LA Could Revive Downtowns With SF’s Pop-Up Shop Program

San Francisco’s Pop-Up Solution for Downtown Retail Vacancies Draws Interest from Los Angeles

As much of downtown L.A. Continues to experience deserted, local businesses and advocates are looking to San Francisco’s “Vacant to Vibrant” program for a potential solution to a growing retail crisis. The program, launched in 2023, offers support to small businesses opening pop-up shops in vacant storefronts, aiming to revitalize downtown areas struggling with post-pandemic vacancies.

Downtown Los Angeles is grappling with a significant number of empty storefronts, with some estimates reaching as high as 40%, prompting concern about the future of the city’s core. Major brands, like Nike, have already abandoned locations, leaving gaps in the urban landscape. The success of San Francisco’s initiative has sparked interest in replicating the model in L.A., offering a potential path toward recovery.

How Vacant to Vibrant Works

Vacant to Vibrant, a program by SF Novel Deal and the City of San Francisco, connects small businesses with property owners to create temporary pop-up experiences and community spaces. The program handles logistical hurdles, including permitting and securing city funding, making it easier for entrepreneurs to test their concepts in high-traffic areas. Businesses are offered grants, assistance with lease negotiations, help with city permits, insurance, marketing support, and free rent for a period of three to six months. The ultimate goal is to convert these pop-ups into long-term leases, creating permanent businesses and a more vibrant downtown.

So far, the program has seen success, with more than 10 of the 40 businesses that started as pop-ups transitioning to multiyear leases with their landlords. Examples include Devil’s Teeth Baking Co., Mello flower shop, Craftivity, and Whack Donuts.

A Response to the “Doom Loop”

San Francisco’s business centers were particularly hard-hit by the pandemic, as technology companies rapidly adopted remote work models. This shift led to widespread office and retail vacancies, creating what some have termed a “doom loop” – a cycle of decline where vacancies lead to decreased foot traffic, further discouraging businesses and investment.

“San Francisco had the worst return-to-work situation in the nation,” said Simon Bertrang, executive director of SF New Deal. “It was the most extreme version of what L.A., New York and other cities in our country are dealing with.”

The Vacant to Vibrant program is seen as a key component in reversing this trend, injecting energy and activity back into the city’s downtown core. By providing a low-risk environment for entrepreneurs, the program encourages innovation and attracts customers, creating a more appealing and dynamic urban environment.

Los Angeles Considers a Similar Approach

Downtown L.A. Business leaders are actively exploring the possibility of implementing a similar program. The Central City Association, a business advocacy group, has called for the city to subsidize retailers’ rents to fill vacant storefronts. They are working with city officials to assess the feasibility of a Vacant to Vibrant-style initiative.

Nella McOsker, president of the Central City Association, believes that a program like this could create a “virtuous cycle” of revitalization. “San Francisco has demonstrated this larger ripple effect of success,” she said. “What we have is really, really doable in targeted pockets of downtown.”

Though, some stakeholders emphasize the importance of addressing underlying issues before focusing solely on retail activation. Nick Griffin of the DTLA Alliance, a business improvement district, argues that improving public safety and the overall pedestrian experience – through clean sidewalks, adequate lighting, and graffiti removal – are crucial prerequisites for attracting both consumers and businesses.

The Broader Context of Downtown Revitalization

The challenges facing downtown Los Angeles and San Francisco are not unique. Cities across the country are grappling with the consequences of the pandemic, including shifts in work patterns and changing consumer behavior. The rise of remote work has reduced foot traffic in central business districts, impacting retail and hospitality businesses.

The Vacant to Vibrant program represents one approach to addressing these challenges, focusing on fostering entrepreneurship and creating a more vibrant and engaging downtown experience. SF New Deal has received inquiries from nearly 40 organizations in cities across the country interested in replicating the program in their own communities.

The program’s success hinges on a collaborative effort between city governments, property owners, and small businesses. By providing support and resources, cities can empower entrepreneurs to take risks and contribute to the revitalization of their downtown areas. The program is supported by corporate philanthropy from Wells Fargo, JPMorgan Chase, Visa, Gap and others.

Numbers That Matter

SF New Deal has disbursed more than $54 million to more than 1,950 local businesses. Vacant to Vibrant has achieved a 50% long-term lease conversion rate for participating businesses.

What Happens Next?

In Los Angeles, the Central City Association continues to work with city officials to develop a detailed plan for a potential Vacant to Vibrant-style program. The plan will likely address funding mechanisms, eligibility criteria for businesses, and strategies for selecting vacant storefronts. The focus will be on identifying targeted areas within downtown L.A. Where the program could have the greatest impact.

The success of any such program will depend on a sustained commitment from both the public and private sectors, as well as a willingness to adapt and innovate in response to changing market conditions.