Local Office of Global Firm will Occupy Three Floors in New Wilshire Grand Building
LOS ANGELES – June 7, 2018 – In a lease transaction that represents the largest corporate relocation into downtown Los Angeles this year – and may likely rank as the No. 1 corporate relocation into the Central Business District at year-end — ARUP Engineering will occupy 66,000 square feet in the new Wilshire Grand Building, the first new office building to be constructed downtown in the past three decades, it was announced by brokerage firm Colliers International. Value of the transaction was $57 million with an initial lease term of 15 years.
Colliers represented the Los Angeles office of the London-based engineering firm in the lease negotiations, while Cushman & Wakefield represented Hanjin/Korean Air, developers and owners of the landmark, 73-story skyscraper, the tallest building west of the Mississippi River. Legacy Partners of New York partnered with Colliers to represent ARUP.
“With the increasing presence of downtown Los Angeles, in terms of our clients, our collaborators and our potential staff, the move from the Westside made perfect sense,” said ARUP Principal and Los Angeles Office Group Leader Jim Quiter. “The move downtown places us in the center of the marketplace, which allows us to attract a more diverse staff, and to have a greater impact on our industry, our city, and the issues they face.”
ARUP will occupy three full floors in the architecturally striking David Martin-designed building, which, in addition to its office space, includes a five-star hotel, conference facilities, a full gymnasium, a variety of restaurants including a roof-top eatery, and such amenities as bicycle storage and direct access to Metrolink’s Seventh Street station. The move also represents an expansion for the engineering firm, which expects to grow its workforce from from its current 300 employees to 400 full-time workers, in the 66,000-square-foot space.
“We evaluated numerous alternatives both on the Westside and downtown over a period of 18 months,” said Colliers Executive Vice President Nathan Pellow, who along with Senior Vice President Terence Kirk, represented the engineering firm in its search for a new Los Angeles location. “Downtown just made the most sense for ARUP in terms of accessibility in every sense of the word – commuting options, affordable residential housing, and dozens of onsite and offsite amenities within walking distance.”
In addition to its status as the tallest building in the West, the structure offers its tenants the most seismically advanced safety elements of any building in the earthquake-prone region. It also features the most progressive environmental qualities available, including an interior ventilation system that brings fresh air into the building, vastly improving the air quality on its 73 floors.
ARUP, which provides engineering services on a variety of private and public projects around the world, locally and most notably has worked with the cities of Los Angeles and Long Beach on major infrastructure assignments, as well as notable projects at Dodgers Stadium, Los Angeles International Airport and The County Museum of Art.
Its relocation to the Central Business District is part of trend that began in 2015 and has gathered steam since as a variety of corporations are quitting locations on the Westside and moving downtown for reasons that include a lack of affordable housing for employees and few commuting options. Recent notable corporate relocations have included Adidas and Spotify, among others (See chart from Colliers).
Pellow and Kirk are based in Colliers downtown Los Angeles office. Representing the building owner on the transaction were listing agents Steve Marcussen and John Cushman III of Cushman & Wakefield.
About Colliers International Group Inc.
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