TikTok, Parent Company Expand Into New Space In Culver City
In two deals in Culver City, TikTok and its parent company ByteDance have taken up about 143K SF of offices.
TikTok added more than 53K SF to its existing footprint of 172K SF at IDS Real Estate's C3 at Culver Pointe, Commercial Observer reported, citing a Q3 office report from Savills. A source told CO an advertising agency had planned to vacate its offices there, opening an opportunity for the app and the landlord to quickly fill a vacancy.
TikTok moved into C3 in 2020 and has grown at the site.
ByteDance will take on about take on about 90K SF via sublease at Northwood Investors' 900 Corporate Pointe, space that was originally rented to Gen Digital, according to CO.
ByteDance's new digs at the Corporate Pointe location were one of just two new leases in the third quarter's top 10 largest deals. The other was Clearlake Capital's pre-lease of 151K SF at 1950 Avenue of the Stars, an under-construction property owned by JMB Realty.
Leasing activity in the Los Angeles market was just shy of 3M SF, an increase over Q2's 2.4M SF but still below the five-year average of 3.2M SF, according to Savills' Q3 report. The brokerage estimated that the LA market would end the year below the five-year average as well.
Office availability improved slightly, falling to 26.5% from 26.6% last quarter, a record high. However, market watchers should expect "more downsizings and rightsizing as tenants re-evaluate long-term space needs," the report's authors wrote.
CORRECTION, OCT. 6, 1:09 P.M. PT: A previous version of this story incorrectly identified the lessee at C3. The story has been updated.