Another Bank Commits to Downtown Los Angeles Offices

Downtown Los Angeles’ office market has seen better days since the pandemic, but many companies aren’t abandoning the area entirely.

Bank of Hope, a locally based bank that serves the Korean American community, signed a lease for 50,000 square feet at the 62-story Aon Center tower at 707 Wilshire Boulevard, Commercial Observer reported. The bank is currently based at 3200 Wilshire Boulevard in Koreatown and will establish its new headquarters at the downtown Los Angeles building.

Carolwood acquired the 1.1-million-square-foot building in 2023 for roughly $148 million, about 45 percent less than what previous owner Shorenstein paid for it in 2014, according to Commercial Observer. Shorenstein completed significant renovations to the property in 2020, adding a new three-story lobby, a fitness center and state-of-the-art conference rooms to the site. Shortly after Carolwood took over, California Bank & Trust signed a headquarters lease at the building totaling nearly 29,000 square feet.

Bank of Hope’s lease is the latest in a string of deals that point to financial institutions’ renewed faith in the local submarket. In October, Banc of California inked an 11-year lease for 40,000 square feet at 865 South Figueroa Street, while KPMG signed a lease in August for almost 70,000 square feet in the U.S. Bank Tower.

Citigroup renewed its lease at One California Plaza last month, The Real Deal previously reported; and law firm Gordon Rees also signed a lease for approximately 26,000 square feet at One California Plaza, becoming the latest so-called “traditional” firm to bet on downtown L.A.

Downtown L.A. registered an office vacancy of nearly 32 percent at the end of last year, according to Colliers’ fourth quarter market report. Vacancy in the area has inched upward since 2022. Despite the vacancy increase, properties such as Aon Center and the U.S. Bank Tower that have been recently renovated and boast top-tier amenities have been doing better than Class B properties, according to Commercial Observer.

Bank of Hope’s commitment to Aon Center “reflects the ongoing flight to quality we’re seeing across the market,” Colliers executive vice president Ian Gilbert said in a statement. “Tenants remain highly selective, prioritizing buildings that offer elevated experiences, efficient layouts and long-term value.” Aon Center “continues to outperform” its downtown L.A. peers, Gilbert said.

— Chris Malone Méndez