Promenade Inks Record-Breaking Lease

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.”