Main Events

-WeWork closed a deal for about 90,000 square feet at Brookfield Office Properties Inc.’s Gas Co. Tower, 555 W. Fifth St. The New York-based provider of co-working office space is believed to plan to rent the space to small companies and entrepreneurs.

-Cal State Los Angeles announced a deal with landlord CIM Group to open a downtown campus at 801 S. Grand Ave. When it opens next year, the campus will be located in a 207,000-square-foot Class A office building in the Financial District. Terms were not disclosed but the deal is estimated at around $6.7 million.

-Ratkovich Co.’s the Bloc landed DLR Group with a deal for 35,000 square feet at the mixed-use property. The design firm will consolidate its employees from Santa Monica and Pasadena to the mixed-use development at 700 S. Flower St. The firm signed an 11-year lease for 35,400 square feet, valued at $18 million.

-Rising Realty Partners sold the 460,000-square-foot PacMutual Building for a record square-foot price. The $200 million was the highest per-foot transaction for a downtown office building. Ivanhoe Cambridge and Callahan Capital Properties were the buyers.

-Lincoln Property Co. and Angelo Gordon & Co. entered a contract to sell a 220,770-square-foot Class A office building at 800 Wilshire Blvd. to the Onni Group for nearly $80 million, or about $360 a square foot.

Downtown L.A.’s office market saw continued growth in the third quarter as the vacancy rate declined slightly and investment sales remained hot.

Vacancies in the submarket fell one-tenth of a point to 18.2 percent as tenants picked up 28,459 square feet in the third quarter, according to Jones Lang LaSalle Inc.

Average asking rates for Class A office space remained nearly unmoved, dropping a cent from the previous quarter to $3.44 a square foot. The rate had, however, jumped a whopping 13 cents in the second quarter from the first.

George Crawford, a downtown broker at Charles Dunn Co. Inc., said the leasing market was incredibly strong in the third quarter.

“There were probably close to or more than 80 leases done in the third quarter and probably 20 percent were done above 10,000 square feet,” he said.

Among those tenants, New York co-working facilities provider WeWork closed a deal for about 90,000 square feet at Brookfield Office Properties Inc.’s Gas Co. Tower, 555 W. Fifth St.

Meanwhile, design firm DLR Group agreed to relocate its employees from Santa Monica and Pasadena to a mixed-use project known as the Bloc at 700 S. Flower St. The firm signed an 11-year lease for 35,400 square feet at the building, owned by Ratkovich Co. The deal is valued at $18 million.

For reprint and licensing requests for this article, CLICK HERE.

Prev