An international law firm is bucking more than one trend and moving its headquarters to an office tower in Downtown Los Angeles.
Landlord CIM Group announced Monday that law firm Sheppard Mullin signed the largest new office lease in Downtown L.A. this year for 119,217 square feet at the 52-story building named City National 2CAL. The firm will occupy floors 39 through 42 and approximately 7,000 square feet on the plaza level at 350 South Grand Avenue in the Bunker Hill District.
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Terms of the lease were not immediately disclosed.
Sheppard Mullin currently employs more than 450 employees in L.A., who will all be moving to the new headquarters in mid-2025, according to CIM Group. Sheppard Mullin’s website lists offices across the street at 333 South Hope Street, owned by Brookfield Asset Management, and also in Century City at 1901 Avenue of the Stars, which is owned by Douglas Emmett.
CIM Group acquired the 1.4 million-square-foot City National 2CAL in 2014, and has completed capital improvements to the interior. CIM also contributed to the renovation of The Yard, a 1.5-acre central court and performance plaza shared with 1 CAL and the Omni Los Angeles Hotel.
CIM Group represented itself in the lease along with JLL (JLL), and CBRE (CBRE) represented the tenant.
Sheppard Mullin’s lease contradicts current office sentiment and activity in Greater L.A., as many office tenants — law firms, in particular — are leaving downtown in a flight to quality found in markets such as Century City, Culver City or Santa Monica on the Westside. For example, 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 and is downsizing and relocating its space downtown.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
