-Walt Disney Co. signed an 11-year deal for 110,000 square feet at Burbank’s Buena Vista Plaza, 2411 W. Olive Ave., with landlord Tier REIT Inc. of Dallas.
-Alibaba Group Holding Ltd. signed a lease for 22,000 square feet at Pasadena Playhouse. Asking rates in the area are about $2.50 a square foot, potentially valuing the deal at $660,000 a year.
-Ikea bought a 22-acre site at 805 S. San Fernando Road near the 5 freeway for $46 million from Crown Realty and Development Inc. The home furnishing retailer has already begun demolition of the 19 buildings on the site to construct a 470,000-square-foot store, which will be its largest in the United States when it opens in 2017.
-Lincoln Property Co. bought three Burbank office buildings from Kennedy Wilson Holdings Inc. in June for $84.2 million, or $258 a square foot. The properties are at 303 and 333 N. Glenoaks Blvd., and 300 E. Magnolia Blvd. The deal included two parking garages.
-CBRE Group Inc.’s CBRE Global Investors bought a 74,391-square-foot Burbank shopping center from Invest West and Santa Barbara Capital in May for $48.6 million, or $650 a square foot, in one of the highest sales prices on a square-foot basis in the city. The average sale price in the submarket was $272 a square foot.
A large new office complex hitting the market in Pasadena made the Tri-Cities office submarket look depleted last quarter despite some significant lease deals.
The submarket, which includes Burbank, Glendale and Pasadena, saw its vacancy rate rise a half-point to 14.8 percent in the second quarter, according to Jones Lang LaSalle Inc. In all, the market reported negative net absorption of 123,636 square feet.
The bulk of that was attributable to Pasadena, which reported negative net absorption of 178,662 square feet and a vacancy rate of 15.9 percent – up 1.6 points from the previous quarter.
Pasadena Playhouse, a $75 million office project at 680 E. Colorado Blvd. under construction for years, was completed in April and added 155,000 square feet of vacant office space to the inventory.
“If you took out the Playhouse from our inventory, vacancy rates in the market would be right at or below 14 percent,” said John McAniff, managing director in JLL’s downtown L.A. office.
The Playhouse won’t be vacant for long. Developer IDS Real Estate Group signed deals with Charles Schwab Corp. for 9,300 square feet; co-working space Epic Spaces for 9,500 square feet; and, most notably, China’s Alibaba Group Holding Ltd. The e-commerce giant leased the entire 22,000-square-foot top floor at the project in June.
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