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Sunday, Jun 4, 2023


Office Tenant Representative


John C. Cushman III

Cushman Realty Corp.

$80.2 million


Willa McNamara

Beitler Commercial Realty Services

$53.0 million

Maury Gentile

Grubb & Ellis Co.

$49.6 million

John C. Cushman III reaffirmed his position as L.A.’s preeminent office tenant representative as he relocated a major part of Princess Cruises’ operations from its pricey digs in Century City to the up-and-coming Valencia market.

Under its 15-year, $40 million lease, Princess will move its reservation center into a six-story building being developed by Newhall Land and Farming Co.

That helped Cushman, who heads Cushman Realty Corp., become the most productive office tenant broker in Los Angeles County for 1997, with more than $80 million in deals, based on the Business Journal’s calculations.

Cushman said he “wouldn’t be surprised” if Princess’ remaining headquarters operations in Century City move out to Valencia. “It depends upon the market, which is red hot in Century City. A decision could be made later this year,” he said.

Another of Cushman’s other major tenant deals was Jacobs Engineering Group Inc.’s 10-year, $10 million lease that moved its headquarters to 1111 S. Arroyo Parkway in Pasadena.

Cushman also represented Arco Products in its expansion into two additional floors at 333 S. Hope St. in downtown L.A.

Cushman’s greatest strengths are his broad knowledge of large markets like Los Angeles, coupled with his strong contacts at major corporations, said Gerald Katell, president of Katell Properties.

“He has a very good macro view of the real estate markets,” Katell said. “His organization does a lot of research on where the markets stand, whether it’s the downtown or suburban markets.”

It was Cushman’s knowledge of L.A.’s submarkets that helped him broker one of 1997’s biggest building sales in L.A. County.

In that deal, Cushman represented Walt Disney Co. in its acquisition of the 100-acre, 2 million-square-foot Grand Central Business Center complex in Glendale for more than $140 million, according to real estate sources. Cushman would not confirm that he brokered the sale or any details of the transaction, citing client confidentiality agreements.

He said that overall commercial building sales should pick up this year, as the real estate market rebounds and Japanese firms start to unload their non-performing and under-performing real estate assets in the area.

He said the improving market will also make life more difficult for tenant brokers like himself, as growing demand for office space pushes rents upward and enables landlords to reduce or eliminate concessions.

“You will see a lot more arrogance from landlords in 1998,” he said. “They’re going to be a lot more difficult. They got beat up very badly (in the early to mid-1990s). The tenants benefited, but the balance of leverage is changing.”

Key Deal

Address: 24305 Town Center Drive, Valencia

Lessee: Princess Cruises

Lessor: Newhall Land and Farming Co.

Term: 15 years

Size: 106,000 square feet

Value: $40 million

Cushman’s Role: Represented Princess Cruises

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