News Summary
Banc of California is significantly expanding its footprint in downtown Los Angeles by leasing 40,000 square feet at the prominent 865 S. Figueroa St. skyscraper. Despite challenges in the office market, including high vacancy rates post-COVID-19, the bank’s decision to solidify its presence reflects confidence in the area, especially with significant events like the 2028 Olympics approaching. This expansion aligns with a recent surge in leasing activity and marks the bank’s commitment to the local market while maintaining its operations at other locations.
Los Angeles
Banc of California is set to strengthen its footprint in downtown Los Angeles by leasing an impressive 40,000 square feet at the renowned 865 S. Figueroa St. This move will see the bank’s name prominently displayed on the 35-story skyscraper, which is strategically located just north of the bustling L.A. Live entertainment district. The bank’s expansion comes amidst ongoing challenges in the downtown office market, including elevated vacancy rates influenced by the COVID-19 pandemic and a growing trend towards remote work.
The lease for the new skyscraper location spans 11 years, although the financial terms have not been disclosed. This expansion reflects a significant commitment by Banc of California to enhance its presence in downtown Los Angeles. The bank’s name will be highly visible on the north and south sides of the building, aligning with the anticipation of upcoming major events including the 2028 Olympics.
Having moved its headquarters from Santa Ana to Los Angeles two years ago, Banc of California currently operates out of a space in the Figueroa at Wilshire building, where it occupies nearly 23,000 square feet. Despite ongoing challenges in the office market, which has seen a notable return of approximately one million square feet of office space downtown over the past year, the bank’s growth trajectory remains strong, underscored by a recent expansion to a prominent location on Park Avenue in New York City.
Market Conditions and Challenges
The overall office market in downtown Los Angeles continues to face hardships, with approximately one-third of the office space in the financial district remaining unoccupied—mirroring vacancy rates from a year prior. Concerns over safety and slow leasing activity have contributed to this situation. Institutional investors are expressing hesitation toward investing in Los Angeles, largely due to rapidly changing regulations affecting profitability. Recent public policies and temporary eviction limits have further complicated investment decisions.
Despite the hurdles, some encouraging signs are becoming evident. A net increase in occupied office space was reported in the third quarter, and heightened leasing activity has been observed from various sectors, including law firms, public agencies, and consulting firms, suggesting a potential resurgence in the market. Banc of California’s decision to expand during these uncertain times underscores the bank’s confidence in the Greater Los Angeles area and the overall economy.
Financial Performance and Future Outlook
Banc of California has established itself as the largest independent bank headquartered in Los Angeles and the third-largest in California. The bank recently reported a 5% increase in revenue, reaching $288 million for the three-month period ending in September. This growth marks a significant turnaround, transitioning from a net loss reported in the previous year to a net profit in the third quarter. With strong operational results, the bank is projecting increased earnings for the upcoming quarters, further solidifying its commitment to serving the Greater Los Angeles market.
In addition to its new location, Banc of California will maintain its existing downtown office at the Wilshire Grand Center, located at 900 Wilshire Blvd. The bank’s strategy to expand its physical presence, alongside its recent corporate office expansion in Beverly Hills with new signage atop a 12-story building, reflects a concerted effort to enhance its visibility and impact in the thriving Los Angeles market.
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Additional Resources
- Los Angeles Times
- Commercial Observer
- AOL News
- Google Search: Banc of California Los Angeles
- Encyclopedia Britannica: Banc of California
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
