Office tenants vacated 185,260 square feet of space during the fourth quarter, with most it in the West Valley. As a result, vacancy rose to 15 percent from 13 percent the previous quarter. The highest concentration of vacancy was the East Valley at 19.9 percent. Overall Valley office asking rents increased 2 cents to $2.62 a square foot. Developers have 1 million square feet of office space under construction. In the industrial market, 2.4 million square feet were leased or sold during the fourth quarter while vacancy halved to 0.8 percent. Industrial lease rates grew just a penny to 94 cents.
Main EventsThe two largest industrial sales in the market were related to Lithia Motors Inc.’s purchase of Keyes Automotive Group car dealerships. Subsidiary Lithia Real Estate paid $58.5 million for 5905 Van Nuys Blvd., the site of Keyes Lexus. Lithia also paid $54.3 million to buy 5400 Van Nuys Blvd., the location of Keyes European Mercedes-Benz.
Bechir Apartments in Tarzana sold for $27.1 million to a private investor. The 118-unit complex is at 6322 Reseda Blvd.
Rexford Industrial Realty paid $42.6 million to acquire the warehouse at 13943-13955 Balboa Blvd. in Sylmar. It has almost 201,000 square feet of space and was 100 percent leased at time of sale.21 Alpha Group sold a 200-unit affordable housing complex in Sylmar for $29.4 million. Mountain View Manor has six buildings at 12960 Dronfield Ave. Positive Investment was the buyer.Rexford Industrial Realty plans to redevelop a two-building industrial park it bought in Sylmar for $22 million. The park has 140,837 square feet at 12744 San Fernando Road.JocottBrands Inc.
signed a lease for 65,550 square feet at 13571 Vaughn St. in San Fernando. The personal care company plans to expand from its current operations in Van Nuys. Financial terms were not disclosed.The 16,230-square-foot multi-tenant industrial building at 7020 Hayvenhurst Ave. in Van Nuys sold for $3 million, or nearly $188 per square foot.
Fox Capital was the buyer and Kamat Family Trust the seller.Via Studio City, an apartment building at 4100 Whitsett Ave. in Studio City, changed hands for $6.3 million, or $420,000 per unit.