A Santa Monica, California, headquarters building is up for sale as a major office real estate investment trust looks to part ways with more property amid market uncertainty.
Hudson Pacific Properties, a Los Angeles-based REIT, is marketing for sale its 44,260-square-foot, three-story 604 Arizona Ave. building, according to marketing materials. The property is entirely leased to and serves as the headquarters for employment marketplace software company ZipRecruiter.
A Hudson Pacific representative told CoStar News the company is exploring a potential sale but declined further comment.
ZipRecruiter's lease expires in May 2025, according to marketing materials. A ZipRecruiter representative did not respond to a request to comment from CoStar News about whether it was interested in buying its headquarters or renewing its lease.
The potential sale arrives during a period of weakening confidence in the office market, as working from home remains popular. Office REITs have had some of the worst returns so far this year among REITs, according to a March report from Nareit, a Washington, D.C.-based REIT association. Hudson Pacific itself saw its share price reach record lows in March after tumbling more than 30% year to date as of April 7.
In recent months, Hudson Pacific parted ways with four office properties. In February, it sold its two-building, roughly 241,000-square-foot Skyway Landing in San Carlos, California, for $102 million, or about $422.24 per square foot, according to CoStar data.
Hudson Pacific hasn't always sold offices it puts up for sale. The company is no longer marketing its roughly 130,000-square-foot Fourth & Traction creative office space in downtown Los Angeles, CEO Victor Coleman said on Feb. 9 in a quarterly earnings call.
Santa Monica has an average office market rent of $63.36 per square foot, above the greater L.A. average of $42.22 per square foot, according to CoStar data. The market's vacancy is 17.1%, above the greater L.A. average of 14.9%.
Hudson Pacific owns 54 office properties totaling roughly 16.4 million square feet and controls around 90 soundstages, according to its website.
For the Record
CBRE's Sean Sullivan, Mike Longo, Todd Tydlaska and Melissa Moock are marketing the property for sale.