Downtown

Downtown’s office vacancy rate stayed nearly flat in the second quarter, ticking up to 16.3 percent from 16.2 percent in the prior quarter and compared with 16.4 percent in the year-earlier period. Class A rents dipped to $3.52 a square foot on average from $3.55 in the first quarter. Net absorption was a loss of 100,674 square feet. There were 372,775 square feet under construction.

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Koreatown-based Jamison Properties sold 1.8 million square feet for $195 million at the California Market Center at 110 E. Ninth St.

Marsh & McLennan Cos. leased 72,000 square feet of office space at the U.S. Bank Tower, owned by Overseas Union Enterprise Ltd., at 63 W. Fifth St.

American Realty Advisors leased 39,500 square feet of office space at the City National Plaza office building at 515 S. Flower St.

Uber signed a lease for 18,000 square feet of office space at the Times Mirror Square complex at 202 W. First St.

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Hollywood

Hollywood’s office vacancy rate tightened in the second quarter of 2017, dropping to 16.6 percent from 17.3 percent in the prior quarter and compared with 28.7 percent in the year-earlier period. Class A rents rose slightly to $4.54 a square foot from $4.49 in the first quarter. Net absorption was 167,926 square feet. The area had 303,131 square feet under construction.

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Hudson Pacific purchased Hollywood Center Studios for $200 million from Studio Management Services Inc. at 1040 N. Las Palmas Ave.

First American Exchange Co. purchased a 6,000-square-foot office building for $4.75 million at 6424 Santa Monica Blvd.

Kum San Inc. paid 112 Beverly $2.7 million for a 19,000-square-foot office building at 3755 Beverly Blvd.

WeWork signed a direct lease for 64,800 square feet at 1601 Vine St.

Playground Media Group acquired a 5,400-square-foot office property at 429 N. Larchmont Blvd. for $4.45 million from Larchmont Trust.

Westside

Westside’s office vacancy rate shrank in the second quarter of 2017, dropping to 14.3 percent from 15.7 percent in the prior quarter and compared with 13.7 percent in the year-earlier period. Class A rents rose slightly to $4.96 a square foot from $4.87 in the first quarter. Net absorption was 281,489 square feet. There were 1.17 million square feet under construction, all in Santa Monica, Culver City and West Hollywood. Culver City had the highest vacancy rate at 20.7 percent.

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Douglas Emmett Inc. and Qatar Investment Authority purchased two Santa Monica buildings at 1299 Ocean Ave. and 429 Santa Monica Blvd., with a combined nearly 293,000 square feet, for almost $353 million from Blackstone Group.

JMB Financial Advisors purchased the 820,000-square-foot SunAmerica Center at 1999 Avenue of the Stars in Century City for $860 million.

Stockbridge Capital Group purchased a 30,400-square-foot office building at 10281 W. Pico Blvd. in Century City for $14.7 million from Spanish Broadcasting System Inc.

Henkel Corp. and Dentsu Aegis Network each signed leases for 49,000 square feet at C3 in Culver City at 5800 Bristol Parkway.

Related link: Home Is Where App Is at Residential Community

Santa Clarita Valley

Santa Clarita Valley’s office vacancy rate increased slightly in the second quarter of 2017, reaching 12.4 percent from 12 percent in the prior quarter and compared with 11.2 percent in the year-earlier period. Class A rents dropped to $2.79 a square foot from $2.92 in the first quarter. Net absorption was a loss of 8,547 square feet.

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Galois Group purchased the 156,700-square-foot Gateway Village Shopping Center for $69.5 million from Valencia Gateway & Valencia Industrial in Santa Clarita.

LBA Realty purchased two neighboring industrial properties combining 246,000 square feet at 27420 and 27460 Avenue Scott in Valencia for roughly $33 million.

ARKA Properties Group paid $3 million for an 18,600-square-foot industrial warehouse at 27510 Avenue Mentry in Valencia.

Advanced Motorsports Technology paid $2.6 million for a 16,900-square-foot industrial property at 24832 Avenue Rockefeller in Santa Clarita.

San Fernando Valley

San Fernando Valley’s office vacancy rate shrank in the second quarter of 2017, dropping to 12.2 percent from 13 percent in the prior quarter and compared with 13.4 percent in the year-earlier period. Class A rents rose slightly to $2.86 a square foot from $2.79 in the first quarter. Net absorption was 254,626 square feet.

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Paragon Commercial Group purchased the 235,000-square-foot Northridge Plaza Shopping Center at 8741 Corbin Ave. for $55 million from family entity NSLR.

Boston’s Beacon Capital Partners paid $69 million for an office building of 197,000 square feet at 5161 Lankershim Blvd. in North Hollywood.

Laramar Group of Chicago paid more than $29 million for a combined 232,000 square feet at Chatsworth Business Park.

Maxxam Enterprises paid $25 million for a 172,000-square-foot office building at 16311 Ventura Blvd.

Tri-Cities

The office vacancy rate in the Tri-Cities of Burbank, Glendale and Pasadena stayed fairly flat in the second quarter of 2017, increasing to 12.7 percent from 12.6 percent in the prior quarter and compared with 12.3 percent in the year-earlier period. Class A rents rose slightly to $3.12 a square foot from $3.08 in the first quarter. Net absorption was a loss of 12,932 square feet.

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Pacific Oaks Education Corp. bought a 75,000-square-foot Pasadena campus it already resided in for $21.5 million from NW Innovation Center.

Kennedy-Wilson Holdings Inc. purchased a 437,000-square-foot Glendale office campus for $144 million from MetLife Inc.

Spokeo leased an additional 30,000 square feet at 199 S. Los Robles Ave. in Pasadena.

New York Life Real Estate Investors in San Francisco purchased the 350,000-square-foot Burbank Empire Center at 2300 W. Empire Ave. for more than $133 million from Chicago-based Walton Street Capital.

Wilshire Corridor

The Wilshire Corridor’s office vacancy rate rose in the second quarter of 2017, increasing to 20.7 percent from 17.3 percent in the prior quarter compared with 18.5 percent in the year-earlier period. Park Mile had the highest vacancy rate at 30.2 percent. Average Class A asking rents lowered to $3.06 a square foot from $3.50 in the first quarter.

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Kaiser signed a lease for 55,600 square feet of office space at 7007 Romaine St. in Mid-Wilshire.

Berggruen MacArthur Park purchased 20,500 square feet of office space at 2500 W. Seventh St. in Mid-Wilshire for $5.5 million from Balubhai Patel Revocable Trust.

Brandt Wax purchased a 3,000-square-foot industrial building at 1847 Arapahoe St. in Pico Union for roughly $1 million from Nielsen Properties.

Stun Creative signed a direct lease for nearly 20,000 square feet of office space at 6420 Wilshire Blvd. in Carthay Circle.

Related link: Office Market Recovers in Healthy Second Quarter

South Bay

The South Bay’s industrial vacancy rate stayed flat at 0.8 percent in the second quarter of 2017, compared with 0.6 percent in the year-earlier period. Class A rents remained relatively stable, hitting 85 cents a square foot compared with 82 cents in the first quarter. Roughly 2.1 million square feet were sold or leased. There were 1.7 million square feet under construction.

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San Francisco-based Terreno Realty Corp. paid $31.4 million for a 23.4-acre industrial property on the Alameda Corridor at 11840 and 11852 Alameda St. and 2800 Lynwood Road in Lynwood.

Surf Management Inc. purchased 110,000 square feet of office space at the Mariner Court building at 3625 Del Amo Blvd. in Torrance for $23.9 million.

Beitler Commercial Realty Services purchased a 134,000-square-foot property at 110 Pine Ave. in Long Beach for $18.4 million from Pacific Investment Group.

Best Buy Co. Inc. signed a lease for 480,000 square feet of industrial space at the Brickyard in Compton at 13633 S Central Ave.

San Gabriel Valley

The San Gabriel Valley’s industrial vacancy stayed flat at 0.8 percent in the second quarter of 2017, compared with 0.6 percent in the year-earlier period. Class A rents increased slightly to 64 cents a square foot compared to 60 cents in the first quarter. Roughly 1.4 million square feet were sold or leased. There were 2.8 million square feet under construction.

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Omninet Capital paid $81 million for Monterey Park’s Los Angeles Corporate Center, comprising four office buildings at 900, 1000, 1200, and 1255 Corporate Center Drive, and spanning nearly 400,000 square feet.

Realterm US Inc. paid $36.5 million for a 92,500-square-foot industrial property at 600 Live Oak Ave. in Irwindale.

Soto Provisions Inc. purchased an 85,000-square-foot industrial property at 488 Parriott Place in City of Industry for $14.5 million from CT Realty Investors.

FKC International Inc. purchased 53,000 square feet of office space at 21015 Pathfinder Road in Diamond Bar for $10.5 million from TA Realty.

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