Honest Company (NASDAQ: HNST) commits to new 10-year Playa Vista HQ lease
Rhea-AI Filing Summary
The Honest Company, Inc. entered into a new long-term headquarters lease with Dellwood Farm LLC for approximately 38,240 rentable square feet at 12121 Bluff Creek Drive in Playa Vista, California. The company plans to relocate its corporate headquarters to this location by May 1, 2027, as its existing headquarters lease is scheduled to expire on April 30, 2027.
The lease term will begin on the later of March 1, 2027 or substantial completion of tenant improvements and will run for 10 years. Base rent starts at $3.50 per square foot per month in the first year, rising to $3.75 in the second year and $7.25 in the third year, then escalating annually to $9.224 per square foot per month by the tenth year. After a ten-month rent abatement in the third year, total base rent over the initial term is expected to be about $33,440,756, plus taxes, insurance, maintenance and other operating expenses. The landlord will provide a one-time tenant improvement allowance of $180.00 per rentable square foot, and the company must provide a $1.2 million irrevocable letter of credit. The lease also includes a five-year renewal option, a right of first refusal on remaining fifth-floor space, and certain early termination rights tied to severe damage, eminent domain or prolonged abatement events.
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Insights
Honest Co. locks in a 10-year HQ lease with sizable rent and build-out economics.
The Honest Company committed to a new 10-year headquarters lease for 38,240 rentable square feet in Playa Vista, replacing its expiring headquarters lease in late 2027. The structure specifies escalating base rent, with total base rent of about $33,440,756 over the initial term after a rent abatement period.
The agreement includes a substantial tenant improvement allowance of $180.00 per rentable square foot, which supports build-out costs while shifting much of the remaining obligation to the tenant via base rent and operating expenses. A $1.2 million irrevocable letter of credit secures the tenant’s obligations under the lease.
The lease adds optionality through a five-year renewal option and a right of first refusal on additional fifth-floor space, which may help accommodate future growth. Early termination rights for severe casualty, eminent domain or lengthy abatement events limit some downside risk if the premises become unusable for an extended period.
8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Leased space: 38,240 rentable square feet
Year 1 base rent: $3.50 per sq ft per month
Year 2 base rent: $3.75 per sq ft per month
+5 more
8 metrics
Leased space
38,240 rentable square feet
New headquarters at 12121 Bluff Creek Drive, Suite 500
Year 1 base rent
$3.50 per sq ft per month
First year of initial 10-year lease term
Year 2 base rent
$3.75 per sq ft per month
Second year of initial 10-year lease term
Year 3 base rent
$7.25 per sq ft per month
Third year of initial 10-year lease term
Year 10 base rent level
$9.224 per sq ft per month
Escalated rate by the tenth lease year
Total base rent
$33,440,756
Expected over initial 10-year term, net of rent abatement
Tenant improvement allowance
$180.00 per rentable sq ft
One-time allowance from landlord for build-out
Security letter of credit
$1.2 million
Irrevocable letter of credit securing lease obligations
Key Terms
Material Definitive Agreement, tenant improvements, tenant improvement allowance, letter of credit, +2 more
6 terms
Material Definitive Agreement regulatory
"Item 1.01 Entry into a Material Definitive Agreement."
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
tenant improvements financial
"the date of “substantial completion” of the “tenant improvements” (each as defined in the Lease)"
tenant improvement allowance financial
"The Landlord will provide the Company with a one-time tenant improvement allowance of $180.00 per rentable square foot."
A tenant improvement allowance is a sum of money a landlord agrees to provide or reimburse so a tenant can customize or fit out leased space to their needs, like a home renovation budget paid upfront by the property owner. It matters to investors because it affects leasing attractiveness, upfront costs, rental income and the building’s long‑term value—larger allowances can speed occupancy but reduce short‑term cash flow and raise capital repair needs.
letter of credit financial
"the Company is required to provide to the Landlord an irrevocable $1.2 million letter of credit."
A letter of credit is a bank’s written promise to pay a seller on behalf of a buyer once specified shipping or delivery documents are presented, acting like a guaranteed cashier’s check that only pays when the agreed conditions are met. Investors care because letters of credit reduce payment and counterparty risk, affect a company’s working capital and credit exposure, and can influence deal certainty in contracts, trade financing, and acquisitions.
right of first refusal financial
"an ongoing right of first refusal for the remaining space on the fifth floor of the building"
A right of first refusal gives an existing shareholder or party the chance to buy an asset or shares before the owner can sell them to someone else. Think of it like being offered the first option to buy a house when the owner decides to sell; it matters to investors because it can limit who can acquire a stake, slow or block transactions, and affect the price and liquidity of an investment by restricting open-market sales or new buyers.
abatement event financial
"failure by the Landlord to cure an “abatement event” (as that term is defined in the Lease, and which includes, for example, failing to provide essential utilities)"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What new headquarters lease did The Honest Company (HNST) sign?
The Honest Company entered a 10-year lease for about 38,240 rentable square feet at 12121 Bluff Creek Drive, Suite 500, Playa Vista, California, replacing its current headquarters when that lease expires in April 2027.
How much rent will The Honest Company (HNST) pay under the new lease?
Base rent starts at $3.50 per square foot per month in year one, rises to $3.75 in year two and $7.25 in year three, then escalates annually to $9.224 per square foot per month by year ten, totaling about $33,440,756 over the initial term after rent abatement.
When will The Honest Company (HNST) move its corporate headquarters?
The company intends to relocate its corporate headquarters to the new Playa Vista location by May 1, 2027, shortly after its existing headquarters lease is scheduled to expire on April 30, 2027.
What tenant improvement allowance does The Honest Company (HNST) receive?
The landlord will provide a one-time tenant improvement allowance of $180.00 per rentable square foot, which helps fund the build-out of the new headquarters space to the company’s specifications.
What security is required from The Honest Company (HNST) under the lease?
To secure its obligations under the lease, The Honest Company must provide the landlord with an irrevocable letter of credit in the amount of $1.2 million, which can be drawn upon under specified conditions.
Does The Honest Company (HNST) have options or early termination rights in the lease?
The lease grants one five-year renewal option, an ongoing right of first refusal for remaining fifth-floor space, and specific early termination rights tied to severe casualty, eminent domain, or prolonged abatement events lasting 270 days.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 14, 2026
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
(888 ) 862-8818
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry into a Material Definitive Agreement.
On June 14, 2026, The Honest Company, Inc. (the “Company”) entered into a lease agreement (the “Lease”) with Dellwood Farm LLC, a Delaware limited liability company (the “Landlord”), for approximately 38,240 rentable square feet located at 12121 Bluff Creek Drive, Suite 500, in Playa Vista, California. The Company intends to relocate its corporate headquarters to this new location by May 1, 2027. The Company’s existing lease for its current corporate headquarters is scheduled to expire on April 30, 2027.
The term of the Lease will commence on the later of (i) March 1, 2027, and (ii) the date of “substantial completion” of the “tenant improvements” (each as defined in the Lease) (the “Lease Commencement Date”). The initial term of the Lease will span 10 years from the Lease Commencement Date (the “Initial Term”). During the Initial Term, the Company's aggregate undiscounted base rent obligation will total $3.50 per square foot per month in the first year, $3.75 in the second year, $7.25 in the third year, and thereafter escalate annually to $9.224 per square foot per month by the tenth year. The Company will receive a ten-month rent abatement applied to the first ten months of the third lease year. As a result, the total base rent over the Initial Term, net of rent abatement, is expected to be approximately $33,440,756. In addition to base rent, the Company will be required to pay certain additional amounts for taxes, insurance, maintenance and other operating expenses. The Landlord will provide the Company with a one-time tenant improvement allowance of $180.00 per rentable square foot.
To secure its obligations under the Lease, the Company is required to provide to the Landlord an irrevocable $1.2 million letter of credit. The Lease additionally grants the Company one five-year renewal option, an ongoing right of first refusal for the remaining space on the fifth floor of the building, and specific early termination rights related to severe casualty damage, eminent domain, or a prolonged failure by the Landlord to cure an “abatement event” (as that term is defined in the Lease, and which includes, for example, failing to provide essential utilities) for 270 days.
The foregoing description of the Lease is a summary only and is qualified in its entirety by the full and complete terms of the Lease, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The disclosure set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number | Description | |||||||
10.1 | * | Lease, dated June 14, 2026, between The Honest Company, Inc. and Dellwood Farm LLC | ||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
| * | Certain schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K under the Securities Act of 1933, as amended. The Company agrees to furnish supplementally any omitted schedules to the Securities and Exchange Commission upon request. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| The Honest Company, Inc. | |||||||||||
| Date: | June 18, 2026 | By: | /s/ Curtiss Bruce | ||||||||
Name: Curtiss Bruce | |||||||||||
Title: Executive Vice President, Chief Financial & Operating Officer | |||||||||||