New Study: Workforce Disruptions Affect Commercial Real Estate
A new report from the Los Angeles County Department of Economic Opportunity and LAEDC finds recent federal immigration enforcement actions are disrupting businesses across Los Angeles County.
While it may sound like a workforce policy issue, the findings matter to BOMA/GLA members because business activity, tenant performance, and building operations are all tied to the local workforce.
What You Need to Know
- 82% of businesses reported negative impacts, and many experienced staffing shortages and reduced sales.
- $3.7 million in reported business losses during peak immigration enforcement activity.
- Some businesses lost significant revenue, and customer traffic dropped in certain areas.
- A Downtown LA curfew connected to enforcement-related unrest caused large economic losses and reduced business activity.
- Employers report workers are sometimes afraid to come to work, making it harder to maintain normal operations.
How It Impacts You
Tenants
Retailers, restaurants, and service tenants may see fewer customers and staffing problems. That can lead to late rent, requests for relief, or vacancies.
Vendors & Maintenance
Janitorial, security, landscaping, and construction trades rely heavily on available labor. Staffing shortages can delay repairs, tenant improvements, and projects — and increase costs.
Building Operations
Disruptions, protests, and reduced staffing can affect security coverage, building access, and after-hours work.
Property Performance
When workers don’t commute and customers don’t shop, buildings feel it through lower occupancy, reduced parking use, and weaker leasing activity.
Stay Connected
The report shows a simple reality: when the local workforce is disrupted, tenants struggle — and when tenants struggle, buildings do too.
This issue can be a continued economic and operational issue for commercial real estate.
Stay connected with BOMA on the Frontline for more news impacting members.
