Vevo Moves Into New Playa Vista Office, Inks Five-Year Lease (Exclusive)
Music video website company Vevo has moved into new 12,000-square-foot offices at 5340 Alla Rd. in Playa Vista.
The company's five-year lease with landlord Lionstone Group is valued at roughly $2.5 million, according to real estate sources. New York-based Vevo moved into its new offices at the Annex on Sept. 1; the lease was inked in April. Vevo is a joint venture of Sony Music Entertainment, Universal Music Group and Abu Dhabi Media. The company maintains seven offices, including one in San Francisco.
Vevo relocated from offices at 1620 Euclid St. in Santa Monica because it ran out of space, said commercial real estate broker Travis Landrum of Industry Partners, who represented the company. Initially, Vevo planned to stay in Santa Monica -- a popular locale for technology and media firms -- but did not find any properties there that could accommodate its growth.
"We looked everywhere in Santa Monica and there were no options that fit the aesthetics they were looking for, so we grew the geography," said Landrum.
The Annex is a two-building, 117,500-square-foot former industrial complex that Lionstone converted into creative offices. Landrum said the property appealed to Vevo's sensibilities. The company's new office includes a "wraparound" steel and wood staircase that can serve as seating for live music performances, he said. Other tenants at the property include video game rental service firm Gamefly and digital creative agency Visionaire Group.
According to Landrum, tech and media companies are increasingly turning to Playa Vista because the success of the Santa Monica office market means that there are few large blocks of space available for lease there.
"There are very few spaces at 10,000 square feet, and even less at 20,000 [in Santa Monica]," Landrum said, adding that because Playa Vista was once home to many light manufacturing companies, there is an abundance of warehouses that can be converted to creative office buildings.
In February, THR reported that celebrity news organization TMZ would sign a long-term lease for headquarters office space at a former post office distribution center in Playa Vista. Also in February, YouTube signed an 11-year lease for a 41,000-square-foot office building at the Hercules Campus in Playa Vista.
Lionstone was represented by Industry's Jim Jacobsen and Scott Rigsby. Vevo was also represented by Industry's Andrew Jennison.
Vevo declined to comment.