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No Top in Sight for Sizzling West LA Office Market

LOS ANGELES-MGM's record-shattering lease for nearly $500 million in a new Century City high-rise reflects a strong landlord's market that won't disappear soon, experts tell GlobeSt.com.

By David W. Myers | Updated on December 03, 2000

LOS ANGELES-Real estate pros say the estimated $500-million lease that entertainment giant Metro-Goldwyn-Mayer Inc. signed late last week for 425,000 sf in a planned Century City high-rise may indicate that rents and sales prices on LA’s trendy Westside–already one of the West Coast’s priciest real estate markets–still have plenty of room to move higher.

“I think you’ll see a little plateau through January, until after the election, but then prices and rents will just start going up again,” Susan Goodman Byron, a VP in brokerage CRESA Partners’ West LA office, tells GlobeSt.com. “There are lots of factors that are putting upward pressure on [Westside] rents, but nothing that makes you think that rents might go lower.”

MGM VC Chris McGurk confirmed on Friday that the studio will take 17 floors at the planned office complex, which would stand on Constellation Boulevard and Century Park West. Chicago-based developer JMB Realty Corp. won approval to build a 34-story, 700,000-sf tower at the site more than two years ago, but has steadfastly refused to break ground until it could land a major tenant.

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