Downtown

Downtown’s fourth-quarter office vacancy rate increased to 31.8%, up from 30.3% the previous quarter and 26.8% the previous year. There was no new office space under construction during the quarter and over 270,000 square feet of negative net absorption. Asking rates decreased by 1 cent, ending the quarter at $3.85 per square foot.

• A trophy office asset, The Gas Company Tower, sold for $200 million. Los Angeles County was the buyer of the 54-story skyscraper in Bunker Hill. Jones Lang LaSalle Inc. represented the seller.
• Union Bank Plaza, an iconic downtown office tower spanning 675,000 square feet and 40 stories, sold for $80 million. Newmark represented the seller, W/B Union Plaza Holdings LLC. The buyer was Southwest Carpenters Pension Trust.
• East End Studios achieved a major milestone in its plans to build a 15-acre studio campus in downtown’s Arts District when the city planning department published its Final Environmental Impact Report for the project. The ADLA campus calls for the construction of 16 soundstages totaling 299,000 square feet plus support space.
• Bridge Housing unveiled Los Lirios, a 64-unit affordable housing community in Boyle Heights.

 

Hollywood

Hollywood’s office vacancy rate decreased to 29.7%, down from 29.8% the previous quarter and 27.5% the previous year. Class A asking rates remained steady at $4.83 per square foot. Net absorption was roughly 9,160 square feet while 83,500 square feet were under construction.

• Studio City-based Canyon Creative, a full-service interior design firm, signed new leases on two adjacent creative office buildings totaling 14,400 square feet in Hollywood’s Studio District neighborhood. Phil Missig from Berkshire Hathaway Home Services California Properties represented Canyon Creative.
• The iconic Dolby Theatre, a 3,400-seat, 180,000-square-foot entertainment venue in Hollywood and home of the Oscars, sold for an estimated $70 million. JEBS Hollywood Entertainment, the buyer, was represented by Avison Young.
• Cityview acquired Candela, a 112-unit multifamily complex in Franklin Village, located at the base of Hollywood Hills, for $36 million in what the developer is calling a value-add opportunity. Marcus & Millichap represented the seller, Raintree Partners, and procured Cityview, the buyer.

 

Westside

The Westside’s office vacancy rate declined to 27.8%, down from 28.3% the previous quarter but up from 25.8% the previous year. The asking rate decreased 1 cent to $6.04 per square foot. Century City continued to have the highest asking rate at $7.58 per square foot, and the lowest vacancy rate of all Westside submarkets, at 16.6%. There were more than 1.63 million square feet under construction in the Westside during the quarter.

• New York-based Tishman Speyer shed itself of a 133,000-square-foot office asset for $90 million. The deal came out to $675 per square foot, illustrating a significant jump in purchase price from when Tishman Speyer originally acquired the building for $38 million in 2005.
• Concord, a Nashville-based independent music company, signed a new 32,000-square-foot office lease at Wilshire & Palm in Beverly Hills. The building spans 110,000 square feet. Jones Lang LaSalle Inc. represented the building’s landlord, Cruzan, in the signing. CBRE Group Inc. represented Concord.
• Lincoln Property Co. and Strategic Value Partners purchased The Bluffs, a two-building office campus in Playa Vista with 500,000 square feet of space. The companies did not disclose the sale price, but media reports put it at $188 million.

 

Santa Clarita Valley

Santa Clarita’s office vacancy rate rose ever so slightly to 35.3%, up from 35.2% the previous quarter. Net absorption was roughly negative 3,270 square feet, compared to the more than 16,100 square feet absorbed last quarter. There was no office product under construction. Asking rates rose 8 cents from last quarter to $2.90 per square foot.

• China-based garden machinery and manufacturing company Greenworks Commercial opened a support center in Valencia.
• Northeast Valley Health Corp. renewed and expanded its lease at Santa Clarita Health Center for a total of 14,700 square feet. JLL represented NEVHC while NAI Capital represented the building’s landlord.
• The Stepping Stones Group signed a 13,100-square-foot lease in Santa Clarita. Equity Commercial Real Estate Services Inc. represented the tenant and JLL represented the landlord in the deal.

 

San Fernando Valley

The San Fernando Valley’s office vacancy rate dropped from 26.3% to 25.8% this quarter. Asking rates slightly rose quarter over quarter, ending the year at $3.03 per square foot. Last quarter, asking rates were $2.99 per square foot and, last year, at $2.91 per square foot. Net absorption was roughly 45,500 square feet and there were just under 148,000 square feet under construction.

• Marquee, a 236-unit, garden-style multifamily property in North Hollywood sold for $44 million, representing the only more-than-120-unit, rent-controlled apartment sale in the entire city of Los Angeles in the past year. Berkadia brokered the deal and secured $32.9 million in acquisition financing.
• Marcus & Millichap brokered the $85 million sale of a 596-unit, 16-parcel multifamily portfolio sale in the San Fernando Valley. The sale marked the largest multifamily transaction in the San Fernando Valley last year and the sixth-largest multifamily portfolio sale in the county in 2024.

 

Tri-Cities

The office vacancy rate for the Tri-Cities area rose to 32%, up from 27% one year ago. There were more than 32,300 square feet of negative net absorption while no new office product was under construction. Asking rates dropped 1 cent quarter over quarter to $3.92 per square foot, down from $3.93 last quarter and $3.87 last year.

• CBRE Group Inc. arranged the $16 million sale of a 47,700-square-foot outpatient medical office building in Burbank to a private investor. The eight-story property was 90% occupied at the time of the sale to 33 tenants, each occupying an average of 1,500 square feet.
• Captura, a direct ocean capture company, signed an 8,400-square-foot lease at a research and development flex facility in Pasadena. NAI Capital represented the landlord, San Gabriel Capital. Captura was represented by Colliers.
• Greater Los Angeles Scouting, formerly Greater Los Angeles Area Boy Scouts of America, shed itself of a 15,000-square-foot office building on a 65,600-square-foot lot in Pasadena for $5.5 million. NAI represented the seller. The buyer, a private investor, was represented by BJ Investment Group.

 

Wilshire Corridor

Wilshire Corridor’s first-quarter office vacancy rate dropped to 36.4%, down from 37% the previous quarter, but flat from the previous year. More than 44,500 square feet were absorbed into the submarket and no new office product was under construction. Asking rates increased slightly to $2.99 per square foot, up 1 cent from the last quarter and 22 cents last year.

• Jamison and Arc Capital Partners began the conversion of a 13-story, 233,000-square-foot office building at 3325 Wilshire Blvd. Once complete, the mixed-use development will feature 236 units of multifamily housing and 15,000 square feet of street-level retail.
• Carthay-based Goodson Real Estate is nearly done with its latest development, an 84-unit multifamily complex in Pico-Union. The five-story development, which broke ground in 2021 at 1124 S. Normandie Ave., will consist of 84 studio and one-bedroom apartments above subterranean parking for 42 vehicles.

 

South Bay

South Bay’s industrial vacancy rate decreased 0.1% to 6% this quarter, but up from 4.8% the previous year. Asking rates were $1.66 per square foot, down 3 cents from the last quarter. Roughly 3.04 million square feet were sold or leased during the quarter, a significant amount compared to the 1.71 million in the last quarter.

• Virco, a leading manufacturer and supplier of classroom furniture and equipment, signed a long-term lease renewal for 559,000 square feet at a Prologis-owned industrial facility in Torrance. The Klabin Co. represented Prologis.
• UCLA Health purchased 5210 Pacific Concourse, a 170,000-square-foot, Class A office building in El Segundo, for $55 million. Newmark represented the seller, Karney Properties, in the sale.
• Toy manufacturer Mattel Inc. signed a 60,000-square-foot lease in El Segundo, which will become home to its studio operations. The property is part of Continental Development Corp.’s Continental Park Campus.
• Connecticut-based FullStack Modular, a constructor of solely modular buildings across the U.S., opened a manufacturing facility in Carson. The company is currently building prototypes for its first California project, set to begin production next month.

 

San Gabriel Valley

The San Gabriel Valley’s industrial vacancy rate increased to 5.8%, up from 5.6% the previous quarter. Asking rates were $1.46 per square foot, down 5 cents from the last. Roughly 3.07 million square feet were sold or leased during the quarter while just under 642,000 square feet were under construction.

• Woodside Terrace, an 85-unit apartment complex in Alhambra, traded for $26.3 million, or $313,000 per unit. It is the second largest asset sold in Alhambra in the last 25 years in terms of number of units as well as sale price. Institutional Property Advisors, a division of Marcus & Millichap, represented the seller and procured the buyer, Raintree Partners, in the deal.
• Gantry Inc. secured a $55.9 million permanent loan for the acquisition of the Huntington Oaks retail center in Monrovia.
• Howard’s Appliance signed a 68-month, 128,000-square-foot industrial lease in City of Industry, which will serve as the retailer’s new corporate headquarters and main distribution center. DAUM Commercial Real Estate Services represented Howard’s Appliance. The consideration of the lease was approximately $11.1 million.