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Nutrition Company Herbalife Puts Los Angeles Office on Market

Herbalife, a renowned nutrition brand known for its range of health products, is venturing into new territory by putting its Los Angeles office, located at 950 W. 190th St., up for sale. This move was reported on December 27, 2023, by CoStar News' Jack Witthaus at 10:28 P.M.


The company, famed for its vitamins and protein supplements, is exploring the commercial real estate market with the listing of its 186,000-square-foot property, Herbalife Plaza. This strategic shift includes a proposal for the development of an additional 195,000 square feet of industrial space on the premises.


In a unique sale-leaseback deal, Herbalife is offering to lease back its current office building for an initial two years, with options to extend the lease twice for six months each. The transition to industrial use of the space is slated to commence once Herbalife vacates the property, projected to be within two to three years.


A request for comment from Herbalife to CoStar News did not receive a response.

Rafael De Anda, Associate Director of CoStar Market Analytics, commented on the potential industrial conversion of Herbalife Plaza. He noted its advantageous location in the Torrance submarket, close to the major ports of Long Beach and Los Angeles and key highways like Interstates 405 and 110. These factors make the property particularly appealing for industrial development.


The Torrance industrial market, notably lacking in new, large industrial buildings, presents an opportunity for lucrative redevelopment projects, according to De Anda. CoStar data shows no current industrial constructions in the area, with average rents standing at $20.06 per square foot - surpassing the greater Los Angeles average.


Conversely, the office market along the 190th Street corridor, which includes Herbalife Plaza, averages a lower rent of $34.73 per square foot compared to the broader Los Angeles average. The area's office vacancy rate also stands higher than the greater L.A. average.

This sale is part of Herbalife's broader strategy to downsize its real estate holdings. The company had initiated plans to exit its downtown Los Angeles offices in July 2022, intending to consolidate its operations at Herbalife Plaza, a property they acquired in April 2016 for about $159 per square foot, as per CoStar data.


Herbalife's financial reports, as per a Securities and Exchange Commission filing, show a slight decrease in net sales - $3.6 billion in the nine months leading up to September 30, down from $3.7 billion in the previous year. This real estate venture marks a significant step in the company's evolving business strategy.





Source: CoStar, MMCG

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