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What West Hollywood’s Vacancy Audit Could Mean for Commercial Real Estate 

West,Hollywood,,California,–,May,30,,2023:,West,Hollywood,City

West Hollywood is moving forward with an audit of vacant residential and commercial units to better understand why certain spaces remain empty. For commercial real estate professionals, this effort could shape future policies that impact how vacancies are tracked, reported, and potentially regulated. 

What You Need to Know

West Hollywood is launching an audit of vacant residential and commercial units, led by Councilmember Lauren Meister. The goal is to determine how many units are empty, why they remain that way, and whether new policies could help reduce long-term vacancies. 

While the intent is to understand vacancy trends, commercial property managers already work tirelessly to keep spaces filled.  

At the most recent City Council meeting, West Hollywood’s Vice Mayor noted that the continued drop in retail and office vacancies is a positive sign of economic vitality and the strength of the commercial real estate sector.

Currently, the City tracks some vacant properties through its registry program, but many individual units go unmonitored. This audit would expand that data collection. 

The review will focus on: 

  • Commercial spaces: Especially ground-floor storefronts or units held for future redevelopment or rent adjustments. 
  • Residential units: Rental housing from single-family homes to small multi-unit buildings, which may require direct owner outreach. 

City staff will rely on existing data, surveys, and property owner outreach, reporting findings back to the City Council to inform potential housing and economic policy changes. 

How It Impacts You 

More oversight: Property owners may be asked to explain why certain spaces remain vacant. 

Potential for new rules: Depending on audit results, the City could consider incentives—or regulations—to address long-term vacancies. 

Market awareness: Data on vacant commercial spaces could be helpful but may also be used to justify new policy interventions. 

Engagement opportunity: Early participation is important to ensure commercial realities are fully understood. 

Looking Forward

For the commercial real estate industry, this audit warrants close attention. While no property manager wants vacancies, how the City interprets this data could shape future policies—potentially leading to measures like a vacancy tax or other regulations that impact property operations and investment decisions in West Hollywood. 

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