California’s many half-empty office buildings and empty stores may soon be given new life. Thanks to local and state efforts to loosen land-use laws, it will soon be much easier for California developers to convert commercial real estate into apartments, condos and townhomes.
This change could not have happened at a better time.
Every week seems to bring more bad news from the commercial real estate sector.commercial skyscraper owners San Francisco and Los Angeles A growing number of office buildings across the state are being considered “zombie” because they are delinquent on their loans and half-leased.Several recent high-profile exits — including shopping mall giant Westfield’s decision walk away Data from downtown San Francisco Center is a reminder that retail vacancies are still higher than before the pandemic in many cities.
but forget it city ​​ruin loop Story. Dying suburban strip malls and downtown office buildings are perfect for addressing one of California’s most pressing problems: a devastating housing shortage that is pushing rents and home prices to unaffordable levels. offers the opportunity.
Most cities in California don’t allow residential development in commercial areas, or land conversion is so slow and expensive that few developers care. That is finally changing, as land previously off-limits to housing will be unlocked.
Perhaps the biggest reform will come on July 1st. 2011 Congress Bill Enabled. The legislation, drafted by Rep. Buffy Wicks (D-Oakland), will expedite the approval of 100% affordable housing on most properties zoned for retail, office and parking. . The law also grants expedited approval for projects that combine market prices with affordable housing when located on her eight-lane commercial corridor from four lanes. One analysis found that underutilized commercial real estate in Los Angeles County 1.6 million houses.
President Jimmy Silverwood Affirmed Housingplans to use AB 2011 to develop up to 200 affordable units on a 5-acre vacant commercial lot outside Sacramento. His firm, which specializes in building housing for low-income families, veterans and former homeless people, is also looking to buy empty shopping centers surrounded by vast parking lots for development. He said the law is particularly useful because it exempts projects from the California Environmental Quality Act and gives developers confidence that they won’t be threatened with CEQA lawsuits.
AB 2011 is intended to build new housing on commercial land. But there’s finally some momentum to relax restrictions on adaptive reuse, especially as more and more empty offices become available after the shift to remote work. Renovating existing office and store buildings makes a lot of sense. The project will breathe new life into a quiet commercial hub, preserve local architectural history and character, and help reduce the environmental impact of new construction.
But adaptive reuse can be as expensive as new construction, so the state has budgeted $400 million over two years to encourage private adaptive reuse projects.
This year’s new bill includes: Congress Bill 1532the conversion from office to residential would be quick if affordable units were included. Congress Bill 529 It aims to modernize state building codes and make it easier for office and retail buildings to convert to housing. It’s important. Renovating a 30-, 40-, or 50-year-old building to today’s standards can be prohibitively expensive. State regulations should give more flexibility to adaptive reuse projects without compromising mandatory safety standards.
Los Angeles is a pioneer in adaptive reuse. A 1999 city ordinance allowed the developer to repurpose his post-1974 building downtown. This led him to produce 12,000 homes in 15 years. The planning department is currently working on ordinance To enable adaptive reuse across the city of properties older than 15 years. This is an expired extension of a successful program. Planners are looking to convert mid-rise office towers in the Westside and Valley, thanks to cultivating new-home-resistant communities.
This is a hopeful sign that local and state legislatures are willing to loosen zoning laws to encourage redevelopment and adaptive reuse. With so much demand for housing, California can’t afford to keep its offices and shopping malls empty.
