Rubicon Project is moving to Playa Vista from its West L.A. digs, the latest tech firm to head south to escape rising rents and limited space options.
The advertising technology company signed an eight-year deal for the entire 46,000-square-foot fourth floor at 12181 Bluff Creek Drive, part of landlord JP Morgan Chase & Co.’s two-building Playa Vista office complex. Rubicon is subleasing the space from Fox Interactive Media.
Financial terms were not disclosed, but brokers familiar with the market estimated rates of just more than $3 a square foot.
The move represents a growing trend of tech companies moving into Playa Vista, which already is home to video website YouTube LLC and devices maker Belkin International Inc., and will soon become the address for celebrity gossip website TMZ Productions Inc. and an office of software maker Microsoft Inc.
Rents discounted by as much as $2 from Westside submarkets such as Santa Monica, Venice and West Los Angeles, along with larger contiguous floor plans, have fed the rush to Playa Vista.
Dave Toomey, principal of Cresa Los Angeles who represented Rubicon, said the company was seeking affordable Westside space that would allow it to be on one floor.
“Playa Vista offers a good work environment and quality opportunities at attractive economics,” he said.
The new space includes a large balcony with views of the Santa Monica Mountains and Marina del Rey. Rubicon plans to move this spring.
The company occupies about 50,000 square feet in two buildings at 1925 and 1933 S. Bundy Drive in the Olympic Bundy Media Campus office complex. It moved into the 1925 building in 2007 during the company’s infancy and expanded into the second building after acquiring Fox Audience Network in 2010.
That office complex is slated for redevelopment as an 11-acre creative office campus, to be renamed Element LA Media Campus.
The new Playa Vista offices are part of a four-building complex developed by Lincoln Property Co. in the mid-2000s; it sold two of the buildings to JP Morgan in 2011. Fox Interactive Media signed a lease for 430,000 square feet in the buildings in 2008 to house its Myspace offices, but the social networking site began struggling and the company never moved in. Fox put all but one floor of its leased space on the market for sublease in 2009.
Fox subleased 33,000 square feet on the fifth floor of the 12181 Bluff Creek building last year to California Pizza Kitchen Inc.
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