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 naming rights atop a 35-story tower. This move
comes as downtown office spaces face high vacancy rates, a lingering effect of the COVID-19 pandemic's shift to remote work. The bank, which relocated its headquarters to Los Angeles from Santa Ana two years ago, aims to enhance its visibility, especially with the upcoming 2028 Olympics. The expansion follows recent growth in Beverly Hills and New York City, highlighting the bank's commitment to the Greater L.A. market.
Why It's Important?
This expansion by Banc of California underscores a strategic investment in a region grappling with high office vacancy rates. By increasing its footprint in downtown Los Angeles, the bank is betting on the city's economic recovery and the potential for increased business activity. The move also positions the bank to capitalize on the visibility offered by the 2028 Olympics, potentially boosting its brand recognition. For the local economy, this could signal a positive shift, encouraging other businesses to invest in the area despite current challenges.
What's Next?
Banc of California plans to complete its move to the new downtown offices by the end of next summer. As the largest independent bank headquartered in Los Angeles, its actions may influence other financial institutions to reconsider their presence in the city. The bank's continued expansion could also prompt discussions among policymakers and investors about strategies to address the high vacancy rates in downtown L.A., potentially leading to new initiatives or incentives to attract businesses.
