LOS ANGELES—Universal Music Group has signed a 10-year lease renewal for its 201,006-square-foot, six story headquarters office building in Santa Monica. The new lease will go into effect on May 1, 2015.
“This is a great location for Universal. They have their own building and have their company signage out in front,” Paul Stockwell, a broker with CBRE who represented the tenant in the transaction, tells GlobeSt.com. Stockwell represented the tenant along with his CBRE colleagues Josh Leibowitz and Jeremy Charles. Brad Feld and Chris Keller of Madison Partners represented Clarion Partners, the landlord.
Because the property is 15-years old, Universal has tapped architectural firm Gensler to renovate the space and create a more modern, open floor plan with integrated technology. The lease value was not disclosed, however, according to industry sources, average monthly rents in the area average in the low $4 per square foot, making this lease valued at $100 million.
Universal Music Group also recently signed another 10-year lease for a 146,000-square-foot space in Woodland Hills. The leases were designed to roll at the same time to provide optimum flexibility. “We signed the new leases with a 10-year term so that 10 years from now there will be the same sort of situation,” says Stockwell.
Located at 2220 Colorado Avenue in Santa Monica, the property is in one of the most in-demand submarkets in Los Angeles. “There is a tendency for tenants who are in Santa Monica to stay in Santa Monica,” Stockwell explains. “Most of the tenants that have had leases expiring in Santa Monica have renewed. Universal is certainly one example, but Lionsgate Pictures down the street is another.”