Parking at a Premium

The Downtown Los Angeles housing boom began with the conversion of largely vacant office buildings in the Historic Core district into apartments and condominiums. Now that the Historic Core has matured, development activity has shifted to brand-new buildings in the South Park district and to the conversion of relatively new office buildings that are no longer economically viable.

The 1100 Wilshire building was built in 1986, a speculative endeavor that banked on the growth of a nascent "City West" corporate center across the Harbor Freeway from the Bunker Hill Financial District. A subsequent crash in the office market prevented "City West" from being realized and 1100 Wilshire found itself in a somewhat isolated location.

Aside from its questionnable location, 1100 Wilshire suffered from a questionnable design. The building was never able to attract more than a handful of tenants.

The building consists of 15 floors of structured parking topped by a 22-story mirrored glass tower with an awkward shape. Many Angelenos consider it an eyesore:

Photo from you-are-here.com

In 2004, Forest City Enterprises, a major player in the Downtown residential boom, acquired 1100 Wilshire with plans to convert it into high-end condominiums. At long last, it seems the building might find a purpose.

It turns out the condos aren't the only thing for sale; parking spaces are too. Forest City is charging $15,000 to $20,000 for each space in the parking structure, a common practice in cities like New York and San Francisco but nearly unheard-of in Los Angeles. While people have become accustomed to "free parking," economists, urban planners, and politicians are beginning to recognize that the provision of "free parking" raises the cost of new housing substantially and is not a sustainable zoning practice.

I am encouraged by this development, as I think it moves our city in the right direction. The costs of housing and parking must be seperated, lowering rents and mortgage payments for those who choose not to drive. We need to create economic incentives for transit use that will make transit-oriented development more appealing to a wider section of the market. The resultant reduction in automobile traffic will work toward many important regional goals.

Angelenos should be concerned that lower-income people might become "priced" out of the parking "market." The problem with "market-oriented" traffic congestion solutions such as the sale of residential parking and freeway toll lanes is that a day may come when only the rich can afford to drive and park in this town. Public transit just isn't a viable alternative for many people in Los Angeles regardless of their income though the Metro system continues to improve.

For more information, read the following article from today's Los Angeles Times:

Want Deed to Park Place?