Hughes Aircraft to abandon headquarters building.Move will add 500,000 sq. ft. to already soft market Hughes Aircraft Hughes Aircraft Company was a major aerospace and defense company founded by Howard Hughes. The group was based near Ballona Creek, in Culver City, California, USA, on the Pacific Coast. Hughes Aircraft was acquired by General Motors in 1985. Co., one of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County's largest private-sector employers, is preparing to relocate its corporate headquarters, sources told the Business Journal. The aerospace giant employed 30,000 workers in L.A. County at the end of July 1992, when it announced it would cut 9,000 employees from its 60,000-member nationwide staff by the end of 1993, said Hughes spokesman Richard Dore Richard Dore (1749-1800) was an attorney, deputy judge advocate and secretary to the governor of colony of New South Wales, Australia in the late 18th century. He was the second person to hold office as deputy judge advocate, a position akin to the position of chief justice in the . At the end of Sept. 1992, Hughes Aircraft's total nationwide employment stood at 58,100, Dore said. Some 1,000 Hughes employees are still working at the company's 500,000-square-foot headquarters facility in Playa playa or pan or flat or dry lake Flat-bottomed depression that is periodically covered by water. Playas occur in interior desert basins and adjacent to coasts in arid and semiarid regions. del Rey Del Rey may refer to:
Those same brokers said Hughes officials want to move out of the company's Playa del Rey headquarters to consolidate operations at buildings Hughes owns and/or leases in nearby El Segundo El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and . Hughes officials refused to specify where the company's top corporate guns will be relocated, but that new headquarters will likely be somewhere in El Segundo. The relocation for Hughes is part of massive cutbacks in the defense and aerospace industries that have directly and indirectly eliminated 200,000 jobs in L.A. County in the past year. The situation is not unique to Hughes. Burbank-based Lockheed Corp., Long Beach-based McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. Corp., Beverly Hills-based Litton Industries Named after inventor Charles Litton Sr., Litton Industries was a large defense contractor in the United States, bought by the Northrop Grumman Corporation in 2001. , Morristown, N.J.-based Allied-Signal Aerospace Co., Century City-based Teledyne Inc. and Century City-based Northrop Corp have all experienced similar cutbacks and must lease or sell excess real estate throughout Los Angeles County, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. spokesmen from each of those companies. Brokers who competed for the Hughes listing said Hughes plans to move its Playa del Rey employees into excess space it has in El Segundo at 2000 E. El Segundo Blvd. 2000 E. Imperial Highway and at 909 N. Sepulveda Blvd. Hughes on Oct. 14, 1992 selected the South Bay office of Cushman & Wakefield of California Inc. as the listing broker that will try to find a sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. tenant for the company's Playa del Rey headquarters. Hughes' existing lease does not expire until the year 2008. And at that time, the company has an option to renew its lease for another 55 years, according to a Cushman & Wakefield broker. Cushman & Wakefield beat out three other major brokerage firms competing for the Hughes listing. Those three firms are: Grubb & Ellis Co., CB Commercial Real Estate Group Inc. and the Seeley Co. Hughes' Playa del Rey corporate headquarters is part of 2 million square feet of buildings that Hughes is vacating in Los Angeles County, due to drastic staff reductions here in the past year, said Hughes spokesman Richard Dore. But he would not reveal details of the company's new agreement with Cushman & Wakefield. Hughes' corporate headquarters is near the intersection of Lincoln and Culver boulevards, adjacent to the massive Playa Vista development site, which Maguire Thomas Partners plans to break ground on by the end of 1993. The Cushman & Wakefield agents charged with finding a sublease tenant for the huge Hughes facility are Jay Borzi, Mike Sidney and Steve Silk. Borzi admits it will be a challenge to find a tenant that wants 500,000 square feet of office space in today's market. Government agencies are one of the biggest user categories still looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. space during the recession, Borzi and other brokers said. But Borzi would not say if he is negotiating with any of them. Though now used by a defense and aerospace contractor, "this is not a classified facility (one that has tight security measures Noun 1. security measures - measures taken as a precaution against theft or espionage or sabotage etc.; "military security has been stepped up since the recent uprising" security to guard sensitive defense information). It houses Hughes' administrative and data processing departments," Borzi said. "It's the best facility, the most marketable one Hughes has," Borzi said. As of Sept. 30, nearly one-quarter of the 3.9 million square feet of multitenant offices in the Marina/Culver City submarket were standing empty. The Hughes headquarters building has not been categorized as a multitenant office building because it houses a single user. But once that building is added to the submarket's already sizable inventory, the submarket's vacancy rate will soar to 34.8 percent, according to Grubb & Ellis Co. Jay Haskell, president of the Seeley Co., who headed that brokerage's pitch for the Hughes listing, said, "It's tough to lease that much space to one user in a market where more aerospace tenants are leaving than are coming in." Seeley has the listing on another 200,000 square feet of offices Hughes is trying to sublease at the intersection of Rosecrans Avenue and Sepulveda Boulevard in El Segundo, he said. Cushman & Wakefield, Seeley and other commercial brokerages trying to find tenants to fill in office and industrial space vacated by downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing defense and aerospace companies face a colossal challenge. In a contracting economy, they have to find users to refill the growing empty spaces in aerospace buildings and beef up the Los Angeles economic base, Haskell added. |
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