Question-and-Answer Session
(Operator Instructions) And our first question comes from the Anthony Paolone with JPMorgan. Go ahead please.
Anthony Paolone - JPMorgan
Thank you. Can you talk about your sequential occupancy declines in Santa Monica in Beverly Hills in the quarter and what may have driven that?
Bill Kamer
Sure, Tony. This is Bill. The main driver in the occupancy decline really is the portfolio, but it will happen to be in Santa Monica, was that we had a long scheduled move out of a 62,000 foot tenant in Santa Monica. We back-filled 22,000 feet of that and the remaining 40,000 feet, which we just got back in September, we’re now remarketing that. We’re taking one of the floors and we’re out what we call spec suites, and I think some other companies call as build suites, which is a product that is very attractive in Santa Monica.
The other floor, we’re actively marking for full floor tenant. This is part of the trend that we've been moving the portfolio and particularly in the submarkets like Santa Monica, of moving from relatively larger tenants to smaller tenants. From a timing standpoint, we wind up with the 40,000 feet that were not leased, as of the end of the quarter. That that counts for the entirety of the decline in Santa Monica, as the big portion of the overall decline.
In Beverly Hills, a handful of smaller tenants that we happen to have a lot of roll in the quarter, and we are in the process of back-filling that as well.
Anthony Paolone - JPMorgan
Okay. And can you talk about what Health Net's intentions are, which I think they have - part of their lease coming due this year?
Bill Kamer
It's 50,000 feet of the overall space that comes due at the end of the year. They've decided they are going to consolidate that space and that need and some other space that they have that's not in our portfolio. That 50,000 foot lease will not be renewed. As we've been saying for sometime, we've been expecting to see some increase in vacancy in the Warner Center market over the next several quarters in that we have some relatively larger for us -- relatively larger lease expirations coming up in next couple of quarter and I think we would reiterate that we do expect to see some increase in vacancy there in the next couple of quarters.
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