Item 2. Properties
Item 2. Properties
We present property level data for our Total Portfolio, except that we present historical capital expenditures for our Consolidated Portfolio.
Office Portfolio Summary as of December 31, 2020
Region Number of Properties Our Rentable Square Feet Region Rentable Square Feet (1)
Our Average Market Share (2)
Los Angeles
Westside (3)
52 9,995,347 39,258,399 35.4 %
Valley 16 6,790,777 21,115,245 43.9
Honolulu (3)
3 1,406,141 4,985,850 28.2
Total / Average 71 18,192,265 65,359,494 38.0 %
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(1) The rentable square feet in each region is based on the Rentable Square Feet as reported in the 2020 fourth quarter CBRE Marketview report for our submarkets in that region.
(2) Our market share is calculated by dividing our Rentable Square Feet by the applicable Region's Rentable Square Feet, weighted in the case of averages based on the square feet of exposure in our total portfolio to each submarket as follows:
Region Submarket Number of Properties Our Rentable Square Feet Our Market Share (2)
Westside Brentwood 15 2,085,745 60.0 %
Westwood 7 2,188,007 44.5
Olympic Corridor 5 1,142,885 34.6
Beverly Hills (3)
11 2,196,067 27.9
Santa Monica 11 1,425,374 14.2
Century City 3 957,269 9.1
Valley Sherman Oaks/Encino 12 3,488,995 53.8
Warner Center/Woodland Hills 3 2,845,577 37.6
Burbank 1 456,205 6.5
Honolulu Honolulu (3)
3 1,406,141 28.2
Total / Weighted Average 71 18,192,265 38.0 %
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(3) In calculating market share, we adjusted the rentable square footage by (i) removing approximately 277,000 rentable square feet of vacant space at an office building in Honolulu, which we are converting to residential apartments, from both our rentable square footage and that of the submarket and (ii) removing a 218,000 square foot property located just outside the Beverly Hills city limits from both the numerator and the denominator.
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Office Portfolio Percentage Leased and In-place Rents as of December 31, 2020
Region (1)
Percent
Leased
Annualized Rent (2)
Annualized Rent Per Leased Square Foot (2)
Monthly Rent Per Leased Square Foot (2)
Los Angeles
Westside 89.7 % $ 470,509,237 $ 54.37 $ 4.53
Valley 86.5 208,429,511 36.41 3.03
Honolulu 90.8 41,597,947 34.57 2.88
Total / Weighted Average 88.6 % $ 720,536,695 $ 46.24 $ 3.85
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(1) Regional data reflects the following underlying submarket data:
Region Submarket Percent
Leased Monthly Rent Per Leased Square Foot (2)
Westside Beverly Hills 93.5 % $ 4.54
Brentwood 87.5 3.96
Century City 91.1 4.24
Olympic Corridor 89.9 3.40
Santa Monica 89.7 6.59
Westwood 87.1 4.42
Valley Burbank 100.0 4.51
Sherman Oaks/Encino 86.5 3.18
Warner Center/Woodland Hills 84.4 2.56
Honolulu Honolulu 90.8 2.88
Weighted Average 88.6 % $ 3.85
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(2) Does not include signed leases not yet commenced, which are included in percent leased but excluded from annualized rent.
Office Lease Diversification as of December 31, 2020
Portfolio Tenant Size
Median Average
Square feet 2,600 5,600
Office Leases Rentable Square Feet Annualized Rent
Square Feet Under Lease Number Percent Amount Percent Amount Percent
2,500 or less 1,342 48.2 % 1,898,575 12.2 % $ 85,216,915 11.8 %
2,501-10,000 1,087 39.0 5,313,734 34.1 241,978,877 33.6
10,001-20,000 232 8.3 3,231,737 20.8 142,440,890 19.8
20,001-40,000 91 3.3 2,513,815 16.1 116,359,825 16.1
40,001-100,000 30 1.1 1,714,355 11.0 89,122,704 12.4
Greater than 100,000 4 0.1 910,353 5.8 45,417,484 6.3
Total for all leases 2,786 100.0 % 15,582,569 100.0 % $ 720,536,695 100.0 %
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Largest Office Tenants as of December 31, 2020
The table below presents tenants paying 1% or more of our aggregate Annualized Rent:
Tenant Number of Leases Number of Properties Lease Expiration (1)
Total Leased Square Feet Percent of Rentable Square Feet Annualized Rent Percent of Annualized Rent
Time Warner (2)
3 3 2023 - 2024 468,819 2.6 % $ 25,152,727 3.5 %
UCLA (3)
26 10 2021 - 2027 340,000 1.8 17,745,785 2.5
William Morris Endeavor (4)
3 1 2022 - 2027 215,353 1.2 12,906,988 1.8
Morgan Stanley (5)
5 5 2022 - 2027 145,488 0.8 9,684,650 1.3
Equinox Fitness (6)
5 5 2024 - 2033 185,236 1.0 9,373,770 1.3
Total 42 24 1,354,896 7.4 % $ 74,863,920 10.4 %
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(1) Expiration dates are per lease (expiration dates do not reflect storage and similar leases).
(2) Square footage ( rounded) expires as follows: 13,000 square feet in 2023; and 456,000 square feet in 2024.
(3) Square footage ( rounded) expires as follows: 67,000 square feet in 2021; 55,000 square feet in 2022; 47,000 square feet in 2023; 11,000 square feet in 2024; 89,000 square feet in 2025; 5,000 square feet in 2026; and 67,000 square feet in 2027. Tenant has options to terminate 16,000 square feet in 2023; and 51,000 square feet in 2025.
(4) Square footage ( rounded) expires as follows: 1,000 square feet in 2022; and 209,000 square feet in 2027. Tenant has an option to terminate 214,000 square feet in 2022.
(5) Square footage ( rounded) expires as follows: 16,000 square feet in 2022; 30,000 square feet in 2023; 26,000 square feet in 2025; and 74,000 square feet in 2027. Tenant has options to terminate 26,000 square feet in 2022; and 32,000 square feet in 2024.
(6) Square footage ( rounded) expires as follows: 34,000 square feet in 2024; 31,000 square feet in 2027; 44,000 square feet in 2028; 46,000 square feet in 2030; and 30,000 square feet in 2033.
Office Industry Diversification as of December 31, 2020
Industry Number of Leases Annualized Rent as a Percent of Total
Legal 576 18.3 %
Financial Services 385 14.9
Entertainment 192 13.5
Real Estate 300 12.0
Accounting & Consulting 319 9.9
Health Services 351 7.6
Retail 178 5.6
Technology 97 4.7
Insurance 100 3.7
Educational Services 54 3.6
Public Administration 91 2.6
Advertising 44 1.2
Manufacturing & Distribution 49 1.1
Other 50 1.3
Total 2,786 100.0 %
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Office Lease Expirations as of December 31, 2020 (assuming non-exercise of renewal options and early termination rights)
Year of Lease Expiration Number of
Leases Rentable
Square Feet Expiring
Square Feet
as a Percent of Total Annualized Rent at December 31, 2020 Annualized
Rent as a
Percent of Total Annualized
Rent Per
Leased Square Foot (1)
Annualized
Rent Per
Leased
Square
Foot at Expiration (2)
Short Term Leases 86 300,680 1.6 % $ 10,769,281 1.5 % $ 35.82 $ 35.45
2021 633 2,419,731 13.3 107,378,723 14.9 44.38 44.28
2022 583 2,469,833 13.6 109,318,544 15.2 44.26 46.44
2023 494 2,623,371 14.4 122,533,662 17.0 46.71 50.23
2024 331 2,365,979 13.0 111,748,524 15.5 47.23 52.51
2025 275 1,671,450 9.2 78,199,196 10.8 46.79 54.25
2026 171 1,249,005 6.9 57,738,131 8.0 46.23 56.33
2027 94 1,256,409 6.9 60,992,313 8.5 48.54 59.36
2028 45 399,403 2.2 21,685,413 3.0 54.29 71.21
2029 23 152,691 0.8 6,755,741 0.9 44.24 56.30
2030 29 422,916 2.3 20,660,248 2.9 48.85 66.91
Thereafter 22 251,101 1.4 12,756,919 1.8 50.80 72.09
Subtotal/weighted average 2,786 15,582,569 85.7 720,536,695 100.0 46.24 51.82
Signed leases not commenced 216,833 1.2
Available 2,076,598 11.4
Building management use 119,712 0.6
BOMA adjustment (3)
196,553 1.1
Total/Weighted Average 2,786 18,192,265 100.0 % $ 720,536,695 100.0 % $ 46.24 $ 51.82
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(1) Represents annualized rent at December 31, 2020 divided by leased square feet.
(2) Represents annualized rent at expiration divided by leased square feet.
(3) Represents the square footage adjustments for leases that do not reflect BOMA remeasurement.
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Historical Office Tenant Improvements and Leasing Commissions
Year Ended December 31,
2020 2019 2018
Renewal leases
Number of leases 438 450 467
Square feet 1,990,974 2,068,345 2,420,185
Tenant improvement costs per square foot (1)
$ 8.98 $ 12.47 $ 9.22
Leasing commission costs per square foot (1)
6.99 7.61 10.15
Total costs per square foot (1)
$ 15.97 $ 20.08 $ 19.37
New leases
Number of leases 228 354 332
Square feet 700,509 1,362,489 1,195,118
Tenant improvement costs per square foot (1)
$ 25.46 $ 26.41 $ 24.63
Leasing commission costs per square foot (1)
9.41 10.73 9.30
Total costs per square foot (1)
$ 34.87 $ 37.14 $ 33.93
Total leases
Number of leases 666 804 799
Square feet 2,691,483 3,430,834 3,615,303
Tenant improvement costs per square foot (1)
$ 13.27 $ 17.93 $ 14.31
Leasing commission costs per square foot (1)
7.62 8.84 9.87
Total costs per square foot (1)
$ 20.89 $ 26.77 $ 24.18
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(1) Tenant improvements and leasing commissions are reported in the period in which the lease is signed. Tenant improvements are based on signed leases, or, for leases in which a tenant improvement allowance was not specified, the amount budgeted at the time the lease commenced.
Historical Office Recurring Capital Expenditures (consolidated office portfolio)
Year Ended December 31,
2020 2019 2018
Recurring capital expenditures (1)
$ 3,887,091 $ 4,043,540 $ 3,684,483
Total square feet (1)
14,851,378 14,785,961 13,784,509
Recurring capital expenditures per square foot (1)
$ 0.26 $ 0.27 $ 0.27
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(1) We excluded the following properties:
a. For 2020, we excluded eleven properties with an aggregate 3.0 million square feet.
b. For 2019, we excluded twelve properties with an aggregate 3.2 million square feet.
c. For 2018, we excluded ten properties with an aggregate 2.8 million square feet.
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Multifamily Portfolio as of December 31, 2020
Submarket Number of Properties Number of Units Units as a Percent of Total
Los Angeles
Santa Monica 2 820 19 %
West Los Angeles 6 1,300 30
Honolulu (1)
4 2,167 51
Total 12 4,287 100 %
Submarket Percent Leased Annualized Rent (2)
Monthly Rent Per Leased Unit
Los Angeles
Santa Monica 98.2 % $ 29,485,080 $ 3,056
West Los Angeles 98.2 42,053,964 2,967
Honolulu (1)
98.2 47,838,660 1,879
Total / Weighted Average 98.2 % $ 119,377,704 $ 2,422
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(1) Includes newly developed units just made available for rent.
(2) The multifamily portfolio also includes 10,495 square feet of ancillary retail space generating annualized rent of $423,145, which is not included in multifamily annualized rent.
Historical Multifamily Recurring Capital Expenditures
Year Ended December 31,
2020 2019 2018
Recurring capital expenditures (1)(2)
$ 2,666,273 $ 3,191,162 $ 2,564,003
Total units (1)(2)
3,230 3,324 3,324
Recurring capital expenditures per unit (1)
$ 832 $ 960 $ 772
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(1) Recurring capital expenditures are costs associated with the turnover of units. Our multifamily portfolio includes a large number of units that, due to Santa Monica rent control laws, have had only modest rent increases since 1979. During 2020, when a tenant vacated one of these units, we incurred on average $25 thousand per unit to bring the unit up to our standards. We classify these capital expenditures as non-recurring.
(2) We excluded the following properties:
a. For 2020, we excluded four properties, with an aggregate 1057 units.
b. For 2019, we excluded two properties with an aggregate 837 units.