Downtown

Downtown’s office vacancy rate tightened in the fourth quarter to 15.9 percent, down from the third quarter’s 16.3 percent and the previous year’s 17.2 percent. Average Class A asking rents rose to $3.70, up 12 cents over the previous quarter and 19 cents over the previous year. Net absorption was 130,159 square feet, and 116,000 square feet were under construction.

Main Events

• The Chicago School of Professional Psychology signed a lease to relocate its Los Angeles campus to the Aon Center at 707 Wilshire Blvd. in a 10-year, 5-month lease valued at $15.7 million.

• Insurance broker Lockton Inc. has leased 70,000 square feet at the 777 Tower at 777 S. Figueroa St. for an undisclosed amount, moving from the nearby Ernst & Young Plaza.

• The CalEdison, a well-known art deco building downtown, has been refinanced in a deal pegged at more than $100 million. New York-based GreenOak Real Estate acquired an interest in the building from a joint venture partnership managed by Houston-based Lionstone Group.

•••

Hollywood

Hollywood’s office fourth quarter vacancy rate decreased to 9 percent, down from 10.5 percent in the previous quarter and 14.8 percent the previous year. Class A asking rents decreased to $5.53, down 42 cents from the previous quarter but up $1.06 from the previous year. Net absorption was just over 1,000 square feet while 978,177 square feet were under construction.

Main Events

• Souferian Group Inc. sold a 92,000-square-foot office building at 1800 N. Highland Ave. to the Related Cos. for $72.1 million.

• Los Gatos-based Netflix Inc. signed two high-profile leases in Hollywood. The first is an 11-year lease for the 328,000-square-foot Epic building at 5901 Sunset Blvd. owned by Hudson Pacific Properties that will be completed in 2020. The second is for all 355,000 square feet of Kilroy Realty Corp.’s Academy on Vine project, which Netflix will move into in 2020.

•••

Westside

The Westside office vacancy rate was essentially flat at 13.2 percent, down incrementally from 13.3 percent the previous quarter and 14.8 percent the previous year. Culver City had the highest vacancy rate at 21.9 percent, far below its 29.7 percent vacancy rate the previous year. Class A asking rents on the Westside were $5.24, down 3 cents from the previous quarter but up 23 cents from the previous year. Net absorption was 515,954 square feet. More than 1 million square feet were under construction, including nearly half a million square feet in Culver City.

For reprint and licensing requests for this article, CLICK HERE.

Prev