Business
L.A.'s office market takes a hit amid trade wars, fires and economic uncertainty
Tenants hunting for office space in the Los Angeles area are in the driver’s seat as vacancies plague many landlords trying to fill their buildings with people.
The greater Los Angeles office rental market started the year with a turbulent first quarter and historically high vacancies as tenant demand was persistently soft in spite of more robust return-to-office policies coming from managers.
A notable exception was Century City, which is experiencing tight occupancy and some of the highest rents in the West.
Countywide, though, overall office vacancy reached a new high of 24.2%, real estate brokerage CBRE said. When “shadow” office space that is leased but not occupied is considered, overall availability is more than 29% — about triple what is considered a healthy market balance between landlord and tenant interests.
Real estate experts hoped for better at the end of 2024 as the leasing market that had been lagging since the COVID-19 pandemic began showed signs of recovery, including more companies calling for workers to return to their desks. Then came the devastating wildfires and economic uncertainty caused by President Trump’s global tariffs.
Century City Center is nearly fully leased even though it isn’t slated to open until early next year, real estate broker Gary Weiss of LA Realty Partners said.
(Allen J. Schaben / Los Angeles Times)
“We were more optimistic heading into 2025,” CBRE property broker John Zanetos said, as the county office market saw year-end leases signed by some good-sized tenants including toy makers Mattel and Jazwares.
The January wildfires that knocked the city back on its heels put many business decisions on pause.
Later in the quarter, confusion about tariffs and potential trade wars introduced another element of uncertainty, said Michael Soto, vice president of research in the western region for real state brokerage Savills.
Real estate analysts are watching “very closely” to see whether there is new hesitation in decision-making among business leaders that could slow down initial public offerings of stocks, mergers and other ventures that would typically lead to acquisitions of office space, Soto said.
“Anxiety is back in the market,” he said. Some tenants “are probably slowing down their decision-making until there is a little more clarity in the macroeconomic environment.”
The downtown Los Angeles office market, one of the region’s largest, continued to struggle in the first quarter, with vacancy hitting nearly 34% and overall availability at 37%, slightly up from a year earlier, CBRE reported.
Downtown has struggled with vacancy for decades, but companies’ cutbacks in their office space since the start of the pandemic have helped drive down the values of office buildings and pushed some landlords into such financial stress that they’re having a hard time coming up with the money to attract tenants, Zanetos said.
A view of downtown Los Angeles last year. The area’s office market continues to struggle, with vacancy hitting nearly 34% and overall availability at 37%, slightly up from a year earlier, CBRE reported.
(Brian van der Brug / Los Angeles Times)
Among the upfront costs for landlords is paying for office space to be prepared for new tenants as part of their lease agreements. Landlords also are expected to maintain their properties at a level that tenants will find acceptable, which becomes a challenge when landlords are in a shaky financial position.
“There are very few buildings that can actually transact” leases, he said, because they can give tenants the financial concessions they need to move in.
Those buildings “are doing extremely well,” he said, and some are more than 90% leased.
There are still some potential tenants looking for large amounts of space to rent in Los Angeles County, Zanetos said, including the Los Angeles Department of Water and Power. The DWP is planning to renovate its historic landmark headquarters on Bunker Hill and needs about 300,000 square feet to move into while the work gets done, he said.
“That would be a huge shot of positive absorption” in the office market, he said. He declined to identify other large potential tenants in the market because their searches are confidential, he said.
The DWP’s mid-century-style John Ferraro Building on Hope Street was completed in 1965 and houses about 3,300 employees. Renovations and an accompanying temporary move of employees are still in planning stages, DWP representative Joe Ramallo said.
The Los Angeles Department of Water and Power plans to renovate the mid-century-style John Ferraro Building on Hope Street, which houses about 3,300 employees, DWP representative Joe Ramallo said.
(Los Angeles Times)
The DWP also may consider buying a building, Ramallo said. Last year, the County of Los Angeles bought the 55-story Gas Company tower for $200 million, far less than its appraised value of $632 million in 2020.
One neighborhood that is actually thriving in the overall soft leasing market is Century City, where vacancies are few and rents are high because demand is strong, especially among attorneys and entertainment firms including Creative Artists Agency.
“Century City is an outlier, and has been for years in terms of performance on rent and occupancy,” real estate broker Gary Weiss of LA Realty Partners said.
The neighborhood created in the 1960s on land west of Beverly Hills that was formerly the backlot of 20th Century Studios (now Fox Studio Lot) has long been a favorite of law firms, a trend that has accelerated since the pandemic began, Weiss said.
Some of them are choosing to expand in Century City instead of downtown, where they have had presences for years, he said. Among them are Latham & Watkins and Sidley Austin.
“Much of this is a reflection on what’s happening downtown with the homelessness, with the increased vacancy, with the safety factor,” Weiss said. “And so a lot of these firms are uprooting from downtown.”
The neighborhood “has high-quality buildings with first-rate security,” he said. “It’s safe, it’s clean.”
Century City also has a rarity in L.A.’s office market — a flashy new high-rise under construction. The 37-story Century City Center is being built by Chicago landlord JMB Realty, one of Century City’s largest property owners.
Creative Artists Agency, one of Hollywood’s biggest talent agencies, has agreed to be the anchor tenant in the building on Avenue of the Stars. Other signed tenants include Sidley Austin and investment firm Clearlake Capital, real estate data provider CoStar said.
Century City Center is nearly fully leased even though it isn’t slated to open until early next year, Weiss said.
Overall vacancy in Century City is 13%, according to CBRE. Landlords are asking for nearly $7 per square foot per month, compared with the county average of $4.29 per foot for good-quality office space.
Sales of office buildings have slowed, in part because large institutional investors are skeptical that property values will appreciate enough to resell them at a profit after five years, as is common practice.
Private buyers or public entities such as Los Angeles County have picked up some downtown office towers at “huge discounts” compared with what it would cost to erect similar new buildings, Zanetos said.
Other private buyers are investing in fairly new buildings filled with tenants, which are considered low-risk investments. This month, Kingsbarn Realty Capital, a Las Vegas firm that caters to private investors, paid $105 million for Vine Street Tower in Hollywood that is fully leased by Skims Body Inc., a shapewear and clothing brand co-founded by Kim Kardashian.
The building was completed in 2017 and extensively renovated last year, real estate brokerage Newmark said.
Times staff writer Matt Hamilton contributed to this report.
Business
Walmart’s EV chargers are coming to California with discounts for members
Walmart is rapidly expanding its network of electric vehicle chargers designed for customers to use while they shop.
The network could help fill gaps in EV infrastructure in states with greater need for chargers. Walmart, which has more than 5,000 locations in the U.S. and hundreds in California, says more than 90% of Americans live within 10 miles of one of its stores.
The chargers also offer an incentive for customers to choose Walmart — Walmart Plus members will receive a 10% discount off an average price of $0.46 per kilowatt-hour of energy at the company’s chargers.
Walmart chargers are already available at more than 75 locations in 17 states, with Texas boasting the most charging stations, followed by Florida and Arizona.
Matthew Nelson, Walmart’s director of energy policy, said last week on LinkedIn that the network will soon reach 29 states, including California.
“We are delivering on the promise of affordable, reliable and convenient charging,” Nelson said in his post.
According to Walmart’s website, six charging stations are coming to California soon, though the company did not offer a specific timeline.
The chargers will be installed at stores in Antelope, Brea, Fresno, Stockton, Suisun City and Vallejo.
Most charging sites in California will include eight to 16 fast-charging stalls, said Walmart spokesperson Kelsey Bohl.
The company first announced plans in April 2023 to install its own EV chargers at Walmart and Sam’s Club stores, with a goal of installing thousands of chargers by 2030. Partnering with ABB E-Mobility and Alpitronic, it added 25 new charging sites this past May and six more in June.
“Walmart is building a leading retail-integrated EV fast-charging network, focused on delivering an affordable, reliable and convenient charging experience where customers already shop,” Bohl said in an emailed statement. “Customers can charge while they shop, access stations through the Walmart app they already use, and benefit from affordable pricing.”
The charging stations already available include 612 individual charging stalls using 400-kilowatt chargers. Each stall has a dual charging cord with both Combined Charging System and North American Charging Standard connectors. The standard connectors, designed by Tesla, are smaller and lighter than the combined systems.
The primary way to pay for the chargers is through the Walmart app, but the company is also experimenting with built-in credit card readers to allow those without the app to use the stations.
Customers can check charger availability on the Walmart app. The company said the chargers will be available 24 hours a day.
Business
Waymo reports teen riders for bad behavior and delivers them to the police
Robotaxis could be turning into robocops.
A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.
According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.
“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”
Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.
“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “
A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.
Waymo did not immediately respond to a request for comment.
Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.
The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.
The company said it does not use facial recognition or other biometric identification technologies to identify individuals.
“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.
The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”
“At least they got a designated driver?!” one user commented.
Business
Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination
At the Supreme Court, the unfounded fear of boys masquerading as girls in youth sports rolled the clock back on gender equality.
On the surface, the Supreme Court’s June 30 opinion upholding state laws barring transgender girls from women’s and girl’s sports teams looks like a victory for women’s rights.
The 6-3 opinion by Justice Brett M. Kavanaugh certainly presents itself that way. “Females and males have inherent physical differences relevant to athletic performance,” Kavanaugh wrote. “Therefore, in contact sports, forcing female athletes to compete against males can create significant safety risks.” He also asserted that “forcing female athletes to compete against males can undermine competitive fairness.”
The ruling applied to prohibitions enacted in Idaho and West Virginia against “biological” males’ participation on women’s teams in public schools. Federal judges in both states overturned the bans. The Supreme Court majority restored them. The ruling essentially upholds similar bans enacted in 25 other states.
There was no record of any transgender person participating in school sports in the State, let alone any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.
— Justice Sonia Sotomayor, demolishing the Supreme Court’s argument in favor of banning transgender girls from girl’s sports
Kavanaugh, like Donald Trump and others in the anti-transgender camp, maintained that one’s gender is an immutable fact of life, established even before birth.
Anything else, Trump stated in an executive order he issued on inauguration day 2025, could only be the product of “gender ideology extremism.” The U.S., his order stated, recognizes “two sexes, male and female. These sexes are not changeable and are grounded in fundamental and incontrovertible reality.” That’s a “biological truth,” he declared.
In his own version of this overconfident and factually insupportable conclusion, Kavanaugh wrote: “As all agree, females and males have inherent physical differences relevant to athletic performance.”
Science recognizes that some people are “born with sex traits that don’t fit into typical male or female patterns,” to cite a discussion on the Cleveland Clinic web page on the topic “intersex.” The condition “may involve chromosomes, hormones, reproductive organs or genitals.”
From a psychological standpoint, medical science recognizes “gender dysphoria” as a real condition often requiring counseling and medical intervention such as the use of puberty blockers and hormones to stave off the development of secondary sex characteristics until the condition can be resolved.
No one disputes that there are physical differences between the sexes. Few would dispute that on average or even at the median, males may be bigger and more powerful than females, or that in certain contact sports the difference may be telling and on occasion dangerous.
But that’s not the same as asserting that the physical differences between males and females invariably mean that men will invariably prevail over women in all competitions or that their participation will endanger women.
The International Olympic Committee — in a policy statement Kavanaugh cited incompletely — says that in “most running and swimming events,” males have a 10% to 12% advantage over women. That’s a range that would accommodate the full spectrum of outcomes — transgender females win, cisfemales win, they tie. (The “cis” prefix denotes those living consistent with their birth gender.)
West Virginia and Idaho addressed this ambiguity by banning transgender women from all girls’ teams. So under their rules transgender girls can’t play football or soccer with cisgirls. But what’s the argument in favor of banning them from the 100-yard dash, or cross-country track, or diving, or archery?
But something else is going on here. The Supreme Court’s ruling was almost preordained, given the years-long campaign by conservatives to demonize transgender individuals as if they’re members of an alien species.
It will be recalled that during his presidential campaign, Trump spun a despicable fantasy in which children were kidnapped in school and secretly subjected to sex-change operations.
Trump’s executive order wiped out policies aimed at protecting transgender adults from discrimination. He moved to outlaw gender-affirming medical therapies for anyone under 19 by cutting off federal funding for healthcare institutions that provide such care.
He banned transgender individuals from serving in the military and ordered federal prison officials to move transgender inmates into the general populations consistent with their birth genders, which exposes them to physical assault. (Federal Judge Royce Lamberth of Washington, D.C., has blocked the government from transferring three transgender women into the male prison population or terminating their hormone treatments.)
I wrote during Trump’s first term, when his anti-transgender policies were still gestating, that the goal was to show that “one can target any community, as long as it doesn’t have a strong political voice or political power. These are the actions of bullies and cowards, pretending to be strong.”
Last year, the Supreme Court struck its first blow against transgender rights by upholding a Tennessee law banning transgender care, including puberty blockers and hormone therapy, for minors. Similar laws have been enacted in 25 other states. The majority in that ruling by Chief Justice John G. Roberts Jr. was identical to the one in the June 30 ruling — Roberts, Kavanaugh, and Justices Clarence Thomas, Samuel A. Alito Jr., Neil M. Gorsuch and Amy Coney Barrett.
Who are the targets of this ideological campaign? They number only about 1.6 million U.S. adults, or one-half of 1% of the U.S. population. About 300,000 adolescents ages 13 to 17, or 1.4%, identify as transgender, according to a study by UCLA School of Law.
In West Virginia, as Justice Sonia Sotomayor observed in her dissenting opinion, “there was no record of any transgender person participating in school sports in the State, let along any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.”
In endorsing the flat bans directed at transgender women in Idaho and West Virginia, Kavanaugh argued that any attempt to implement case-by-case judgments of students’ requests to join sports teams inconsistent with their biological gender would create “an enormous practical and administrability problem.”
Is that so? That wasn’t the case in Maine, where the annual K-12 population is more than 170,000. There, a committee was charged with determining whether a student’s participation in a sport consistent with their gender identity but inconsistent with their biological sex would “result in an unfair athletic advantage” or present a risk of injury to others. The committee held 56 hearings from 2013 through 2021, or an average of seven per year. During the entire time span, only four involved transgender girls. (The outcome of those hearings couldn’t be learned.)
It was Maine’s policy, one might recall, that provoked a confrontation between Trump and Maine Gov. Janet Mills at the White House last year, when Trump threatened to withhold federal funding from the state unless it barred transgender students from competing on women’s sports teams. “We’ll see you in court,” Mills snapped.
Whether the Idaho and West Virginia laws genuinely protect girls from unfair competition is questionable. (The Idaho law is styled the “Fairness in Women’s Sports Act.”) In practice, the laws may subject women in public schools to “invasive sex verification procedures,” as educational expert George Theoharis of Syracuse University wrote after the court ruling.
They’re also based on a retrograde view of women as fragile creatures needing men’s protection, Theoharis wrote — “the same logic that has historically been used to justify excluding women from making their own healthcare decisions and girls from rigorous math and science; that physically demanding work is simply beyond them.” (There don’t appear to be any state laws barring transgender women from competing in men’s sports.)
Becky Pepper-Jackson, the plaintiff in the West Virginia case, in which she is identified only as B.P.J., is the only transgender girl who sought to join girl’s teams — track and cross-country — in the state. That was in 2021, just after West Virginia passed its law and she was about to enter sixth grade. She didn’t appear to pose any competitive risk to others on the track and cross-country teams she applied to join — her lawyers told the Supreme Court that on those no-cut teams, she “came in near the back.”
Anyway, she had not gone through male puberty, which theoretically might have endowed her with a competitive advantage, because she had been taking puberty blockers and female hormones.
Thanks to the court’s ruling, Sotomayor observed in a dissent joined by Justices Elena Kagan and Ketanji Brown Jackson, West Virginia can deny Becky access to school sports “because it thinks they have an inherent athletic advantage, even if the facts show that they do not.”
B.P.J., Sotomayor wrote, “cannot practice on girls’ teams, even if she would not take anyone’s spot in an eventual competition, even if everyone who tries out for the team makes it, and even if having the chance to participate could aid immensely in treating B. P. J.’s gender dysphoria.”
So whose interest was really protected by the Supreme Court?
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