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, 2021
Region Number of Properties Our Rentable Square Feet Region Rentable Square Feet (1)
Our Average Market Share (2)
Los Angeles
Westside (3)
52 9,998,784 39,412,137 35.3 %
Valley 16 6,790,777 21,323,763 43.8
Honolulu (3)
3 1,370,805 4,936,557 27.8
Total / Average 71 18,160,366 65,672,457 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 2021 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 60.3 %
Westwood 7 2,191,444 44.0
Olympic Corridor 5 1,142,885 34.5
Beverly Hills (3)
11 2,196,067 27.8
Santa Monica 11 1,425,374 14.5
Century City 3 957,269 9.0
Valley Sherman Oaks/Encino 12 3,488,995 53.8
Warner Center/Woodland Hills 3 2,845,577 37.5
Burbank 1 456,205 6.3
Honolulu Honolulu (3)
3 1,370,805 27.8
Total / Weighted Average 71 18,160,366 38.0 %
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(3) In calculating market share, we adjusted the rentable square footage by (i) removing approximately 313,000 rentable square feet of vacant space at an office building in Honolulu that 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, 2021
Region (1)
Percent
Leased
Annualized Rent (2)
Annualized Rent Per Leased Square Foot (2)
Monthly Rent Per Leased Square Foot (2)
Los Angeles
Westside 88.0 % $ 465,108,317 $ 55.59 $ 4.63
Valley 86.3 203,070,934 36.15 3.01
Honolulu 91.4 40,251,711 34.24 2.85
Total / Weighted Average 87.6 % $ 708,430,962 $ 46.73 $ 3.89
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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 92.8 % $ 4.66
Brentwood 83.4 3.99
Century City 87.7 4.37
Olympic Corridor 88.3 3.37
Santa Monica 90.8 6.84
Westwood 85.7 4.47
Valley Burbank 100.0 4.61
Sherman Oaks/Encino 86.5 3.13
Warner Center/Woodland Hills 83.9 2.56
Honolulu Honolulu 91.4 2.85
Weighted Average 87.6 % $ 3.89
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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, 2021
Portfolio Tenant Size
Median Average
Square feet 2,500 5,500
Office Leases Rentable Square Feet Annualized Rent
Square Feet Under Lease Number Percent Amount Percent Amount Percent
2,500 or less 1,353 49.3 % 1,926,026 12.7 % $ 85,087,297 12.0 %
2,501-10,000 1,054 38.4 5,128,339 33.8 235,111,980 33.2
10,001-20,000 216 7.9 3,039,770 20.1 136,969,347 19.3
20,001-40,000 88 3.2 2,441,863 16.1 114,608,290 16.2
40,001-100,000 30 1.1 1,713,121 11.3 90,096,537 12.7
Greater than 100,000 4 0.1 910,353 6.0 46,557,511 6.6
Total for all leases 2,745 100.0 % 15,159,472 100.0 % $ 708,430,962 100.0 %
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Largest Office Tenants as of December 31, 2021
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
WarnerMedia/AT&T (2)
5 4 2022-2024 488,798 2.7 % $ 26,656,714 3.7 %
UCLA (3)
28 10 2022-2027 321,261 1.8 16,947,708 2.4
William Morris Endeavor (4)
3 1 2022-2027 215,353 1.2 13,304,168 1.9
Morgan Stanley (5)
6 5 2022-2027 145,488 0.8 10,042,439 1.4
Equinox Fitness (6)
6 5 2029-2038 185,236 1.0 9,620,654 1.4
Macerich (7)
2 1 2023-2028 82,368 0.4 7,230,118 1.0
Total 50 26 1,438,504 7.9 % $ 83,801,801 11.8 %
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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: 15,000 square feet in 2022; 13,000 square feet in 2023; and 462,000 square feet in 2024.
(3) Square footage (rounded) expires as follows: 7 leases totaling 71,000 square feet in 2022; 6 leases totaling 47,000 square feet in 2023; 2 leases totaling 11,000 square feet in 2024; 4 leases totaling 89,000 square feet in 2025; 5 leases totaling 32,000 square feet in 2026; and 3 leases totaling 71,000 square feet in 2027. Tenant has options to terminate 15,000 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.
(5) Square footage (rounded) expires as follows: 3,000 square feet in 2022; 30,000 square feet in 2023; 26,000 square feet in 2025; and 70,000 square feet in 2027. Tenant has an option to terminate 32,000 square feet in 2024.
(6) Square footage (rounded) expires as follows: 34,000 square feet in 2029; 46,000 square feet in 2035, 31,000 square feet in 2037, and 74,000 square feet in 2038.
(7) Square footage (rounded) expires as follows: 29,000 square feet in 2023, and 54,000 square feet in 2028.
Office Industry Diversification as of December 31, 2021
Industry Number of Leases Annualized Rent as a Percent of Total
Legal 572 18.4 %
Financial Services 372 14.8
Entertainment 179 14.0
Real Estate 311 12.3
Accounting & Consulting 304 9.6
Health Services 361 7.9
Technology 100 5.1
Retail 172 4.9
Insurance 90 3.6
Educational Services 56 3.4
Public Administration 85 2.7
Manufacturing & Distribution 50 1.1
Advertising 39 1.0
Other 54 1.2
Total 2,745 100.0 %
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Office Lease Expirations as of December 31, 2021 (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, 2021 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 91 325,706 1.8 % $ 13,237,813 1.9 % $ 40.64 $ 40.66
2022 623 2,352,790 12.9 102,571,319 14.5 43.60 44.13
2023 589 2,756,398 15.2 127,899,386 18.1 46.40 48.48
2024 481 2,794,326 15.4 129,697,638 18.3 46.41 49.88
2025 333 1,877,987 10.3 87,870,806 12.4 46.79 51.99
2026 269 1,598,078 8.8 73,667,630 10.4 46.10 53.43
2027 157 1,534,378 8.5 76,481,221 10.8 49.85 58.52
2028 69 485,653 2.7 27,935,490 3.9 57.52 69.40
2029 37 313,164 1.7 15,237,681 2.1 48.66 60.89
2030 31 396,464 2.2 20,583,788 2.9 51.92 67.55
2031 34 269,374 1.5 13,114,607 1.9 48.69 64.72
Thereafter 31 455,155 2.5 20,133,583 2.8 44.23 62.60
Subtotal/weighted average 2,745 15,159,473 83.5 708,430,962 100.0 46.73 52.01
Signed leases not commenced 490,043 2.7
Available 2,245,333 12.3
Building management use 124,284 0.7
BOMA adjustment (3)
141,233 0.8
Total/Weighted Average 2,745 18,160,366 100.0 % $ 708,430,962 100.0 % $ 46.73 $ 52.01
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(1) Represents annualized rent at December 31, 2021 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,
2021 2020 2019
Renewal leases
Number of leases 557 438 450
Square feet 2,553,056 1,990,974 2,068,345
Tenant improvement costs per square foot (1)
$ 8.58 $ 8.98 $ 12.47
Leasing commission costs per square foot (1)
5.88 6.99 7.61
Total costs per square foot (1)
$ 14.47 $ 15.97 $ 20.08
New leases
Number of leases 351 228 354
Square feet 1,105,297 700,509 1,362,489
Tenant improvement costs per square foot (1)
$ 27.43 $ 25.46 $ 26.41
Leasing commission costs per square foot (1)
9.81 9.41 10.73
Total costs per square foot (1)
$ 37.24 $ 34.87 $ 37.14
Total leases
Number of leases 908 666 804
Square feet 3,658,353 2,691,483 3,430,834
Tenant improvement costs per square foot (1)
$ 14.28 $ 13.27 $ 17.93
Leasing commission costs per square foot (1)
7.07 7.62 8.84
Total costs per square foot (1)
$ 21.35 $ 20.89 $ 26.77
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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,
2021 2020 2019
Recurring Capital Expenditures (1)
$ 3,838,453 $ 3,887,091 $ 4,043,540
Total square feet (1)
14,851,378 14,851,378 14,785,961
Recurring Capital Expenditures per square foot (1)
$ 0.26 $ 0.26 $ 0.27
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(1) We excluded the following properties in accordance with our definition of Recurring Capital Expenditures:
• For 2021, we excluded eleven properties with an aggregate 2.9 million square feet.
• For 2020, we excluded eleven properties with an aggregate 3.0 million square feet.
• For 2019, we excluded twelve properties with an aggregate 3.2 million square feet.
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Multifamily Portfolio as of December 31, 2021
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 29
Honolulu (1)
4 2,268 52
Total 12 4,388 100 %
Submarket Percent Leased Annualized Rent (1)
Monthly Rent Per Leased Unit
Los Angeles
Santa Monica 99.5 % $ 30,473,388 $ 3,116
West Los Angeles (2)
99.2 42,987,792 2,975
Honolulu 99.3 52,888,152 1,963
Total / Weighted Average 99.3 % $ 126,349,332 $ 2,469
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(1) The multifamily portfolio also includes 10,495 square feet of ancillary retail space generating annualized rent of $433,286, which is not included in multifamily annualized rent.
(2) 83 units at one property, which are temporarily unoccupied as a result of a fire, are omitted from the calculation of Percent Leased. These units, as well as insurance recoveries for lost rent, are also omitted from the calculation of Annualized Rent.
Historical Multifamily Recurring Capital Expenditures
Year Ended December 31,
2021 2020 2019
Recurring Capital Expenditures (1)(2)
$ 2,821,969 $ 2,666,273 $ 3,191,162
Total units (1)(2)
3,449 3,230 3,324
Recurring Capital Expenditures per unit (1)
$ 818 $ 832 $ 960
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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 2021, when a tenant vacated one of these units, we incurred on average $40 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 in accordance with our definition of Recurring Capital Expenditures:
• For 2021, we excluded two properties with an aggregate 939 units.
• For 2020, we excluded four properties with an aggregate 1,057 units.
• For 2019, we excluded two properties with an aggregate 837 units.
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