Paul Hastings will occupy two and a half floors of the 13-story project, which is under construction in San Diego's University Town Center area and is owned by a venture between Hines and TIAA-CREF. The firm is scheduled to move into the space upon completion of the building in July.

According to Carl Sanchez, chair of Paul Hastings' San Diego office, the law firm has focused on growing its practice areas in technology and life science companies as well as global clients that are based in San Diego. The law firm's new space was designed by DMJM Architects, and is the first high-rise office development to break ground in University Town Center since 1989.

Paul Hastings was represented by Lynn Williams, Dennis Hearst and Jeff Welch of Cushman & Wakefield. Hines was represented by Rick Reeder and David Odmark of Grubb & Ellis|BRE Commercial, the leasing team for the La Jolla Commons project.

Terms of the lease were not disclosed. According to the latest San Diego office market report from Grubb & Ellis, asking rental rates increased slightly in the first quarter of2008, reaching $3.25 per sf per month for class A space, but rental rate increases are predicted to moderate in 2008 due to increasing vacancy. Industry sources in 2006 were saying that the La Jolla Commons project would command some of the highest rates ever in San Diego, in the neighborhood of $4 per sf per month, but no information was available on whether those rates would still apply in light of the changing office market and economic conditions.

La Jolla Commons Office Tower is close to Interstate 805 off of La Jolla Village Drive. In addition to the office tower, La Jolla Commons will also offer over two acres of park area as well as hotel and residential condominium components. Planned on-campus amenities will include a restaurant, a bar, a deli, a spa, a gym and meeting space.