Q 1 2014 Office and Industrial Market Report San Fernando Valley

Q1 2014

Market Moves a Tad Slower in Quarter, But Longer Term Trends Remain Positive

The Los Angeles North office market quieted down somewhat in the first quarter, although leasing activity continued to exceed 1 million SF.

Vacancy levels remained unchanged at 16.2 percent compared to the fourth quarter, and have fallen nearly 100 basis points (bps) compared to vacancies of 17.1 percent in the same period last year.

Just over 1 million SF of office space was leased in the quarter, about 38 percent less than the 1,624,000 SF leased in Q4 and down from the year ago period as well. The slowdown in velocity seems to have impacted absorption during the quarter, but it’s equally important to note that leasing has been strong now for the past nine quarters, an indication that the recovery in the office market is proceeding at a pace consistent with the economic growth we are seeing.

Only 31,200 SF of space was leased on a net basis during the quarter, down significantly from Q4 when net absorption totaled 298,035 SF. However, over the past 12 months, 504,000 SF of space has been leased on a net basis, amounting to a solid 1.1 percent growth in occupied space over that period.

With that level of progress, developers are reentering the market. Although the 200,000 SF of office space currently under construction is probably insufficient to make any real impact on available inventory, it is indicative of a return of confidence. Not to be overlooked, Laurel Canyon Plaza, a 90,000 square foot office building in North Hollywood and a neighboring retail building, was acquired by Goldstein Planting Investments for redevelopment.

Indeed, the Allen Matkins/UCLA Anderson Forecast Commercial Real Estate Survey released late in January showed that sentiment in the office market is highest in Southern California. About 70 percent of the survey respondents in the region said they planned to commence one or more projects within the next 12 months.

Sales activity too slowed in the quarter with just 10 sales taking place, compared with 19 in the year-ago period. With fewer transactions, the median price of office buildings sold declined to $205 PSF in Q1 from $257 PSF in Q4 and $212 PSF in Q1, 2013. Still, several trophy properties changed hands including Tower Burbank and Westlake Park Place.

Industrial Absorption Rises to Pre-Recession Levels and Vacancies Fall Below 4 Percent

Following four quarters of robust leasing activity, absorption has risen to pre-recession levels and vacancy has fallen to the lowest levels the market has seen since 2009.

With little new construction and a resurgence of demand for industrial space, the upward trajectory of the Los Angeles North industrial market seems here to stay, at least for the time being.

Some 1,100,404 SF of industrial space was leased in the quarter, bringing vacancy levels down to 3.8 percent, the first time vacancies have fallen below 4 percent since the fourth quarter of 2009. Current vacancy levels have fallen 40 basis points (bps) compared with the prior quarter and year ago period, which both registered vacancies of 4.2 percent.

Not surprisingly, leasing velocity has slowed somewhat from the prior quarter when 1,475,538 SF of space was leased, as well as the year ago period when 1,824,794 SF was leased as options for businesses become extremely constrained. Eight of the 13 Los Angeles North submarkets now are operating with vacancy levels below 3 percent. In the North Hollywood/Universal City submarket, vacancy is 0.9 percent. In Northridge it is 1.2 percent and in Reseda/Tarzana it is 1.5 percent. Only the Antelope and Santa Clarita valleys show vacancy rates above 5 percent.

On a net basis, some 625,600 SF of industrial space was leased, more than in any quarter since the first quarter of 2006 when 645,688 SF of space was absorbed. Admittedly, we are still seeing some fluctuation in absorption rates, and negative 135,923 SF was registered in Q4, but given the solid leasing activity, the volatility is more likely due to the lapsed time between space leased and occupied.

Similarly the sales sector was more active than it has been in any first quarter since 2009 with 23 industrial buildings changing hands in the quarter. The median sale price rose 19 percent to $130 per square foot, compared with $109 per square foot in Q4.

Although there are still some distressed assets being cleared in the region, their numbers are minimal. In the current quarter, just two distressed properties changed hands, compared to six in the first quarter of 2013.

Eric Nishimoto Commerical Real Estate - San Fernando Valley and Conejo Valley

Looking for space for you business operations or for investment properties? Whatever your current or future needs, Lee & Associates has the local market insight, the relationship, and the deal-making expertiese to help. By leveraging our expertise in matching your objectives with the best options, we will find the perfect solution for your real estate needs.

Regardless of whether you are a tenant, landlord, investor or business owner, real estate is one of the most important assets your business must manage.

Marketing campaign to the community of commerical real estate and business owners in the San Fernando Valley and Conejo Valley.

Product types include Office Properties, Industrial Properties, Retail Services, Multifamily Properties and Investments Sales.

Services also include Renewals, Expansions, Relocations, Valuation Analysis, Exercise of Options, Leases and Subleases, Lease Audits, Acquisitions, Dispositions.

Carlton Plaza Office for Lease - Rent Woodland Hills Office

 CARLTON PLAZA, a 153,909 square foot, beautiful brick and black glass deluxe office building, offers efficiently designed office space creating a professional atmosphere while retaining the flexibility to service both full floor and multiple tenant users. The articulated space and open balconies of CARLTON PLAZA not only enhance, but make possible numerous outside corners for executive offices to create that special work environment that is both functional and dramatic. CARLTON PLAZA, 20750 Ventura Boulevard, Woodland Hills located on Ventura Boulevard and Kelvin Avenue, south of the 101 Ventura Freeway and just east of De Soto, directly across from Target. The Carlton Plaza office building has close proximity to Woodland Hills Kaiser Permanente Hospital, Warner Center Offices, Westfield Shopping Center on Topanga Canyon, Warner Center Marriott, Pierce College and Taft High School, Shopping, Dining and Entertainment. A variety of newly built luxury lifestyle apartments are also available in the area.
Woodland Hills includes the area of Warner Center located in the San Fernando Valley. Woodland Hills is just east of Calabasas and west of Tarzana with Warner Center at the most northern section. To the north, Woodland Hills is next to West Hills and Canoga Park. To the south of Woodland Hills are the foothills of the Santa Monica Mountains.
The 101 Ventura Freeway and Ventura Boulevard are the east and west main transportation hubs. Public transportation is now more widely available with recent opening of the Orange Line with stops at Warner Center.
Other thoroughfares close by are De Soto, Canoga Ave, Warner Ranch Rd, Warner Center Ln, Owensmouth Ave, Califa St, Variel Ave, Erwin St, Serrania, Kelvin Ave, Topanga Canyon Blvd, Vanowen St, Victory, Oxnard St, Ventura Blvd, Burbank Blvd, Clarendon St, 101 Ventura Freeway.

Servicing the Los Angeles County & Ventura County and surrounding areas of the San Fernando Valley & Conejo Valley: Chatsworth, Canoga Park, Winnetka, West Hills, Woodland Hills, Warner Center, Reseda, Van Nuys, Granada Hills, North Hills, Northridge, Porter Ranch, Tarzana, Encino, Sherman Oaks, Valley Village, Studio City, Lake View Terrace, Lake Balboa, Shadow Hills, Sun Valley, Sunland, Tujunga, Toluca Lake, Valley Glen, North Hollywood, Sylmar, Van Nuys, San Fernando, Arleta, Panorama City, Pacoima, Burbank, Glendale, Hidden Hills, Calabasas, Agoura Hills, Westlake Village, Newberry Park, Thousand Oaks, Oak Park.

Northridge Office Space Available for Lease

Plaza De La Cordillera, a Spanish style office building located at 18860 Nordhoff Street, Northridge.  The city of Northridge is a community in the San Fernando Valley, a part of the County of Los Angeles.  18860 Nordhoff Street, Northridge office building is centrally located with education, employment, health care, shopping and entertainment. California State University Northridge, CSUN, Medtronic, Northridge Hospital Medical Center and the Northridge Fashion Center, all within close proximity.  
Plaza De La Cordillera was built in 2001, recognizing the historical influence of the Southwest Americas on the soils of this thriving modern community of Northridge.  From the Spanish tiles and classical styled fountains to the architecture commissioned by Frank Gehry, Plaza De La Cordillera is truly one of a kind office building.  The artistic landscape and the calming water features brings a relaxed setting but professional image for any corporate office looking for an appealing headquarters in this vibrant city of Northridge.

For more information and office leasing availability, please contact Eric Nishimoto or Jay Rubin at Lee & Associates -- LA North/Ventura, Inc. at 818-223-4388.       

18860 Nordhoff Street, Northridge located on the signalized corner of Nordhoff Street and Wilbur Avenue. Other thoroughfares close by are Reseda, Corbin, Plummer, Parthenia, Tampa, Winnetka, Lassen, Lindley, Roscoe, Devonshire, Mason, White Oak, Balboa, Zelzah, Strathern, Saticoy, Sherman Way, Chatsworth, De Soto, San Fernando Mission, Rinaldi, Topanga Canyon, Vanowen, Victory, Oxnard, Ventura, Burbank, Hayvenhurst, Woodley, Haskell, Sepulveda and 118 Ronald Regan Freeway, 405 San Diego Freeway, 101 Ventura Freeway.

Servicing the Los Angeles County & Ventura County and surrounding areas of the San Fernando Valley & Conejo Valley: Chatsworth, Canoga Park, Winnetka, West Hills, Woodland Hills, Warner Center, Reseda, Van Nuys, Granada Hills, North Hills, Northridge, Porter Ranch, Tarzana, Encino, Sherman Oaks, Valley Village, Studio City, Lake View Terrace, Lake Balboa, Shadow Hills, Sun Valley, Sunland, Tujunga, Toluca Lake, Valley Glen, North Hollywood, Sylmar, Van Nuys, San Fernando, Arleta, Panorama City, Pacoima, Burbank, Glendale, Hidden Hills, Calabasas, Agoura Hills, Westlake Village, Newberry Park, Thousand Oaks, Oak Park.

Northridge Office Space Lease Rent Available Nordhoff Street Valley Porter Ranch Reseda University Lee Associates Nishimoto Work Location Headquarters Company CSUN Conference Lobby Leasing Renting Medical Financial Mortgage Bank Retail Institution Credit Card Stocks Bonds Insurance Loan Technology Education Culture Historic Fashion Shopping Employment Health Care Community Broker Los Angeles

9444 Irondale Avenue - Chatsworth Industrial Warehouse

9444 Irondale Ave, located in Chatsworth, near De Soto Ave and Plummer St. Situated within the Enterprise Zone and offers several tax credits and incentive.

Located on a quite cul-de-sac with plenty of street parking and great cinergy between businesses.  

The gated back access and reserved parking is an additional feature of this building. The open alley is an added benefit for businesses conducting delivery and shipping.

Pebbled accent finishes and landscaping add subtle touches to the facade and offers a warm welcome to guests and visitors. 

The entrance opens ups to reveal a blank canvas perfect for a waiting room or reception area. The private office overlooks the Warehouse and is just steps from the updated restroom.

The Fully Air conditioned warehouse offers 1,940 of RSF, plenty of height clearance, 10X10 ground level roll up door, Water, MR2 Zoning, back parking access, Power at 50 amps at 240V, 3 phase, and 100 amps at 110/240V Single phase.

Clean, newly repainted and ready for move in. 9444 Irondale Ave. is ready to have your businesses.

Woodcourt - Woodland Hills Professional Office, Medical and Retail Space for Lease

Woodcourt, located in Woodland Hills, centrally located and just south of the 101 freeway, between De Soto Ave. and Winnetka Ave. at 20251-20315 Ventura Blvd.  The area is within close proximity to plenty of services, restaurants and all major transportation corridors with public transportation at its doorstep. 

Woodcourt offers a creative mix of Professional Office, Medical, and Retail space with Ventura Blvd frontage and monumental signage available.

Here at Woodcourt, there is a variety of efficient spaces and layouts and with the ability to create your ideal space whether it be an affordable, or flexible space for a growing start-up company, a professional office setting with abundant window line or a doctor’s office built to suite with all the high end touches.

Woodcourt’s lush landscaping and calming water features are unique elements that gives Woodcourt the sophisticated elegance yet casual environment that fuses professional office space with it’s open and flowing design.

Woodcourt offers newly built-out and ready to move in office spaces.  Generous Tenant Improvement Allowances are available for creating those one-off designs for your company or business specific needs.  In addition, some of the suites also feature a conference room, open bullpen area, kitchen, server & telephone room, private restrooms and reception area.  

Abundant surface and covered parking is available. Free Visitor Parking makes way for convenience and ease of access for guests. 

The lush and tranquil like setting is a unique feature to the professional offices and prominent Ventura Blvd address only found here at Woodcourt. 

San Fernando Valley Lee & Associates - LA North/Ventura News

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San Fernando Valley Office Rental Market Picking Up Slowly

Year end 2010 left us with conservative but encouraging recovery in the office sector.  Still the fourth quarter left landlords with presistent challenges ahead.  With multiple spaces for quality tenants to choose from, low market rents coupled with high improvement cost have pushed majority of the smaller landlords without deep pockets out of this leasing market. Not to mention the need for many existing tenants that has excess space trying to downsize.

The pace of lease transactions have picked up toward the end of the year as confidence in our economy is slowly recovering.   Over the course of this year, we should see a stabilization of rents as we have seen a decline for 12 straight quarters.  New employment and business growth is certainly the leading factors to stabilization of rents and absorption of excess space.