Terms of the deal were undisclosed. According to recent market reports, average asking office lease rates in the South Bay and nearby areas of Los Angeles County were $1.83 per sf per month in the third quarter, the latest period for which figures are available.
Erik Van't Hof, on-site representative for Pacific Place Associates, the building owner, says that Northrop looked at several other alternatives before opting to stay at Pacific Place. He notes that the deal is among the largest office leases ever signed in San Pedro and is one of the largest lease transactions in the Los Angeles area this year in terms of square footage.
Northrop Grumman was represented by Tim Vaughan, Bill Bloodgood and Stan Gerlach of CB Richard Ellis. Vaughan calls the transaction "representative of a continuing resurgence of leasing in the South Bay by aerospace and defense users," noting that it follows an earlier transaction signed this year by Northrop Grumman for nearly 216,000 sf in El Segundo.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.