Google will lease all of massive Westside Pavilion amid redevelopment

Tech giant could shake local office market when moves into Hudson Pacific Properties and Macerich’s former shopping mall, renamed One Westside

TRD LOS ANGELES /
Jan.January 08, 2019 08:15 AM
The Westside Pavillion before renovations (Credit: Google and Macerich)

Google is gobbling up even more space in Los Angeles.

The search engine giant will lease the entirety of Hudson Pacific Properties and Macerich’s Westside Pavilion creative office redevelopment.

Google will take all 584,000 square feet of the former shopping mall that HPP and Macerich are transforming into Class A office space, HPP announced Tuesday, confirming a long-whispered industry rumor.

The companies also revealed a new name for the former mall: One Westside.

The lease term is 14 years and will start when the redevelopment is complete, currently slated for 2022. Google’s entrance into an otherwise small submarket sandwiched between Santa Monica, Culver City, and Century City will likely send real estate prices up, experts said.

At this time last year, Google leased just 100,000 square feet of office space in Santa Monica. In October, it moved into it a 450,000-square-foot Spruce Goose hangar in Playa Vista.

Google’s also expanding in New York. In November, The Real Deal reported that the tech giant was nearing a deal to buy or lease the 1.3 million-square-foot St. John’s Terminal project from Oxford Properties Group. It has expanded into and acquired other offices around the city too, including at Pier 57 and Chelsea Market, which it bought for $2.4 billion.

And in Chicago, Google signed a lease in October for 132,000 square feet in a Fulton Market office tower being built by developer Sterling Bay.

The all-skylight roof of the Westside Pavilion (Credit: Flickr)

For the Westside Pavilion conversion project, Macerich and HPP partnered up in March. The conversion is expected to cost around $475 million to complete, mostly paid for by HPP.

Gensler is designing the new office space, which will update the mall’s dated interiors but take advantage of the existing layout, skylights and atrium at the aging shopping mall. It includes adding folding glass walls and a rooftop garden. Office floor plates are as large as 150,000 square feet.

Westside Pavilion’s successful pivot to creative office could show the way for more landlords of large, aging retail spaces to follow suit. Some already have their own redevelopment plans. Seritage Growth Properties and Invesco Real Estate are redeveloping the historic Sears department store in Downtown Santa Monica into a creative office space.


Related Articles

arrow_forward_ios
Hudson Pacific Properties CEO Victor Coleman (Illustration of Victor Coleman by The Real Deal; iStock; Coleman via Hudson Pacific)

Hudson Pacific is effusive about Blackstone deal, defensive about office space

Hudson Pacific is effusive about Blackstone deal, defensive about office space
(iStock)

SoCal developers say demand for office, retail space will continue to drop

SoCal developers say demand for office, retail space will continue to drop
(iStock)

LA County sublease space hits record level in Q2

LA County sublease space hits record level in Q2
Lowe co-CEO’s Mike and Rob Lowe, Related Fund Management’s Justin Metz, 2130 Violet Street

Related affiliate joins with Lowe to build Arts District office complex

Related affiliate joins with Lowe to build Arts District office complex
DTLA and Century City (Credit: Basil D Soufi via Wikipedia, and iStock)

Office leasing in Q2 was a fraction of what it was a year ago

Office leasing in Q2 was a fraction of what it was a year ago
Brookfield Asset Management CEO Bruce Flatt and Woodridge CEO Michael Rosenfeld with 101 S. Marengo Avenue, and a rendering of the building (Credit: Google Maps)

CRE investment sales in LA sank like a stone in May

CRE investment sales in LA sank like a stone in May
First District Supervisor Hilda Solis (Credit: Rebecca Sapp/Getty Images)

LA County select reopening target date for restaurants and retailers

LA County select reopening target date for restaurants and retailers
City National Plaza, CommonWealth CEO Brett Munger Calpers CEO Marcie Frost

CalPERS venture snags $550M refi on City National Plaza tower

CalPERS venture snags $550M refi on City National Plaza tower
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...