Wells Fargo Center – South at 355 South Grand Avenue hits market at 42 percent occupancy with state and legal tenants
Downtown Los Angeles faces a critical test of investor appetite as one of its most recognizable office towers enters the market through a lender-facilitated sale. The 1.16 million-square-foot building at 355 South Grand Avenue, designed by Skidmore, Owings & Merrill and delivered in 1983, represents the type of large-scale repositioning opportunity that has become increasingly common in major urban cores grappling with elevated vacancy rates and repriced office assets.
Industry sources peg the pricing guidance at approximately $130 per square foot, which could bring the transaction cost at over $150 million.
Newmark has been tapped to handle the sale of the 45-story Class A tower, which currently stands 42 percent leased across 19 tenants. According to the marketing brochure, the property encompasses 1,159,015 rentable square feet on a combined 2.5-acre site that includes a 1.4-acre office parcel and a separate 1.1-acre parking parcel at 235 South Hill Street.
The State of California anchors the tenant roster with 118,168 square feet, representing 10 percent of the building’s rentable area and roughly 27 percent of occupied space. That lease runs through October 2033, contributing to a weighted average lease term of 7.8 years across the building’s government tenancies. Law firm Latham & Watkins occupies 56,365 square feet, while USCB America and Yukevich | Cavanaugh hold 42,689 and 40,482 square feet respectively.
Brokers point out that building tenancy concentrates heavily in government, legal, finance, and insurance sectors, which together account for 92 percent of the current rent roll. The largest single tenant represents just 10 percent of rentable area, and only 9.14 percent of leases expire within the first three years, providing stability despite the building’s substantial vacancy. The weighted average lease term across all 19 tenants stands at 5.9 years. Current leasing activity includes approximately 81,000 square feet in active proposals and two confidential letters of intent covering roughly 63,216 square feet. The building also offers naming rights and rooftop signage availability for potential tenants.
Marketing materials show that the property underwent renovations in 2018 and offers 25,651-square-foot floor plates with a parking ratio of 1.1 spaces per 1,000 square feet. Tenants have access to the recently renovated HALO amenity center, a 63,283-square-foot facility situated between 355 South Grand and its sister building at 333 South Grand. The $80 million HALO renovation provides dining options and tenant lounge space, though the amenity center sits on the adjacent property’s parcel. The building also offers signage and naming rights at the top of the tower—features that have regained relevance as companies seek visibility while consolidating space.
The broader context matters. Downtown Los Angeles is preparing for a decade defined by infrastructure investment, cultural activity, and global attention tied to major events later in the decade. Kevin Shannon, Ken White, and Rob Hannan of Newmark are handling the listing, noting that transit connectivity, proximity to civic institutions, and a growing residential base have kept Bunker Hill relevant even as other submarkets struggle.
