Port of Long Beach buys downtown office tower as vacancies surge

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Set us as preferred The Port of Long Beach has continued to plant roots downtown with the acquisition of an office tower.The port spent $36 million to buy the property at 100 Oceangate, a 13-story building across the street from the port’s headquarters and less than a 10-minute drive from the port.

The purchase comes as the office vacancy rate in downtown Long Beach reaches an all-time high of 35%, according to data from the Downtown Long Beach Alliance.“It’s a good time to buy,” Port of Long Beach chief executive Noel Hacegaba said in an interview.

“This acquisition is a strategic investment to drive economic development for Long Beach and an opportunity to create a maritime business hub.It reflects our confidence in the port’s future.” Business Companies are buying their buildings instead of renting them as office values bottom out around Los Angeles.The building has an occupancy rate of around 70% — leases that the port will inherit and make money from.

The port will fill the available space with international shipping and logistics companies, manufacturers and other trade-related firms.“Their cargo already crosses our docks, and this is a way for us to offer them a home,” Hacegaba said.The building also will be home to Port U, the port’s internal training and career development program.The acquisition has been a months-long process, with the port entering into a sale and purchase agreement on July 27.

Hacegaba said the move supports Long Beach Mayor Rex Richardson’s economic development strategy dubbed AnchorLB, which the mayor announced in January.AnchorLB is designed to attract international companies, including shippers and manufacturers, to downtown office spaces.

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