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Friday, Sep 29, 2023

Adidas Signs Lease at California Market Center

Brookfield Office Properties Inc., one of the largest landlords in downtown, has signed Adidas to be the California Market Center’s anchor office tenant.
Adidas will occupy 107,000 square feet and a private skydeck at the property, which last year completed a more than $250 million renovation.

Colliers International Group Inc.’s Terence Kirk and Kyle Stanich represented Adidas in the lease transaction. Representing Brookfield were CBRE Group Inc.’s John Zanetos, Rob Waller and Patrick Amos, along with John Barganski and Ian Gilbert in house.

“For over 50 years, CMC has served as a historic cornerstone for L.A.’s most forward-thinking entrepreneurs in the fashion industry,” said Bert Dezzutti, executive vice president of the western region at Brookfield Properties, in a statement. “Now, the new CMC has been reimagined to appeal not just to fashion-focused commerce but also to creatives from the technology, entertainment and media industries. We’re excited to welcome Adidas, one of the world’s most recognized and valued brands to the new CMC.”

In addition to Adidas, Brookfield has also signed a lease with Urbanspace, which will have 15,000 square feet on the CMC’s ground level. It is Urbanspace’s first L.A. location and is expected to have 19 food and beverage vendors.
The property will also have a tenant-only fitness center and outdoor basketball court.
Barganski, senior vice president of leasing for the western region at Brookfield, said the property gave Adidas the environment they wanted for their employees. He added that Adidas would move in later this year.

Brookfield, San Francisco-based architecture firm Gensler and New York City-based Turner Construction Co. worked together on remodeling the property. The renovation started in 2018.
“A little over four years ago we took on this property and looked at a complete renovation that would embrace its history as a fashion center and create something that really didn’t exist downtown,” Barganski said.

One of the biggest changes was the demolition of a former bank building, which made the property more accessible and added public space.
The ground level of the three-building property, formerly referred to as CalMart, will have 150,000 square feet of retailers and vendors.

Brookfield added skybridges to connect each floor of the three 13-story buildings.
CMC also has 1.5 million square feet of creative office space.
The renovation was aimed at making the property appealing to technology, entertainment, media and fashion tenants that prefer open floor plates with breakout space in an urban area, according to Brookfield.

“We find that technology, media, fashion, all of what you would consider creative users, all tend to look for larger floor-plate space, high ceilings and technology,” Barganski said. He added that the building has the large floor plates these companies look for and has updated its electrical and HVAC systems to be more competitive.
“It’s a combination of technology and amenities that all of those creative uses tend to demand, and we are offering all of those,” he said.

Barganski said the reaction to the project so far has “been very positive, and we think it will lead to many more successful leases down the road.”
“Our goal is to continue to attract new tenants,” he said. “We’re encouraged by the activity we have seen. Notwithstanding Covid, people are still out securing big boxes of space, and we are talking to several users.”

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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