Port of Long Beach purchases downtown office tower amid soaring vacancy rates

The Port of Long Beach completed a $36 million purchase of the 13-story 100 Oceangate office tower, located a short drive from its headquarters, as downtown Long Beach office vacancy climbed to an unprecedented 35%. The building, built in 1972 and previously sold for $46.5 million, currently holds roughly 70% of its 225,486 sq ft leased, providing immediate rental income. Port chief executive Noel Hacegaba described the deal as a strategic investment to foster a maritime business hub and to house the port’s internal training program, Port U. The acquisition aligns with Mayor Rex Richardson’s AnchorLB initiative, which aims to attract international shippers and manufacturers to the downtown core.

Vacancies are rising region-wide due to remote-work shifts and higher interest rates, prompting firms and public agencies to buy office assets at reduced values. The port plans to allocate vacant floors to logistics companies, partners, and its own workforce development, also positioning the space for potential Olympic-related activity in 2028.