Northrop signs for more space as South Bay leasing booms.INCREASED military spending continues to spark an expansion of the defense industry in the South Bay, one of the weakest markets in 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. Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Corp. inked a five-year lease for 192,000 square feet at 222 West 6th St. in San Pedro. The lease is one of the largest transactions in Los Angeles signed this year, and it is the second largest South Bay transaction Northrop has executed this year. "This transaction is representative of a continuing resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. of leasing in the South Bay by aerospace and defense users," said Tim Vaughan, a senior vice president with CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2. Group Inc., who helped represent L.A.-based Northrop Grumman in the deal. The dollar value of the lease wasn't disclosed, but at market rates of about $2 a foot, the deal would be worth about $23 million to the building's owner, L.A.-based construction giant Tutor Saliba Corp. The division--Northrop Grumman Defense Mission Systems--is expanding its presence in the building by about 32,000 square feet. The added space at market rates will cost the company $3.8 million over the life of the lease. Northrop looked at several alternatives but in the end decided to stay put, said Erik Van't Hof, on-site representative for Pacific Place Associates, a holding company owned by Tutor Saliba. "We are very pleased," said Ronald N. Tutor, president of Tutor Saliba. "They have been our major tenant and we are very pleased they have agreed to stay and we hope to keep them for all the years after that." Tutor Saliba built the 265,000-square-foot high-rise, dubbed dub 1 tr.v. dubbed, dub·bing, dubs 1. To tap lightly on the shoulder by way of conferring knighthood. 2. To honor with a new title or description. 3. Pacific Place, in 1988 to originally accommodate a former aerospace firm. The construction company has owned the office building ever since. Northrop Grumman agreed in June to a four-year, $12.5 million lease for 216,617 square feet in Overton Moore Properties Inc.'s Douglas Technology Center at 445 N. Douglas Street Douglas Street is a road in Victoria, British Columbia. It is part of the Trans-Canada Highway and is named after Sir James Douglas, the second Governor of Vancouver Island. The intersection of Douglas St. and Dallas Rd. in 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 . That's been welcome news for landlords in the South Bay, consistently one of the weakest office markets in L.A. County. At the end of September, the South Bay market had an average 20 percent vacancy rate and average asking rents of about $2 a square foot, 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. Grubb & Ellis Co. In addition to Vaughan, Northrop Grumman was represented by CBRE's Bill Bloodgood and Stan Gerlach. Staff reporter Andy Firmer can be reached by phone at (323) 549-5225, ext. 263, or by e-mail at afixmer@labusinessjournal.com. |
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