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With Los Angeles in need of housing, downtown's empty office towers have appeal

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With Los Angeles in need of housing, downtown's empty office towers have appeal

The shimmering office towers of the downtown Los Angeles skyline conceal a hard truth — much of the space is empty.

In the years since the pandemic, which upended workplace norms and evaporated demand for office space, landlords downtown have watched in frustration as the value of their office buildings has plummeted. More than a few have faced foreclosure, leaving owners anxious about the need to get tenants back in their buildings or find another use for the millions of unused square feet.

An uptick in office lease signings has led some to hope the office rental market has hit bottom, but others, like landlord and developer Garrett Lee, believe there’s a more reliable path forward than trying to convince tenants to return: converting offices into apartments.

The idea took on new urgency this month as wildfires destroyed thousands of homes in Los Angeles’ Pacific Palisades neighborhood and Altadena, a community in the foothills just north of the city, exacerbating the region’s long-running housing shortage. Downtown is zoned for some of the densest residential development in Los Angeles County.

“We have an unprecedented need for housing right now,” Lee said. “There needs to be an even greater effort than before to build housing of all unit types and rent levels.”

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Lee is president of Jamison Properties, a prolific converter of midsize, older L.A. office buildings into apartment buildings. Now, Jamison is about to plow fresh ground by turning into housing a glossy 32-story office tower built on the edge of downtown in 1987.

Efforts to create a second act for underused office towers that were the height of prestige a generation ago are part of a larger drama playing out in a financial center that has lost much of its shine in the years since the pandemic. Restaurants and shops have struggled with the departure of many workers while homelessness and a sense that sidewalks aren’t safe has risen and helped lead to the departure of some office tenants.

“Downtown is torn between believers in downtown and nonbelievers who say it’s gone downhill and isn’t coming back,” Lee said. “We see a very big split between the two.”

While many downtown office buildings built before World War II already have been converted to residences or hotels, the eye-catching skyscrapers built in the late 1980s and early 1990s have mostly remained offices. A successful makeover of Jamison’s L.A. Care tower at 1055 W. 7th St. could set an example for repurposing prominent office towers that were built relatively recently and designed to house corporate businesses for decades to come.

The city is close to adopting a new building code that will make it easier for developers to get approvals to convert offices built after 1975. A previous code for conversions that focused on buildings erected before that year, when construction standards were less stringent, led to a boom in office, apartment, condo and hotel conversions starting in the early 2000s.

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Jamison is close to securing city approval to convert 1055 W. 7th St. “with very little structural retrofit,” Lee said, which will reduce construction costs by about 10% and save a lot of time compared to the company’s previous conversions of midcentury office buildings, which required significant improvements to meet city seismic codes.

The ability to convert some office buildings to residential use without going through a full structural retrofit is a game changer for developers in another way too, Lee said. They can leave rent-paying office tenants in place while they convert empty floors to apartments, instead of having to empty the whole building for the retrofit.

“You can skip a floor or go around them,” he said of office tenants. “That really opens things up for converting 30-year-old buildings” like the ones that dominate the downtown skyline.

Lee plans to start work this year on 1055 W. 7th St., which will be converted to 686 apartments. Newer office towers like that one are “night and day” more attractive to convert to housing than midcentury buildings from the 1950s and ‘60s, he said, and should command higher rents.

“The bones are so much better,” he said, with floor-to-ceiling windows and panoramic views. Much of the mechanical, electrical and plumbing system can be reused “because it’s still very adequate to today’s standard.”

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Floor by floor, though, the buildings get a complete makeover.

“We fully gut the interiors,” Lee said, removing the walls, lighting and plumbing that served office occupants. When the floors are stripped down to the concrete, developers are ready to rebuild them as apartments.

Wedbush Securities is leaving its downtown Los Angeles offices in Wedbush Center after 24 years and moving to smaller quarters in Pasadena.

(Michael Blackshire / Los Angeles Times)

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There’s room at 1055 W. 7th St. to create amenities such as a gym and co-working space so tenants have a place to do their jobs outside of their apartments. Other tenant attractions probably will include a theater, golf simulator, karaoke room and card room — amenities Jamison added in earlier conversions in Koreatown.

Jamison has tentative plans to convert another downtown office building to housing, the 10-story World Trade Center at Figueroa and Third streets, which dates to 1975. It’s unclear how many other office buildings are good candidates for residential conversion, but there is a lot of space going unused — CBRE estimates that more than a third of the 32.4 million square feet in 70 buildings in downtown’s Central Business District is available. That is more than triple the amount considered to be a healthy balance between tenant and landlord interests. When “shadow” office space that is leased but not occupied is considered, overall availability is nearly 37%.

Downtown’s apartment market remained resilient coming out of the pandemic even as the office market stumbled. The neighborhood has about 90,000 residents, a slightly higher population than Santa Monica or Santa Barbara, said Jessica Lall, head of real estate brokerage CBRE’s downtown office. They live in 47,000 residential units, most of which are apartments rented at market rate.

The addition of more residents through conversions and new builds could help restore a sense of life to the Financial District.

Before the pandemic, downtown’s sidewalks often were crowded with office workers going out to eat, shop or take meetings in other buildings. There were homeless people, but a sense of order prevailed on the busy blocks where thousands were employed by law firms, financial institutions and other white-collar companies.

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The sense of order has not returned, said office investor John Sischo, who has worked in the real estate business downtown since the 1980s.

The drop in pedestrian traffic caused by workers staying at home during the pandemic and continuing to work remotely has been a drain on the vibrancy and sense of security in the Financial District, which is depressing office leasing and hampering the neighborhood’s comeback, Sischo said.

A 32-story office building overlooks the freeway in downtown Los Angeles.

A 32-story office building in the 1000 block of West 7th Street will be converted to 686 apartments.

(William Liang / For The Times)

“Homelessness is out of control,” he said. “People don’t feel safe coming downtown and you’ve lost all the momentum relating to the desire to live here.”

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The changing nature of downtown is one of the reasons Wedbush Securities is moving to Pasadena’s Lake Avenue, “which has recovered more fully from the pandemic,” President Gary Wedbush said.

Wedbush announced in October that it will leave behind Wedbush Center, an office building overlooking the Harbor Freeway, for smaller offices in Pasadena meant to accommodate employees who now work remotely much of the time.

The pullback in leasing also has contributed to plummeting office building values and sales of prominent skyscrapers at deep discounts. Among them was 55-story Gas Company Tower, which sold last year to the County of Los Angeles for $200 million, far less than its appraised value of $632 million in 2020.

Making residences out of struggling office buildings is considered environmentally desirable and can be far cheaper than building new apartments or condos from the ground up, but most landlords are hoping the office rental market is bottoming out and may begin to recover this year.

Leases were signed for more than 600,000 square feet of office space in the fourth quarter that ended Dec. 21, a 21.7% increase from the previous quarter. More than half of that involved renewals of existing leases, with some companies expanding their offices even as others contracted.

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Those gains are only a small step forward for a downtown that has been burdened with excess office space since the building boom of the 1980s and early ‘90s.

An office building with the letters USC at the top

A 32-story office building in the 1100 block of South Olive Street, where Olympics organizer LA28 rented 160,000 square feet.

(William Liang / For The Times)

The biggest office lease in all of Los Angeles in the fourth quarter was by LA28, the private group organizing and paying for the 2028 Summer Olympics and Paralympic Games in Los Angeles. CBRE said LA28 rented 160,000 square feet in USC Tower, a high-rise on Olive Street a few blocks from the Los Angeles Convention Center, Crypto.com Arena and L.A. Live. LA28 is expected to move downtown later this year from Westwood.

Other new leases downtown are in the works, CBRE broker John Zanetos said. Upward leasing trends in other cities is promising for Los Angeles, he added.

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“What we’re experiencing in downtown L.A. is similar to what is happening in Seattle, San Francisco and other cities, which tend to recover in front of Los Angeles in historic real estate cycles,” Zanetos said. “We saw their urban cores start rebounding in the third or fourth quarters and we think that bodes well for Los Angeles.”

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Sick City Records tries to ‘keep the music alive’ as potential closure looms

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Sick City Records tries to ‘keep the music alive’ as potential closure looms

Just a few storefronts away from the now-vacant Button Mash, Sick City Records is on the brink of sharing the same fate.

For nearly 20 years, therecord shop has offered Echo Park a rocker-themed hodgepodge of rare vinyl, vintage band tees and dapper haircuts from its singular barber shop chair. But as rent continues to increase and fewer people stop by to browse its sonic selection or get a trim, Sick City Records is struggling to keep its doors open.

“We’ve worked so hard for this. We’ve been doing this for 20 years. We have to fight to keep this place open — it’s what we love to do,” said Jesse Lopez, the record store’s co-owner and resident barber.

Lopez and his business partner, Brian Flores, attribute their financial difficulties to an overall rough year. In January, when the Eaton and Palisades fires broke out, the shop was desolate for around a month. Then, right as summer kicked off — usually a lucrative season for record-collecting tourists stopping by — ICE raids began happening all over the city.

According to Flores, the streets were filled with large fleets of cars all summer, with loud sirens on, trying to scare people. Recent data from the L.A. Economic Equity Accelerator and Fellowship and the L.A. County Economic Development Corp show that 43% of Latino business owners in the county reported revenue losses of 50% or higher since June.

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Co-owner Jesse Lopez, left, cuts the hair of Los Angeles resident Jason Berk, 33, inside of Sick City Records.

(Ronaldo Bolanos / Los Angeles Times)

“No one was walking around. It was June. Nobody’s walking their dog,” said Flores. “In this whole shopping center, everybody is an immigrant.”

The record shop’s finances reached an all-time low in October. The duo was two months behind rent; their inventory had gone stagnant and their once regular barber shop clients had become sporadic. The prospect of closing up shop and cutting their losses became more real than ever.

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In a last effort to save their music hub, Flores and Lopez have since picked up a vendor spot at the monthly Rose Bowl Flea Market, started a series of collaborative fundraisers with local artists and launched a GoFundMe account.

Since they first opened in 2006, Flores and Lopez have always specialized in rock, punk and alternative — carrying bands like the Velvet Underground, the Smiths, Siouxsie and the Banshees and Suede. The inside of their space reflects that — the walls are filled with wheatpasted skulls; rows of Iron Maiden and Suicidal Tendencies tees line the perimeter and their most valuable merchandise — like a sealed Iggy Pop vinyl, a clear variant of Portishead’s “Dummy,” and a signed Echo & the Bunnymen record — hang high on elevated shelves.

“A lot of stuff’s been sitting here for a long time,” Flores confessed as he looks around at the different half-filled genre crates.

“We try to make what we can. We make our own buttons. We do our own silk screening. We can’t buy high-end vintage. We can’t afford it right now,” he added. “It’s embarrassing when the kids are asking for new rap records and these record guys come in looking for something special, but we don’t have it.”

Band T-shirts and vinyl records hang on a wall inside of Sick City Records.

Band tees and vinyl records hang on a wall inside of Sick City Records.

(Ronaldo Bolanos / Los Angeles Times)

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In recent years, Sick City has also made an effort to expand into other genres, and now carries anything from country to jazz and rap. Between albums like Tyler the Creator’s “Cherry Bomb” and the Cocteau Twins’ “Heaven or Las Vegas,” Flores says they will always dedicate several of their crates to local underground acts, featuring anything from their customers’ passion projects to bands who play the city’s bars and house shows.

Their local selection is usually most popular during the summertime and when people are in town for events like the relatively nearby Coachella Valley Music and Arts Festival.

“Truthfully, this year we haven’t had that many tourists. People are usually looking for L.A. bands to take home to places like Australia and Canada and ask us for recommendations,” said Flores. “But this year, without tourists, it’s still slow.”

Their dedication to L.A.’s local sounds goes back to their roots as a business. In 1999, the duo first sold vintage band tees at Melrose Trading Post. At the time, the market was mostly older vendors selling novelty items. Flores and Lopez decided to shake things up a bit by playing Metallica in the early-morning hours and began to build a younger clientele who were interested in their vintage clothing. Over time, they learned how to screen print and started selling their own designs.

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After about five years of selling at the market, they decided to upscale into a more permanent business that would focus on music. In 2006, they opened a space in Silver Lake that functioned as a barbershop with a couple of record crates. Despite it being the early 2000s, the vendors were ahead of the up-and-coming vinyl revival, as millennials started to pay more attention to physical media.

As record-collecting grew in popularity and events like Record Store Day went mainstream, they saw a surge in sales. In 2008, they expanded the record portion of their business, opening their current location in Echo Park.

With this stint of success, the record shop started to function as a record label as well. In the early 2010s, the duo helped some customers and longtime friends who were in bands release, distribute and promote their albums. Flores and Lopez would help choose the album art, the order of the track list and help book shows.

Sick City Record owners Jessie Lopez, left, and Brian Flores pose for a portrait.

Sick City Records owners Jessie Lopez, left, and Brian Flores at their Echo Park shop.

(Ronaldo Bolanos / Los Angeles Times)

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One of the first bands they worked with was local rock group the High Curbs, who were teenagers at the time and thereforestruggled to get into the bars where they were booked to play. With the help of Sick City, they were able to release their 2016 album. The band, which still regularly tours and releases music, made its return to the record shop earlier this summer for the annual music festival Echo Park Rising.

“They told me, ‘We don’t do any small shows anymore, but for Echo Park Rising, we want to give back and play for you guys.’ We had a full house,” Flores said. “We felt the love back.”

At the height of the business, when they were funding their record label, Flores says they were making around $8,000 a month. Now they are making closer to $2,000 monthly, with customers spending an average of around $10 per visit. On a weekday afternoon in November, a handful of patrons came into the shop to sift through their vinyl selection, but only one customer made a purchase.

“We want to do more. We want to do more shows and promote more bands. We’ve done shows at Los Globos, the Silverlake Lounge, the Redwood [Bar and Grill]. But all this costs money,” Flores said. “So when we were able to put out those records, it was very expensive at the time, but we were able to do it.”

Flores and Lopez continued to operate out of both stores until 2020, when they decided to consolidate both businesses into the one that exists today.

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Since the pandemic, Sick City Records’ rent has continually increased. In 2020, the duo paid $1,800 for the space. Today they pay $3,500. In the last several years, gentrification has taken hold of Echo Park, hiking up both residential and commercial rent. Flores says that in the nearly 20 years that they’ve been on Sunset Boulevard, he’s seen many small businesses collapse from these strains.

Scenes from the inside of Sick City Records in Echo Park Wednesday, Oct. 16, 2024 in Los Angeles.

With a specialty in rock, punk and alternative, Sick City Records’ selection often spotlights local L.A. acts.

(Andres Melo / For The Times)

“There are a couple of small coffee shops, like Woodcat, that are still there. But Spacedust [a clothing shop] is gone. Cosmic Vinyl is gone,” said Flores. The latter establishment shuttered in 2018 but reopened earlier this year at a new location in Eagle Rock.

“There’s no parking. I don’t know why they keep raising the rent. But Echo Park has always been a hub where people want to be.”

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Sick City Records has several fundraisers and flea market pop-ups planned before the end of the year. On Dec. 13, they will be hosting an art show at the shop called “Hold On to Your Friends,” which will feature live DJs, local artists and vendors. All proceeds will go to keeping Sick City in operation.

“Hopefully, people don’t forget about us. We’re just trying to keep the music alive, keep a good vibe and keep promoting the music community,” said Flores. “We just got to get back on our feet. We want to bring in product that we’re proud of.”

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Video: Trump Says That Netflix’s Warner Bros. Deal ‘Could Be a Problem’

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Video: Trump Says That Netflix’s Warner Bros. Deal ‘Could Be a Problem’

new video loaded: Trump Says That Netflix’s Warner Bros. Deal ‘Could Be a Problem’

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Trump Says That Netflix’s Warner Bros. Deal ‘Could Be a Problem’

President Trump said on Sunday that Netflix’s proposed $83 billion merger with Warner Bros. “could be a problem” because it involves “a very big market share.”

Reporter: “Should they be allowed to buy Warner Brothers?” Trump: “So that’s the question. They have a very big market share, and when they have Warner Brothers, that share goes up a lot. So I don’t know. That’s going to be for some economists to tell, and also, and I’ll be involved in that decision, too. But they have a very big market share.” Reporter: “Did he (Netflix co-chief executive Ted Sarandos) make any guarantees to you about the merger, if they do merge?” Trump: “No, no, not at all. He came up. He was in the Oval Office last week. I have a lot of respect for him. He’s a great, he’s a great person. But he’s done one of the greatest jobs in the history of movies and other things. And he’s got a lot of interesting things happening, aside from what you’re talking about. But it is a big market share. There’s no question about that. It could be a problem.”

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President Trump said on Sunday that Netflix’s proposed $83 billion merger with Warner Bros. “could be a problem” because it involves “a very big market share.”

By Aritz Parra

December 8, 2025

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Plans to raise Vincent Thomas Bridge rejected

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Plans to raise Vincent Thomas Bridge rejected

Construction on the Vincent Thomas Bridge near the Port of Los Angeles is slated to begin next month, but the project will not include a 26-foot bridge hoist that port officials were hoping for.

Port Executive Director Gene Seroka proposed raising the bridge earlier this year amid existing plans from the California Department of Transportation to re-deck the emerald green overpass connecting San Pedro to Terminal Island and Long Beach.

Raising the bridge would allow larger, more efficient ships to travel underneath carrying cargo. About 40% of the port’s cargo capacity is beyond the bridge, which sits at 185 feet high.

The California State Transportation Agency, the cabinet-level agency that oversees Caltrans, nixed the suggestion last month, saying the deck replacement had to begin as soon as possible.

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“Vincent Thomas Bridge is scheduled for a much-needed re-decking project … beginning in January of 2026 and ending in advance of the LA 2028 Olympic and Paralympic Games,” an agency spokesperson said in a statement.

The agency “welcomes continued discussions to a path forward while we work to make sure the bridge is structurally sound and safe for the motoring public.”

Plans to fix up the bridge are projected to cost more than $700 million and will require the bridge to be closed to the public for 16 months. The port’s proposal to raise the bridge would have added $1.5 billion in costs and forced the bridge to close for more than two years.

The 60-year-old bridge is a local symbol to surrounding communities and supports tourism across the harbor area. It also provides a key artery for cargo trucks traveling to and from the port.

Preliminary detour routes for the bridge’s closure would send commuters, tourists and cargo through Harry Bridges Boulevard in Wilmington and on the 110 and 405 freeways.

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The San Pedro Chamber of Commerce voted over the summer in support of a study on the effects of raising the bridge. Los Angeles City Councilmember Tim McOsker, who represents port-adjacent communities including Wilmington, Harbor City and San Pedro, said he supported raising the bridge as long as it was safe and took locals’ needs into account.

Seroka has not given up on a solution to help accommodate the next generation of cargo ships at the Port of Los Angeles.

“All parties recognize the benefits of additional clearance to jobs and the long-term economic vitality of both the Port of Los Angeles and California,” Seroka said in a statement.

“While we were hopeful that we would be able to include a bridge raising component into Caltrans’ pending critical maintenance project, we’re encouraged by the strong support of the administration to quickly explore additional projects,” he said.

Future projects might include raising the bridge after the deck replacement is complete, or building a new bridge altogether, Seroka said.

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The port director had originally suggested raising the bridge by putting sleeve lifts and platforms on the bridge’s legs. The Bayonne Bridge connecting Staten Island, N.Y., and Bayonne, N.J., was raised in a similar manner in 2019.

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