Game maker Electronic Arts renews lease in Playa Vista
Electronic Arts Inc., one of the largest video game publishers in the world, will remain at the Water’s Edge office complex in Playa Vista after signing a new lease.
The developer of such well-known game labels as Madden NFL, The Sims and Battlefield agreed to rent 125,000 square feet in two buildings on Lincoln Boulevard. The value of the deal was not disclosed, but real estate experts familiar with the Playa Vista market estimate it at more than $35 million.
EA helped put Playa Vista on the map in 2003 when it agreed to rent 250,000 square feet at Water’s Edge. At that time the young neighborhood south of Marina del Rey was being developed with housing but had no significant commercial component.
EA wanted to consolidate several small development studios in Southern California into its sprawling Playa Vista campus and was hoping to tap into Southern California’s digital entertainment workforce, as well as capitalize on the potential partnerships between games and Hollywood films.
It also bought Jamdat, a Los Angeles mobile game company, for $680 million in 2005, and Pandemic, a game developer in Santa Monica, in 2007
In recent years, EA has contracted and sublet some of its Playa Vista space as several major projects fizzled and the company was forced to lay off workers. Two of EA’s subtenants now have direct leases with landlord Maguire Investments, according to real estate brokerage Industry Partners. The nonprofit X Prize Foundation has 20,000 feet, and online hotel room broker Luxury Link has about 11,000 square feet.
Industry Partners and brokerage EdgeCore Real Estate Group hope to lease space in Water’s Edge to other creative businesses for Maguire. Companies in such fields as entertainment and online shopping have scooped up nontraditional office space near the ocean.
“With little remaining supply, rents in Santa Monica are reaching $5 per square foot per month,” said broker Andrew Jennison of Industry Partners. “Other creative office markets such as Playa Vista are benefiting as users with requirements of 10,000 square feet or more cannot find space in Santa Monica.”
Times staff writer Alex Pham contributed to this report.
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