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, 2022
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 40,042,780 34.7 %
Valley 16 6,790,777 21,755,737 43.6
Honolulu (3)
3 1,277,664 5,172,139 24.7
Total / Average 71 18,067,225 66,970,656 37.4 %
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(1) The rentable square feet in each region is based on the Rentable Square Feet as reported in the 2022 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 43.6
Olympic Corridor 5 1,142,885 29.5
Beverly Hills (3)
11 2,196,067 27.8
Santa Monica 11 1,425,374 14.4
Century City 3 957,269 9.0
Valley Sherman Oaks/Encino 12 3,488,995 53.6
Warner Center/Woodland Hills 3 2,845,577 37.5
Burbank 1 456,205 6.0
Honolulu Honolulu (3)
3 1,277,664 24.7
Total / Weighted Average 71 18,067,225 37.4 %
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(3) In calculating market share, we adjusted the rentable square footage by (i) removing approximately 406,000 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, 2022
Region (1)
Percent
Leased
Annualized Rent (2)
Annualized Rent Per Leased Square Foot (2)
Monthly Rent Per Leased Square Foot (2)
Los Angeles
Westside 87.1 % $ 465,109,266 $ 56.75 $ 4.73
Valley 86.2 203,666,873 36.34 3.03
Honolulu 91.3 38,029,901 34.28 2.86
Total / Weighted Average 87.0 % $ 706,806,040 $ 47.41 $ 3.95
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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 94.9 % $ 4.76
Brentwood 83.0 4.01
Century City 91.6 4.50
Olympic Corridor 80.2 3.40
Santa Monica 92.5 7.00
Westwood 81.2 4.54
Valley Burbank 100.0 4.83
Sherman Oaks/Encino 88.9 3.09
Warner Center/Woodland Hills 80.7 2.58
Honolulu Honolulu 91.3 2.86
Weighted Average 87.0 % $ 3.95
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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, 2022
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 1,345 49.6 % 1,935,678 13.0 % $ 84,814,085 12.0 %
2,501-10,000 1,034 38.1 5,056,569 33.9 232,673,212 32.9
10,001-20,000 210 7.7 2,905,325 19.5 137,034,451 19.4
20,001-40,000 91 3.4 2,453,302 16.5 117,019,233 16.6
40,001-100,000 30 1.1 1,745,925 11.7 90,760,299 12.8
Greater than 100,000 3 0.1 812,969 5.4 44,504,760 6.3
Total for all leases 2,713 100.0 % 14,909,768 100.0 % $ 706,806,040 100.0 %
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Largest Office Tenants as of December 31, 2022
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
Warner Bros. Discovery (2)
4 3 2023-2024 483,412 2.7 % $ 27,477,617 3.9 %
UCLA (3)
22 10 2023-2027 261,179 1.4 14,209,652 2.0
William Morris Endeavor (4)
3 1 2023-2027 219,364 1.2 13,953,542 2.0
Morgan Stanley (5)
5 5 2025-2028 142,020 0.8 10,273,231 1.4
Equinox Fitness (6)
6 5 2029-2038 185,236 1.0 10,142,330 1.4
Macerich (7)
2 1 2023-2028 82,368 0.5 7,501,247 1.1
Total 42 25 1,373,579 7.6 % $ 83,557,619 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: 27,000 square feet in 2023; and 456,000 square feet in 2024.
(3) Square footage (rounded) expires as follows: 8 leases totaling 59,000 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 2024; and 51,000 square feet in 2025.
(4) Square footage (rounded) expires as follows: 1,000 square feet in 2023; and 211,000 square feet in 2027.
(5) Square footage (rounded) expires as follows: 26,000 square feet in 2025; and 86,000 square feet in 2027; and 30,000 square feet in 2028. Tenant has options 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: 27,000 square feet in 2023, and 55,000 square feet in 2028.
Office Industry Diversification as of December 31, 2022
Industry Number of Leases Annualized Rent as a Percent of Total
Legal 578 18.4 %
Financial Services 366 15.6
Entertainment 173 14.5
Real Estate 317 12.3
Accounting & Consulting 294 9.5
Health Services 372 8.3
Technology 91 4.3
Retail 162 4.8
Insurance 94 3.8
Educational Services 47 2.6
Public Administration 76 2.4
Manufacturing & Distribution 50 1.2
Advertising 38 1.0
Other 55 1.3
Total 2,713 100.0 %
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Office Lease Expirations as of December 31, 2022 (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, 2022 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 90 346,608 1.9 % $ 12,892,329 1.8 % $ 37.20 $ 37.21
2023 647 2,491,715 13.8 112,973,008 16.0 45.34 45.72
2024 540 2,982,209 16.5 141,332,159 20.0 47.39 49.23
2025 478 2,246,320 12.4 102,529,281 14.5 45.64 49.40
2026 324 1,780,115 9.9 84,561,041 12.0 47.50 52.94
2027 270 1,941,468 10.7 96,798,669 13.7 49.86 57.31
2028 148 1,006,021 5.6 51,271,967 7.2 50.97 58.25
2029 63 434,813 2.4 21,231,469 3.0 48.83 59.61
2030 52 589,002 3.3 30,448,670 4.3 51.70 63.96
2031 40 323,138 1.8 17,025,341 2.4 52.69 66.50
2032 27 208,182 1.1 9,800,526 1.4 47.08 62.80
Thereafter 34 560,177 3.1 25,941,580 3.7 46.31 65.07
Subtotal/weighted average 2,713 14,909,768 82.5 706,806,040 100.0 47.41 52.54
Signed leases not commenced 600,540 3.3
Available 2,338,608 12.9
Building management use 114,226 0.7
BOMA adjustment (3)
104,083 0.6
Total/Weighted Average 2,713 18,067,225 100.0 % $ 706,806,040 100.0 % $ 47.41 $ 52.54
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(1) Represents annualized rent at December 31, 2022 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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Office Tenant Improvements and Leasing Commissions
Year Ended December 31,
2022 2021 2020
Renewal leases
Number of leases 571 557 438
Square feet 2,416,521 2,553,056 1,990,974
Tenant improvement costs per square foot (1)
$ 11.06 $ 8.59 $ 8.98
Leasing commission costs per square foot (1)
5.86 5.88 6.99
Total costs per square foot (1)
$ 16.92 $ 14.47 $ 15.97
New leases
Number of leases 343 351 228
Square feet 1,225,024 1,105,297 700,509
Tenant improvement costs per square foot (1)
$ 27.68 $ 27.43 $ 25.46
Leasing commission costs per square foot (1)
9.26 9.81 9.41
Total costs per square foot (1)
$ 36.94 $ 37.24 $ 34.87
Total leases
Number of leases 914 908 666
Square feet 3,641,545 3,658,353 2,691,483
Tenant improvement costs per square foot (1)
$ 16.65 $ 14.28 $ 13.27
Leasing commission costs per square foot (1)
7.01 7.07 7.62
Total costs per square foot (1)
$ 23.66 $ 21.35 $ 20.89
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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.
Office Recurring Capital Expenditures (consolidated office portfolio)
Year Ended December 31,
2022 2021 2020
Recurring Capital Expenditures (1)
$ 4,224,496 $ 3,838,453 $ 3,887,091
Total square feet (1)
14,851,378 14,851,378 14,851,378
Recurring Capital Expenditures per square foot (1)
$ 0.28 $ 0.26 $ 0.26
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(1) We excluded the following properties in accordance with our definition of Recurring Capital Expenditures:
• For 2022, we excluded eleven properties with an aggregate 2.8 million square feet.
• 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.
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Multifamily Portfolio as of December 31, 2022
Submarket Number of Properties Number of Units Units as a Percent of Total
Los Angeles
Santa Monica 3 940 19 %
West Los Angeles 7 1,676 33
Honolulu 4 2,397 48
Total 14 5,013 100 %
Submarket Percent Leased Annualized Rent (1)
Monthly Rent Per Leased Unit
Los Angeles
Santa Monica 99.0 % $ 48,792,756 $ 4,372
West Los Angeles (2)
99.0 44,809,560 3,133
Honolulu 99.8 61,607,256 2,151
Total / Weighted Average 99.4 % $ 155,209,572 $ 2,869
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(1) The multifamily portfolio also includes 10,495 square feet of ancillary retail space generating annualized rent of $449,224, which is not included in multifamily annualized rent.
(2) Calculations exclude 94 units temporarily unoccupied as a result of a fire and 376 units at a newly constructed property undergoing lease up.
Multifamily Recurring Capital Expenditures
Year Ended December 31,
2022 2021 2020
Recurring Capital Expenditures (1)(2)
$ 3,092,613 $ 2,821,969 $ 2,666,273
Total units (1)(2)
3,925 3,449 3,230
Recurring Capital Expenditures per unit (1)(2)
$ 807 $ 818 $ 832
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(1) Recurring Capital Expenditures include 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 2022, when a tenant vacated one of these units, we incurred on average $65 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 2022, we excluded two properties with an aggregate 1088 units.
• For 2021, we excluded two properties with an aggregate 939 units.
• For 2020, we excluded four properties with an aggregate 1057 units.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.