One of California's biggest banks has inked a lease in downtown Los Angeles that will see its name emblazoned on the city’s skyline early next year.
Banc of California has signed an 11-year lease for 40,000 square feet at ManuLife's 35-story office at 865 S. Figueroa St. The bank's existing downtown branch at the Wilshire Grand Center at 900 Wilshire Blvd. will remain in place.
“Expanding our presence in downtown demonstrates how committed we are to serving the greater LA market," Jared Wolff, the bank's chairman and chief executive, said in a statement.
Banc of California's name will replace the existing logo from global asset management firm TCW on the north and south sides of the building at an important time for Los Angeles as the city prepares to host the World Cup in 2026 and the 2028 Olympics. TCW is moving out of 189,000 square feet at the building at its lease expiration.
Downtown LA’s office market is facing some of its toughest challenges in decades with vacancy hovering around 22%, according to CoStar. Tenants have given back about a million square feet of space over the past year, and concerns around safety and sluggish leasing activity continue to weigh on the area.
Nationally, there are signs the office market may be turning a corner. In the third quarter, tenants occupied about 12 million more square feet than they gave up — marking the first net gain since late 2021, according to CoStar.
Banking on downtown
Across greater Los Angeles, office demand remains muted amid tech and entertainment job cuts, high unemployment and slow return-to-office trends.
While some firms are relocating to other Los Angeles office markets with stronger reputations, a resurgence in downtown Los Angeles is being driven by major tenants such as law firms, public agencies and consulting firms, according to Nick Griffin, executive vice president of the DTLA Alliance, a business improvement district.
Downtown Los Angeles leasing activity reached nearly 907,802 square feet in the second quarter, a 147% jump over the previous quarter, according to CBRE. The Consulate of India and KPMG are among the firms signing big leases downtown in recent months.
“We moved our headquarters to Los Angeles two years ago because we believe in this city and in the power of the entrepreneurs and businesses that call it home," Wolff said in a statement.
Banc of California has been steadily growing its footprint in other major markets.
Earlier this year, the bank expanded its Beverly Hills office, adding signage to a landmark building on at 9701 Wilshire Blvd. In June, it relocated its New York corporate office to Park Avenue.
Banc of California is the largest independent bank based in Los Angeles and ranks third among banks headquartered in California. It operates full-service branches across the state, and also has a presence in Denver, Colorado and Durham, North Carolina, along with regional offices nationwide.
For the record
Jonathan Dezzutti, Jacob Bobek, and Blake Mirkin of CBRE represented Banc of California in the transaction.