Lululemon Signs 37K-SF Office Sublease in Santa Monica
Sublease space is soaring in Greater Los Angeles
The amount of sublease office space is rising quickly in Southern California as the great return to work sputters into the final quarter of 2022, and a popular athletic clothing brand has seized the moment to pick up some of it.
Lululemon signed a 36,659-square-foot lease to take the fourth floor and part of the third floor at 1733 Ocean Avenue in Santa Monica, sources told Commercial Observer. The sublease is with cosmetics and skin care company Beautycounter.
Marketing materials indicate the asking rent for sublease was $6.50 per square foot per month for a term ending on Dec. 31, 2024. That puts the sublease at approximately $2.9 million per year.
Goldman Sachs (GS) acquired the 34,195-square-foot lot under the building in 2019 for $65 million. It’s ground-leased through 2086. Maguire Properties developed the four-story building between Olympic and Pico boulevards. It spans 91,398 square feet with three floors of office space and ground-floor retail, and it was renovated in 2017.
Lululemon did not respond to requests for comment. Beautycounter was not available for comment.
The amount of sublease space increased 17 percent in Greater Los Angeles to 9.6 million square feet over the past year, according to Savills’ third-quarter office report. About 33 percent is located on L.A.’s Westside.
Santa Monica is tied with Century City for the most expensive submarket in the region with average asking rent at $5.84 per square foot per month, the report said.
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