Downtown
Downtown’s third-quarter office vacancy rate rose to 18.2%, up from 16.9% the previous quarter and 15.8% the previous year. The average asking rate for Class A properties was $3.85 a square foot, up 1 cent over the previous quarter and down 2 cents over the previous year. Net absorption was negative 300,670 square feet, and 116,000 square feet was under construction.

Main Events

 Singapore-based OUE Ltd. sold the iconic U.S. Bank Tower for $430 million to New York-based Silverstein Properties.

 AvalonBay Communities Inc. purchased two industrial sites at 668 S. Alameda St. and 1522-1570 Industrial St. from Showa Marine Inc. for $40.6 million for land value only. The vacant property is entitled for a multifamily redevelopment project.

 Skanska purchased a portfolio of two industrial sites at 1811 and 1825 Sacramento St. from individuals for $18.9 million.


Hollywood
Hollywood’s office vacancy rate rose to 15.7% during the third quarter, up from 11.1% the previous quarter and 10.9% the previous year. Rents held steady from the previous quarter at $5.46 a square foot but were up 9 cents over the previous year. Net absorption was negative 192,807 square feet, with 560,000 square feet under construction.

Main Events 

 Blackstone Group Inc. acquired a 49% interest in Brentwood-based Hudson Pacific Properties Inc.’s three studios — Sunset Bronson, Sunset Gower and Sunset Las Palmas — as well as adjacent office buildings.

 Revolt Media & TV signed a nearly 13,000-
square-foot lease at 1800 N. Highland Ave., a Related Cos. building.


Westside 
The Westside office vacancy rate during the third quarter rose to 10.9%, up slightly from 9.4% the previous quarter and 10.6% the previous year. Marina del Rey had the highest vacancy rate at 26.9%, and Century City had the lowest at 6.1%. Asking rent for Class A space on the Westside was $5.65 a square foot, up 18 cents over the previous quarter and year. There were 2.8 million square feet under construction, including nearly 1.6 million square feet in West Los Angeles and roughly 947,000 square feet in Culver City. 

Main Events 

 Northwood Investors purchased the nearly  288,000-square-foot Symantec Southern California Campus in Culver City from NortonLifeLock, formerly Symantec Corp., for $120 million.

 BLVD Hospitality purchased the famed 84-room Georgian Hotel in Santa Monica for $62 million.
 
TA Realty purchased the 70-unit Venice on Rose apartment complex from AvalonBay Communities Inc. for $65 million.


Santa Clarita Valley 
Santa Clarita Valley’s office vacancy rose to 14.1%, up from 13.3% the previous quarter and year. Asking rents for Class A office space held steady from the previous quarter at $2.81 per square foot. Net absorption was negative 25,732 square feet. There was no new office product under construction. 

Main Events
 
 Triscenic Production Services has signed leases in Valencia at 28145 Harrison Pkwy., 28114 Witherspoon Parkway, 25395 Rye Canyon Road and 27727 Avenue Scott.
 
Stockbridge Capital Group purchased a roughly 214,000-square-foot industrial building at 24903 Ave. Kearny in Santa Clarita for $28.4 million from AmerisourceBergen Corp.

 An individual purchased the Valencia Atrium, a roughly 65,000-square-foot building at 28494 Westinghouse Place, for $15 million.


San Fernando Valley 
The San Fernando Valley’s office vacancy rate rose to 14.4% during the third quarter, up from 12.1% the previous quarter and 11.5% the previous year. Asking rents fell 1 cent from the previous quarter to $3.02 a square foot. Net absorption was negative 343,000 square feet, and nearly 545,000 square feet was under construction.

Main Events 

 Sussex Capital Group purchased the 97-unit Mountain View Manor Apartments in Chatsworth from J.E.M.S. Corp. for $26 million.
 
Optimus Properties purchased 100 of the 161 condos in the Sonterra Condos complex at 15425 Sherman Way in Van Nuys for $21 million from Safco Capital Corp.

 Domus purchased a 10-unit apartment building at 4297 Coldwater Canyon Ave. in Studio City for $7.7 million.


Tri-Cities
Third-quarter office vacancies rose in the Tri-Cities submarket of Burbank, Glendale and Pasadena to 12.8%, up from 11.9% the previous quarter but down from 13.1% the previous year. There was negative 213,000 square feet of net absorption. More than 1 million square feet was under construction. Asking rents fell 1 cent quarter over quarter and fell 3 cents over the previous year.

Main Events 

 Streaming giant Netflix Inc. signed a lease for 171,000 square feet at the Burbank Empire Center at 2300 W. Empire Ave. The property is owned by New York Life Insurance Co.

 Healthcare Realty Trust Inc. purchased the nearly 50,000-square-foot Pasadena Medical office building at 630 S. Raymond Ave. in Pasadena for $35 million.

 An individual purchased a medical office building at 662-716 W. Broadway in Glendale from a trust for $10.4 million. 


Wilshire Corridor 
Wilshire Corridor’s third-quarter office vacancy rate rose to 22.6%, up from 21.5% the previous quarter and 19.7% the previous year. Negative 279,000 square feet was absorbed into the market while there was no new office product under construction. Asking rents held steady quarter over quarter at $2.91 a square foot but rose 32 cents year over year. Asking rents in Miracle Mile were much higher at $4.26 a square foot.

Main Events 

 Omninet Capital purchased the Maya apartments at 535-547 S. Kingsley Drive from Jamison for $32 million.

 Koreatown-based Jamison purchased a redevelopment site at 3751 W. 6th St. in Koreatown from Urban Commons for $12.5 million.

 California Parking Systems Inc. purchased a building at 5176-5178 W. Pico Blvd. in Miracle Mile for $2.7 million.


South Bay 
The South Bay industrial market vacancy rate rose slightly to 3.1% during the third quarter, up from 3% the previous quarter. Roughly 478,000 square feet was under construction, while 3.7 million square feet sold or leased during the quarter. Rents were $1.03 a square foot.

Main Events 

 Sares-Regis Group purchased an industrial site from Boeing Co. at 3855 N. Lakewood Blvd. in Long Beach for $146 million.

 Boston Properties Inc. purchased a 50% interest in a Continental Development Corp. property at 2021 Rosecrans Ave. in El Segundo.

 An individual purchased a strip mall at 234 S. Pacific Coast Highway in Redondo Beach for $9 million.


San Gabriel Valley
The San Gabriel Valley’s third-quarter industrial vacancy rate held steady compared with the previous quarter at 3.6%. Asking rents were 80 cents a square foot. Roughly 3.9 million square feet sold or leased during the quarter, compared with 1.7 million square feet in the second quarter, and 1.4 million square feet was under construction.

Main Events

 Made Goods, a wholesale furniture brand of Ardmore Home Design Inc., signed a 282,000-square-foot lease in the City of Industry at 918 S. Stimson Ave. The landlord is LBA Logistics.

 A wholesale auto parts distribution company signed a lease for roughly 132,000 square feet in an industrial building at 19545-19649 E. San Jose Ave. in the City of Industry.

 Elliot Megdal & Associates purchased a manufacturing building at 9200 Telstar Ave. in El Monte for $8.6 million from Rite Aid Corp.

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