The Summer Olympic Games are set to return to Los Angeles in 2028 and that has spurred a host of projects designed to ensure the games go off without a hitch.
The Summer Olympic Games are set to return to Los Angeles in 2028 and that has spurred a host of projects designed to ensure the games go off without a hitch. The investment spans a range of new development, infrastructure improvements as well as the polishing of existing facilities. The arrival of the games is also creating opportunities for multifamily developers to bring to life new projects through the strategic deployment of advanced construction technologies that can help meet housing demand, even beyond when the Olympic torch is passed on by L.A.
The City of Angeles is no stranger to preparing for and hosting a global event. After all, it hosted the 1984 Olympics, and Los Angeles will be the third city in the world to host the games three times, along with Paris and London.
Los Angeles’ array of world-renowned stadiums, arenas, convention centers, and iconic venues will be called on to play host to LA 2028. That includes the recently opened SoFi Stadium, the newly renovated Los Angeles Memorial Coliseum, along with Staples Center, UCLA’s Pauley Pavilion, USC’s Galen Center, The Forum, Bank of California stadium, Dignity Health Sports Park, and the Rose Bowl. Sites across the San Fernando Valley, Los Angeles Harbor, and Southern California’s legendary beaches will also host several sports.
The preparation for the Games of the XXXIV Olympiad is expected to encompass building new projects and facilities. Yet, Los Angeles Mayor Eric Garcetti has billed the games as a no-frills affair that will make use of existing, recently debuted, or already-planned facilities.
While few if any new purpose-built structures or venues will be created for the Olympics, the region already has several new sports facilities that will be called into action. One such showpiece venue is SoFi Stadium, the Los Angeles Rams football stadium in Inglewood that opened in 2020. The state-of-the-art 70,240-seat venue will host the L.A. 2028 opening ceremonies. The facility is one of the most expensive sports and entertainment complexes ever built, with an estimated price tag of roughly $5 billion, it anchors a 298-acre mixed-use complex of office buildings, shops, restaurants, residential units, hotels, movie theater, and parks.
Expanding on the investment of transportation
So, what will be the impacts if no massive new buildings are needed to host the sporting events. The biggest winner is the METRO transit system that will evolve into the U.S.’s second-largest system behind New York City. New access to the Westwood area (UCLA) and Los Angeles International Airport (LAX) opens up many possibilities for the tens of thousands of visitors typical of an Olympic host city.
The operator of Los Angeles International Airport (LAX) is completing another extensive expansion of the airport that will touch airfield improvements, new terminal facilities, as well as roadways. The airport had already initiated $14 billion in upgrades to roads and existing terminals. Los Angeles World Airports has an array of improvements underway including the addition of at least 21 gates that are envisioned to be open in time for the 2028 Summer Olympics in Los Angeles.
A $1.6-billion midfield concourse was built west of the Tom Bradley International Terminal, and renovations have also touched terminals used by Delta, American, and Southwest Airlines. LAX’s $4.9-billion people mover train is a highly visible construction project underway that is slated to open in 2022. The 2.25-mile train for visitors will connect LAX’s central terminal with a station for the Crenshaw/LAX and Metro Green light rail lines, as well as a new consolidated car rental facility.
Creating a more transit-oriented community in L.A. basin
This transportation and infrastructure growth is creating a whole new generation of Transit-Oriented Developments (TOD) throughout the L.A. Basin. This will boost transit-oriented mixed-use developments and multifamily type 1 developments along these lines as is already in evidence in Santa Monica and Culver City.
The Olympic Village will be located at UCLA and the university is planning to add 5,400 new student housing units. The USC campus will host the Olympic media village, using existing dorms, including the recently completed, $700-million USC Village, a 1.25-million-square-foot campus expansion that can accommodate 2,500 residents.
In and around the L.A. Live complex Downtown there’s also significant development activity underway. There are as many as 20 new high-rise complexes in the works that will add 8,000 new hotel rooms near the Staples Center and Los Angeles Convention Center. There’s also been a noticeable uptick in hotel development activity in cities such as West Hollywood, Beverly Hills, and Hollywood leading up to the games.
Hospitality will also benefit even in the time of Airbnb. In 1984, the last time L.A. hosted the Olympic games, Airbnb did not exist, but today there are 42,000 rooms available in Los Angeles, which are certainly expected to help fill the need for housing from attendees and families of athletes competing in the games. There will likely be another 50 hotels to break ground in the LA area to suit both typical market demands but to also be there to host attendees. The Ritz-Carlton/JW Marriott in DTLA will open another 38-story tower designed by Gensler.
Advanced planning & technology
It is anticipated that Project and Construction Managers will continue to tap into advanced construction technologies including BIM management tools to bring these multifamily development projects to market quicker and more cost-efficiently. The future of constructing projects will be anchored on an approach that solves issues, rather than only pointing out problems. This centralized building information model, or BIM, is a strategy and execution plan that serves as a project catalyst that fundamentally changes the roles of those on the development team. The new digital models now available translate into increased coordination and reduction of problems during construction because of poor coordination among the development team or unreliable documentation. By properly utilizing today’s more complex BIM technology, which requires an intimate understanding of the tool, a new component is introduced into the development process to tackle problems and incorporate better solutions.
BIM is now a reliable and trusted resource that should be integrated into a development team’s toolbox. Developers that aren’t tapping into this advanced technology or Integrated Project Delivery-type of the tool are missing out on opportunities to bring projects to market quicker and with reduced costs because of design delivery delays and costly change orders.
AECOM was hired by LA 2028 as its primary planning consultant. They have identified five clusters of existing and potential venues dispersed across the LA Basin. Downtown as No. 1, then UCLA, Hollywood Park/Stadium South Bay, and Long Beach sports parks. There is also a civic push to advance the restoration of the LA River from its unfortunate paving over in the 1960s to control floodwaters. If this advances, then from Glendale to the East Side of DTLA there will be a new renaissance as the city builds towards the LA River and creates bike and nature trails alongside.
L.A. is a massive region and the Olympics is not expected to be the one catalyst that changes the entire market as it did at previous games in Sochi or years ago in Atlanta. But L.A. is the world’s media and entertainment capital with a population that can not only service this major event held in the vast area but also drive the sponsors that will ensure the International Olympic Committee (IOC) gets its TV rights that will bring in billions of revenue.
The anticipation continues to build for the 2028 Olympic games in Los Angeles and that is expected to continue driving additional development. It all adds up to developers needing to take their games to the next level to meet the demand for housing in a region that faces, rising demand, increased prices, and continued housing shortages. If you want to know more on how Corbis can help expedite your multifamily development, reach out to Stella here.