JP Morgan Asset Management is about to demolish the Trophy Offices campus in Santa Monica, California. Amazon When Sonycommercial observers found another sign that perhaps institutional investors are losing confidence in office space.
of water garden It is the largest office campus north of Interstate 10 on Los Angeles’ West Side, according to marketing details shared with CO. 1620 26th Street 84 percent occupied. The asking price was not included. JP Morgan acquired this property 21 years ago.
JP Morgan declined to comment. Secure EastdillSelling Real Estate did not immediately respond to a request for comment.
Earlier this year, Amazon 200,000 sq ft lease at Watergarden, the largest office initiative in the county so far this year. In 2016, JP Morgan completed his $50 million renovation adjacent to his garden on the water. Hulu, Roku When HBO the office of Colorado Center One of Greater LA’s two most expensive office submarkets
This is the first condominium property since its completion, and we are now in a difficult time for office real estate. Rise in vacancy rate, rising interest rates, and a new era of remote work. Big Tech Company Driving Much of LA’s Office Market In the past is also pulling out: Amazon announced Thursday that Corporate Hiring Suspensionand Facebook’s parent company meta will spend $2.9 billion by 2024. Shrink your office footprint.
In response, major investors have begun showing plans to reduce office exposure by considering selling long-held assets. brookfieldAccording to a recent report from Downtown LA’s largest office landlord. Savillsa flurry of other major office landlords put their properties up for sale. new york life insurance, CIM Group, JH Snyder Company, Hudson Pacific Property (HPP) and Atlas Capital.
One market analyst told the CO, “If ownership, big or small, doesn’t clearly improve value, we won’t put in additional capital (tenant improvements, etc.).” Don’t throw away big bucks. ”
“[Office landlords]are all in a mode of maintaining occupancy rates rather than pushing up rents,” another source said.
More than a quarter of LA office space is vacant, available for sublease, or coming soon, according to Savills’ third-quarter office report, showing a record vacancy rate of 25.4%. Subleasing space alone is near a record 10 million square feet, and office rents have fallen slightly to $4.06 per square foot per month.
