Newmark Successfully Completes $150.7 Million Sale of Playa Vista's Iconic Creative Campus

Newmark Facilitates the Sale of i|o at Playa Vista for $150.7 Million

In a significant transaction that highlights the recovery of the commercial real estate market, Newmark Group, Inc. has announced the sale of the i|o Campus located in Playa Vista, California for an impressive $150.7 million. This represents the highest sale price recorded in Los Angeles year-to-date in 2025, showcasing the robustness of institutional interest in premium office spaces.

Details of the Transaction

The i|o campus spans 306,809 square feet and features a modern creative workspace setup. Representing the seller, Clarion Partners, were several key figures from Newmark's team, including Kevin Shannon, Co-Head of U.S. Capital Markets, along with Vice Chairmen Ken White, Rob Hannan, Laura Stumm, and Michael Moll. They effectively navigated the sale process, which attracted a myriad of institutional investors, demonstrating a renewed confidence in the office sector amidst a changing economic landscape.

Jonathan Firestone, Co-President of Global Debt & Structured Finance at Newmark, along with Vice Chairman Blake Thompson and Director Henry Cassiday, also played pivotal roles in supporting the financing strategy throughout the sale.

"The response from institutional investors for i|o at Playa Vista was exceptionally strong — a clear sign that institutional capital is re-engaging in the office sector," remarked Shannon, emphasizing the competitive nature of the bidding process. This competitive environment reflects a broader recovery trend within capital markets that favor high-quality office products.

Rollover Profile and Leasing Trends

The property's profile, which showcased significant near-term expirations, attracted buyers willing to assume some leasing uncertainty. This decision is indicative of the confidence in both the Playa Vista submarket's potential and the overall recovery trajectory of office spaces. Stumm noted the increasing trend of institutional investors embracing such properties, which seems to be a key factor encouraging the resurgence in the office leasing market.

In addition to its sale pricing, the i|o campus has been successful in attracting new tenants, securing 78,000 square feet of new leases over the past two years at leading market rates. This performance illustrates the campus's appeal within a competitive leasing environment characterized by a flight to quality.

Architectural Features and Amenities

Originally delivered in 2010, the campus underwent a comprehensive redesign by Gensler in 2016, which has helped maintain an average occupancy level exceeding 90% ever since. The campus is not only architecturally distinct but also provides a collaborative indoor/outdoor workspace that enhances the experience of its tenants. Features such as exterior stairways, large amenity decks, and a serene interior landscaped courtyard further contribute to the campus's desirability.

Additionally, the i|o campus holds an advantageous central location, providing immediate access to key transport routes including the I-405 and Marina (SR 90) Freeways as well as La Cienega and the Pacific Coast Highway. This strategic positioning, combined with a wealth of nearby amenities and high-caliber housing options, makes it an attractive location for businesses looking to recruit and retain top talent.

Industry Insights

Trophy properties in prime locations like Playa Vista are predicted to outperform other asset classes. This demand is driven by a strong interest in high-end designs and robust amenities that attract companies eager to incentivize employees to return to office environments. According to Newmark Research, this trend underscores the crucial role of design and amenity offerings in influencing tenant decisions.

About Newmark

Newmark Group, Inc., trading under Nasdaq: NMRK, stands as a prominent leader in the commercial real estate sector, facilitating various transactions and offering comprehensive services to a diverse range of clients, including investors, owners, and corporations. In fiscal year ending March 31, 2025, Newmark generated revenues surpassing $2.8 billion, operating from 165 offices with roughly 8,100 professionals worldwide.

This successful transaction at the i|o campus serves as a testament to Newmark's strategic expertise and broader market confidence. To learn more about Newmark and its offerings, visit nmrk.com or follow @newmark on social media.