PricewaterhouseCoopers (PwC) will relocate its Los Angeles office from the Financial District to Century City by 2028, according to the company. The accounting firm is moving from its current 100,000-square-foot space at 601 South Figueroa to a larger, 150,000-square-foot office at the Irvine Company’s 2121 Avenue of the Stars.
Why is PwC leaving Downtown Los Angeles?
PwC stated the move is a return to a neighborhood that has been part of its local history. The company cited Century City’s access to clients and talent as primary drivers for the relocation. While the firm declined to disclose the specific terms of its new lease, the decision follows a broader trend of corporate tenants shifting away from the downtown core. According to reports, downtown vacancy rates have reached approximately 35 percent, as many landlords face debt defaults or have surrendered assets to lenders. Century City, by contrast, is characterized by newer office stock and a higher concentration of amenities, which continues to attract major professional services firms.
How does this compare to other major office shifts?
The departure of PwC highlights a cooling market in the Financial District, which stands in contrast to the activity in Century City. Data shows that other major tenants are also re-evaluating their downtown footprint. For instance, the law firm Paul Hastings is currently looking to sublet about 90,000 square feet at City National Plaza, located at 515 South Flower Street. Paul Hastings, which already maintains an office in Century City at 1999 Avenue of the Stars, has previously reduced its downtown space. The Financial District property remains owned by a joint venture of CommonWealth Partners and the California Public Employees’ Retirement System, with the firm’s lease set to expire in August 2032.
What happens next for the downtown office market?
The downtown office sector may continue to face significant instability as high vacancy rates persist. Many office loans and properties are currently trading at discounts and losses, as landlords struggle to retain tenants. With major entities like PwC exiting 601 South Figueroa—a million-square-foot tower purchased by Uncommon Developers from Brookfield last year for $210 million—the market could see further pressure on asset values. Neither Uncommon Developers nor the Irvine Company responded to requests for comment regarding the implications of these shifting corporate priorities.