The historic Ford Factory building in downtown Los Angeles has undergone many transitions since its construction over a century ago. Its recent metamorphosis into an office building with retail space has been slow in catching on, and the owners have been trying to close on commercial leases for the building for two years. Many leasing agents understand that closing one substantial tenant is often the catalyst that propels a massive project toward success.
Agents and brokers in the Arts District had been optimistically monitoring negotiations between the owners of the Ford Factory and Buzzfeed, which expressed interest in a large office space in the newly renovated building. Owners of nearby commercial buildings had been hoping for a significant lease that would create a ripple effect in the district, attracting clients to smaller properties in close proximity. When the entertainment company backed out of the deal, many thought the plans for the Arts District would fail.
Finally, the building's owners closed a 13-year deal with Warner Music Group to lease 257,000 square feet of office space in the converted factory. The lease is the largest in the downtown area so far this year, and the first with a notable tenant. Almost immediately, other businesses began inquiring about property and offices in the Arts District to be close to Warner Music. Agents say entertainment companies and retailers will have more confidence in acquiring space now that the music giant has made a commitment.
The prospects for downtown Los Angeles are exciting as thousands of Warner employees will be looking for places to work, live, eat and relax. Business owners wanting to be a part of the positive changes coming to the Arts District find advice and guidance from an experienced real estate attorney. Commercial leases can be complex and involve a significant investment, and a skilled attorney will protect one's interests and make the process as smooth as possible.
Source: therealdeal.com, "Warner Music lease is already having ripple effect on Arts District", Cathaleen Chen, Oct. 10, 2016