Building Trades News

Residential Towers, Not Office Buildings Going Up This Time

N o skyscraper has been erected in downtown Los Angeles since the 52 story Two California Plaza was built in 1972, but a recent boom in downtown construction looks set to change that and radically change the downtown skyline. All told, 32 residential towers between 11 and 55 stories have been proposed – 20 of them considered to be skyscrapers because they would be more than 240 feet tall, or about twenty stories. Not all of the proposed towers have received city approval and some are still waiting for financing.

The first of the proposed buildings should be completed over the next three years, including a 33 story loft building at 9th and Flower streets. Other buildings include two residential towers are already under construction and a 55 story hotel and condominium complex is expected to break ground later this year at the south end of downtown, near the Staples Center,. At the other side of downtown, by the Walt Disney Concert Hall, five skyscrapers have been proposed for construction as part of the Grand Avenue project. Among the 5 proposed buildings is a 40-50 story skyscraper to be designed by the world renowned architect of the Walt Disney Concert Hall, Frank Gehry. The building is scheduled for completion in 2009.

The last major construction boom in downtown took place between 1988 and 1992. During that time, developers spent billions of dollars and added eight million square feet of office space.

What distinguishes the current boom in downtown construction from the last one is that the current slate of buildings is almost exclusively residential. In the past, the boom was driven by the construction of office towers.

Like many downtowns, Los Angeles overbuilt in the late eighties and early nineties and it has taken the area almost a decade to recover. Vacancy in downtown office buildings still stands at 15.9% - higher than the national average.

Despite the continued vacancies in office buildings, many of the downtown lofts and condos have long waiting lists and the residential building does not look like it will be ending anytime soon.