused office space.
A Housing Solution to a Growing Problem
One promising solution is transforming vacant office buildings into much-needed housing. Developer Garrett Lee, president of Jamison Properties, is spearheading such an initiative. Lee believes that instead of waiting for office demand to recover, the more practical approach is to convert these structures into residential units.
This shift has taken on new urgency following recent wildfires that devastated homes in areas like Pacific Palisades and Altadena, further exacerbating the city’s long-standing housing crisis. Downtown Los Angeles is already zoned for high-density residential development, making it an ideal location for large-scale apartment conversions.
The 1055 W. 7th St. Transformation
One of the most notable projects currently underway is the conversion of a 32-story office tower at 1055 W. 7th St. Built in 1987, this building is set to be transformed into 686 apartments. Unlike older office buildings that require extensive retrofitting to meet seismic and safety codes, newer towers like this one present a more cost-effective and efficient opportunity for conversion.
Lee emphasizes that the structural integrity and modern design of such buildings make them highly attractive for redevelopment. With floor-to-ceiling windows offering panoramic views, updated mechanical systems, and spacious layouts, these converted apartments can command competitive rental rates in the downtown market.
Overcoming Challenges in the Conversion Process
While converting office buildings into housing may seem like a straightforward solution, it comes with its own set of challenges. Until recently, city regulations made it easier to convert pre-1975 office buildings, which led to a wave of office-to-residential transformations in the early 2000s. However, Los Angeles is now close to adopting new building codes that will facilitate conversions of newer office towers, streamlining the approval process for developers like Jamison Properties.
One of the biggest advantages of modern conversions is the ability to retain existing office tenants while gradually repurposing vacant floors. This staggered approach allows for a more seamless transition, reducing financial risk for property owners. By skipping occupied floors and renovating empty ones, developers can keep some rental income flowing while they complete the transformation.
Enhancing the Downtown Living Experience
To attract new residents, Jamison Properties is incorporating a range of amenities into its residential conversions. At 1055 W. 7th St., plans include a gym, co-working spaces, a theater, a golf simulator, a karaoke room, and a card room. These features aim to provide a vibrant, community-oriented living experience that blends work and leisure.
Downtown Los Angeles is already home to approximately 90,000 residents, a population comparable to cities like Santa Monica and Santa Barbara. The addition of more housing units could reinvigorate the area, bringing new life to businesses and public spaces that have struggled since the pandemic began.
The Future of Downtown L.A.’s Office Market
Despite the push for residential conversions, many landlords remain hopeful that the office market will rebound. Leasing activity saw a slight increase in late 2024, with companies signing over 600,000 square feet of office space in the fourth quarter alone. However, much of this activity involved lease renewals rather than new tenants, and overall office vacancy rates remain alarmingly high.
The shift toward remote and hybrid work models has fundamentally altered the demand for office space. While some companies are expanding, others continue to downsize, leaving behind a surplus of vacant offices. As a result, many buildings have seen their values plummet, leading to high-profile sales at significantly reduced prices. For example, the Gas Company Tower, once valued at $632 million in 2020, was sold to Los Angeles County for just $200 million in 2024.
A New Era for Downtown Los Angeles
The future of downtown Los Angeles hinges on how effectively it can adapt to these changing dynamics. Office-to-residential conversions offer a sustainable, cost-effective way to address the housing shortage while breathing new life into underutilized buildings. As more developers embrace this trend, the city has an opportunity to transform its skyline into a blend of modern residences and reimagined commercial spaces, fostering a more dynamic and livable urban environment.
While challenges remain—ranging from regulatory hurdles to economic uncertainty—developers like Jamison Properties are proving that repurposing office buildings can be a viable and lucrative strategy. If successful, these efforts could serve as a blueprint for other metropolitan areas facing similar post-pandemic challenges, positioning Los Angeles as a leader in innovative urban redevelopment.