Global Architecture Firm Gensler Announces Historic Move To City National Plaza In Downtown Los Angeles

City welcomes established design firm to L.A. after 20 years in Santa Monica

LOS ANGELES – February 4, 2011 – Gensler, a global architecture, design and planning firm, has announced its relocation to downtown Los Angeles’ City National Plaza after more than 20 years in Santa Monica. The move is due in large part to the firm’s commitment to finding “transformative” space to house its growing practice, and the city’s new incentives to attract businesses and the continuing evolution of downtown into a vibrant business and residential center. The announcement was made today at a press conference with Mayor Antonio Villaraigosa and Council President Pro Tempore Jan Perry, First Deputy Mayor Austin Beutner, Gensler Managing Director Rob Jernigan and Executive Director Andy Cohen, and Thomas Properties Group CEO James A. Thomas. Among the city’s business incentive programs is the Business Tax Holiday enacted last year that grants a three-year tax exemption on gross receipts for any business that opens or relocates its office to Los Angeles.

Gensler signed a 12-year lease with owner Thomas Properties Group (Nasdaq: TPGI) for the two upper floors of the “jewel box,” a three-story building that sits in between the twin 52-story towers at City National Plaza. The building’s unique attributes met Gensler’s need to find a creative space that would also provide exceptional amenities and close proximity to a large percentage of its client base. Construction of the office space will begin immediately and it is anticipated that Gensler will take occupancy in October.

“It is about time that a company that has done so much to transform and revitalize downtown LA will finally be located near all the iconic landmarks they designed,” said Mayor Villaraigosa. “Gensler’s relocation is just the latest example of companies moving to Los Angeles to take advantage of our city’s business-friendly incentives such as the Business Tax Holiday.”

The Mayor attended Gensler’s global partners meeting this December where he pitched the company moving to Los Angeles to take advantage of its pro-business climate. Gensler will receive the benefits of the Business Tax Holiday, a policy proposed by the Mayor’s Office of Economic and Business Policy, that exempts any new businesses from gross receipts tax by the City of Los Angeles for three years when they open or locate in Los Angeles.

Gensler Los Angeles currently has 250 employees and is growing. The company intends to expand by more than 40 percent in the next five years.

“Our office worked closely with all parties to help bring Gensler to downtown Los Angeles. The firm was considering a variety of relocation options. In addition to the very attractive Business Tax Holiday, this building and its location in downtown Los Angeles were also compelling. Downtown is one area of the city that has struck a greater jobs/housing balance over the past decade, boasts an array of vibrant restaurant and entertainment options and provides easy access to public transportation. This powerful combination led to winning Gensler and its good jobs for our city,” said Council President Pro Tempore Jan Perry.

"We called on them to see if we could help, we passed a Business Tax Holiday to help any business moving to LA and it is nice to see our efforts working," said First Deputy Mayor Austin Beutner. "Gensler is a world-class company and we are delighted to see them move to Los Angeles."

Gensler’s design team has created a dynamic plan to transform the jewel box building into an architecturally significant, functionally efficient and environmentally sensitive office for the firm’s creative professionals. The upper two floors of the building at City National Plaza currently total approximately 32,000 square feet, with a soaring ceiling height of 26 feet on the main floor and floor-to-ceiling windows. Gensler will add a mezzanine to create more usable space while maintaining the openness, abundant natural light and captivating downtown views. To maximize natural light throughout, the new space will feature a sizeable atrium with operable roof features and additional skylights bringing light into the top floor. The finished space will total approximately 45,000 square feet. Gensler has also leased 5,000 square feet on the B concourse level of the complex.

“Our site selection hinged on finding non-traditional space of the right size and in a desirable location that would provide great raw material for our design team. We have created an exceptional plan to transform our new space into a showcase for our firm that reflects both our expertise and our culture. It’s something we do every day for other companies, and now we can apply our creativity to shaping our own work environment,” noted Gensler’s Rob Jernigan. “Outreach from the Council office and the Mayor’s office made it clear that they not only wanted our business in Los Angeles, but would work with us in any way possible to help make this transition. Both their approach and the business incentives were powerful contributing factors in our decision.”

City National Plaza comprises 2.5 million square feet of office and retail space and occupies an entire city block in the financial district of downtown Los Angeles, bounded by Flower, Figueroa, Fifth and Sixth Streets.

“Gensler is a world-class firm of top professionals. It is gratifying that they have selected City National Plaza for their Los Angeles office. We did not actively market the jewel box space as we were holding on to it for the right creative company that would appreciate its unique attributes,” commented Thomas.

Thomas Properties Group in partnership with the California State Teachers’ Retirement System acquired the complex in 2003 and has since completed a $185 million, comprehensive program of renovations and upgrades and enhanced the property’s amenities, including bringing two premier restaurants to downtown, Chaya and Drago Centro. In 2010, the 38-year-old complex had the distinction of being one of the largest and oldest properties to earn LEED Gold certification.

Thomas Properties Group Senior Vice President Kent Handleman represented the company in the lease transaction. Gensler was represented by Clay Hammerstein of CB Richard Ellis and Jim Travers of Travers Realty.

About Gensler
Gensler is a global design practice specializing in architecture, planning and strategy, with more than 2,500 professionals in 35 offices on five continents. For 45 years, Gensler has been a leader in creating great places that enhance the quality of work and life. Consistently ranked as the leading architecture and interior design firm worldwide, Gensler leverages deep resources and diverse expertise to develop innovative and sustainable solutions for respected companies and institutions. The firm has over 3,000 active clients in virtually every industry and delivers projects at every scale. The Los Angeles office of Gensler is among the firm’s largest, and serves as the hub for Gensler’s Southwest region. Among recent projects for Gensler L.A. are the 55-story Ritz-Carlton Hotel & Residences and J.W. Marriott at L.A. LIVE, the renovation of the AT&T Center tower, the CAA Headquarters at 2000 Avenue of the Stars, law offices for Latham & Watkins, a new health and fitness facility for Santa Monica College, and ongoing work for top L.A.-area employers, like Sony, Amgen, L.A. County, Dreamworks, USC, and Los Angeles World Airports. For more information about Gensler, visit www.gensler.com.

About Thomas Properties Group, Inc.
Thomas Properties Group, Inc., with headquarters in Los Angeles, is a full-service real estate company that owns, acquires, develops and manages primarily office, as well as mixed-use and residential properties on a nationwide basis. The company's primary areas of focus are the acquisition and ownership of premier properties, property development and redevelopment, and property and investment management activities. For more information on Thomas Properties Group, Inc., visit www.tpgre.com.

Forward Looking Statements
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