Major events in Los Angeles County commercial and industrial submarkets in the third quarter.

After a rocky second quarter, the July-to-September period looked better for the Hollywood-West Hollywood market.

Vacancies were down more than half a point to 13.9 percent, a lower rate than most of the county’s office submarkets, according to Grubb & Ellis. What’s more, net absorption was back in the black, with the market absorbing some 25,000 square feet.

“It’s not burgeoning, but it’s active in Hollywood with entertainment and multimedia being the only users in L.A. County that have some legs,” said Joel Frank, senior vice president, First Property Realty Corp.

Large tenant deals have helped give the market a boost. Earlier this year, Live Nation Entertainment Inc. began a 15-year lease of 100,000 square feet at 7060 Hollywood Blvd. Frank said the Beverly Hills company recently decided to take four to five more floors at the 12-story building, which will bring the property close to full occupancy.

West Hollywood, however, is not doing as well, as pricey Class A buildings have been losing tenants to corporate downsizing and belt-tightening.

“West Hollywood is in its worst shape in its history,” Frank said. “There has never been as much vacancy and you also have the Red Building now coming out of the ground,”

The Pacific Design Center’s Red Building, slated for completion next year, will include 400,000 square feet of office, retail and showroom space. Frank, the building’s leasing agent, said talks are underway with a potential anchor tenant to take 100,000 square feet.

Class A asking rents market-wide remained at $3.62 per square foot, while Class B rents fell 4 cents to $2.94.

Frank said the figures don’t necessarily reflect what tenants are paying.

“Deals are getting done at lower rates,” he explained. “And there’s at least one month per year of lease term of free rent in every deal right now.”

Office Market At a Glance

Inventory: 4 million square feet

Under Construction: 400,000 square feet

Class A Asking Rents: $3.62

MAIN EVENTS

• Sotheby’s International Realty signed a seven-year lease to take 10,000 square feet at 9255 Sunset Blvd. in Hollywood for about $2.25 per foot. First Credit Bank owns the property, part of a two-tower project.
• Cedars-Sinai Medical Center inked a lease for 26,303 square feet of medical office space in West Hollywood for 10 years, in a transaction worth nearly $11 million. Cedars-Sinai will start the lease at the 825 N. San Vicente Blvd.’s Hilldale building during the second quarter of next year. Hilldale Investment Group is the landlord.
• William E. Simon & Sons sold two ground-floor retail units at 6253 Hollywood Blvd. to restaurant owner and operator David Myers Group for $7.21 million. One unit is occupied by Dillon’s Irish Pub & Grill, which has a nine-year lease. Chef David Myers will open a new restaurant in the second, 4,845-square-foot unit. David Myers Group owns West Hollywood’s French brasserie Comme Ca.
• Baltus Collection, a Spanish manufacturer of high-end furniture, opened a showroom in West Hollywood. The 4,000-square-foot space at 9000 Beverly Blvd. is the company’s second U.S. showroom. The other is in Miami.
• Legend3D Inc., a San Diego digital media effects firm that converts movies and television content to 3-D, opened a client relations office at 6430 Sunset Blvd. in Hollywood.
• VizStar Inc., a Las Vegas-based aviation charter transportation broker doing business as Celestial Jets, opened an office in West Hollywood at 8335 Sunset Blvd.