EL SEGUNDO, CA—Internet Brands has signed a lease renewal agreement with Kilroy Realty for its 60,019-square-foot headquarters office space at 909 North Sepulveda Blvd. in El Segundo, GlobeSt.com has learned exclusively. The company, formerly known as CarsDirect.com, reviewed other options within the market and decided this location was its best option.
“The space they currently occupy is really terrific space with ocean and airport views, and the economics were favorable,” JLL Broker Gary Horwitz tells GlobeSt.com. Horwitz represented the tenant along with JLL broker Kamil Agha. CBRE represented Kilroy Realty in the transaction. The 60,019-square-foot space is located on the top two-and-a-half floors of a 241,607-square-foot, class-A office building.
The El Segundo market is one of the most sought-after office markets in Southern California for creative tech companies, according to Horwitz. “El Segundo is a very active market right now. There is good momentum and good leasing activity,” he says. “There is significant new development and redevelopment of creative office product, so over the next year, there will be a lot of new creative office product, more so than ever before.”
Although the market is very competitive, the JLL team was able to secure impressive lease terms that include a favorable rental rates, a tenant improvement allowance and parking allocation and rate. Horwitz could not disclose the value of the lease; however, industry sources unrelated to the deal estimate the lease value at approximately $10 million.
As a result of the growing migration of tech companies to the El Segundo market, multifamily has also seen an uptick. Last month, GlobeSt.com reported that South Bay’s Milano Apartments sold for $60 million with over a dozen offers. M West Holdings won out the bidding war for the 248-unit property.