LOS ANGELES-Candy and gift retail store It'Sugar signed an eight-year lease with the Third Street Promenade in Santa Monica valued at $6.2 million. At $312 per-square-foot, the lease breaks the retail center's price-per-square-foot record. Avision Young, a commercial real estate services firm, principal Randy Starr represented the landlord, Promenade Enterprises LP, in the transaction.

“This lease sets a new benchmark for the Promenade,” says Starr. “The highest per-square-foot rent for Third Street prior to this lease was $240 annually. I think everything from here out will be leased at over $300 [per-square-foot] as retailers understand the intrinsic value of the district and can justify paying top dollar as their sales continue to prove the value.”

It'Sugar was one of several retailers looking to move into the 2,250-square-foot space, but was plucked from the pack due to the specialty product lines the store carries, which include unique candy products and brands, specialty clothing and games all branded for pre-teen and teenaged girls.