DTLA Recovery Continues, But Key Issues Still Lag

The DTLA Alliance’s latest report shows DTLA is recovering, but ongoing challenges are still impacting leasing, operations, and tenant retention for commercial buildings.

What You Need to Know

The report confirms that parts of DTLA are moving in the right direction.

Residential, retail, and hospitality sectors are stabilizing and in some cases gaining momentum.

Retail activity, in particular, has rebounded with more than 150 new food and beverage establishments helping fill space and bring people back Downtown.

At the same time, office continues to lag. Vacancy remains elevated as remote and hybrid work patterns persist, even as rents have held relatively steady.

The data also reinforces just how important DTLA is to the region. Despite representing a small share of the City’s land area, it remains a major hub for jobs, business activity, and investment.

There are also major long-term investments underway — including the DTLA 2040 Community Plan, Convention Center expansion, and infrastructure tied to the 2028 Olympics — all of which position Downtown for future growth.

But the most telling part of the report comes from the survey data. While respondents remain optimistic about DTLA long-term, they are frustrated with the pace of progress on core issues — particularly public safety and overall conditions.

How It Impacts You

This report reinforces what our members are already seeing on the ground: DTLA’s recovery is real — but it’s not translating evenly across buildings.

Leasing is improving in some sectors, and activity is coming back. But for many office properties, high vacancy and slower tenant demand are still major challenges. At the same time, ongoing concerns around safety, cleanliness, and overall street conditions continue to impact how tenants, employees, and visitors experience Downtown.

The disconnect is clear — investment and planning are moving forward, but day-to-day conditions are not keeping pace.

That gap matters. It affects tenant retention, leasing decisions, and return-to-office efforts — all of which directly impact building performance.

Stay Connected

DTLA has the fundamentals to succeed, and the pipeline of investment is strong. But if the City wants to fully unlock that potential, it needs to focus on the basics — and deliver visible, consistent improvements where it matters most: around our buildings.

Stay connected to BOMA on the Frontline for more.