Roku was in a traditional Brentwood high-rise building sharing dated office space with a corporate partner. The company needed a more creative environment that reflected the culture of Roku so that they could recruit top talent, avoid confidentiality concerns of sharing space and continue to expand its footprint without committing to a long-term lease. At the time, Roku was a privately held company with 20 employees, but seeking to double their headcount in a 36 month period. Branding was vital to their decision to relocate from Brentwood.
With the desire for a campus environment and limited options in West Los Angeles that provided Roku term flexibility, Cresa and Roku worked together to consummate a 12,000 square foot sublease in the Water Garden in Santa Monica with first rights to expand into an adjacent 7,000 square feet from the same sub-landlord. By securing a rental rate of more than $1.00 per square foot below direct leasing rates in the building, above-market concessions for a 36-month term, and the acquisition of the sub-landlord’s furniture, Cresa saved Roku more than $500,000 on the transaction. Six months later Roku issued an IPO, further accelerating the projected growth to over 100 seats. Roku was able to take advantage of the expansion rights that Cresa negotiated and Roku has enjoyed a contiguous 19,000 square foot space that avoided disruption, required minimal cosmetic upgrades and seamlessly accommodated their rapid growth. Cresa’s Project Management also helped Roku competitively bid the construction costs and perform the improvements on a condensed schedule to complete the move prior to rent commencement on the expansion space.