Beyond Meat signed a 12-year lease for just over 281K SF at a Hackman Capital Partners complex in El Segundo, the plant-based meat substitute company announced Friday. The new space will serve as Beyond Meat’s headquarters.
The lease is for space at 888 Douglas, a property Hackman Capital acquired in 2017 from aerospace and defense company Northrop Grumman. Hackman Capital set about transforming the warehouses and manufacturing space into creative offices with the aid of architecture firm Gensler. At the time, it estimated the project would cost $100M.
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Beyond Meat did not disclose the terms of the lease, but public filings show that the company will not occupy the full 281K SF until about 26 months into the lease term. Those filings also show the base rent will go from a year's free rent to roughly $1.1M a month at the 26-month mark, when the full space is occupied, and continue to rise incrementally. For the final months of the lease period, Beyond Meat’s base rent will be nearly $1.44M a month.
The 390K SF building that will hold Beyond Meat's new offices will be ready in the spring of this year. The full four-building campus is being built out now. As of November, cosmetics company L’Oreal was also expected to sign a lease for 70K SF at the property, CoStar reported.
JLL’s Gary Horwitz, Blake Searles, Connor Hall and Kamil Agha represented Beyond Meat in the transaction. Hackman was represented by CBRE Vice Chairman Jeff Pion and Newmark.
"This substantial lease speaks to the continued demand for high-end creative spaces to help leading companies hire and retain top talent and boost creativity and competitiveness," Pion said in a statement.
El Segundo has long been an office hub but has most recently attracted developers looking to deliver creative office space. In 2019, Vella Group purchased a building previously owned by Boeing for $51M with plans to convert it into creative offices. Frank Gehry is designing an 80K SF, ground-up office space in El Segundo that is made to mimic the high, airy ceilings and industrial chic of a former warehouse.
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