It was hard to know whether to be optimistic when the third quarter ended in the Antelope Valley or to just kick the ground and saunter away. The office market made some progress, absorbing nearly 13,000 square feet after a horrible start to the year. And then there was a virtually flat industrial market in which only 40,500 square feet was leased or sold according to the L.A. office of Colliers International. But opening up in mid-September was the 136,000-square-foot Kaiser Permanente Antelope Valley Medical Offices at 615 W/ Aveneu L in Lancaster. The dazzling structure, with a wave-like aqua front exterior, is the home of more than 60 physicians in multiple specialties, ranging from orthopedists to bariatric surgeons. The eco-friendly building is designed to be energy self-sustaining. “They will be completely off the grid once they get delivery of their wind turbine (by the end of the year),” said Vern Lawson, economic development director for Lancaster. The Kaiser building is the third major health care facility to open in Lancaster in the past year, reflecting the growth expected in the area; the others were the 56,000-square-foot City of Hope cancer treatment center last November and the 122,000-square-foot Los Angeles County High Desert Regional Health Center in June. Lease activity, meanwhile, picked up a bit in the 1.5 million-square-foot office market. The vacancy rate nearly hit 27 percent in the second quarter after starting out the year at about 20 percent. During the third quarter, several small leases brought the rate down to 25.1 percent and landlords even had the temerity to raise asking rates a penny to $1.79 a square foot. Industrial activity was little better. The vacancy rate was unchanged at 6.7 percent and average asking rents didn’t budge at 47 cents a square foot. The largest vacant industrial property, the 130,000-square-foot former Senior Systems Inc. building in Palmdale, remains a potential target to be occupied. The building has been vacant since July 2012. “That building has been the conversation for two different aerospace firms,” said Dennis Marciniak, vice president in the Woodland Hills office of Daum Commercial Real Estate Services, who during the quarter worked on mainly small deals, including the sale of a 2.4-acre parcel in the Lancaster Business Park. Also showing interest in the Senior Systems site is Anywind Wind Power Electric Inc., a South Korean alternative energy company. Anywind opened its U.S. headquarters in Palmdale and has eyed the building for manufacturing. But before the company selects a location for manufacturing, it first will set up a storefront, said Dave Walter, economic development manager in Palmdale. “They want a place where people can look at the product and then order it,” he said. Leading to the gloom was the news this month that Kinkisharyo International LLC has decided not to build a 400,000-square-foot light rail car manufacturing plant on 60 acres the company had planned to buy at Avenue M and Sierra Highway. The decision followed a labor dispute and questions about the environmental review. The $50 million facility would have made cars for the L.A. County Metropolitan Transit Authority and would have employed 250 workers In the retail market, construction continues on a 5-acre center that will include grocery chain Aldi, Dunn-Edwards Paints and eateries Chick-Fil-A, Krispy Kreme, Yogurtland and The Habit. The center is being built in phases by Fountainhead Development of Newport Beach with the Dunn Edwards building to be completed by the end of the year. – Mark R. Madler Main Events A nearly 26,000-square-foot property in Lancaster sold for $2.25 million in July. The 10th Street Commerce Center at 44226 10th St. West was purchased by 44226 10th St. West LLC of Los Angeles. The neighborhood center was built in 1970 and is leased to Antelope Valley Partners for Health, a local public health group that provides health and wellness programs to children and families. Living Praise Christian Center Church opened at 19,000-square-feet in Palmdale in July. The space at 2320 E. Avenue R was built in 1990 and had been the Palmdale location for Pinecrest Schools. The property is on nearly 4-acres and has administrative offices, 12 classrooms, one multi-purpose room and a kitchen. The church bought the property in March for $1.45 million from Pinecrest. A 28,000-square-foot specialty building in Lancaster was purchased in July to become the eventual site of the LifeSource International Charter School. The property at 44339 Beech Ave. was picked up by D. Mark Spencer of Denver from the Los Angeles District Advisory Board of Arcadia. The structure was built on more than 2 acres in 2006. Cal-X Properties of Santa Monica paid $875,000 for a 16,000-square-foot warehouse in Palmdale in July. The Fairway Business Park at 610 W. Avenue O was sold by Situs Holdings LLC of San Francisco. The building was constructed in 2006 on 1.75-acres and is leased to Davis Wholesale Electric Inc. Antelope Valley Industrial Market At a Glance Inventory 4.59 million square feet Under Construction 0 Class A Asking Rents 47 cents