Banc of California is set to significantly increase its presence in downtown Los Angeles. The bank will soon display its name atop a new skyscraper, marking a milestone in its expansion efforts.
Banc of California Expands Downtown Office Space
The Los Angeles-based bank has leased 40,000 square feet at 865 S. Figueroa St. This new location will nearly double the bank’s office space, which currently occupies about 23,000 square feet in the Figueroa at Wilshire building. The move is scheduled for completion by the end of summer 2024.
Strategic Location and Growth Plans
The 35-story tower is strategically located just north of L.A. Live. Banc of California’s Chief Executive, Jared Wolff, emphasized the bank’s commitment to Los Angeles, stating, “We moved our headquarters to Los Angeles two years ago because we believe in this city.” The bank previously operated out of Santa Ana before relocating to Brentwood.
This expansion follows recent moves by Banc of California to strengthen its presence in other key markets, including Beverly Hills and New York. In June, the bank shifted its corporate office in New York to a notable address on Park Avenue. Additionally, it enhanced its footprint in Beverly Hills by expanding its office at 9701 Wilshire Blvd.
Market Challenges and Investor Concerns
- Approximately one-third of office space in downtown Los Angeles remains vacant.
- Regulatory uncertainties, including the United to House Los Angeles (Measure ULA) tax on large real estate transactions, concern investors.
- Transitional policies limiting tenant evictions during the pandemic have also affected investment decisions.
Financial Performance and Future Outlook
Banc of California reported a 5% increase in revenue for the third quarter, totaling $288 million. The bank achieved a net profit, reversing a loss from the previous year.
Wolff expressed optimism about the bank’s future, noting, “We believe we are uniquely positioned to continue this momentum.” He highlighted a favorable outlook for the upcoming quarter, aligning the bank’s growth strategy with the needs of the Greater L.A. market.
As the largest independent bank in Los Angeles and the third-largest in California, Banc of California aims to leverage its expanded office space to better serve its clientele. The prominent signage on the new downtown tower is expected to enhance the bank’s visibility, especially in light of the 2028 Olympics.
