Santa Monica Promenade’s Secret to Success
By Kathleen Rawson
CEO, Downtown Santa Monica, Inc.

September 16, 2014 -- I know many of us can remember the 1980s, but for those of you who don’t, downtowns were a dying breed, and Santa Monica was no exception. Indoor shopping centers were all the rage, and Frank Gehry had just designed one in Santa Monica. It became the place to go.

At times, the old Third Street Mall was deserted, retail outlets were struggling, the infrastructure needed an overhaul and visitors felt unsafe. It just couldn’t compete with the shopping center. Something had to be done.

While we always had natural gifts, we did not have success. In fact, the whole country was having the same problem. Between 1950-1980 there were over 200 pedestrian malls developed across the country. By 2005, there were only 24 left. Why? Why did ours succeed when so many others failed?

It was mostly because Downtown was built by and for locals. Anchored by cinemas in the early days, it gave people a reason to choose downtown first. Then restaurants and retail followed soon after.

The street captured and took full advantage of our most precious assets — sun, ocean breezes and a fabulous climate —  in a way that had not been done in the past. Parking was abundant and accessible.

Active management and attention to detail from the inception of the Promenade to today created one of Santa Monica’s most prized assets.

The Promenade has evolved from a derelict district with a chronic vacancy problem to a preferred location for retailers’ flagship stores, entry into West Coast or U.S. markets, and for launching new brands and store prototypes.

This dramatic growth has taken place with little additional retail development through creative re-use of existing space that was previously vacant or underperforming.

In 1989, annual taxable sales on Third Street Promenade totaled $28 million. Taxable sales in 2013 — adjusted to 1989 dollars — amount to an estimated $254 million. That’s a dramatic 800 percent increase. Not bad for a quarter century worth of work.

The reinvestment by the community in Downtown was an economic turning point for the City as a whole. Finally, there was a center — a community gathering place. Soon after the Promenade was built, tourism began to blossom into a real industry here; hotels were built like the DoubleTree, Loews, Le Merigot. Investors looked at Santa Monica as a viable option.

We’ve had our challenges, but through recessions, a major earthquake, a devastating tragedy at our beloved Farmers’ Market and a vastly more competitive retail environment, the Promenade and Downtown have continued to reach new levels of success and strengthen the area’s value to the community and Santa Monica’s stature in the region.

And we are never done. Currently, the City is creating a new Downtown Specific Plan and DTSM, Inc. is working hand in hand to create a document that will shape the future of Downtown for the next 25 years.

In Downtown Santa Monica we treasure our history, value our community and celebrate successes! Congratulations to ALL OF US on 25 years.