More office space is headed to the sublease market in Downtown Los Angeles. Wedbush Securities, an investment bank and securities brokerage firm, has placed its Downtown Los Angeles office space up for sublease. This move comes at a time when landlords in the central business district are working hard to retain their tenants. Approximately 100,000 square feet of prime office space at Cerberus Capital Management’s 1000 Wilshire Boulevard is now available for sublease, according marketing materials from Newmark.
David Kluth and Steven Salas of Newmark have been entrusted with marketing the sublease opportunity on behalf of Wedbush Securities.
Wedbush Securities currently holds a 99,975 square foot lease on the 476,500 square foot property until 2025, according to Newmark. The building, known as the Wedbush Center, is currently owned by Cerberus Capital Management, which acquired the building in 2018 from LPC West for $196 million, equating to approximately $411 per square foot, public records show.
During the time of the building’s sale, it boasted an 86 percent occupancy rate, with Wedbush Securities serving as the anchor tenant. If Wedbush Securities chooses to relocate, it would result in an approximately 21 percent increase in vacancy within the building.
Overall, Los Angeles is seeing an increase in vacancies throughout its office market. According to a first quarter Los Angeles office market report from Newmark, the average asking rent stands at $3.85 per square foot per month, while the vacancy rate is recorded at 21.8 percent. In total, the net absorption of office space has experienced a decline of 1.5 million square feet during the first quarter of the year.