Ford Models Inc. has subleased a nearly 7,000-square-foot office space in West Hollywood’s Luckman Plaza to A-ROD Corp., a business entity with ties to former baseball star Alex Rodriguez.
Terms of the deal were not disclosed.
Colliers International Group Inc. represented Ford in the sublease of its space at 9200 W. Sunset Blvd.
The office had more space than Ford needed, Colliers said, which is why the agency opted for a sublease.
Asking rents for Class A office space in West Hollywood were $4.90 a square foot during the second quarter, according to data from Jones Lang LaSalle Inc. That could put the value of the lease at roughly $412,000 a year.
But subleases often go for less.
“Office sublease activity in the West Hollywood and Los Angeles markets has picked up with over a million square feet of new sublease listings in recent months, which also presents an opportunity for tenants, as subleases typically trade at a discount to direct space and can have shorter, more flexible terms,” Colliers Vice President Joe Remarcke said in a statement.
“We worked as a team to understand our client’s goals and implemented a strategy that provided Ford with the unique ability to immediately align their real estate with their changing needs.”
Leasing in L.A. slowed dramatically in the second quarter, falling 52% compared to the first quarter, according to data from Savills Inc.
Only 1.9 million square feet of new leases, renewals and expansions were signed during the period, the smallest since the Great Recession.
Sublease space increased availability by 18.6%, up 20 basis points from the second quarter, according to Savills.
And sublease space in the market is expected to increase, experts say.
The Ford Models sublease isn’t the only one recently announced.
All-Ways Pacific subleased a space in La Mirada to tenant Orange Courier Inc. in a deal worth $14.8 million.
The industrial sublease, which is for six years, is for 15300 Desman Road, a 254,700-square-foot building with high ceilings, 43 dock-high loading doors, a ground-level loading door and two secured yards.
