Looks can drive project success.

L.A. has an awful lot of ugly buildings, but the question is whether those looks really matter when it comes to commercial viability.

Some might call Beverly Center aesthetically unappealing, for example, but it was a driving force in the revitalization of the Fairfax/La Cienega area and has remained full of tenants.

The stark strip malls built in the '70s and '80s are another story. Many are now giving way to developments that are more inviting to pedestrians and take advantage of natural light.

"I think design is very important. It brings great value," said Paul Danna, design principal at Daniel Mann Johnson & Mendenhall. "Some developers believe it is very important, some are less interested. In general I'd say design is taking on more value in the minds of tenants and ownership."

A good example of the heightened awareness is the Sherman Oaks Galleria. The architectural firm Gensler is doing an overhaul of the famous mall that closed in February after years of declining business.

The concrete pillbox that launched a thousand imitators will be renovated with windows on the ground floor and landscaping that includes small waterfalls. The work is part of an attempt to lease new office space and upscale shops.

"We're turning a big white elephant inside out," said Gensler Design Principal Andy Cohen. "Cafes will spill out into the street. It's not just shopping anymore, it's experience."

Rick Caruso, developer of the commercially and critically successful Westlake Promenade and Calabasas Commons retail projects, sees a trend in which developers and retailers are willing to spend a little more money to make shopping areas more inviting to customers.

He says that given the increasing ability to shop and find entertainment over the Internet, it makes economic sense to build areas that are visually pleasing.

"We have to gamer the customer's attention. If you're going to go somewhere mundane, and the option is to stay at home and do it, you'll stay at home," Caruso said.

Good design also is becoming more important to the people who work in the buildings - and to employers who are starling to consider it a productivity tool. And in the era of downsizing, companies want space that can be streamlined or otherwise adapted to their particular needs.

"Design goes beyond aesthetic," Danna said. "It can help solve functional requirements, making the space more usable and efficient."

Danna and others cite the Westwood Gateway buildings on Santa Monica Boulevard as a good example of the quiet but attractive design that attracts tenants.

Still, there are no guarantees that a beautiful building ensures commercial success. The redevelopment going on in downtown L.A. has contributed to the renovation of some of a number of striking landmark buildings, but the jury is still out on whether they are economically viable.

"I obviously believe that good design has a direct correlation to lasting value," says developer Ira Yellin, who restored the historic Bradbury Building and Grand Central Market square. "Unless you build in an area that gradually deteriorates."

Despite its looks, Grand Central experienced financial problems and was saved from foreclosure by a bailout from the city. Meanwhile, rents in the Bradbury Building remain depressed.

Still, Yellin and others are convinced the area will come back and rents will rise, much as they have in other areas of town, as long as those areas have something to offer.

"Look at the revitalization of Third Street (in Santa Monica)," says Cohen. "Ten years ago it was totally different. Now it's all about content of the space. More and more, great design brings value to the bottom line."