At a time when companies have been shedding office space in Los Angeles or leaving the city entirely, a big lease renewal is a good sign.
Creative Artists Agency has reupped its lease at Hines’ 2000 Avenue of the Stars in Century City.
The powerhouse talent agency is to have around 290,000 square feet at its headquarters, according to Commercial Observer, which first reported on the renewal. The 800,000-square-foot complex is managed by JPMorgan Chase.
The deal is one of a handful of notable leases signed on the Westside in the second quarter, which could boost confidence in the market going into the third quarter, and as the state fully reopens.
Earlier this month, both Snap Inc. and GoodRx expanded their footprints at Westside campuses.
The L.A. office market has been stuck in the doldrums since the beginning of the pandemic when tenants shifted toward remote work and many companies reduced their footprint.
To start 2021, leasing volume fell from January through March to 3.1 million square feet, from 5 million square feet year-over-year.
CBRE forecast that the L.A. office market will begin to recover by 2023. Savills said asking rents would continue to decline this year because of the wide selection of space now available after tenants packed up last year.
[CO] — Dennis Lynch