Pabst Brewing Co. caters to its hip young customers’ taste for low-cost beer, so it makes sense that when the company moved to Los Angeles it got a good deal on its lease.
A five-year lease for the company’s L.A. corporate headquarters was finalized in early October with an estimated value of $1.3 million – about $450,000 less than the going rate, industry sources said. The company announced earlier this year that it would be moving its corporate headquarters from the Chicago area to Los Angeles.
“This is a big deal for California, and for Los Angeles in particular, because it’s been really rare to see a corporate headquarters come to Los Angeles when so many companies have left over the last couple of years,” said Jones Lang LaSalle Inc. managing director John Ghiselli, who represented Pabst with Jen Frisk in the deal. “These guys are really going against the trend.”
High-profile departures of corporate headquarters include Northrop Grumman Corp., which left early this year, and Nissan North America, which left in 2005.
The decades-old brewing company leased 8,101 square feet of office space at Atria West, a two-building, 192,000-square-foot complex on Santa Monica Boulevard just west of Century City near Westwood.
“It’s a good location for their business,” Ghiselli said. “They found a high-quality building within a creative environment with an attractive rental rate. It’s also in close proximity to people they’re going to be working with to really grow this brand that’s been around for generations.”
He declined to comment on the value of the lease, but said Pabst got “a great rate for a great building.”
The average rent for Class A office space in the submarket is $3.62 per square foot, and at that rate the five-year lease would’ve totaled about $1.75 million.
Sales for the brewing company’s flagship product, Pabst Blue Ribbon Beer, have been climbing for the past few years after decades of decline. The beer, based on its historic appeal to blue-collar workers, has developed a reputation as a low-price brew favored by young drinkers turned off by the excessive hype of competitors.
The company’s new headquarters is in an area that’s home to many entertainment-related companies that could contribute to Pabst’s marketing. Tenants in the building include Black Entertainment Television LLC and Warner/Chappell Music Inc.
The space has an outdoor balcony and entertainment area, which Ghiselli said he thinks Pabst will likely use to host marketing events.
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