Andersen has signed a lease for 46,000 square feet at City National 2Cal in downtown, according to building owner CIM Group.
2Cal is a 1.37 million-square-foot office building with retail at 350 S. Grand Ave.
Andersen, one of the world's largest tax and financial advisory service firms, will relocate from its nearby office in mid-2020. It will occupy two floors at the 52-story 2Cal tower.
The value of the lease was not disclosed. During the third quarter, the average asking rate for Class A office space in downtown was $3.87 a square foot, up 29 cents from a year earlier. That would put the value of the lease at roughly $2.1 million a year.
Jones Lang LaSalle Inc. represented CIM Group in the transaction. Newmark Knight Frank represented Andersen.
CIM Group brought City National Bank to a 300,000-square-foot lease at the building and has leased or released another 700,000 square feet of space in the building.
CIM Group has been updating the building, expanding the lobby and adding glass entrances and valet parking. CIM Group is also renovating the surrounding 1.5-acre area that it shares with 1Cal and the Omni Hotel. The once prominent water feature has been removed to create public space.
2Cal isn’t the only building downtown to undergo updates.
KBS, recently started a $20 million renovation on Union Bank Plaza which will include speculative tenant suites, updated retail, a conference center and outdoor seating.
Rising Realty Partners and Lionstone Investments renovated the Trust Building at 433 S. Spring St. KTGY Architecture and Planning and celeb chef Curtis Stone were the first to sign leases at the updated property.
Coretrust Capital Partners and Brookfield Office Properties Inc. are also upgrading buildings in hopes to attract more tenants.
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