Inside Santa Monica’s $3 million strategy to revitalize the struggling Third Street Promenade

Revival Plans for Santa Monica Mall

A city in Southern California has announced ambitious plans to revitalize a struggling mall, aiming to transform it into a bustling shopping destination resembling a mini Bourbon Street.

Recently, Santa Monica city officials decided to lift some restrictions on alcohol permits at Santa Monica Place, an outdoor shopping center located along the Third Street Promenade. This decision comes amid efforts to attract back shoppers and businesses that have left, partially due to rising homelessness in the area.

The once-vibrant Santa Monica Mall, just a couple of blocks from the beach, has seen a dramatic decline in foot traffic, mostly influenced by online shopping trends and growing issues related to homelessness.

It’s reported that vacant storefronts now make up around 25% of the promenade, although, based on some conversations, it feels more like 50% to many regular visitors.

Several well-known retailers, such as Old Navy and H&M, have exited the promenade, making it a less appealing destination for shoppers.

In June 2025, the city approved a new outdoor entertainment zone, which permits adults to enjoy alcoholic beverages at restaurants and outdoor settings along three blocks from Friday to Sunday, between 11 a.m. and 10 p.m.

In recent city meetings, officials also expressed intentions to “expand” this zone throughout the downtown area, including the Santa Monica Pier and other popular streets. However, the specifics of this expansion remain unclear.

A part of the revitalization strategy includes setting aside $3 million for initiatives like restaurant attraction incentives, business recruitment, and studying capital renewal for the Third Street Promenade.

As part of efforts to entice businesses back to the area, the city has also lifted some permit fees for outdoor dining and reduced parking fees to just $1 for 90 minutes.

Further changes could enhance the area’s appeal, including the upcoming reestablishment of the Santa Monica Police Department on the mall’s ground floor and substantial investments in street improvements.

Additionally, the city has removed restrictions on music and arcade games, with a major music festival scheduled for September. The organizer anticipates that between 30,000 and 35,000 participants could attend this one-day event.

This outdoor mall, which opened back in 1965, was a hub for activities like dining and enjoying local street performances, but its popularity has waned since around 2018. Many attribute the decline to the increase in homelessness, alongside challenges brought on by the pandemic and related disturbances.

In 2023, the city declared a local emergency regarding homelessness, recognizing that it was a significant challenge requiring more comprehensive solutions.