A new mixed-use development planned for Venice’s Abbot Kinney corridor could have ripple effects that reach well beyond its immediate footprint. These effects could include increased foot traffic, higher property values, and a shift in the commercial real estate dynamics. Approved by the Los Angeles City Planning Commission, the 36,716-square-foot project at 825 S. Hampton Drive will replace five one-story commercial buildings with a four-story structure offering 30 apartments, 3,416 square feet of retail space, and a full-service restaurant.
The design by David Hidalgo Architects balances density with amenities. Future tenants can expect a landscaped plaza, a courtyard, a rooftop deck, and even a fitness room. At the street level, the restaurant, permitted to sell alcohol and provide seating for 31 guests, adds to the already vibrant dining culture of Abbot Kinney Boulevard. Developers Steven Fogel of SJF Venice, LLC, and Westwood Financial Corporation are aiming to begin construction later this year.
The timing is notable, given Santa Monica’s struggles in the commercial market. Office vacancies hover at 30 per cent, some of the highest rates in Southern California, while retail availability reached nearly 16 per cent this summer. Big names like Rite Aid and REI shuttered locations in the past year, leaving large chunks of space sitting empty. Against this backdrop, fresh, smaller-scale retail and dining opportunities next door in Venice could lure both tenants and customers.
For Santa Monica landlords, the new Abbot Kinney project might not be direct competition but rather a catalyst. As businesses gravitate toward more dynamic corridors, expectations shift citywide. The potential positive effects of the Abbot Kinney project on the local retail, industrial, and residential sectors could bring a wave of optimism. No doubt one would expect that the demand for commercial valuation management services would run in parallel with key sectors, especially as investors look for clarity in a market that feels unsettled yet filled with potential.
Residential dynamics add another layer. Santa Monica remains the second most expensive rental market in the metro area, with one-bedroom units averaging $2,900 per month. Vacancy rates are below 5 per cent, meaning nearly full occupancy, while home sales have slowed. The contrast highlights the challenge of affordability in housing yet underscores the enduring appeal of the region. With the Abbot Kinney project reserving three units for very low-income households, even modest contributions to affordability could ease pressure in neighbouring communities.
Industrial real estate continues to be a rare bright spot in Santa Monica, with vacancies below 5 per cent as demand for last-mile logistics and creative studios remains strong. Here again, the Abbot Kinney development could complement that momentum. By supporting retail and dining that attract a steady flow of visitors, the project helps reinforce the ecosystem that benefits other property types.
Looking forward, events like the 2026 World Cup and the 2028 Olympics are expected to generate waves of activity across Los Angeles. Developments like this one on Abbot Kinney may set the tone for how mixed-use spaces adapt to future demands, sparking excitement about the future of real estate development.
Santa Monica, despite current headwinds in its commercial market, could find itself lifted by the rising tide of reinvestment along nearby corridors. Projects that successfully combine housing, retail, and lifestyle elements may not only reenergize their immediate neighborhoods but also influence how the Westside recalibrates its real estate balance in the years ahead.
