2028 Olympics Hospitality Team Signs Big Office Lease in Downtown L.A.

Why It Matters

The lease underscores growing demand for premium office space tied to the 2028 Olympics, signaling confidence in Los Angeles’ commercial real estate despite elevated vacancy levels. It also highlights the strategic value of proximity to major events for hospitality and construction firms.

Key Takeaways

• On Location leases 108,272 sq ft at Union Bank Plaza.
• Lease represents about 15% of building’s rentable space.
• Hathaway Dinwiddie adds 17,554 sq ft on 16th floor.
• Union Bank Plaza sold for $80M, $114 per square foot.
• Downtown LA vacancy 31.8%; average rent $3.76 per sq ft.

Pulse Analysis

The 2028 Summer Olympics are catalyzing a wave of corporate real estate activity in downtown Los Angeles, and On Location’s sizable lease is a prime example. By securing over 108,000 square feet in Union Bank Plaza, the hospitality firm positions itself within walking distance of key Olympic venues, ensuring seamless service delivery for athletes, sponsors, and media. This strategic footprint not only enhances operational efficiency but also leverages the building’s modern amenities, which were refreshed during a $20 million renovation just a few years ago.

Investors are watching the deal closely because it reflects broader confidence in the market despite a 31.8 percent vacancy rate in the central business district. The building’s recent acquisition at $114 per square foot—well below the $150 per square foot price tag for the nearby Bank of America Plaza—illustrates a pricing gap that savvy tenants can exploit. As the city prepares for an influx of visitors and global attention, demand for premium office space is likely to outpace supply, potentially tightening vacancy rates and nudging rents upward from the current $3.76 per square foot.

For the hospitality and construction sectors, proximity to the Olympic hub translates into tangible business opportunities. On Location’s presence signals to sponsors and partners that the firm is ready to deliver world‑class services, while Hathaway Dinwiddie’s lease suggests construction firms anticipate increased demand for venue upgrades and post‑event projects. Together, these moves reinforce Los Angeles’ positioning as a competitive host city and may spur further investment in ancillary services, from logistics to technology platforms, that support large‑scale sporting events.