Construction Boom: 15 New Commercial Projects Set to Break Ground in Downtown Los Angeles
Downtown Los Angeles is on the verge of a major construction boom, with 15 new commercial projects set to break ground in the coming months. The city’s thriving economy, coupled with its strategic location and attractive business environment, has made it an ideal hub for companies looking to expand or establish a presence in the region.
The new projects, which include a mix of office buildings, hotels, and retail spaces, are expected to create thousands of jobs and inject millions of dollars into the local economy. According to a report by the Los Angeles County Economic Development Corporation, the construction industry is expected to generate over $10 billion in economic output in 2025, with the commercial sector accounting for a significant portion of this growth.
One of the most highly anticipated projects is the redevelopment of the historic Broadway Trade Center, which will feature a 1.1-million-square-foot office complex, a 300-room hotel, and over 100,000 square feet of retail space. The project, which is being developed by a joint venture between Irvine-based Kilroy Realty and San Francisco-based intermediaryPGIM Real Estate, is expected to break ground in early 2026 and create over 5,000 jobs during the construction phase.
Another notable project is the construction of a new 40-story office tower at 1020 S. Figueroa St., which will feature over 700,000 square feet of office space and become one of the tallest buildings in Downtown LA. The project, which is being developed by Houston-based Hines, is expected to break ground in mid-2026 and create over 2,000 construction jobs.
In addition to these major projects, several smaller developments are also in the works, including a new boutique hotel in the Arts District and a restaurant and retail complex in the historic Core District. These projects will not only create new jobs and stimulate economic growth but also contribute to the revitalization of Downtown LA’s urban landscape.
The construction boom in Downtown LA is being driven by a combination of factors, including the city’s business-friendly environment, its proximity to major transportation hubs, and the growing demand for commercial space. According to a report by commercial real estate firm CBRE, the vacancy rate for office space in Downtown LA has fallen to a historic low of 12.1%, with average rents increasing by over 10% in the past year.
While the construction boom is expected to bring many benefits to the local economy, it also poses some challenges, including increased traffic and congestion, as well as the potential for displacement of long-time residents and businesses. To mitigate these impacts, city officials are working to implement measures such as improved public transportation, affordable housing initiatives, and community outreach programs.
Overall, the construction boom in Downtown LA is a testament to the city’s growing status as a major economic hub and a desirable location for businesses and investors. As the city continues to evolve and grow, it is likely that we will see even more new commercial projects break ground in the coming years, further solidifying Downtown LA’s position as a thriving and vibrant business center.
Project Breakdown:
- Broadway Trade Center redevelopment: 1.1 million sqft office complex, 300-room hotel, 100,000 sqft retail
- 1020 S. Figueroa St. office tower: 700,000 sqft office space, 40 stories
- Arts District boutique hotel: 150 rooms, 50,000 sqft retail
- Core District restaurant and retail complex: 20,000 sqft retail, 10,000 sqft restaurant
- 7th St. and Main St. office building: 200,000 sqft office space, 10 stories
- Spring St. and 5th St. hotel: 250 rooms, 20,000 sqft retail
- Olive St. and 8th St. office building: 300,000 sqft office space, 15 stories
- Grand Ave. and 2nd St. residential complex: 500 units, 20,000 sqft retail
- 3rd St. and Main St. office building: 150,000 sqft office space, 8 stories
- Flower St. and 5th St. hotel: 200 rooms, 15,000 sqft retail
- Hope St. and 8th St. office building: 250,000 sqft office space, 12 stories
- 9th St. and Broadway office building: 100,000 sqft office space, 6 stories
- Main St. and 7th St. restaurant and retail complex: 15,000 sqft retail, 5,000 sqft restaurant
- 4th St. and Spring St. office building: 200,000 sqft office space, 10 stories
- Figueroa St. and Wilshire Blvd. office tower: 500,000 sqft office space, 25 stories
Construction Timeline:
- Early 2026: Broadway Trade Center redevelopment, 1020 S. Figueroa St. office tower
- Mid-2026: Arts District boutique hotel, Core District restaurant and retail complex
- Late 2026: 7th St. and Main St. office building, Spring St. and 5th St. hotel
- Early 2027: Olive St. and 8th St. office building, Grand Ave. and 2nd St. residential complex
- Mid-2027: 3rd St. and Main St. office building, Flower St. and 5th St. hotel
- Late 2027: Hope St. and 8th St. office building, 9th St. and Broadway office building
- Early 2028: Main St. and 7th St. restaurant and retail complex, 4th St. and Spring St. office building
- Mid-2028: Figueroa St. and Wilshire Blvd. office tower
Note: The construction timeline is subject to change and may be affected by various factors, including weather conditions, permitting issues, and unforeseen delays.
