Santa Ana tower pivots to housing
Developer Mike Harrah has canceled plans for an office tower at One Broadway Plaza in Santa Ana, opting instead to build housing. The decision to pivot the long-delayed project reflects the softening commercial real estate market in Southern California and the region's acute demand for residential units. The project's change in typology illustrates a significant trend in urban infill and adaptive reuse strategy.
The One Broadway Plaza project has been a saga in Santa Ana for over two decades. First proposed by developer Mike Harrah in the early 2000s, the 37-story tower was envisioned as Orange County's tallest building, a landmark office skyscraper. The initial city approval in 2004 came with a crucial condition: at least half of the building had to be pre-leased before construction could begin, a hurdle that proved significant. The project's history is marked by persistent delays, including lawsuits from historical preservationists and shifting market dynamics. As far back as 2012, Harrah was selling other properties to finance the tower's planning stages. By 2020, plans had already started to shift, with a proposal to convert 19 of the office floors into 415 apartments, a precursor to the complete pivot away from a primarily commercial use. This latest transformation scraps the office-centric model in favor of 602 market-rate apartments, reducing the commercial footprint to just 70,000 square feet of retail. This move directly reflects the challenging office market in Orange County, which saw vacancy rates hovering around 18.3% at the end of 2025. In contrast, the Santa Ana housing market remains highly competitive, making residential development the more viable path forward. The decision to convert One Broadway Plaza is part of a larger adaptive reuse trend across Southern California, as developers grapple with post-pandemic office vacancies. Los Angeles, in particular, has seen numerous office-to-residential conversions, with the city creating an Adaptive Reuse Ordinance that has resulted in an estimated 12,000 new housing units over 25 years. Statewide incentives are also helping to fund the conversion of commercial spaces into housing. For large-scale urban residential projects like this, the focus is increasingly on sustainable design and integrated amenities. New towers often incorporate biophilic design principles, which integrate nature to improve resident well-being and can include features like green facades and sky gardens. This approach not only enhances the living environment but also adds a competitive edge in the market. High-performance building standards are becoming the norm, driven by renter demand for eco-friendly features. Certifications like LEED are common, with many new multifamily projects in 2025 targeting LEED Gold. The push towards net-zero energy is also gaining traction, utilizing all-electric systems, on-site solar, and smart building technology to drastically reduce energy consumption.