Small Computer Company Signs Big Office Lease : Teradata’s El Segundo Deal Is Valued at $100 Million

In one of the largest lease agreements in Southern California this year, Teradata Corp., a fast-growing computer maker, has signed an 11-year lease valued at more than $100 million for 335,000 square feet of office space in El Segundo.

Teradata will consolidate operations scattered in three Marina del Rey buildings into 14 floors of a 20-story high-rise at Pacific Corporate Towers. The three-tower complex is owned by Pacific Financial Group.

Such large leases are more typically seen in downtown Los Angeles, said John Knott of Cushman & Wakefield, the real estate brokerage firm that represented Teradata.

“It is becoming more difficult for tenants--that occupy tremendous blocks of space--who aren’t in professional services to pay the rents in West Los Angeles and downtown,” he said.

Enjoying Rapid Growth

Teradata has grown quickly in the past few years, expanding into the three office buildings and one manufacturing plant on the West Side. That arrangement has been hampering productivity, company officials said.

“We’re growing at a rate of 125 to 150 people per quarter,” said Kenneth W. Simonds, chairman and chief executive of Teradata.

The company recorded sales of $137 million in the fiscal year ended June 30, up 54%. Ten-year-old Teradata was named the nation’s fastest-growing small public company last April by Inc. magazine.

“I had great expectations for what we could accomplish, but I think we’ve outstripped my expectations,” Simonds said.

Teradata has more than 1,100 employees, with nearly 800 in Los Angeles. It opened a factory in Dublin, Ireland, last month.

Teradata’s move to heavily traveled Sepulveda Boulevard and a high-rise building bearing its name will increase visibility for the fairly low-profile company. “When we first got started,” Simonds said, “we used to get a lot of magazines from earth-moving companies and sand and gravel companies.”