The Partnership for Building Reuse: Learning from Los Angeles

Transcription

1 The Partnership for Building Reuse: Learning from Los Angeles 1

2 Partnership for Building Reuse Why Los Angeles? Strong local partners Track record of building reuse Transit system expansion Opportunities for success 2

3 Project Advisory Committee Members Real estate Architecture Planning Construction Preservation Economic development Finance Government Community development Housing Downtown revitalization 3

4 Partnership for Building Reuse Steps: 1. Develop methodology and identify stakeholders 2. Research and map development trends 3. Identify barriers and opportunities 4. Develop solutions to overcome obstacles 5. Create Action Plan to implement solutions 4

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9 45% LA Commercial + Apartments: Building Stock by Year Built 40% 35% 30% 25% 20% 15% 10% 5% 0% pre building stock % building stock % building stock % building stock % building stock % building stock % building stock % 9

10 45% LA Commercial + Apartments: Demolition % vs. Building Stock % 40% 35% 30% 25% 20% 15% 10% 5% 0% pre demo % building stock % demo % building stock % demo % building stock % demo % building stock % demo % building stock % demo % building stock % demo % building stock % 10

11 35,000,000 Los Angeles Office Market: Vacancy + Occupied 30,000,000 25,000,000 20,000,000 SF 15,000,000 Vacant SF Occupied SF 10,000,000 5,000,

12 Identify Barriers & Opportunities 12

13 Market Barriers Supply of pre-world War II era buildings shrinking. Unrealistic selling prices for older buildings, particularly in downtown.. 13

14 Financial Barriers Construction costs and project delays. Lender concerns about hazardous materials, structural integrity, complexity of financing. Difficulty financing for mixed use projects, ground floor retail. Challenges financing projects in some areas. 14

15 Technical Barriers Post WWII buildings bring a new set of challenges: low ceilings, large floor plates, poor quality materials and substandard energy performance. Parking is difficult to provide on site. 15

16 Regulatory Barriers Adaptive Reuse Ordinance doesn t apply to commercial Change of use triggered too readily Zoning code is out of sync with vision for city. Permitting process is time consuming and not flexible enough. 16

17 Summary of Barriers to Building Reuse MARKET FINANCIAL TECHNICAL REGULATORY Supply of pre- World War II era buildings Unrealistic selling prices Construction costs Project delays Concerns about project risks Mixed use hard to finance Challenges of reusing postwar era buildings Providing parking on site ARO not working for commercial Change of use triggers too easily Zoning out of sync with vision Complexity of code enforcement. 17

18 Market opportunities Continued strong demand for housing. Emerging demand for creative office space. Tenants seeking authenticity. Traditional uses mixing and blurring. 18

19 Opportunity: Zoning Code re-write Current version dates to year re-write process has begun Will start with downtown 19

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21 Building Stock Year Built 1% pre % 17% % 23% % 9%

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23 Building stock Remarkably unchanged prewar commercial district 4 National Register districts, 500+ eligible structures 170 Los Angeles Historic- Cultural Monuments Largest collection of historic movie theaters on one street in US 23

24 Adaptive Reuse Ordinance (ARO) Removed zoning and building code barriers to reuse 60 building rehabilitations, 14,000 new residents Fewer projects since

25 Building Stock Office Vacancy 7,668,676 sf vacant

26 Building Stock Retail Vacancy 693,964 sf vacant

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29 Opportunity: Unlock potential of remaining unused buildings Realize opportunities of changing market Create model for citywide zoning code reform 29

30 Action Plan to Encourage Reuse 1. Integrate building reuse as a goal in the update of the Los Angeles zoning code. 2. Streamline the building permitting and approval process through realignment of Planning, Building & Safety and Fire departments. 3. Create support for policy reforms and incentives that encourage building reuse. 30

31 Lessons learned: Policy level Modernize outdated zoning and building regulations. Remove regulatory barriers to make building reuse easier. Create more flexible definitions of building use. Integrate building reuse as a goal in other policy initiatives. Use downtown as a policy innovator. 31

32 Lessons learned: Property level Conserve the authentic character of existing buildings. Plan for diverse uses and frequent changes in use. Design flexible interior spaces that appeal to the growing market for open plan living and work environments. Promote the speed to market advantages of building reuse. Support efforts to create diverse, mixed use urban neighborhoods. 32

33 Discussion 33