Law firm Hanson Bridgett has expanded to 15,000 square feet at Rising Realty’s CalEdison tower in Downtown Los Angeles, marking one of the few new leases in the office hub over the last few months.
The firm is adding about 6,800 square feet to its lease, which runs for five years and nine months, starting in January next year, Hanson Bridgett announced on Wednesday.
Rising Realty owns the 287,000-square-foot building with BentallGreenOak, also known as BGO. The duo bought the 14-story tower at 601 West 5th Street for $130 million in December 2018, or roughly $450 a square foot, using a $111 million, floating-rate loan from Invesco.
The lease expansion is a win for the building and its owners. About 50 percent of the property, which was built in 1931, is still available for lease, according to listings on LoopNet.
The building is far from alone — many office buildings in Downtown L.A. are struggling with vacancy, as many tenants have downsized or packed up and moved to a different submarket.
About 30 percent of all office space Downtown was available for lease in the first quarter, according to a Savills report. The average asking rent was $3.70 a month, higher than other office hubs like Pasadena and Glendale, but lower than West L.A. markets.
Hanson Bridgett is also the second law firm to add space in L.A. over the last few weeks. Thompson Hine, a business-focused law firm, recently announced it would be opening a new L.A. office.
The firm is evaluating locations in both Downtown L.A. and Century City, but has not finalized a spot, according to a representative for Thompson HIne.