Beats By Dre's expansion from Santa Monica to Culver City, from pristine office to gritty converted warehouse space, epitomizes a key trend we continue to see in LA's commercial real estate market. Santa Monica's soaring rents and minimal availabilities (especially for large contiguous space) has continued to push creative tenants to peripheral markets like Culver City, Marina del Rey, El Segundo and Downtown LA. Along with Silicon Beach's growth, these markets will continue to grow and build their infrastructure to attract more creative tenants. LA Times, 1/28/13
Musical electronics retailer Beats by Dr. Dre will move its headquarters from a plush office park in Santa Monica to gritty-looking former warehouses in Culver City.
Beats will occupy the entire 40,000-square-foot building at 8476 Steller Drive, plus an additional 26,400 square feet in two adjacent properties at 8401 and 8454 Steller, real estate broker Joshua Gorin of Studley said.
The electronics company that sells such music-related products as headphones, earphones and speakers is now in the Water Garden, a luxury office complex dating to the early 1990s. The Culver City warehouses that will become its offices were built in the late 1940s.
“This transaction provides an opportunity for Beats to move from a more traditional corporate venue to an exceptionally creative campus setting, better reflecting its brand and offering a vibrant, open work environment for its employees,” Gorin said.
Terms of the lease were not disclosed, but real estate experts familiar with Culver City’s burgeoning creative office market valued the deal at around $20 million.
*Shared by Jeff Vertun, Scott Steuber, & Ted Simpson