Southern California Gas Co. (SoCalGas) is set to move from its longtime home at the Gas Company Tower in downtown Los Angeles after signing the largest office lease of 2024 for the area. The gas utility, which has been a fixture in the tower at 555 W. 5th St. since its completion in 1991, will relocate to the nearby Two California Plaza at 350 S. Grand Ave. by spring 2026.
The move represents a significant shift for SoCalGas, which has been a key tenant in the Gas Company Tower for over three decades. Under its new lease, SoCalGas will occupy nearly 200,000 square feet across eight floors in the Bunker Hill skyscraper, according to a number of industry reports. The company will also maintain a ground-floor office to serve customers, offering a continued presence in downtown Los Angeles. The utility’s decision comes as its current lease at the Gas Company Tower is set to expire at the end of 2026.
“SoCalGas had many options for its headquarters location and CIM Group appreciates its selection of City National 2CAL. This is another significant milestone for the property and we believe supports our commitment to ensuring that the building is a premier business location option in downtown Los Angeles. Through CIM Group’s investment in the quality of the physical space as well as the experience at the property, City National 2CAL holds a strong competitive position in the Downtown Los Angeles office market,” said Shaul Kuba, Co-Founder and Principal, CIM Group in a statement.
Two California Plaza, which dates back to the 1980s as part of Bunker Hill’s transformation, will now host two major Los Angeles institutions—SoCalGas and City National Bank. As part of the lease deal, SoCalGas’s name will eventually replace City National Bank’s signage, marking a new chapter for the iconic skyscraper.
The new headquarters will be about two-thirds the size of SoCalGas’s current office space in the Gas Company Tower. While SoCalGas has not detailed the reasons for downsizing, Erica Berardi, a spokeswoman for the utility, stated that SoCalGas was excited about keeping its headquarters in downtown Los Angeles, emphasizing its long-standing presence as one of the area’s largest tenants.
The lease deal stands as the largest office transaction in downtown L.A. SoCalGas, which serves 21 million customers across Central and Southern California, has deep roots in downtown Los Angeles, dating back to the 1800s.
The Gas Company Tower in Los Angeles has been facing significant challenges in recent years. Once a symbol of success, the 52-story skyscraper entered financial distress in 2023 when Brookfield, its former owner, defaulted on $748 million in loans. The tower, along with the nearby 777 Tower, which Brookfield also owned, was placed into receivership. The value of the Gas Company Tower has dramatically declined, dropping from $632 million in 2021 to around $270 million in 2023.
Despite these setbacks, the tower has drawn interest from potential buyers, including Los Angeles County, which is considering purchasing the property for around $215 million. This move is part of a broader strategy to retrofit seismically vulnerable buildings at a lower cost. Other players, including South Korean firm Meritz Investment Management, were also reportedly interested in the tower.
Efforts are also underway to lease portions of the building. The City of Los Angeles recently revived a deal to lease 300,000 square feet of office space in the tower, offering a potential lifeline to the struggling building. However, the broader downtown office market continues to face difficulties due to rising interest rates, safety concerns, and the ongoing impact of remote work.
