The owners of the third-tallest building in Los Angeles are looking to put good use to empty office space as fires have forced thousands of residents and workers to evacuate parts of the region.
The owners of the Aon Center, led by investment firm Carolwood, will donate office space at the 62-story downtown Los Angeles tower to businesses displaced by the fires.
"If we can accommodate it, we will," Adam Rubin, a principal at Carolwood, told CoStar News.
The building is roughly 73% occupied, a figure that has slightly climbed since the landlord took over the building at the end of 2023. The vacancy rate of 27% comes as downtown Los Angeles struggles with the lack of office demand that has persisted across a number of major cities around the country as higher interest rates combined with hybrid work practices.
The high-profile building still houses major tenants such as finance and insurance firm Aon, Wells Fargo Private Mortgage Banking and the Los Angeles Homeless Services Authority. Carolwood is making space available on a first-come, first-served basis to businesses and individuals displaced over the past week.
That includes those who have lost a home or office, from the devastating and ongoing fires that have damaged 12,000 homes, businesses, schools and other structures as well as pushed 88,000 people from their homes, according to officials.
Aon Center, at 707 Wilshire Blvd., has seen attendance decline 20% from two weeks ago, with employees working remotely or not at all because of the fires, Rubin said.
Downtown Los Angeles has seemed like a relatively safe outpost over the past week as fires were concentrated in other areas, from the Palisades along the coast to the more inland Eaton area.
Safe haven
Aon Center will provide space to "independent contractors and people that were working in office buildings that burned down, people who lost their home offices," said Rubin, a native Angeleno. The offer could extend to anyone impacted.
"If some big company was there and they're in a dire situation, of course we'll accommodate it. We'll make it work if we can," Rubin added.
Leases will last for an initial six months, with plans to reevaluate based on the needs of those affected.
Carolwood purchased the tower for a discount in December 2023, with plans to draw in new tenants with upgraded building features and upscale amenities. Since September 2024, four new tenants have moved into 42,000 square feet at the building.
Office properties across downtown Los Angeles have seen vacancies climb in recent years due to remote work trends and a pullback in key tenant categories like entertainment and tech. The vacancy rate is at a historic high of 22.3%, above the national average of 13.8%, according to CoStar data.
Some residents have flocked to the area over the past week, choosing to camp out in houses or hotels in the neighborhood as a result of its perceived safety, Rubin said, and in part due to location, plus the area's large amount of concrete and lack of foliage.
"Right now people are viewing it as a sort of ... escape from reality and a place to have some peace for a moment," Rubin said.
For the record
Parties interested in taking advantage of the offer should contact Carolwood using this Google form.