International law firm Sheppard Mullin will march nearly 500 lawyers and staff across the street to a new headquarters in Downtown Los Angeles, countering a “flight to quality” by other firms.
The Downtown-based practice has inked a deal to lease 119,200 square feet at the 52-story City National 2CAL building at 350 South Grand Avenue in Bunker Hill, the Commercial Observer reported.
Terms of the deal with landlord CIM Group, based in Mid-Wilshire, were not disclosed. It’s the largest new office lease in Downtown this year.
Sheppard Mullin, which employs 450 people locally, is expected to occupy its new headquarters in the summer of 2025, moving into floors 39 through 42 and 7,000 square feet on the plaza.
The century-old law firm, officially known as Sheppard Mullin Richter & Hampton, is now based at the Bank of America Plaza at 333 South Hope Street, owned by Brookfield Asset Management.
It also has offices in Century City at 1901 Avenue of the Stars, owned by Douglas Emmett.
CIM bought the 1.4 million-square-foot City National 2CAL, formerly known as Two California Plaza, in 2014 for an unknown price. It then completed capital improvements to the interior.
The landlord represented itself in the lease to Sheppard Mullin, along with JLL, while CBRE represented the tenant.
The move by Sheppard Mullin to nearby digs in Downtown bucks a “flight to quality” by Downtown law firms to Century City, Culver City, the Westside and Santa Monica, according to the Observer, citing a report from JLL.
Law firm Sidley Austin, whose L.A. offices are based at the troubled Gas Company Tower at 555 West 5th Street, is close to a deal to pre-lease 75,000 square feet at JMB Realty’s 37-story development in Century City. It’s also downsizing and relocating its offices in Downtown.
— Dana Bartholomew
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