Silverstein Properties has announced recent lease agreements for 55,349 square feet of office space at the U.S. Bank Tower, one of the tallest buildings west of the Mississippi River. These new agreements underscore the property's continued appeal in the heart of Downtown Los Angeles.
Recent contract signings include an expansion by the law firm Morgan & Morgan of 5,091 square feet, bringing their total area to 13,517 square feet and extending their lease until at least 2037. The engineering and design firm Buro Happold has concluded a new lease for an entire floor, comprising 13,682 square feet.
The Los Angeles Area Chamber of Commerce secured a ten-year lease for 11,411 square feet for its new headquarters on the 32nd floor. Additionally, the consulting firm ICF will relocate its office from 555 West Fifth Street to the U.S. Bank Tower, occupying 3,131 square feet.
Market Dynamics and Property Performance
These latest activities increase the total area leased by Silverstein in the 1.4 million square foot tower to over 145,000 square feet in the last twelve months. KPMG, Wilson Elser, King & Spalding, and Zurich North America had previously signed leases.
The recent lease agreements at the U.S. Bank Tower reflect a revitalisation of office activity in the Los Angeles region. Office lettings across the county reached 4 million square feet in the third quarter, representing the strongest three-month result since 2019. At the same time, availability decreased compared to the previous year, as reported by Savills. Despite this positive development, Downtown L.A. continues to struggle with elevated vacancy rates and financial challenges.
Expectations Exceeded
Lisa Silverstein, CEO of Silverstein Properties, recently commented that the tower has exceeded her expectations following a USD 60 million investment in its modernisation. She emphasised it is a 'trophy building' in a difficult market, into which significant capital has been invested, and admitted that Downtown Los Angeles was not a market she would have originally considered.
Harlan Strader of Silverstein Properties represented the company internally, supported by a JLL team including Jaclyn Ward, James Malone, Josh Wrobel, Marin Turney, and Sarah Hancock. Tenants were represented by brokerage firms such as CBRE, Cushman & Wakefield, JLL, and Newmark.
