Savills Studley Executes Two Large Law Firm Leases in Downtown Los Angeles
Wilson Elser and Gordon & Rees Renew, Expand for a Total of Approximately 95,000 Square Feet
Los Angeles (November 9, 2015)  

Savills Studley represented two law firms in significant leasing transactions in downtown Los Angeles for a total of approximately 95,000 square feet of office space.

Wilson Elser signed a long-term lease renewal for 41,441 square feet at City National Plaza, 555 South Flower Street. The firm, which occupies the entire 29th floor and half of the 28th, has been located here since 2005.

Gordon & Rees executed a lease restructure and long-term expansion at U.S. Bank Tower, 633 W. 5th Street. The firm will occupy just over 50,000 square feet encompassing the full 52nd and 53rd floors and half of the 51st. The transaction included converting what had been an existing sublease of approximately 10,000 square feet to a direct lease, and restructuring the firm’s entire commitment to be co-terminus.

Andrew Lustgarten, corporate managing director, and Mark Sullivan, executive vice president, with global tenant advisory firm Savills Studley represented the law firms in the transactions.

“In both cases, our clients were active in the marketplace significantly in advance of their lease expirations, exploring a variety of alternatives including relocation opportunities,” said Lustgarten. “At present, the downtown market is somewhat of a conundrum. With the Class A availability rate hovering around 20 percent, the submarket represents an excellent value and landlords are willing to stretch to attract and retain tenants. At the same time, downtown is experiencing a boom in the residential and retail sectors as well as increased office activity from outside the market that could potentially translate to an increase in office rents,” he added.

The recent leasing activity at U.S. Bank Tower is a case in point and reflects just how quickly things can tip. The law firm of Lewis Brisbois Bisgaard & Smith converted a temporary commitment in the tower to a long-term lease for more than 215,000 square feet, boosting the building’s occupancy rate from 60 to 75 percent in a single transaction. “Gordon & Rees was keenly aware of this activity and by restructuring early, we were able to preserve our client’s occupancy in the building, take advantage of the market’s current favorable rates and protect the firm against future market risk,” noted Sullivan.

The landlord brokers in the transactions were John Bendetti, an in-house advisor with CommonWealth Partners, owners of City National Plaza, and John Eichler of Cushman & Wakefield on behalf of OUE Limited and U.S. Bank Tower.

About Wilson Elser

Nearly 800 attorneys strong, our firm serves clients of all sizes, across multiple industries. Wilson Elser has 27 strategically located offices in the United States and another in London. This depth and scale has made us one of the nation’s most influential law firms, ranked in the Am Law 200 and in the top 50 of the National Law Journal 350.

About Gordon & Rees

One of the fastest-growing firms in the country, Gordon & Rees is a national litigation and business transactional firm with more than 650 lawyers and 35 offices in 22 states. Gordon & Rees has been recognized on the "BTI Client Service A-Team" survey in each of the past three years and has been honored as a 2014 "Go-To Law Firm" for Fortune 500 companies. Gordon & Rees was selected for Corporate Counsel magazine's 2014 "Who Represents America's Biggest Companies" list. The key to Gordon & Rees’s extraordinary success in the marketplace has been its diversity and inclusion, empowering all its attorneys, regardless of gender or personal background, to make the absolute maximum contribution, both individually and collectively, to the success of the firm and the firm’s clients.

About Savills Studley

Savills Studley is the leading commercial real estate services firm specializing in tenant representation. Founded in 1954, the firm pioneered the conflict-free business model of representing only tenants in their commercial real estate transactions. Today, supported by high quality market research and in-depth analysis, Savills Studley provides strategic real estate solutions to organizations across all industries. The firm’s comprehensive commercial real estate platform includes brokerage, project management, capital markets, consulting and corporate services. With 29 offices in the U.S. and Canada, and a heritage of innovation, Savills Studley is well known for tenacious client advocacy and exceptional service.

The firm is part of London-headquartered Savills plc, the premier global real estate service provider with over 30,000 professionals and over 700 locations around the world. Savills plc is listed on the London Stock Exchange (SVS.L).

For more information, please visit www.savills-studley.com and follow us on Twitter @SavillsStudley and LinkedIn.