Los Angeles commercial property owners are stepping up to help the estimated tens of thousands of people left without permanent housing find a sense of normalcy in the chaos of the most destructive wildfires in California history.
From multifamily landlords offering free rent and waiving deposits to office owners giving cubicles and suites to remote workers who can't return to their home offices, property owners are making empty commercial space useful as evacuees from the Pacific Palisades and Altadena neighborhoods most disrupted by the fires rebuild their lives.
"Rather than capitalizing on the struggles of others through rent hikes or price gouging, this is an opportunity to show empathy and solidarity,” Aviel Golbari, vice president at office landlord Elat Properties, and one of several landlords donating space to help evacuees keep their businesses running, told CoStar News.
Fires have torched some 60 square miles, destroyed more than 14,000 structures across Los Angeles County in the past two weeks, leaving 88,000 people evacuated from their homes and spurring AccuWeather to predict rebuilding costs of up to $150 billion. Some 12 million square feet of commercial real estate structures were at risk of being destroyed by the wildfires, according to an exclusive CoStar analysis.
Landlords are providing aid while looking ahead to the complicated process of rebuilding.
“Housing and shelter are critical immediate issues," said Sean Burton, CEO of multifamily landlord Cityview, in a statement. "But we also must address infrastructure needs like power, water and utilities, as well as such issues as lost tax revenue, lack of schools, stores or churches."
Space for survival
Multifamily landlords are at the frontlines of helping people displaced by the fires, with some also offering month-to-month leases, freezing lease rates and in some cases tossing in free furniture and appliances for people affected by the fires.
Locally based TruAmerica Multifamily, owner of 20 apartment complexes in Greater Los Angeles, said it has rehoused nine families who lost their homes in Altadena at two of the company's apartment complexes in nearby Pasadena and is working on more.
TruAmerica and other local multifamily landlords including CityView have joined a coalition led by the California Apartment Association that is seeking to prevent price gouging among landlords by educating peers on rules governing rent hikes and penalties for violations, while working with listing services to flag offenders and promote available space to evacuees.
Meanwhile, Los Angeles-based developer Lowe is offering extended stays at the casitas at its luxury Terranea Resort in Palos Verdes to wildfire evacuees in need of shelter.
Retail landlords, too, are using their properties to raise money and donations for families in need. Pacific Retail Capital Partners will host a fundraising event called "A Love Letter to LA" on Valentine's Day at its Plaza West Covina shopping center. The company has also created a social media campaign called (M)all Hands on Deck to encourage shoppers at its properties to support wildfire victims.
At Brookfield Properties' Glendale Galleria mall, a group of tenants offered discounts on apparel, food and other merchandise for evacuees. Brookfield Properties is also offering a housing support program at its six Los Angeles area and two San Diego apartment complexes that includes rent freezes and deals on furnishings.
Landlords step up
Office property owners in areas far removed from the fire zones are making empty space accessible to those who need it. Elat Properties is one of a few landlords donating space to help evacuees keep their businesses running.
The company owns two towers downtown and The Taft Building at 1680 N. Vine St. in Hollywood and is donating up to six months of office space for new tenants affected by the recent wildfires. From cubicles to private offices to suites of offices, the company has available space to match evacuees’ needs.
“As a family office that has struggled in the past, we believe we need to help others in need,” said Golbari with Elat Properties. “As many have shifted to home offices that are not available, they’re now stuck in an Airbnb. We want to make sure everyone has a place to work.”
Foundry Commercial, an Orlando, Florida-based landlord with a Southern California portfolio focused on real estate involving churches, not-for-profits and schools, set up a system to help such organizations affected by the fires find space at appropriate properties with vacancies.
The company created a form to make the connections and sent it out to all of the property owners and churches, schools and nonprofits in its database.
Members of trade group BOMA Greater Los Angeles set up collection boxes in their building lobbies to collect essential item donations for evacuees. The organization is also raising money to address the ongoing needs of fire victims after the initial wave of aid has been delivered.