Distress and vacancies told the office market story for the past few years, but data shows employers are calling workers back to their desks, inking big leases downtown and in Silicon Beach.
Century City, Los Angeles’ healthiest office market, with a vacancy rate of 12 percent, only landed one of the year’s largest office leases in Los Angeles County, according to The Real Deal’s analysis of publicly available data through late-September, via Cushman & Wakefield, Colliers, Savills and prior reporting.
Landlords Lincoln Property Company, Commonwealth Partners and DivcoWest — and their tenants Kaiser Permanente, Oaktree Capital Management and United Talent Agency, respectively — topped TRD’s list. But there’s still time for a record breaker.
- Parsons Campus
Kaiser Permanente inked a 280,000-square-foot renewal at Lincoln Property Company’s 10 West campus at 74 North Pasadena Avenue in Pasadena, which has an alternate address at 10 West Walnut Street. Lincoln Property Company’s 10 West project, completed in 2021, was Pasadena’s first office development in more than three decades and is on the former headquarters of Parsons Corporation. The Pasadena office market has a 23.4 percent vacancy rate, according to a CBRE report.
- City National Plaza
Oaktree Capital Management relocated to CommonWealth Partners’ 555 South Flower Street and signed a 220,000 square-foot lease. That dealt a blow to its former Downtown Los Angeles headquarters, Wells Fargo Center’s North Tower, and to Oaktree’s landlord-turned-owner, Brookfield. The Downtown Los Angeles office sector, a poster child for post-pandemic distress, has a 33.3 percent vacancy rate.
- UTA Plaza
United Talent Agency renewed its lease for its 192,000-square-foot headquarters in Beverly Hills. UTA has operated out of the DivcoWest-owned building, UTA Plaza at 9336 to 9346 Civic Center Drive, since 2011. The Beverly Hills office market has a 23.2 percent vacancy rate, much healthier than downtown, but behind Century City.
- Corporate Pointe at West Hills
Regal Medical Group inked a 156,000-square-foot lease at Corporate Pointe at West Hills, a San Fernando Valley office campus at 8501 Fallbrook Avenue. The deal for the Kennedy Wilson-owned property in West Hills marked the largest new office lease in the Valley since 2020. The Valley has a 20.4 percent office vacancy rate.
- Ten100
Law firm Loeb & Loeb renewed a 139,000 square-foot lease in Los Angeles’ Century City at 10100 Santa Monica Boulevard. Offices in Century City, a foil to downtown, have a 12 percent average vacancy rate. Companies are moving out of downtown and into Century City, where tenants seek upscale buildings with amenities.
- Valencia Town Center
Princess Cruises renewed a 139,000 square foot lease at 24200 Magic Mountain Parkway. Valencia Town Center Drive is an office and retail hub in Santa Clarita. The complex’s four buildings are anchored by Princess’ headquarters. The company previously attempted to sublease 300,000 square feet.
- The Collective
Toy and entertainment company Spin Master leased 134,000 square feet at this Tishman Speyer office campus at 11985 West Bluff Creek Drive in Playa Vista. Spin Master left 70,000 square feet at Clarion Partners’ campus near Culver City. Playa Vista has a 26.9 percent office vacancy rate, and Culver City has a 24.1 percent vacancy rate. The two submarkets are considered parts of Los Angeles’ Silicon Beach.
- Westlake Park Place
PennyMac Financial renewed and expanded its lease 3043 Townsgate Road in Westlake Village, part of Conejo Valley, inking a 122,000 square foot deal. Westlake Park Place is an eight-building, 26-acre project in the Los Angeles mountains owned by Searles Property Group. Westlake Village has a 25.9 percent office vacancy rate.
- 12215 Victory Boulevard
West Coast University, a private university geared toward healthcare education, renewed its lease for 98,000 square feet at 12215 Victory Boulevard in North Hollywood, which has a 32.1 percent office vacancy rate.
- 1500 Hughes Way
The Los Angeles County Department of Children and Family Services signed a 90,000 lease at 1500 Hughes Way in Long Beach, where a number of government agencies are located.
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