Travelers Insurance has leased 41,600 square feet of offices in Diamond Bar.
The unit of The Travelers Companies, based in New York, inked a deal for offices at Gateway Corporate Center at 21680 Gateway Drive, the Commercial Observer reported. Financial terms of the 66-month lease were not disclosed.
The three-story, Class A office complex, built in 1999, is just east of the 60 and 57 freeways in the southeast San Gabriel Valley, near the borders of Orange, San Bernardino and Riverside counties.
The lease brought the 82,200-square-foot building, owned by Newport Beach-based Buchanan Street Partners, to full occupancy.
Brokers Philip Woodford and Steven Saunders of CBRE represented Buchanan Street in the leasing deal, while Kevin Mechelke of JLL represented Travelers.
“This is a big win in the office market this year and is a testament to Buchanan Street Partners’ efforts to upgrade the common areas, lobbies and courtyard seating area early during the COVID-19 shutdowns,” Saunders said in a statement.
Buchanan Street bought Gateway Corporate Center in 2016 from Cornerstone Holdings for $44 million, according to CommercialEdge. The property was a two-building, 162,300-square-foot campus. The firm then split the complex and sold one of the buildings to a user-owner.
Despite an uptick in office leases across Greater Los Angeles, vacancy in the third quarter rose 0.5 percent from the prior quarter and 2.8 percent year-over-year as tenants continued to downsize as they adopt to hybrid work schedules, according to a third-quarter market report from CBRE.
Across Los Angeles County, Savills found 26.5 percent of all office space was available in the third quarter. While a slight improvement from the second quarter — when 26.6 percent was available — it’s a full percentage point higher than the third quarter of last year.
Monthly average asking rents across L.A. County were $3.86 per square foot in the third quarter — flat from a year prior.
— Dana Bartholomew
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