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Premiere Gets Lots Of “Feet” In LA County
Premiere Radio Networks is expanding at its corporate headquarters in Sherman Oaks, CA, just outside Los Angeles. The Clear Channel subsidiary, which lists Rush Limbaugh, Donald Trump and Casey Kasem as on-air talent, renewed its lease with landlord Douglas Emmett three years early to take a total of 90,000 square feet in two buildings.
Premiere Radio has been an anchor tenant at 15260 Ventura Blvd. for almost a decade, occupying 77,000 square feet on multiple floors. In the terms of its new lease, the company will expand into 84,000 square feet in its current location and keep an additional 6,000-square-foot facility in nearby 15303 Ventura Blvd.
Premiere also got the only full floor in 15260 Ventura, according to Rick Buckley, principal at Madison Partners and the broker for the tenant. Buckley said that "Bank of America purchased Fleet Bank and was consolidating out of the building. That was going to be a sublease, but we identified early it was going to be an opportunity, so it never even came onto the market.”
Premiere's lease was not set to expire until 2008, but internal business growth at the company and a strengthening in the leasing market prompted an early renewal, Buckley explained. By renewing early, Premiere was able to secure a favorable rental rate--near the market average of $2 per square foot--for another 10 years.
"Typically you're seeing larger tenants getting serious traction with landlords 12 to 18 months out [from the expirations]," said Buckley. "But I think the more sophisticated tenants are approaching real estate much more strategically, looking closely at their lease contracts well in advance."
Office rents and vacancies have been improving in all of LA County for the past few quarters, according to CB Richard Ellis Inc. Average rates increased by a nickel in the first quarter of 2005 to $2.16 per foot. Meanwhile, vacancies also decreased for the quarter, down to 12.6 percent.
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