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 the 35-story
tower. This move is part of the bank's broader strategy to enhance its visibility and commitment to the Los Angeles market. The bank, which relocated its headquarters to Los Angeles from Santa Ana two years ago, is currently based in Brentwood. The expansion comes amid high vacancy rates in downtown office spaces, a trend exacerbated by the shift to remote work during the COVID-19 pandemic. The bank's new offices are expected to be operational by the end of next summer, although the financial terms of the 11-year lease have not been disclosed.
Why It's Important?
This expansion underscores Banc of California's commitment to the Los Angeles market and its confidence in the city's economic potential. By increasing its footprint in a high-visibility location, the bank aims to strengthen its brand presence, particularly as the city prepares for the 2028 Olympics. The move also highlights the challenges and opportunities in the downtown L.A. real estate market, where high vacancy rates persist. For the bank, this strategic positioning could attract more business and enhance its competitive edge in the region. The expansion is also a signal to investors and stakeholders of the bank's growth ambitions and financial health, as evidenced by its recent return to profitability.
What's Next?
Banc of California plans to complete its move to the new downtown offices by the end of next summer. The bank's increased visibility could potentially attract more clients and business opportunities, especially with the upcoming 2028 Olympics. The bank's leadership has expressed confidence in continuing its growth trajectory, with a strong pipeline anticipated for the fourth quarter. The broader real estate market in downtown L.A. will likely continue to face challenges, but Banc of California's expansion may encourage other businesses to consider similar moves, potentially revitalizing the area.
