Momentum, Alignment And Action: How DTLA Is Rising Once Again

Momentum is back in Downtown Los Angeles, and this time, it is being driven by real estate investment, civic alignment and progress on key issues. That momentum is increasingly reflected not just on the ground but also in how the market is viewed more broadly, as investors and industry observers point to improving fundamentals and renewed opportunity in Downtown.

Toward the end of last year, DTLA Alliance Executive Vice President Nick Griffin said that “the outlook of today’s DTLA is rosier than media narratives would have people believe.” 

“It may have taken the media a beat, but they seem to be catching up, with recent coverage describing an ‘improved investment market’ with a foundation of strong assets, creative leadership and forward-looking investments, signaling opportunity for developers, investors and businesses,” he said. 

Those assessments are evident across most of DTLA’s key market sectors. 

Residential has led the way, with occupancy rates above 90% and solid rent growth. This has boosted developer confidence to move projects forward, with almost 5,000 new units approved by the LA Planning Commission and/or LA City Council in 2025. 

Hospitality has also been a highlight, with occupancy rates and revenue per available room staying just slightly below their pre-pandemic highs. In retail, DTLA is experiencing a significant influx of restaurants, with more than 150 new openings in the past five years. Even the office market, which has faced the toughest road to recovery, now shows signs of turnaround following the recapitalization of virtually all of DTLA’s premier office towers.  

Moreover, as outlined in the DTLA Alliance’s just published DTLA 2026 Outlook & Insights report, Downtown plays an outsized role in LA’s economy. On just 1.4% of its total land area, DTLA provides 19% of its jobs, 29% of its hotel rooms and 26% of its office space. It has also produced 26% of the city’s new multifamily units since 2010. 

Griffin said that while those stats are impressive, perhaps the best sign of the times for these three sectors is the recent news that there is a potential buyer who has submitted an offer to purchase Oceanwide Plaza, which includes more than 500 residential units, 184 hotel rooms and 150K SF of restaurant and retail space.

“The buyer has stated his intention to complete the project, positioning the infamous ‘graffiti towers’ to go from high-profile symbol of Downtown’s malaise to potent sign of its revitalization,” he said. “The offer was undoubtedly influenced by the approval of the LA Convention Center expansion plan.”

The convention center is the cornerstone of the region’s hospitality sector, and its $2.6B modernization will expand total exhibit space to more than 1M SF, enabling LA to host larger, higher-profile events, Griffin said. Construction is scheduled for completion in 2029, with a pause in 2028 to host Olympic events, including fencing, table tennis and wrestling.

“DTLA will be at the center of the Olympics and Paralympics, not just with multiple event venues but as the headquarters of the LA28 organization and the city’s biggest concentration of hotels,” Griffin said. 

DTLA is also the hub of the LA Metro system, he said. This is being expanded to connect Downtown to Westwood — the site of the athletes' village — and the LAX Metro Transit Center and Automated People Mover, all of which will be key to transporting millions of visitors during the games.

To prepare for this major moment, the DTLA Alliance launched DTLA Path of Progress, a public-private initiative to improve public safety and the experience of Downtown before, during and after the LA28 Games.

“This is not just for the millions of visitors that will be coming to Downtown but also the 90,000 residents that call DTLA home and the hundreds of thousands of people that work there every day,” Griffin said. 

The initiative connects some of Downtown’s busiest areas and most popular locations, including LA Live, the LA Convention Center, Seventh Street Restaurant Row, Grand Central Market, Broadway and several of Metro’s busiest transit stations, with cleaner, safer, greener streets, sidewalks, parks and public spaces. 

Griffin said that in a demonstration of the increasing alignment driving Downtown’s turnaround, it also brings together a coalition of partners, including the DTLA Alliance, the Historic Core, Fashion and Social District business improvement districts, the LAPD, the mayor’s office, LA Tourism and others. 

“The Path of Progress route encompasses 20M SF of office space, 1.5M SF of retail, 27,000 residential units, 8,300 hotel rooms and 41 proposed development projects,” he said. “It has the potential to unlock $6B of new investment, $1B of new economic activity and increase property values by $2B and annual tax revenue by $60M.”

While the LA28 Games will include a Cultural Olympiad, visitors will encounter an already impressive concentration of arts and culture institutions in DTLA, including The Museum of Contemporary Art, The Music Center, The Broad and the Colburn School, which are undergoing $100M and $335M expansions, Griffin said. Joining them this spring as part of the newly created Grand Avenue Culture District is Dataland, the world’s first museum of artificial intelligence arts. 

“These investments demonstrate an expanding vision of Downtown’s future and will be a legacy long after the Games are over,” Griffin said. “When coupled with the impact of LA28, they have the potential to dramatically shift the perception of DTLA, much as Super Bowl 60 did recently for San Francisco. The Olympics will draw 15 million visitors and 5 billion viewers from all over the world.”

To greet those millions of visitors and billions of viewers, Griffin said the DTLA Alliance is launching DTLA Welcomes the World, a multifaceted marketing campaign that seizes this “once-in-a-generation moment” to redefine how Downtown Los Angeles is seen locally and globally, positioning it as a vibrant, evolving urban center. 

He added that this scale of opportunity and growth is also evident in the DTLA 2040 Community Plan, a blueprint for the next phase of Downtown’s evolution, paving the way for more than 100,000 new residential units accommodating a potential population increase of 175,000 people. 

“With the pandemic in the rearview mirror and the LA28 Games up ahead, Downtown Los Angeles is poised for the next phase of the renaissance that has transformed it from a traditional 9-to-5 business district into a vibrant 24/7 mixed-use neighborhood over the last two decades,” Griffin said. “DTLA promises to clear new heights as a global destination and center for arts, culture and entertainment in the coming years.” 

This article was produced in collaboration between the DTLA Alliance and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.