Leases  ·  Office

LA Housing Department Negotiating 300K-SF Lease at Gas Company Tower


The Los Angeles Housing Department (LAHD) is moving its offices to the Gas Company Tower with a 300,000-square-foot lease across 13 floors, Commercial Observer has learned.

A source with knowledge of the deal said the city is vacating its current offices at 1200 West Seventh Street, which LA Care Health Plan is taking over. The deal could be a lifesaver for the Brookfield (BN)-owned Gas Company Tower, which went into receivership in April following a default on $748 million in loans tied to the property as well as the 777 Tower.

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The new lease will include a homeless services counter on the ground floor of the Downtown L.A. building, the source said.

A Colliers spokesperson disputed certain details, such as the homeless services aspect and said the deal is not yet final with three to four weeks to go. Colliers is representing the landlord.

Both Brookfield and LAHD did not immediately respond to requests for comment.

Downtown L.A.’s office market has been struggling, with the vacancy rate in the central business district up to 24.5 percent by the end of 2022, according to a Cushman & Wakefield’s fourth-quarter 2022 report

Compare that to other major markets like Manhattan, where the vacancy rate reached 16.1 percent in the first quarter of 2023 across the 470 million square feet tracked by JLL (JLL), or San Francisco, where 31 percent of office properties are up for lease or sublease, according to the San Francisco Chronicle

Mark Hallum can be reached at


UPDATE: This story has been updated since publishing.