Wedbush Securities Relocates Headquarters from LA to Pasadena
Headline: Wedbush Securities is leaving its 100,000-square-foot headquarters in Downtown Los Angeles for a smaller office in Pasadena.
The Move:
The company is downsizing its office size by 80% to a 20,000-square-foot office on Lake Avenue in Pasadena. The new office is currently used by a firm, where financial terms of the deal remain undisclosed.
Reasoning:
Wedbush Securities, a locally based stock brokerage, is exiting its prominent office tower as it shifts to remote work. The company’s president, Gary Wedbush, explained that the pandemic has created a different kind of office for the firm. "There are places like Pasadena that seem to have recovered more fully from the pandemic than Downtown Los Angeles has."
The Impact:
The shift to remote work has decimated the Downtown office market, with an overall vacancy rate of over 30%. "It’s a big deal, a very big decision for the firm," Wedbush told the Los Angeles Times.
The Future of Downtown LA:
The company’s exit is part of a broader trend in the Downtown office market. "The Greater Los Angeles office market continued its search for the bottom" in the third quarter, according to a recent report by CBRE, as both tenants and landlords navigate the ongoing supply and demand imbalance exacerbated by the shift to hybrid and remote work.
Conclusion:
Wedbush Securities’ decision to relocate its headquarters from Downtown Los Angeles to Pasadena is a reflection of the changing office landscape. As the company shifts to a remote work model, it is downsizing its office space and looking for a more suitable location. This trend is not unique to Wedbush Securities, as many companies have had to adapt to the new reality of remote work.
Frequently Asked Questions:
Q: Why is Wedbush Securities relocating its headquarters from Downtown LA to Pasadena?
A: The company is shifting to a remote work model and looking for a more suitable location, where it can downsize its office space.
Q: How much is Wedbush Securities downgrading its office space?
A: The company is decreasing its office space by 80%, from 100,000 square feet to 20,000 square feet.
Q: Why is the Downtown LA office market struggling?
A: The shift to remote work has decimated the Downtown office market, with an overall vacancy rate of over 30%.
