Top 10 Most Significant LA Office Leases in the Last 90 Days

Los Angeles, often referred to as the entertainment capital of the world, is not only a hub for the entertainment industry but also a thriving center for businesses of all types. In the last 90 days, the City of Angels has seen several significant office leases that have continued to shape the economic landscape of the region. These leases reflect the dynamic nature of the LA real estate market and underscore the city's position as a premier destination for companies looking to establish or expand their presence. The following Office leasing data is brought to you by CompStak, a nationwide CRE data platform, as part of a new partnership with Traded:

The 10 most significant office leases in Los Angeles in the last 90 days*:

1. Penske Media: Formerly known as Mail Media Corporation, this is a digital media, publishing and information services company. The firm signed a lease last September, renting 127K SF at 11355-11377 West Olympic Boulevard from Northwood Investors. Located in the Brentwood/Westwood submarket, with an effective rent of $54.82.

2. Audacy: Founded in 1968 in Philadelphia, this is the second-largest radio company in the United States. This past August, the company renewed their lease at 5670 Wilshire Boulevard, in the Mid-Wilshire area. With the Rockpoint Group serving as their landlord, Audacy’s offices in LA span 42,229 square feet. 

3. TikTok: Owned by ByteDance, this is one of the most popular social media platforms today, known for their short-form videos. In August, the company signed a new lease at 900 Corporate Pointe, leasing 90,049 square feet from Northwood Investors in the Lower Westside. The effective rent per square feet is $37.86.

4. AT&T: The multinational telecommunications holding company, AT&T signed a new lease in September, renting 135K SF at 2260 East Imperial Highway, a Kilroy Realty building located in South Bay with an effective rent of $23.25.

5. LA County Department of Mental Health: The largest county mental health department in the United States, they signed a new lease in South Bay in September. The new offices span 17,250 square feet at 1294 West 6th Street. The landlord is Swenson Development & Construction and the price tag is $43.28 per SF. 

6. TWG Global Holdings: Dedicated to managing clients' investments, this firm signed a new lease for 12,288 square feet in August, for $104.91 per sf, at 100 Wilshire Boulevard in Santa Monica. Their new landlord is Douglas Emmett.

7. Insight Global: A company specializing in providing staffing solutions, they signed a lease in September at 6080 Center Drive for 27,232 square feet, $49.81 per sf. The landlord is EQ Office and the offices are located in the Lower Westside. 

8. Emerson Collective: An organization focused on education, the environment, journalism and more, they signed a new lease in August, at 3550 Hayden Avenue in Culver City. The new offices span 11,667 square feet. The effective rent per square feet is $116.91.

9. David & Goliath: A marketing firm, they renewed their 909 North Pacific Coast Highway in September. They occupy 34K SF in the South Bay building, managed by Kilroy Realty and the effective rent per square feet is $33.83.

10. Streamland Media: This firm owns several brands that specialize in post-production expertise. Back in August, the company signed a lease extension at 959 Seward Street, in Mid-Wilshire. Their offices now span 35,707 square feet with a price tag of $66.16 per sf. Their landlord is JH Snyder Company.

According to CompStak, the effective rent for Los Angeles County office transactions closed over the last 90 days averaged $45.24 per square foot. This is on par with 2019’s average of $45.12 per square foot. 

As office tenants in the Los Angeles area adapt to evolving hybrid work models and economic challenges, they have increasingly returned the excess office space, leading to historically high vacancy rates, according to JLL's Los Angeles Office Insight - Q3 2023 report, However, despite this trend, leasing activity remained relatively stable in the last quarter, only dipping by 7% compared to the historical five-year quarterly average. Sublease availability saw a slight increase, rising by 10 basis points from 4.8% to 4.9% on a quarter-over-quarter basis.

Looking in to the future, Los Angeles has witnessed a positive uptick in office occupancy rates. The average office occupancy rate, as measured by security badge swipes, reached 50.4% by the end of September, marking a notable 3% increase from the 47.3% recorded just three weeks earlier. The implementation of additional office mandates is expected to further boost occupancy levels and contribute to the recovery of the Los Angeles office market.

Furthermore, the tech sector is anticipated to play a significant role in driving demand. In the third quarter, technology companies accounted for 16% of the leasing activity in the LA office market, a notable increase from the 13.5% share in the previous quarter. This growth reflects the increasing demand within this pivotal industry.

The significance of these leases goes beyond the numbers. They represent a fusion of creativity, innovation, and commerce that defines Los Angeles, and they mark a confident step forward in the ongoing story of this iconic city. 
 

Ranking Methodology:

The leases featured in this article were curated based on their ranking in terms of total lease value. Total lease value is calculated using CompStak’s data on transaction rents minus concessions (concessions include work value or tenant improvement allowance and/or free month period), transaction size and lease term.

*The rental rates presented above reflect gross annual rents. They are adjusted to gross for comparison purposes.