Southern California Gas Co. has relocated its headquarters to City National 2CAL, a 52-story office tower in Bunker Hill. The deal signifies the largest new lease in downtown so far this year.
“SoCalGas is excited to maintain our headquarters in downtown Los Angeles, where we have a long history as one of the area’s largest tenants,” Erin Smith, senior vice president of chief talent, culture and operations support officer for SoCalGas, said in a statement. “We look forward to continuing to work collaboratively with the state of California as we lead clean energy innovations and serve our 21 million customers.”
The company signed a long-term lease for approximately 199,000 square feet at City National 2CAL, located at 350 S. Grand Ave. With the relocation, SoCalGas is saying goodbye to its namesake building – Gas Company Tower – where it has been located since the building’s opening in 1991.
Mid-Wilshire-based CIM Group is the owner and operator of its new digs. SoCalGas will add project and building signage to the top of the property, according to a release.
The gas distribution utility company serves approximately 21 million customers across approximately 24,000 square miles of Central and Southern California.
“SoCalGas had many options for its headquarters location and CIM Group appreciates its selection of City National 2CAL,” Shaul Kuba, cofounder and principal at CIM Group, said in a statement. “This is another significant milestone for the property, and we believe supports our commitment to ensuring that the building is a premier business location option in downtown Los Angeles.”
The transaction represents the largest new office lease completed to date in downtown this year. It follows CIM Group’s December 2023 lease to global law firm Sheppard Mullin for 119,000 square feet at City National 2CAL which marked downtown’s largest new office lease transaction of the past year.
Still, the downtown market has faced some difficulties. In the second quarter of this year, the downtown office market had a vacancy rate of 28.6% – illustrating one of the highest office vacancy rates of all of Los Angeles County – according to data from Jones Lang LaSalle Inc.
Since acquiring the property in 2014, CIM Group has implemented a program of capital and operational improvements at City National 2CAL, according to a release. The entrances and plaza levels were updated in 2017, and a central courtyard was renovated in 2020. In 2023, the building achieved LEED Platinum recertification.
