LOS ANGELES—KBS REIT II has signed six leasesat its Union Bank Tower retail andoffice building downtown for 72,717 square feet.The new leases bring the 627,334-square-foot building to 97%occupancy, which is above the average market rate.

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Union Bank Tower has recently completed several propertyimprovements to help stabilize the asset and attract tenantsmigrating to the downtown market. The tenants signed in this roundof leasing include Arcadis USA Inc., which signeda 13,856-square-foot lease, Regus, which extendedits current lease by 16,051 square feet, and, the largest of thesix leases, Union Bank, which signed a24,475-square-foot lease. The other leases range in size from13,028 to 1,361 square feet. JLL's JohnMcAniff and Tim Miller represented theREIT in the transaction.

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Located at 445 South Figueroa St., the Union Bank Tower has 40stories with a 19,817-square-foot retail plaza. It has historicallyhad above-market occupancy. According to TimHelgeson, KBS SVP and asset manager, “With numerousimprovements in the works at Union Bank Plaza, we believe thisproperty will continue to enjoy success in this market.” Due to theproperty's success, the REIT plans to hire an investment bankingfirm and consider the “best strategic options for the asset.”

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According to Brookfield Office Properties,another major landlord in the downtown market, nearly half of thenew leases signed in their buildings came from tenants migratingfrom other Los Angeles submarkets to the downtown market. The trendreveals that downtown's revitalization is bringing Angelenos aswell as new transplants into the market.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.