Three Major Office Lease Announcements Indicate The Market’s Strength

  • A slew of leases has been announced in a burgeoning office sector in the previous two weeks. Riot Games Inc. obtained a 10-year lease in West L.A. as the largest. The lease covers the whole 200,000 square feet of the mixed-use West Edge property, owned by Hines, Philena Properties, and USAA Real Estate. ” Gensler, AC Martin Partners Inc., and Rios Inc. are the architects for the West Edge project. West Edge will contain 600 luxury residences, office space, and retail once completed. Private landscaped terraces will be available on five stories of the business space.

West Edge’s retail components will include a Gelson’s Markets store and up to eight eateries. There will be shopping and studio workout options as well. It will consist of a half-acre open-air plaza in the construction, located near an Expo Line stop. To the east, Signal Brands Inc., a retail maker, and distributor have leased 22,000 square feet of creative office space at 5600 W. Adams Blvd. in West Adams. The location will serve as the firm’s new headquarters.

The facility, owned by the Mid-Wilshire-based CIM Group, also houses the entertainment law firm, Donaldson Calif Perez. The building is currently completely leased. “Signal Brands is excited to be relocating to 5600 W. Adams after several years in downtown Los Angeles.

CIM Group was represented by itself. Meanwhile, Narrative Ads has negotiated a 22,000-square-foot lease at the Pasadena Research Park. Hunter Brown, Scott Steuber, and Jake Bobek of CBRE Group Inc. represented Narrative Ads in the leasing.

Three Major Office Lease Announcements Indicate The Market's Strength
Three Major Office Lease Announcements Indicate The Market’s Strength

Graymark Capital owns the building, which has a total area of about 219,000 square feet. It’s a mix of a creative workplace and a research and development facility. According to CBRE, the site is 70% occupied, including Cogent Communications and Fidelity National Information Services Inc.

Brown stated in a statement that “CBRE was thrilled to assist Narrative Ads continue to thrive and develop in their new facility in Pasadena.” “It was critical for Narrative and their team to locate a creative location that could support their quick expansion while also providing adequate facilities for their staff.”

Given the area’s burgeoning tech culture and large talent pool, it was also critical for Narrative to remain in Pasadena.” The Pasadena office is Narrative Ads’ third. The Pasadena Tech Center facility will provide a fabulous studio and creative space.

The Turkish currency is in free fall as S&P issues a warning about the country:

The Turkish currency was hammered on Monday as Standard & Poor’s warned that it would cut Turkey’s B+ debt rating. One dollar USDTRY, +2.65%, bought 14.3754 Lira, up from 13.8769 Lira previously. The dollar has soared by a whopping 93 percent this year versus the Turkish Lira.

“The present monetary easing and severe devaluation of the Turkish currency, in our opinion, will exacerbate inflation, which we believe will peak at about 25%-30% year-on-year in early 2022.” However, we anticipate net overall government debt to rise by 8% of GDP in 2021, similar to our earlier estimate,” the agency stated.

Under pressure from President Tayyip Erdogan, Turkey’s central bank may slash interest rates by another 1% this week. Since September, it has already cut rates by four points.

The BIST 100 XU100, +2.96 percent stock market index in Turkey, increased by 2.7 percent.  The Stoxx Europe 600 SXXP, +0.64 percent, climbed 0.4 percent, indicating that Turkey’s difficulties haven’t spread to the rest of Europe. According to UBS strategists, Inflation worries are unlikely to derail the equities run. They believe global central banks will continue to provide liquidity until 2022, that markets have already factored in quicker Fed tightening and that inflation pressures would ease next year.

“We anticipate markets will continue to accept higher inflation readings in stride, albeit more volatility remains a concern,” they warned. Vifor Pharma VIFN, up 15.62 percent, is one of the companies on the move after confirming purchase negotiations with CSL in Australia, albeit no decisions have been taken. After an Italian publication reported that KKR might proceed with its acquisition deal without the corporation approving due diligence, Telecom Italia TIT 3.29 percent surged 4%.

Turkey’s Finance Minister says the country is “determined” not to raise interest rates:

On Monday, Turkey’s new finance minister stated that the country is committed not to raising interest rates, reflecting President Recep Tayyip Erdogan’s stance of putting pressure on central bank decision-making. The comments came ahead of another rate decrease planned on Thursday, continuing an easing cycle that has pushed the Lira to new lows as inflation approaches 20%.

In a phone interview with Haberturk, Treasury and Finance Minister Nureddin Nebati declared, “We won’t hike the interest rate; you will see that we can achieve this without raising rates.” However, he did say that he didn’t know if the central bank’s monetary easing would end.

Three Major Office Lease Announcements Indicate The Market's Strength
Three Major Office Lease Announcements Indicate The Market’s Strength

Even though Nebati is not a member of the central bank’s rate-setting committee, as Turkey’s most influential economic czar, his advice will most likely mirror the monetary authority’s current policy-making stance. Before starting his recent post at the ministry earlier this month, he was the deputy. According to sources acquainted with the situation, his predecessor, Lutfi Elvan, opposed the rate cuts.

On Monday, the Turkish Lira fell below 14 per dollar for the first time in anticipation of another reduction. This is happening even though most central banks worldwide are raising borrowing prices to combat inflation. The Lira is down 3.5 percent versus the dollar at 14.3566 as of 10:55 a.m. local time and has lost 48 percent against the dollar this year, the worst performance among major currencies.

Under Erdogan’s insistence to lower borrowing rates to support the economy, the central bank has cut the one-week repo rate by 400 basis points to 15% since September, despite inflation that is more than four times the projected 5%.

According to Nebati, the Lira is not under threat from overseas, and there are only “a few manipulative, speculative transactions inside” the country. Nebat supported Erdogan’s low-rate strategy in a series of tweets a week before his appointment, stating the current-account deficit was the economy’s most enormous challenge and that it should slash rates to combat supply-side inflation.

Also Read: Thousands Of People Walk To The Streets In Turkey To Protest Growing Prices And Currency Depreciation

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