Downtown’s first quarter office vacancy rate rose to 16.2% from the fourth quarter’s 15.9%, but was lower than the 16.7% vacancy rate from same period a year ago. Average Class A asking rents rose to $3.75, up 5 cents over the previous quarter and 24 cents more than the asking price from the first quarter of 2018. Net absorption was negative 163,484 square feet, while 116,000 square feet of office space was under construction.
Warner Music Group’s parent company purchased the remodeled Ford Factory building at 777 S. Santa Fe Ave. in the Arts District from Shorenstein Properties for $195 million. The building, which is approximately 217,000 square feet, will be Warner Music’s West Coast headquarters.
Atlas Capital Group sold the Box Yard, a 261,528-square-foot industrial property at 2445 E. 12th St., to Bridge Development Partners for $68 million.
WeWork Cos. Inc. signed a 78,000-square-foot lease at the Western Pacific at 1031 S. Broadway for an undisclosed sum. The coworking company also signed a lease for 55,000 square feet at the Maxwell at 1019 E. 4th Place in the Arts District.
Downtown-based video startup company TubeScience USA Inc. leased nearly 104,000 square feet at 655 S. Santa Fe Ave. in the Arts District on undisclosed terms.
Hollywood’s office vacancy rate decreased to 8%, down from 9% the previous quarter and from 9.4% during the same period a year prior. Class A asking rates were $5.43, down 10 cents from the previous quarter and 14 cents from the first quarter of 2018. Net absorption was nearly 35,000 square feet and 978,177 square feet was under construction.
Slate Property Group purchased two apartment complexes in Hollywood, the 103-unit Villa Elaine Apartments at 1245 Vine St. and the 55-unit Julie Lee at 1665 N. Sycamore Ave. for a total of $39.3 million from the Chandler A&B Jones Family Trust.
Content management company Bitmax Inc. signed a 9,201-square-foot lease for its headquarters at 959 Seward St. in Hollywood in a deal valued at $6 million. The office campus is owned by the J.H. Snyder Co.
South L.A.-based DavHan Inc. purchased a 28-unit multifamily building at 5727 La Mirada Ave. in Hollywood for $17.7 million from a private individual.
The Westside office vacancy rate fell to 12.5%, down from 13.2 % the previous quarter and 13% during the same period the previous year. Century City had the lowest vacancy rate at 5.7%; Culver City had the highest at 21.6%. Westside Class A asking rents were $5.25, up 1 cent over the previous quarter and up 19 cents over asking rates in the first quarter of 2018. Net absorption was more than 308,000 square feet and more than 1.5 million square feet was under construction, with roughly 745,000 square feet under construction in Culver City.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Los Angeles County Office Market, 3RD Quarter 2019
- Special Report: Real Estate Quarterly
- The Real Estate Quarterly
- Quarterly Real Estate
- Real Estate Quarterly: Submarkets
- SPECIAL REPORT: Main events in L.A.’s submarkets in the first quarter.
- Strength Continues in Q1 as Offices Fill Space
- SPECIAL REPORT: Main events in L.A.’s submarkets in the second quarter.