Third-Quarter Market Stats

Third-Quarter Market Stats

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Downtown

Downtown’s office vacancy rate increased to 30.3%, up from 26.8% the previous year. Rents fell to $3.86 a square foot, down 4 cents year over year and 10 cents quarter over quarter. There was 225,000 square feet of negative net absorption and no new office product was under construction during the quarter.

• Southern California Gas Co. signed a 199,000-square-foot lease at City National 2CAL, a 52-story office tower in Bunker Hill. CIM Group is the owner and operator of its new digs.
• An 80,000-square-foot landmark building at 612 S. Broadway sold for $16 million. The six-story creative office and retail property sale was brokered by Cushman & Wakefield.
• Urban electric vehicle infrastructure provider Revel signed its first lease in Los Angeles with SPK Enterprises LLC at 1233 S. Grand Ave. The company will develop 42 fast charging stalls on the lot.
• Los Angeles County agreed to acquire the Gas Company Tower, a distressed property in downtown. The Board of Supervisors voted to move forward, but said the deal could not exceed $200 million. The sale is far below the property’s estimated value of $632 million just three years ago.

Hollywood

Hollywood’s office vacancy rate rose to 29.8%, up from 28.9% the previous year. Rents fell 19 cents year over year to $4.83 a square foot. Net absorption was nearly 42,000 square feet and nearly 84,000 square feet was under construction.

• Content creator platform Passes moved into a new office at 720 N. Cahuenga Blvd.
• Hollywood Mountain, a historic site famous for films, entered the market. Avison Young was selected to broker the sale of the 7.3-acre compound at 1999 N. Sycamore Ave. According to Avison Young, the property could yield offers of more than $100 million.
• Optimus Properties LLC purchased a 19,900-square-foot retail strip center in Hollywood for $9.5 million via a court ordered sale. The center is shadow anchored by a box retail space that was formerly 99 Cents Only Store’s number one location in the county by number of visits.
• A 10-story, 156-key Hollywood hotel, located at 1719 N. Whitley Ave., moved forward after a neighborhood appeal was denied. The project will replace a 1920s courtyard apartment complex.
• A&G Real Estate Partners and Onyx Asset Advisors listed a 10,000-square-foot development parcel just steps away from the Hollywood Walk of Fame. The site is currently a parking lot.

Westside

The Westside office vacancy rate rose to 28.3%, up from 25% the previous year. Asking rates for Class A properties climbed 23 cents year over year to $6.05 a square foot. Century City had a much higher asking rent of $7.59 a square foot. More than 1.8 million square feet was under construction during the quarter, largely in Century City and West L.A.

• Tinder’s founder Justin Mateen and brother Tyler Mateen acquired Wilshire Rodeo Plaza, a 300,000-square-foot office and retail property in Beverly Hills, for $211 million. The Mateens plan to rebrand the Golden Triangle business center as “One Rodeo.”
• Founder and Chief Executive of Fashion Nova Richard Saghian purchased a Beverly Hills building for $118 million which will serve as its headquarters.
• KFA Architecture completed The Laurel, a 58-unit residential community dedicated to providing supportive housing for individuals earning between 30% and 50% of the area median income in Santa Monica.
• North Beverly Drive Retail Collection, a two-building retail portfolio spanning 11,100 square feet, sold in Beverly Hills for $39.2 million.
• The Los Angeles City Planning Commission unanimously voted to approve Hackman Capital Partners’ Television City Project, a project that will modernize the studio’s production facilities.

Santa Clarita Valley

Santa Clarita Valley’s office vacancy rose to 35.2%, up from 28.3% the previous year. Net absorption was more than 16,000 square feet but no new office product was under construction during the quarter. Asking rents fell 13 cents year over year to $2.82 a square foot.

• Trammell Crow Co. and Clarion Partners completed construction at The Center at Needham Ranch, a 1.7 million-square-foot industrial park in Santa Clarita. Construction began on the industrial park, which is made up of 11 buildings, in 2017 and the center was fully leased by May 2024. Oltmans Construction Co. served as the general contractor for the project and its architect was HPA Inc. CBRE Group Inc. marketed and leased out the industrial property.

San Fernando Valley

San Fernando Valley’s office vacancy rate rose to 26.3%, up from 25.4% the previous year. Rents increased 7 cents year over year to $2.99 a square foot. Net absorption was negative 116,000 and nearly 148,000 square feet was under construction during the quarter.

• GPI Cos. acquired The Lofts at NoHo Commons, a 292-unit multifamily community in North Hollywood. The transit-oriented, mixed-use property was originally built in 2006 and was extensively renovated in 2017.
• A fully leased 151,000-square-foot distribution facility sold for $41.5 million in Chatsworth. California Realty Group represented the seller, NBP 9401 De Soto, in the sale located at 9401 De Soto Ave. The buyer was Center Capital Partners, which was represented by CBRE Group Inc.

Tri-Cities

First-quarter office vacancies increased in the Tri-Cities submarket of Burbank, Glendale and Pasadena to 31.9%, up from 26.5% the previous year. There was nearly 219,000 square feet of negative net absorption and no new office product under construction. Rents increased 2 cents year over year to $3.93.

• Nonprofit developer Bridge Housing unveiled its latest affordable housing development called Heritage Square South, a 70-unit permanent supportive housing complex for seniors in Pasadena.
• Burbank-based ACSCO Products Inc. signed a new 29,300-square-foot lease at a manufacturing facility warehouse in Burbank. NAI Capital represented the building’s landlord, Howard Business Park, in the transaction.

Wilshire Corridor

Wilshire Corridor’s third-quarter office vacancy rate rose to 37%, up from 35.7% the previous year. Nearly 104,000 square feet of negative net absorption occurred and no new office product was under construction. Asking rents rose to $2.98, up 20 cents quarter over quarter and 31 cents year over year.

• A subsidiary of Mid-Wilshire-based CIM Group completed a partial transformation of a low-rise office building in Mid-Wilshire to accommodate residential units. The building now features 68 luxury apartments above 30,000 square feet of creative office space.
• Maya Apartments, a 72-unit multifamily property in Koreatown, sold for $30 million to a private investor. The property is a 70,000-square-foot class A complex.

South Bay

South Bay’s industrial market vacancy increased to 6.1%, up from 4% the previous year. Roughly 1.7 million square feet sold or leased during the quarter while 1.8 million square feet was under construction. Rents were $1.69 per square foot, down 27 cents year over year.

• El Segundo-based toymaker Mattel Inc. purchased a creative office campus next to its headquarters for $59.2 million. The property, known as Grand + Nash, is located at 2160 E. Grand Ave. Mattel plans to use it as a design center.
• Affordable housing developer Meta Housing broke ground on 1400 Long Beach, a 163-unit affordable housing community near downtown Long Beach. It will deliver housing to low- and moderate-income families.

San Gabriel Valley

The San Gabriel Valley’s third quarter industrial vacancy rate increased to 5.6%, up from 2.2% the previous year. Asking rents were $1.51 a square foot, down 21 cents over the previous year. Roughly 3 million square feet sold or leased during the quarter and more than 908,000 square feet was under construction.

• Paragon at Old Town, a 163-unit multifamily asset with retail sold in Monrovia for $87 million.
• NAI Capital Commercial completed the $28.2 million acquisition of two multi-tenant office investments in the San Gabriel Valley. The buildings include 21680 Gateway Center Drive, an 81,000-square-foot office building in Diamond Bar, and 1100 Corporate Center Drive, a 39,000-square-foot office building in Monterey Park.