The 1989 pedestrian conversion and downtown revival
Third Street in Santa Monica was an unremarkable downtown commercial street through most of the 20th century — a typical mix of small retail stores, restaurants, and offices serving the surrounding residential neighborhoods. By the mid-1980s the downtown area had declined significantly: vacancy rates were high, the customer base had shifted to suburban malls (notably the nearby Santa Monica Place enclosed mall that had opened in 1980), and the city was actively looking for revitalization strategies.
The 1989 pedestrian conversion was the centerpiece of the revival strategy. Three blocks of Third Street between Wilshire and Broadway were closed to vehicular traffic, the street surface was redesigned with decorative paving and landscaping, public seating was installed, and the street became a fully pedestrian environment. The conversion was paired with subsidized rents and incentives for new restaurants and retail to fill the formerly vacant storefronts.
Within five years of the conversion the Promenade had become one of the most economically successful pedestrian shopping districts in the western United States. Property values along the three-block stretch tripled, vacancy rates dropped to near zero, and the area attracted both national chain retailers and local independent operators. The model became influential for similar downtown revitalization projects throughout coastal California — including Pasadena's Old Town district along Colorado Boulevard (the original Route 66 alignment), which underwent a similar though less dramatic transformation in the same era.