It has often been said that Los Angeles is a city in search of a “city.” But from the hyperactivity emanating from prominent real estate developers in downtown Los Angeles, it certainly looks like that is about to change.

The downtown area of Los Angeles has had a checkered history. Back in the 1930s, during its heyday, it was, in fact, a bustling and lively center. It was a time when art deco buildings were erected; opulent movie palaces, dating to the early days of the film industry, were thriving; and upscale stores and department stores such as Robinson’s and Broadway were prospering.

As with most neighborhoods, it suffered the indignity and subjectivity of developers’ and consumers’ fickle flight patterns in search of ever-newer business opportunities. Most businesses decamped the downtown area back in the ’70s and residents had moved to the ’burbs way before then. Neglect and disrepair followed, mostly dependent on economic cycles.

Downtown had an early renaissance in 2000, but it came in spurts, and construction projects were stalled during the last recession, with vacancies soaring. Those that could not sustain the economic downward cycles fled, but those that survived have already begun to make downtown a different place. In the last few years, we have seen the likes of L.A. Live and Nokia Theatre take the lead, with bars and restaurants following and flourishing. Live-work concepts with office spaces, condos and apartments have been filling up.

Unprecedented activity

With unprecedented activity taking place downtown, the scene is very much reminiscent of New York’s SoHo district back in its early renaissance stage (mid-’80s and early ’90s), for there is a re-invigorating spirit focused more on developing an emerging retail environment, to bring together deep-pocketed owners, fashion brands and big-name designers that are already creating a sense of a revived, lively city center.

Prominent developers such as Steve Needleman, Stuart Rubin, Barry Shy and Jeffrey Seymour are looking to expand their reach, scope and brand in new places beyond lifestyle centers and are readying to build out downtown street retail, basically creating “city life” and searching out market potential. Just consider what is already happening: Korean Air, building the tallest structure downtown, the 73-story Wilshire Grand Hotel-office skyscraper; approved plans for thousands of new apartments; the fashionable Ace Hotel and brands such as Whole Foods Market, H&M, Zara, MAC Cosmetics, Victoria’s Secret and more moving in. And then take a look at the liveliest frontier these days, South Park, a collection of blocks east of Staples Center, dismissed for decades as an asphalt-laden wasteland. At least a half-dozen major construction projects are under way and several others are in the works.

But it is not without its challenges. …

Downtown, which has had a long-standing reputation as a gigantic office parking lot, will need to remember that it is building out a “city” center amid historical buildings that were built in an era when there was no need for parking considerations and therefore not much space readied for it. Most notably, parking is a problem in the Arts District, a popular area today converted from an old industrial sector with warehouselike structures. As such, possibly the greatest challenge in its rebirth will be just that – parking accommodations. Yes, the well-known problem that everyone in Los Angeles can identify with cannot be overlooked in the overzealousness of downtown’s rebuild.

Recognizing that developers are jockeying to buy up every available land space in the area for ultimate profitability, it is safe to say that in the end, parking will be the driving indicator, impacting the sustainability of downtown’s growing success. This should command prime attention in the planning of downtown projects by all associations involved.

Another challenge is that the downtown area is perceived as not a safe place in which to walk freely. An infrastructure must be developed that would “clean up the streets” – literally and figuratively. It would need to be a sustainable program to address lighting, broken sidewalks, security of buildings and the needs of the burgeoning homeless community, etc.

The rebirth of the downtown area as a “city center” of the second largest market of the nation will certainly be watched by many other such aspirational urban centers in the United States and, as such, it might prove to be a testing ground. Unlike building out a city center as a new planned community, it is not a blank slate. Civic organizations, corporate constituents, and economic and housing development agencies need to partner to get it right.

All bets are on downtown. It’s one we can win. Now is the time.

Robert Cohen is president, Southern California, of RKF, and he has more than 28 years of retail real estate experience.