Hudson Pacific Properties explores potential sale of 44,260-square-foot property leased to ZipRecruiter
Hudson Pacific Properties is putting up for sale a building located at 604 Arizona Avenue. The three-story, 44,260-square-foot property is currently leased to ZipRecruiter, an employment marketplace software company, and serves as their headquarters. ZipRecruiter’s lease is set to expire in May 2025.
As reported by Costar, Hudson Pacific has confirmed that they are exploring a potential sale of the property, but declined to provide further comments. ZipRecruiter has not responded to requests for comments on whether they are interested in buying the property or renewing their lease, according to marketing materials and sources.
This potential sale comes at a time of uncertain market conditions for the office real estate market, as remote work continues to gain popularity. Office REITs have experienced lower returns compared to other types of REITs this year, as reported by Nareit, a REIT association based in Washington, D.C. Hudson Pacific itself has seen its share price decline, reaching record lows in March after a year-to-date drop of over 30% as of April 7.
In recent months, Hudson Pacific has divested four office properties, including the sale of its Skyway Landing property in San Carlos, California for $102 million in February, according to CoStar data. However, the company has also decided not to sell some of its other properties, such as the Fourth & Traction creative office space in downtown Los Angeles, as mentioned by CEO Victor Coleman in a quarterly earnings call on Feb. 9.
Santa Monica’s office market has an average rent of $63.36 per square foot, which is higher than the greater Los Angeles average of $42.22 per square foot, based on CoStar data. However, the market’s vacancy rate of 17.1% is higher than the greater Los Angeles average of 14.9%.