LA Expands Adaptive Reuse Ordinance Beyond High-Density Hubs
Los Angeles is making it easier for developers to convert vacant office buildings into housing citywide.
This expansion of the adaptive reuse ordinance could reshape the commercial real estate landscape, creating both new opportunities and considerations for property owners and managers.
What You Need to Know
The Los Angeles City Council recently approved a citywide expansion of the adaptive reuse ordinance, eliminating prior limits that restricted conversions to areas such as downtown, Chinatown, Hollywood, and Koreatown.
Under the new rules:
- Buildings as young as 15 years old are now eligible for adaptive reuse, broadening the pool beyond structures built before 1974.
- More projects may qualify for approval “by right,” simplifying the permitting process.
- The changes are expected to generate approximately 4,400 new housing units across the city, contributing to L.A.’s housing targets and addressing long-term housing shortages.
- Office-to-residential conversions are already underway.
Los Angeles currently ranks second in the nation for adaptive reuse projects, this ordinance aims to continue the city’s momentum in transforming underutilized commercial properties.
How It Impacts You
For commercial property owners and managers, these changes present both challenges and opportunities:
Increased Market Flexibility: Owners of office buildings, particularly older properties, may now consider converting space to residential use, potentially unlocking new revenue streams.
Competitive Landscape: With more buildings eligible for conversion, commercial landlords could face increased pressure to reimagine or reposition underperforming office space.
Planning & Compliance Considerations: While approvals “by right” streamline the process, owners still must navigate local permitting, zoning, and building code requirements.
Tenant Implications: Property managers may need to anticipate changes in building occupancy, infrastructure needs, and service expectations as office-to-residential conversions accelerate.
Stay Connected
Staying informed and proactive will help property owners and managers capitalize on adaptive reuse opportunities while minimizing potential operational disruptions.
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