What's Happening?
Banc of California is set to significantly increase its presence in downtown Los Angeles by leasing 40,000 square feet at 865 S. Figueroa St. and securing the rights to display its name atop a 35-story
tower. This move nearly doubles the size of its current offices in the Figueroa at Wilshire building, where it occupies nearly 23,000 square feet. The expansion is part of the bank's strategy to strengthen its footprint in Los Angeles, following recent expansions in Beverly Hills and New York City. The bank, which relocated its headquarters from Santa Ana to Brentwood two years ago, aims to move into the new downtown offices by the end of next summer. The financial terms of the 11-year lease have not been disclosed.
Why It's Important?
This expansion is significant as it comes at a time when downtown Los Angeles is experiencing high office vacancy rates, a lingering effect of the COVID-19 pandemic's shift to remote work. By increasing its presence, Banc of California is making a strategic bet on the city's economic recovery and the potential for growth in the financial district. The move also positions the bank prominently in the skyline, which could enhance its visibility during major events like the 2028 Olympics. As the largest independent bank headquartered in Los Angeles, Banc of California's expansion reflects confidence in the local market and its commitment to serving the Greater L.A. area.
What's Next?
Banc of California plans to complete its move to the new downtown offices by the end of summer next year. The bank's expansion could influence other financial institutions to reconsider their presence in downtown Los Angeles, potentially leading to a revitalization of the area. Additionally, the bank's increased visibility and strategic positioning may attract more business and investment opportunities, further solidifying its role in the local economy.
Beyond the Headlines
The expansion of Banc of California in downtown Los Angeles highlights broader trends in urban development and the challenges faced by commercial real estate in the post-pandemic era. The bank's decision to invest in downtown L.A. could signal a shift in confidence among financial institutions, potentially encouraging other businesses to follow suit. This move also underscores the importance of strategic location and branding in the competitive banking industry, as visibility and accessibility can significantly impact a bank's market presence and customer engagement.
