LOS ANGELES—Brookfield Office Properties reports that 45% of the 110,000 square feet in office leases the firm signed to its portfolio of office properties in the first quarter of this year came from out-of-market tenants. The information reveals a trend in office tenants migrating from other Los Angeles markets to the downtown market.
CoStar Group is one example of this trend in migration. The company signed a 17,350-squae-foot lease at 777 Tower, relocating from its former office space in Westwood. “The new to Downtown tenants that we meet are focused on the overall quality of the work environment that is conducive to recruiting and retaining the highest quality workforce,” John Barganski, SVP of leasing for Brookfield Office Properties’ western region, tells GlobeSt.com. “The residential base is made up of high quality workers and that will only grow with the wave of new development. The “cool” factor is high with new, urban amenities—restaurants, retail, etc—and a transportation network that connects it all to the rest of the City.”
Other major lease transactions include a 12,900-square-foot lease at the Gas Co. Tower with Bank Leumi USA, which formerly leased office space at Wilshire and Beverly Hills; and a 3,980-square-foot lease at Wells Fargo North with architectural firm Keating Khang, which is relocating downtown from Pasadena. Barganski, James Malone, Rachael Zanetos and Marin Turney of Brookfield’s leasing team represented the Brookfield, the landlord, in each of the transactions.
Brookfield purchased the Gas Tower Co. through its merger with MGP Office Trust. The merger gave Brookfield six landmark office properties in the downtown market, which include the 55-story Bank of America Plaza; the 52-story Figueroa at Wilshire tower; the 41-story Ernst & Young Plaza office tower; the 45- and 55-story Wells Fargo Center towers; and 777 Tower.