Downtown Los Angeles, like all urban cores, suffered greatly during the pandemic as residents, visitors and workers were asked to stay home. To deepen stakeholders' understanding of how the pandemic impacted our city center and guide Downtown's strong, equitable economic recovery, CCA has partnered with Beacon Economics to analyze impacts on jobs, sectors, tax revenue and more, including the below overview of data collected between Quarter 2 of 2020 and Quarter 2 of 2021.

ECONOMIC IMPACTS
Urban centers including DTLA were especially vulnerable to COVID's economic impacts on daily life. Additionally, Leisure and Hospitality jobs were hit the hardest, while the Information and Health Care sectors gained jobs:

• From September 2019 to September 2020, employment in DTLA declined 18% or by 35,000 jobs, compared to a 12% drop in Los Angeles County over the same period.
• Prior to the pandemic, 16% of all private sector jobs in DTLA were in Leisure and Hospitality, which fell by 62% between September 2019 and September 2020. This accounts for 58% of all jobs lost in DTLA.
• DTLA lost 641 or 11% of its business establishments. More than 30% of closures were in the Leisure and Hospitality sector.
• The Information (e.g., data processing, software and motion picture subsectors) and Health Care sectors in DTLA saw a 6% jobs increase.

Office jobs did not experience significant layoffs; however, conflicting demands for flexibility, remote work and in-person collaboration will inform the future of office space.

• Around 40% of jobs in DTLA are in office-using industries, which contracted slightly, by 1,300 positions.
• Employees in Los Angeles County are now spending 36% less time at their workplaces.

DTLA's tax revenues dropped drastically during the earlier states of the pandemic, creating fiscal gaps for the City budget.

• Sales tax receipts fell by 16% in DTLA compared to a 7% decrease citywide.
• DTLA hotel taxes (TOT) generated 70% less revenue than in 2019.

PROGRESS
While job and establishment losses during the early months of the pandemic are stark, and the Delta variant surge delayed recovery, we still see signs of resilience and recovery in Downtown.

Demand for urban living in DTLA rebounded in the second quarter of 2021.

• Apartment vacancies fell four points to 9% -- there's less apartment vacancy now than pre-pandemic.¹
• Rents in the urban core are at 98% of pre-pandemic levels.²
• There are nearly 5,000 housing units under construction and about 30,000 units proposed.³

Visitors are returning to DTLA to enjoy cultural attractions, restaurants and entertainment options.

• Hotels are seeing a 61% increase in demand now compared with September 2020.4
• Metro ridership returned to 70% of pre-pandemic levels in September 2021, a significant milestone given that DTLA is the Los Angeles region's mobility hub.

ADVOCACY
We see additional promising signs like new business openings and increased vaccination rates that were discussed at our recent economic development panel, but we know there is much more work to be done to deliver on our vision for a more vibrant, inclusive and sustainable DTLA.

We continue to work closely with our members and government partners to promote recovery. Policies like the permanent Al Fresco outdoor dining program and other initiatives to simplify regulations for food and beverage businesses can buoy our favorite spots while enlivening our sidewalks. We also see promising opportunities to activate Downtown's shared public spaces such as Councilmember De León's study of partial street closures and South Park BID's Sounds of South Park outdoor music performances and plans to bring public art events throughout the neighborhood.

Earlier this year, we released a white paper with recommendations for how to repurpose vacant buildings through adaptive reuse -- a DTLA best practice. We continue our long-term work to ensure future growth in Downtown, especially near transit through DTLA 2040, and advance comprehensive solutions to homelessness which has deepened across the city since the pandemic. The path to full recovery may not be linear but beginning with a baseline understanding of the pandemic's impacts, identifying growth opportunities and collaborating with members and partners will help CCA lead a robust recovery for the heart of our city.

¹ Apartment Occupancy in LA's Urban Core Is Bouncing Back. CBRE.
² Ibid.
³ Second Quarter 2021 Downtown LA Market Report, Downtown Center Business Improvement District
⁴ STR Report for LA Tourism