PricewaterhouseCoopers (PwC) will relocate its Los Angeles offices from Downtown L.A. to Century City in 2028, a move that further impacts the struggling downtown office market. The prominent accounting and professional services firm, known for its role in the Academy Awards vote tabulation, has been a fixture in downtown since the late 1990s.
PwC's current lease for its 52-story skyscraper on Figueroa Street expires in 2028, prompting the decision to move to a premier building at 2121 Avenue of the Stars in Century City. The new location, a red-granite and glass building overlooking the Fox Studio Lot, was formerly known as Fox Plaza and famously depicted as Nakatomi Plaza in the film "Die Hard."
According to Andy Sofield, PwC's Office Managing Partner, the relocation is driven by a need for growth, enhanced connectivity, and future expansion of its Los Angeles business. Sofield stated that the new Century City office will provide additional space to better support employees, clients, and regional teams, citing strong access to clients, transportation corridors, and airport facilities. This move also signifies a return to a neighborhood where PwC previously maintained an office over two decades ago.
While specific lease details were not disclosed, sources indicate PwC has signed a 15-year lease for approximately 150,000 square feet at 2121 Avenue of the Stars. This represents an expansion from its current downtown office, which spans 114,000 square feet. PwC did not elaborate on its specific reasons for leaving downtown, but the departure follows a trend of high-profile exits from the city's financial core, including firms like Deloitte and KPMG, and Wedbush Securities' move to Pasadena.
The relocation underscores the significant challenges facing downtown Los Angeles's office market, exacerbated by the COVID-19 pandemic. Declining office worker presence, reduced retail activity, and safety concerns have contributed to a substantial increase in vacancy rates, with nearly 40% of office space in the financial district being available at the end of last year. Nick Griffin of the DTLA Alliance expressed regret over PwC's departure, urging city officials to implement measures to retain major tenants. He emphasized, however, that downtown's ongoing transformation, marked by a growing residential population and vibrant nightlife, presents continued opportunities.
In contrast, Century City has solidified its position as a highly desirable office market, boasting over 90% occupancy and commanding the highest rents in the city. Real estate broker Gary Weiss noted that this trend of companies moving from downtown to Century City is not surprising, highlighting the area's amenities, safety, and proximity to major centers. PwC's new landlord in Century City is Irvine Co., with Roger DeWames, president of Irvine Co. Office Properties, expressing enthusiasm about deepening their relationship with the firm.
