The San Fernando Valley saw nearly a half-million square feet of office space taken off the market in the first quarter as the region posted its best absorption numbers in several years. The area’s vacancy rate ticked down nearly two percentage points to 15.4 percent versus 17.1 percent in the same quarter a year ago.

But the early 2013 gains in the market, particularly in the West Valley, might evaporate over the rest of this year as several large tenants have already signaled plans to vacate their space, said Dan Sanchez, executive vice president at Jones Lang LaSalle Inc.

“The numbers look good, but they are deceiving. There’s going to be more than 200,000 square feet that comes back on the market in the coming quarters, which means things are likely to trend in the wrong direction for a while,” he said.

The Central Valley remained tight with a 12.5 percent vacancy rate, unchanged from late 2012.

“Landlords are removing concessions. Things like free rent and parking are ratcheting down” in the submarket, Sanchez said. “That’s the only area where that is happening, though. In the other parts of the Valley, the concessions are still as they have been.”

Asking rents increased by 1 cent in the submarket, up 6 cents from first quarter 2012.

The long-term trend toward adaptive reuse of older office properties was illustrated by the first quarter sale of Sherman Oaks’ Sunkist Building at 14130 Riverside Dr. The 123,000-square-foot local landmark, visible from the 101 freeway, was built in 1971 as the headquarters of Sunkist Growers, which still occupies space there.

IMT Capital of Sherman Oaks bought the building, known for its inverted pyramid architecture, and plans to convert it to office, retail and residential use. Terms of the sale were not disclosed.

Another strategic location under redevelopment is an industrial space in Van Nuys called the Ranch. The 11.5-acre site at Oxnard Street and Cedros Avenue, one block south of the Orange Line busway, features 60-year-old buildings that are being transformed into a creative office campus, said Jonathan Larsen, regional managing principal at Cassidy Turley.

“The San Fernando Valley has a suburban feel and 2 million people. It could be headed down the path of Orange County, which has been ahead of the curve in adaptive reuse of old industrial space and office buildings,” he said.

– Karen E. Klein

Main Events

*American Homes 4 Rent signed a 43,000-square-foot office lease in Agoura Hills at 30601 Agoura Road.

*The Courtyard at the Commons, a retail center in Calabasas, was sold to RREEF America in a $50 million cash deal. The four buildings on the site total roughly 100,000 square feet, with a Babies R Us as the anchor retailer.

*Plaza at Sherman Oaks, a 392-unit apartment property, sold for $77 million. It was built in 1969 and renovated recently. The buyer was Raintree Partners of Laguna Niguel.

*State Board of Equalization leased 22,432 square feet at 15350 Sherman Way in Van Nuys.

*Insurance Co. of the West leased 3,214 square feet in Warner Center at 5855 Topanga Canyon Blvd.