More Commercial Uses Could Be Coming to RAND Building

Amendment Unlocks New Opportunities, Secures $5.5 Million in Community Benefits

The Santa Monica Planning Commission unanimously approved an amendment to expand commercial uses at the RAND Corporation’s underutilized headquarters at 1776 Main Street, unlocking $5.5 million in community benefits.

The decision, made during a meeting on June 18, allows RAND to sell or lease portions of its 326,170-square-foot, five-story building for business and professional offices, creative offices, research and development facilities, and ground-floor retail. The current agreement, in place since 2004 and set to expire in 2055, had restricted the building to “institutional office” use, primarily for RAND-like entities.

Post-pandemic shifts in work patterns have left the building underused, with RAND officials reporting an average of 225 people visiting daily, down from 700 pre-pandemic. The building, designed to accommodate over 1,300 workers, has become an inefficient use of space, said Jeremy Rawitch, RAND’s Director of Communications and External Affairs.

Under the amendment, RAND will pay $3.5 million to the city upon approval, with an additional $2 million due after Coastal Commission approval or when new uses begin. The organization will also maintain its $40,000 annual contribution to the Santa Monica Early Childhood Lab School through 2065. 

The amendment includes a clause requiring RAND or future owners to pay the city 4.6% of any sale price if the buyer is exempt from the Measure GS transfer tax, ensuring revenue parity. An independent economic study commissioned by city staff projects $3.3 million annually in city taxes and up to $25 million in transfer taxes if the property sells, potentially totaling $130 million over the agreement’s life.

The plan aligns with the Civic Center Specific Plan’s goal of creating a vibrant, mixed-use neighborhood, allowing up to 40% of the building for wet laboratory use and adding retail and restaurant spaces to activate the area.

in Hard, News
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