Several fires coalesced to create the most destruction of its kind ever to hit Los Angeles County, prompting commercial property professionals to call for sweeping changes to disaster planning.
There were at least five deaths reported, and more than 1,000 structures were damaged or destroyed as of late Wednesday from the Pacific Palisades fire as it expanded to cover more than 12,000 acres, marking the worst damage on record in the nation's largest county, according to Cal Fire. That fire is centered in an affluent, coastal region south of Malibu and north of Santa Monica, and it could also become the county's costliest fire, reports indicate.
“It’s a disaster to the hundredth degree," said Rick Caruso, founder of his namesake development firm and a former candidate for Los Angeles mayor, in an interview with local Fox 11 television.
He estimated cleanup efforts could run owners and public officials "tens of billions of dollars." Caruso, who ran unsuccessfully against Karen Bass in 2022 for mayor, criticized officials for a lack of preparedness. He added that what he called mismanagement of water resources prevented efforts to control fires that caused damages across the area that's home to Caruso's upscale Palisades Village shopping center. His property remains intact.
Property damages could surpass $10 billion, according to preliminary estimates by investment services firm J.P. Morgan. Properties destroyed or at risk include thousands of homes and numerous commercial structures, including shopping centers, schools, offices and grounds surrounding the iconic Getty Villa museum.
Factors such as near-record level winds and a particularly dry season in the wake of a wet season last year contributed to the epic nature of the fires, authorities say. Late Wednesday, the LA Fire Department was battling blazes in the neighborhoods of Palisades, Woodley, Hurst and Eaton, with causes unknown.
The Pacific Palisades fire represents a first of its kind due to its size, location and timing, with California’s wildfire season typically running between June and October, according to the Western Fire Chiefs Association. Still, it is among several California wildfires to hit in January, while a number of large coastal Los Angeles fires have broken out in recent years, including the Woolsey Fire that burned 97,000 acres near Malibu in 2018.
“Planning didn't figure it out after previous earthquakes and fires,” Carl Muhlstein, chairman of Muhlstein CRE, told CoStar News. “Maybe the loss of thousands of homes, schools, places of worship, and entire neighborhoods will wake them up.”
Prevention efforts
Commercial property firms were busy Wednesday making sure employees and clients were safe from the fires. Many of Avison Young's employees were affected and evacuated from their homes, according to Principal and Regional Managing Director Chris Cooper.
The fires are affecting at least 30,000 residences — with even more residents facing evacuation notices — throughout Los Angeles County.
The Pacific Palisades fire destroyed Caruso's daughter's home, in part prompting Caruso to pressure public officials and planners to better prepare for the region's next fire.
One of Caruso's main concerns is the city and county brush mitigation program, an effort to prune the hillside foliage that contributes to spreading fires. The work is only done every 30 to 40 years, he said.
"We’ve had decades to remove the brush in these hills that spreads so quickly," he said. "The reservoir was not refilled in a timely manner to keep the water flowing. This isn’t high science here; it’s all about leadership and management."
Muhlstein noted city officials "need to rewrite standards to help Los Angeles transition for long-term sustainability." He pointed to high-density housing in the hills of Los Angeles and narrow roads that slowed response crews.
"The fires should fundamentally change the irresponsible approach to planning," he said.
The fires could impact the local apartment market, as displaced and prospective residents opt to rent homes close to their social circles, Muhlstein said.