Los Angeles, CA (PRWEB) January 23, 2014
Back in November, we learned that Video game creator Riot Games has executed the largest office lease in Los Angeles in 2013, taking the entire Element LA campus on West Olympic Boulevard. New details about the lease are now revealed. According to CompStak, the company leased the 284,037 SF creative campus for 15 years, with rent in the mid $3 PSF per month, bringing the total deal value to over $120M. The space would be fitted to Riots' needs using tenant improvement allowance in the mid-$60s per square foot, which translates to about $18M in concessions.
The move is a huge upgrade for Riot Games, who has been growing rapidly in the past few years, and relocated multiple times. Founded in 2006, Riot Games signed a sublease for 8,106 SF at 6041 Bristol Parkway in Culver City Paying just over $2 PSF, before relocating to 100 Corporate Pointe in Culver City in 2009. Riot Game's major title, League of Legends, was released in 2009 and the company has been outgrowing their space since. In 2011 Riot moved to Santa Monica where they leased 47,302 SF at 2450 Broadway,Paying in the low $3 PSF for the space, only to expand again a few months after the signing by an additional 32,500 SF. The recent lease is three and a half times larger than Riot's last space, and 35 times larger than its 2007 sublease.
West Los Angeles is considered to be the center for creative tenants from the entertainment, media, and technology industries in Los Angeles. The submarket average starting rent in 2013 was $3.30 per square foot per month, and Riot is paying above this average, yet the generous concession package compensates for the difference. The new Element LA campus will include four buildings across 12 acres with patios and courtyards, ample parking, and close in proximity to the most recent Santa Monica location, for only a minor hike in rent, while only paying slightly above the average rent in the submarket.
CompStak is the world’s first crowd sourced exchange for commercial real estate information. Covering Manhattan, San Francisco, the Bay Area, Los Angeles, Chicago, Washington DC, Dallas, Minneapolis, and expanding soon to many other markets.