Demand Media Inks $23 Million Lease for New Headquarters (Exclusive)
Demand Media, the publicly traded content and social media company, has inked a $23 million lease for new headquarters office space at 1655 26th St. in Santa Monica.
The 11-year and eight-month deal is for 52,032 square feet -- the entirety of the two-story building. Demand will move into its new offices by the second quarter of 2013; the company is currently headquartered at 1333 2nd St. in Santa Monica.
Demand's new digs are in a section of Santa Monica that is popular with entertainment and media companies. The 26th street building is adjacent to the Colorado Center (formerly Yahoo! Center) and across the street from the Water Garden office complex, where CBS Television Distribution recently inked a five-year lease.
There has been increased demand for entertainment office space in the Santa Monica area in recent months. In the 17.7 million-square-foot creative Westside market -- which includes Santa Monica, Culver City, Marina del Rey and Venice -- the vacancy rate was 12 percent in the first quarter, down from 15.5 percent a year earlier, according to Industry Partners, a commercial real estate brokerage.
"[The deal] reinforces the fact that the market is very tight," said Travis Landrum a commercial real estate broker with Industry, who represented the landlord -- an undisclosed private individual -- in the transaction. "Large tenants cannot find space anywhere in downtown or mid-Santa Monica."
Demand's new offices will undergo a significant renovation before the company moves in; the space was previously occupied by MTV, which vacated the property in December.
Demand, which uses thousands freelancers to create videos and articles for the Internet, runs websites such as eHow.com and LIVESTRONG.com. The company is headed by CEO Richard Rosenblatt.
Jim Jacobsen and Scott Rigsby of Industry also represented the landlord. Jeff Pion of CBRE Group represented Demand.