The Burbank and Glendale office markets saw an uptick in investment as vacancy rates decreased significantly in the fourth quarter. Hollywood’s Art & Commerce Productions Inc. leased 5,000 square feet of office space at 611 S. Glenwood Place in Burbank. The production company made the move in November to accommodate its growth and was represented by Stan Gerson at Beitler Commercial in Brentwood. Music streaming service iHeartRadio Media Inc. renewed for 75,000 square feet in Burbank at Hudson Pacific Properties Inc.’s Pinnacle, 3400 W. Olive St. The deal closed Dec. 27. ProSight Specialty Insurance opened an office in downtown Glendale in November. The insurer leased 12,985 square feet at the Glendale City Center at 101 N. Brand Blvd. The building is owned by Prudential Real Estate Investors of San Francisco. Bunim/Murray Productions purchased two Glendale office buildings at 1011 and 1015 Grandview Ave. for $18.7 million in November. The company, producer of such reality TV shows as “Project Runway” and “Keeping Up With the Kardashians,” relocated its headquarters from Van Nuys to the two properties, which total nearly 111,000 square feet. Integrated Health and Wellness Solutions leased 1,500 square feet of office space at 421 E. Angeleno Ave. in Burbank. The deal was negotiated by brokers Patrick Long at Stevenson Real Estate Services in Glendale and Matt Cusumano of Lee & Associates in Orange County. Burbank’s vacancy rate fell to 15.6 percent from the third quarter’s 16.1 percent, while Glendale dropped to 12.9 percent from 13.5 percent, according to data from Seattle research firm Colliers International. “Vacancy rates have really improved. In 2008 to 2010, it was easily in excess of 20 to 25 percent vacancies,” said Bill Boyd, senior managing director of Charles Dunn Co.’s Tri-Cities office. In the sales category, the production company behind reality shows “Project Runway” and “Keeping Up With the Kardashians” acquired two Glendale office buildings at 1011 and 1015 Grandview Ave. for $18.7 million last quarter. Bunim/Murray Productions purchased the buildings for its main offices and relocated from Van Nuys in November. The Grandview Office Campus totals nearly 111,000 square feet and is located on 3.5 acres between San Fernando Road and West Glenoaks Boulevard. The properties include a three-story parking structure and 500 parking spaces, according to real estate data firm CoStar Data Inc. Entertainment tenants have long dominated Burbank, but the mix is changing. “I also see a migration of tech firms to the area,” said Jonathan Larsen, principal and managing director at Avison Young in Los Angeles. For example, Coding Dojo, a web development training company based in San Jose, leased 7,525 square feet of office space at 175 E. Olive Ave. in Burbank last quarter for its first campus in Southern California. The building is owned by Universal City Studios Credit Union. Also during the last quarter, Larsen oversaw a 75,000-square-foot lease renewal for Internet radio streaming service iHeartMedia Inc. at Hudson Pacific Properties Inc.’s Pinnacle building in Burbank. The tenant entered negotiations for 120,000 square feet at Worth Real Estate Group’s Tower in Burbank, but stuck with the Pinnacle property instead. Worth’s 487,000-square-foot Tower at 3900 Alameda Ave. was vacated by Walt Disney Co. in 2013, and has since been converted to creative office space. Larsen did not disclose why iHeartMedia pulled out of the deal. Tightening vacancy rates in the two cities led to increased asking rents. Glendale led the way in increases with an average of $2.55, up 14 cents from the year-ago quarter, with Burbank following at $3.02, up only 2 cents. “Burbank continues to be dominated by the entertainment industry and very little would ever come to Glendale,” said Charles Dunn’s Boyd. “And Glendale continues to be dominated by insurance professionals, including legal and accounting firms.” – Champaign Williams