Law Firm Sidley Austin Pre-Leasing Big Office Space at JMB’s Tower Underway in L.A.
37-story development in Century City is over 85 percent pre-leased before vertical construction
By Greg Cornfield December 15, 2023 3:20 pm
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Another tenant is committing to a tower project underway in Los Angeles’ top office market, in a deal that completely flies in the face of the current narrative regarding office real estate in Southern California.
Law firm Sidley Austin is close to an agreement to pre-lease a large chunk of space at JMB Realty’s 37-story development in Century City, sources told Commercial Observer. One source estimated the lease would span around 75,000 square feet.
Neither Sidley Austin nor JMB were immediately available to comment.
The law firm is the third major tenant to sign to the tower before it’s complete, after talent agency CAA signed for an incredible 400,000 square feet, and Clearlake Capital Group agreed to 150,000 square feet for the top eight floors, according to media reports. With Sidley Austin’s deal, that puts the project at 85 percent pre-leased before the vertical development started.
Construction of the 730,000-square-foot office development at 1950 Avenue of the Stars started ramping up in the final quarter of this year, but it is currently an empty pit. The Johnson Fain-designed tower is expected to be completed in 2026.
Chicago-based Sidley Austin already has space in Century City across the street at 1999 Avenue of the Stars. Additionally, the firm is set to leave the struggling Gas Company Tower building in Downtown L.A. after signing a 57,148-square-foot relocation at 350 South Grand Avenue.
Flight to quality remains a key theme as law firms take advantage of tenant-favoring market conditions to upgrade their space and seek improved amenity offerings, according to a report from JLL (JLL). Many larger law firms are opting to move out of Downtown L.A. and relocate to Century City, the report explained.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
