Office leasing activity picked up in Los Angeles in the second quarter, with a total of 5.3 million square feet — up nearly a third from Q1, according to a new Savillls Studley office leasing report.
Asking rents posted one of the biggest quarter-by-quarter increases in the past several years at 2.8 percent. Building trades at steep prices contributed to the increase.
“Landlords feel bullish about market conditions across much of the region and they have boosted rental rates,” the report reads. “Strong investment sales and cap rate compression will give new owners added cause to boost asking rents.”
Read on for some of the biggest leases closed in Los Angeles in the second quarter, according to the report.
Federal Aviation Administration
The FAA inked a 154,000-square-foot space at 777 South Aviation Boulevard, a three-story building in El Segundo owned by a partnership between Embarcadero Capital Partners and Westbrook Partners.
Walt Disney Co. also snatched up a massive space this past quarter with its 128,300-square-foot lease at 3355 West Empire Avenue in Burbank. The five-story Class A building is owned by Worthe Real Estate Group and Shorenstein. Disney had previously been subleasing from Yahoo, sources said.
Company town leases galore
The media and entertainment sector accounted for a significant portion of the leasing last quarter. In addition to Disney, DreamWorks vertical AwesomenessTV closed on a lease last month for about 90,000 square feet at Clarion Partners’ Pen Factory at 2701 Olympic Boulevard, as The Real Deal first reported. And ticket seller Fandango inked a 85,000-square-foot lease at Tishman Speyer’s 407 North Maple Drive building in Beverly Hills, adding about 35,000 square feet to the company’s L.A. presence. Spanish language television company Univision signed a 104,500 square foot lease-back agreement at 5999 Center Drive in Westchester, as it sold the building to CBRE Global Investors.
Toymaker Hasbro also made the cut with its 80,000-square-foot deal at Worthe and Shorenstein‘s Media Studios North Tower at 3333 West Empire Avenue, as The Real Deal first reported.
Health giant Kaiser’s signed for 100,000-square-foot space at 3780 West Martin Luther King Jr. Boulevard in Culver City. It will move in 2017.