CBRE brokered the lease of a 9,100-sq.-ft. office space at 6222 Wilshire Blvd. in Los Angeles for a total consideration of approximately $2.5 million, making it the lowest lease rate historically in the building.
Located in the Miracle Mile neighborhood of LA, the office building is in a prime corridor of one of the city’s most affluent neighborhoods where lease rates remain stable and in high demand.
CBRE’s Mark Landver represented the tenant, Choice Health Group. The landlord is Decron Properties.
“We saw an opportunity to be taken advantage of in the current state of the office market and rising vacancy rate, including renewing early while interest rates were up, along with the onset of an impending recession,” said Mark Landver, First Vice President with CBRE.
In addition to achieving the lowest lease rate since the building’s development in 1986, Landver negotiated a tenant improvement allowance and heavy rental abatement concession. Choice Health Group also agreed to a long-term lease renewal, which gave the landlord confidence in offering a rate that was significantly reduced and a first of its kind.
“Mark’s ability to negotiate aggressively on our behalf produced an outcome that served both our best interest and favorable results with the landlord,” said David Wittenberg, CEO of Choice Health Group.
According to CBRE Research, while office vacancies continued to increase overall across Greater Los Angeles in the fourth quarter of 2022, Class-A markets like LA’s Westside are continuing to see steady demand and migrating tenants from nearby commodity or Class A, B, and occasionally C-grade markets.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
