Warner Music Group Inks Ford Factory Lease

No Comments 11 October 2016

Warner Music Group Inks Ford Factory Lease

Warner Music Group Corp. signed a long-term lease for the full Ford Factory in downtown’s Arts District, the company reported in a Securities and Exchange Commission filing on Friday.

The lease is set to begin in August 2017 and last for nearly 13 years with an option to renew for 10 years, according to the document. The lease rate will begin at roughly $10 million annually, and Warner expects to spend between $40 million to $50 million to build out its space. During the build-out period Warner will receive a “rent abatement” of 75 percent.

The Business Journal reported in August that Warner was interested in picking up office space at the building, a former auto factory being converted to roughly 257,000 square feet of offices by Shorenstein Properties, a San Francisco-based developer.

The deal is the first major office lease in the Arts District, an area where several projects are set to come online and add roughly 2 million square feet to the market. Developers have targeted media, entertainment, and tech companies in their leasing efforts.

“We’ve worked hard to design and deliver a great building worthy of a great tenant and reflective of the creative energy throughout the Arts District,” Jim Pierre, senior vice president at Shorenstein Properties, said in an emailed statement.

Read More/Original Source: http://www.labusinessjournal.com/news/2016/oct/07/warner-music-group-inks-ford-factory-lease/

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