Q3 2015 San Fernando Valley Office and Industrial Market Report

Industrial Vacancy Rates in Los Angeles North Hit a 10-Year Low in the Third Quarter  

Industrial vacancies in the Los Angeles North market hit a 10-year low in the third quarter, declining to 2 percent from 2.4 percent in the prior quarter and 2.6 percent in the year-ago period.

Supply is even tighter when you consider that eight of the region’s 13 submarkets are op­erating with vacancy rates below 2 percent. Among them are Canoga Park, Burbank, Glen­dale, San Fernando/Sylmar/Pacoima/Arleta, Sun Valley and Van Nuys, communities with some of the largest concentrations of indus­trial space.

The severe space constraint is now beginning to affect leasing activity. Just 562,378 square feet of industrial space was leased in the quar­ter, the lowest level since the first quarter of 2009, and a 67 percent decline compared to the prior quarter’s 1,693,395 square feet of leasing.

Perhaps surprisingly, absorption held up in the third quarter with 716,800 square feet of industrial space absorbed. However, since space is not recorded as absorbed until the tenant moves in, current absorption levels re­flect leasing activity over the past several quar­ters, and it’s likely that we will see a substan­tial drop-off in absorption in coming months due to the constrained supply of inventory.

Average lease rates are now $0.71 per square foot, 22 percent above the lows reached dur­ing the recession. Landlords may push rates on a case-by-case basis, but the severe inven­tory shortage is likely to limit average increas­es for the region as we go forward.

Sales activity continues to be brisk although the number of buildings sold in the third quar­ter fell off compared to the prior two quarters of 2015. A total of 36 buildings traded in Q3 at a median price of $141 per square foot. That compares with 95 building sales at a median price of $133 per square foot in Q2 and 56 building sales at a median price of $141 per square foot in the first quarter of the year. The median price of industrial buildings sold in the current quarter reflects a 28 percent year-over-year increase.

Vacancies Continue to Decline and Lease Rates Rise as a Very Active Sales Sector Pushes Building Prices

Los Angeles North office vacancies dipped to 13.8 percent, a decline of 10 basis points (bps) in Q3 versus the prior quarter and 70 bps below levels in the year-ago period. The last time vacancy levels reached 13.8 percent occurred in Q4 2008 as the impact of the recession was just hitting the Los Angeles North office market. Ultimately, vacancy levels rose to 19.1 percent before beginning the current pattern of descent in 2010.

As space fills, landlords have become more willing to push rents, although the pattern of lease rate increases can best be described as cautiously assertive. In Q3 asking lease rates averaged $2.31 per square foot, $0.02 per square foot more than the average in Q2 and $0.05 per square foot above the year-ago period.

Lease rates in the region continue to remain well below pre-recession highs of $2.50 to $2.70 per square foot, an indication of the slower pace of job market recovery and the way office space is filling. Los Angeles County continues to underperform California and the country at large in employment and earnings recovery.

The spotty nature of the market’s performance can best be seen in absorption levels, which in the third quarter were a meager 61,800 square feet. That compares with absorption of 176,977 square feet in the prior quarter and 290,027 square feet in the year ago period. On a year-over-year basis, absorption was 342,892 square feet compared with 725,000 square feet in the same nine-month period in 2014.

While there has been a steady stream of leasing in size ranges from 2,000 to 5,000 square feet, the market also saw large blocks of space given back in some submarkets in the current quarter, among them, Burbank, North Hollywood and Warner Center, and to a lesser extent, Sherman Oaks and Encino. Except for Burbank, those submarkets all registered negative absorption levels in the quarter. That said, the pace of leasing activity in the last two quarters should push absorption levels up in Q4.

The sales sector continues to be the brightest star in the market with year to date median prices for office buildings rising to $223 per square foot, the highest levels since 2010, and the number of sale transactions on pace to exceed that of any recent year.

Lee & Associates-LA North/Ventura, Inc., a member of the Lee & Associates Group of Companies, is a full service commercial brokerage company with offices in Sherman Oaks, Calabasas, Ventura and Antelope Valley. LA North is celebrating its 20th anniversary this year. Additional in­formation is available at www.lee-associates.com.

Q4 2014 Office and Industrial Market Report San Fernando Valley

Office Market Makes Significant Strides as Absorption Rises Three-Fold vs. 2013

What a difference a year makes! The banner recovery in the office market was marked by huge improvements in absorption and a steep drop in vacancy rates compared to 2013.

For the full 2014 year, absorption increased nearly three-fold to 954,500 square feet compared to 241,400 square feet of net absorption for 2013. Vacancy rates, which have been declining for seven straight quarters, ended the year at 13.1 percent, down 180 basis points (bps) over the fourth quarter of 2013; and the median price of buildings sold in 2014 increased 17 percent to $189 per square foot compared to a median sale price of $161 per square foot in 2013.

Leasing activity slowed in the fourth quarter, with 676,067 square feet of office space leased compared to 949,761 square feet of leasing in Q3, and 1,699,334 square feet of leasing in the year-ago period. However, current leasing activity more closely approximates the leasing levels we saw quarterly prior to the recession, indicating that the market is simply returning to more stable, prerecession levels.

Similarly, average asking lease rates are not showing a great deal of movement. The average asking rate was $2.26 per square foot in the fourth quarter, unchanged from the prior quarter and just one penny more than the rate in the year ago period. But the averages do not reflect the recovery in some Class A buildings in primary submarkets such as Sherman Oaks, Calabasas, Studio City and the East Valley where landlords are commanding lease rates in excess of $3 per square foot.

For the year, 65 office buildings traded, somewhat less than the 83 buildings sold in 2013, but the sales sector was far more active than it had been earlier in the recovery. There were 47 building sales in 2012 and just 31 in 2011.

A total of 10 buildings traded in the fourth quarter at a median sales price of $225 per square foot, a 49 percent increase over $151 per square foot for the fourth quarter of 2013. Among them, the 44-acre Northridge Business Center which will undergo redevelopment.

Severe Shortage of Product to Lease Contributes to Most Robust Sales Activity Since 2006

 The Los Angeles North industrial market has become impossibly tight, leading to a falloff in leasing activity and with it, weak­ening absorption rates. On the other hand, sales activity has been robust as compa­nies unable to find space to lease are turn­ing to acquiring facilities, especially with today’s low interest rates.

The vacancy rate in the fourth quarter dropped to 2.4 percent from an adjusted 2.7 percent in the third quarter and 3.9 percent in the year-ago period. Even more telling, if you remove the space available in the Antelope Valley and the Santa Clarita Valley, vacancies would be 1.6 percent.

Considering the tight market, leasing activ­ity held up pretty well in the fourth quarter with 1,013,034 square feet of deals trans­acted, just slightly less than the 1,247,788 square feet of space leased in the prior quarter, but nearly one half million square feet less than the year-ago period. Lease rates have risen 8 percent compared to the year-ago period and are now averaging $0.67 per square foot.

Last year at this time the market was still giving back space with a number of sub­markets reporting more space vacated than was leased. Just 283,100 square feet of space was absorbed in the full 2013 year as a result. By comparison, full year absorption for 2014 was 1,842,100 square feet, with virtually no negative ab­sorption anywhere in the region. But ab­sorption has been trending downward on a quarter-to-quarter basis as the market has tightened. In Q4, 319,100 square feet of space was leased on a net basis compared with 373,472 square feet of absorption in Q3.

There were 104 industrial building sales in the region in 2014, more than in any other year since 2006 when 117 buildings traded hands.

While median sale prices have been ris­ing steadily since 2011, prices have still not caught up with the market peak. For 2014, the median price of buildings sold was $118 per square foot, an 8 percent increase over 2013 and 12 percent high­er than 2012 when the median price of buildings sold was $105 per square foot.

Northridge Warehouse for Lease

18555 Eddy Street in Northridge is a freestanding industrial warehouse for lease. The steel frame structure, concrete block and corrugated metal building is approximately +/- 7,040 SF. This Northridge warehouse has one large 14x14 ground level electrical roll up door and one 14x14 sliding door that leads into a private and gated outdoor area. The minimum building clearance is 14 ft. from the sides and up to 24 ft at the center. This Northridge warehouse has approximately 6,000 SF of warehouse space with the remaining balance of highly improved modern office space on two floors. Power – 200A 120-240V 3Ph(Verify). There are 4 restrooms, 2 separate entrances, storage room, reception area, kitchen area, open bullpen space, and several private offices. The image and environment is creative and has unique qualities as compared to other traditional Northridge, Chatsworth and Canoga Park industrial buildings. Very creative space with modern offices and airplane hanger feel warehouse space.

Located in the State Enterprise Zone, this Northridge industrial warehouse has pole signage and abundant street parking and on a cul-de-sac.  This Northridge industrial building is zoned commercial manufacturing (CM) http://www.amlegal.com/nxt/gateway.dll/California/lapz/municipalcodechapteriplanningandzoningco/chapterigeneralprovisionsandzoning/article2specificplanning-zoningcomprehen/sec12171cmcommercialmanufacturingzone?f=templates$fn=default.htm$3.0$vid=amlegal:lapz_ca$anc allowing for  a wide range of uses.      

18555 Eddy Street, Northridge is located between Amigo Avenue and Baird Avenue with the closest major intersection at Reseda Boulevard and Parthenia Street, Nordhoff Street to the North and Roscoe Boulevard to the South, Tampa Avenue to the West and Balboa Boulevard to the East.  Other close located streets are Yolanda Avenue and Rayen Street.

Businesses in the area include automotive (auto body, restoration, service center and tires), tile and marble, steel and construction, self-storage, food and services, plumbing, electrical, remediation and a variety of other uses.

Q2 2014 Office and Industrial Report San Fernando Valley

A Surge in Leasing Activity and Marked Improvement in Employment Drives Vacancies Down and Lease Rates Up

Another surge of leasing activity and marked improvement in employment levels drove office vacancy rates down to 15.5 percent in the second quarter compared to 15.8 percent in the prior period. Vacancy has improved by 150 basis points (bps) compared to the year-ago period.

There were 1,355,898 square feet leased in the quarter, up nearly 20 percent over the prior quarter although 365,762 square feet less than the space leased in the year-ago period. Velocity declined 18 percent from the first half of 2013 as well. A total of 2,492,863 square feet was leased in the first half of 2014 versus 3,039,301 square feet leased in the first half of 2013.

But the modest slowdown comes as lease rates show increasing strength. The average lease rate in Q2 was $2.27 per square foot, up $0.03 per square foot from the prior quarter and $0.05 per square foot compared to the year-ago period. Indeed, much of the pressure landlords were feeling to lease their buildings last year has subsided, and the average asking rate in the current quarter is the highest we have seen in the market since the fourth quarter of 2010.

It should be noted however, that average asking rates are still16.5 percent off their highs of $2.72 per square foot in Q2 2008

Absorption has been positive for the past four quarters with another 210,100 square feet absorbed on a net basis in Q2. This follows a Q1 absorption rate of just 59,131 square feet and a significant improvement from the year ago period when 179,715 fewer square feet were leased than were vacated.

Median sale prices for office buildings have been trending upward for the past three quarters and registered $196 per square foot in Q2 with a total of 10 buildings sold. Including distressed sales and those for which no sale price was reported, the median price was $230 per square foot with a total of 12 building sales.

Year to date the median price of buildings sold in the region was $190 per square foot. There were 22 office buildings sold in the period. Prices have risen 6 percent compared to 2013 when the median price of buildings sold was $179 per square foot.

 Industrial Vacancies Continue to Fall and Sales Momentum Builds

 Vacancy levels in the Los Angeles North in­dustrial market fell even further and the steady pace of absorption continued in the second quarter.

Vacancies declined to 3.4 percent in the quarter, down 20 basis points (bps) from the prior period and 110 bps compared to the year-ago period. Nine of the area’s 13 sub­markets are now showing vacancy levels be­low 3 percent leaving few options for tenants looking for industrial space.

Absorption has been very strong, and in Q2 2014 354,300 square feet was leased on a net basis. By comparison, 423,752 fewer square feet were leased than were vacated in the second quarter of 2013. For the year to date, 1,034,000 square feet of space was absorbed versus 233,723 square feet of ab­sorption in the first half of 2013.

With the steady pace of improvement, land­lords are beginning to increase rents. After more than two years with little change in lease rates, the average rate rose by $0.02 per square foot compared to the prior three quarters to $0.64 per square foot and by $0.03 per square foot versus the year ago period. The last time average lease rates were $0.64 was the third quarter of 2009.

While rock-bottom vacancy levels and expec­tations that lease rates will continue to rise are fueling investment activity, the shortage of suitable buildings is spurring more busi­ness owners to opt for purchasing rather than leasing their space. In the year-to-date period 42 industrial buildings were sold at a median price of $128 per square foot, an in­crease of 17 percent in the price of buildings sold compared to 2013. Sale prices have risen 28 percent over the past two years.

For the most recent quarter, 19 buildings were sold at a median price of $120 per square foot. Including distressed properties and those for which no sale price was report­ed, 25 buildings were sold at a median price of $119.

Much has been written recently about the constrained supply for industrial buildings, and nowhere is that more true than in the Los Angeles North market. The conversion of much of the area’s manufacturing real estate to multifamily or retail space and scarcity of raw land has left few opportunities for the development of new inventory, and a mere 59,000 square feet of new industrial con­struction is currently underway.

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.

Q3 2013 San Fernando Valley Office & Industrial Market Report

Leasing Activity Takes a Breather and Fundamentals Show Marked Improvement  

Leasing activity fell back a bit as the office market absorbed the considerable space leased over the last four quarters. A total of 898,773 square feet of office space was leased, down 22 percent from the prior period and off roughly by the same amount compared to the year-ago period.

You might say it was bound to happen as the market absorbed nearly 2.7 million of square feet leased in the first half of the year. Indeed, vacancy rates fell to 16.7 percent in the quarter, down from 17.4 percent in the second quarter and 17.3 percent in the year-ago period. Even Warner Center, among the slowest submarkets to recover due to its relatively large inventory and its traditional tenant base of financial services firms, which were hardest hit in the recession, has seen its vacancy levels plummet. Last year at this time Warner Center’s vacancy rate was 17.3 percent, and as of the current quarter it stands at 13.8 percent.

As might be expected given the strong leasing activity for the better part of the year, absorption improved considerably in the quarter. A net 370,300 square feet of space was absorbed in the quarter, compared to negative 18,700 square feet in the second quarter and negative 40,200 square feet in the year ago period.

Asking lease rates rose to $2.27 per square foot from $2.23 per square foot in the prior quarter and $2.21 per square foot in the year ago period. It is the highest lease rate we’ve seen in the LA North market in six quarters. Although rates are still off dramatically from the high of $2.72 per square foot at the height of the last real estate cycle, there are some markets and buildings, especially in the Sherman Oaks submarket and some areas of Burbank that have pushed into the $3.00 per square foot range.

Only seven office buildings were sold in the quarter, however, on a year-to-date basis, the number of building sales so far in 2013 is ahead of the number sold in all of 2012, and median sale prices jumped dramatically. The median price of buildings sold in the quarter was $232 per square foot, 27 percent higher than last quarter’s $183 per square foot and a 23 percent increase over the year ago period.

Economy at a Glance

BUDGET: Bank of America Merrill Lynch sliced its domestic growth forecast for Q4 to 2 percent from 2.5 percent because of the government shutdown, according to a report in Bloomberg News. One example: Grant Thornton LLP put 120 of its 600 federal contract employees on hiatus, and said the shutdown was costing $500,000 a week because it continued to pay those workers without getting paid by the government.

SMALL BUSINESS: Revenue at companies with less than $10 million in sales increased 8 percent annually in the past two years, but the pace slowed by 2 percent so far in 2013, according to data from Sageworks reported in BusinessWeek.

HOLIDAY: A National Retail Federation poll found almost 80 percent expect to spend less during the coming holiday season. Respondents plan to spend $737.95 on gifts, décor and other holiday purchases, off 3 percent from last year when they shelled out $752.24, according to a story in the Los Angeles Times.

OBAMACARE: California’s new insurance exchange received 95,000 applications for health insurance in the first two weeks of open enrollment, according to a report in the Los Angeles Times.

RETIREMENT: A poll of American workers aged 50 and above by the Associates Press-NORC Center for Public Affairs Research found four in five plan to keep working during their latter years, the Los Angeles Times reported. The results indicate that traditional retirement is out of reach for many, the survey found.

Activity Surges, Driving Vacancy Levels Down And Lease Rates Up

A flurry of leasing activity in the third quarter drove up absorption rates and pushed vacancy rates down as the industrial market continues to show resiliency and strength.

Nearly 1.5 million square feet of industrial leases were transacted in the quarter, a 32 percent increase over the prior period when about 1.1 million square feet of space was leased, but somewhat less than the 1.8 million square feet of leases signed in the comparable period a year ago.

The activity pushed vacancy levels down 30 basis points to 4.4 percent from 4.7 percent in the prior quarter and absorption has vastly improved, compared to the prior quarter as well as the year-ago period.

Nearly 387,000 square feet of space was absorbed in the quarter, up from negative 77,000 square feet in Q2 and up dramatically from the third quarter of 2012 when 230,000 fewer square feet were leased than were vacated in the region.

The continued strengthening of the market is slowly pushing lease rates up. The average direct asking rate was $0.62 per square foot in Q3, up from $0.60 per square foot in Q2 and Q3 2012. Currently rates are at their highest levels since the fourth quarter of 2009, and the increases are even more dramatic in smaller size ranges. The average lease rate for buildings in the 5,000 – 10,000 square foot range was $0.72 in the quarter, and it was $0.66 per square foot for buildings ranging from 10,000 square feet to 20,000 square feet.

With a limited inventory supply, we are seeing more owners opt to purchase their facilities as a way to ensure that they have the space they need for their operations, control costs and avoid costly relocation, and industrial building sales have been brisk as a result.

A total of 25 industrial buildings were sold in the quarter at a median price of $119 per square foot, the highest per square foot price registered for industrial buildings in the region since Q2 2009. Although the number of building sales was down from the prior period, when 34 industrial buildings changed hands, the data indicate that fewer distressed sales are taking place. Only one of the sales that took place in the current quarter was an REO, compared with the prior quarter when 17 percent of the building sales were distressed assets.

Economy at a Glance

BUDGET: Bank of America Merrill Lynch sliced its domestic growth forecast for Q4 to 2 percent from 2.5 percent because of the government shutdown, according to a report in Bloomberg News. One example: Grant Thornton LLP put 120 of its 600 federal contract employees on hiatus, and said the shutdown was costing $500,000 a week because it continued to pay those workers without getting paid by the government.

HALLOWEEN: Nearly 66 percent of adults celebrate Halloween, resulting in some $6.9 billion in sales, according to a survey by the National Retail Federation reported in BusinessWeek.

E-COMMERCE: U.S. spending by online shoppers reached $290 billion in 2012, and is expected to reach $500 billion by 2020. The growth is creating dramatic changes in the way industrial warehouse space is used and configured, according to a report from DHL Supply Chain, said National Real Estate Investor. Although retailers are still looking for the right formula, strategies include building smaller regional warehouse centers and converting a portion of retail stores to fulfillment centers.

SMALL BUSINESS: Revenue at companies with less than $10 million in sales increased 8 percent annually in the past two years, but the pace has slowed in 2013, according to data from Sageworks reported in BusinessWeek. Sageworks found sales at these companies are running 2 percent less so far in 2013.

What is a 1031 Exchange?

1031 tax deferred exchange is a way to postpone capital gains or loss from a sale of property through purchasing another like-kind property within a certain time frame. Although there are several kinds of 1031 exchanges, the Delayed Exchange is the most common.  

“Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), the exchange of certain types of property may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due.” http://en.wikipedia.org/wiki/Internal_Revenue_Code_section_1031

1031 tax deferred exchange is a way to postpone capital gains or loss from a sale of property through purchasing another like-kind property within a certain time frame. Although there are several kinds of 1031 exchanges, the Delayed Exchange is the most common.  

“Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), the exchange of certain types of property may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due.” http://en.wikipedia.org/wiki/Internal_Revenue_Code_section_1031

Through the 1031 tax deferred exchange program, property investors are able to reinvest the sale proceeds into another property of equal or larger value.  This has been a common platform property investors have been using over time to create great wealth.

Before the property is sold, escrow will make the necessary arrangements for the 1031 exchange.  At the close of escrow, the proceeds from the sale will be transferred to an Accommodator also known as a Qualified Intermediary.  (A Qualified Intermediary is an independent party who facilitates tax-deferred exchanges pursuant to Section 1031 of the Internal Revenue Code. The QI cannot be the taxpayer or a disqualified person.) http://www.1031.org/about1031/faq.htm

The investor will have 45 days from the date the downleg(relinquished property) is transferred to identify potential exchange properties. There are several different rules on property identification but the 3-property rule seems to be most popular. Within 180 days from the close of escrow of the downleg, one of the three identified properties must be purchased.

Most investors selling their investment property will begin looking for an exchange property from the moment they put their own property up for sale. So in general, if the sale property takes approximately 90 days to close escrow(30 days of marketing & 60 day escrow), they would have additional time to identify several replacement properties and close escrow on the upleg(replacement property).   

Here is a great place and resource to learn more http://www.ipx1031.com/reexchanges.aspx

San Fernando Valley Industrial and Office Q2 Market Reports

Industrial

Activity Is Light As Inventory Remains Extremely Constrained

Lack of spaces suited for today's manufacturing and warehousing needs has resulted in vacancies below 5%. Rates have modest increases by $.01 to $.61 per square foot per average quarter. Of 33 industrial buildings that sold the median price was $116 per square foot, up 13% from Q1.

Q2 2013 San Fernando Valley Industrial Market Report (Click Link For Report)

Office

Leasing Activity Weakens But Low Interest Rates Push Sales Velocity

Office spaces remain sluggish in Q2 with no significant changes from Q1. Vacany rates relatively unchanged at 17%, but better by .08% a year ago. Leasing activity are companies trading spaces in the area. Rent are up about $.03 from a year ago. There were 18 offices sales this quarter with a median sales price of $183 per square foot.

Q2 2013 San Fernando Valley Office Market Report (Clink Link For Report)

Office Space and Technology at the Next Level of Virtual Touring

Technology giving users a step up in their ability to share and visually translate real-life interior spaces for offices. This fully interactive three dimensional tour with photographic details is amazing for those able to navigate through today's innovative application. Not just the normal virtual tour, but taking touring to the next level. For office owners with rents that support cost in marketing, you’re missing opportunities to capture a step up with competing office spaces. I am impressed with Floored.com http://floored.com/

Q1 2013 San Fernando Valley Office Market Report

Q1 2013 San Fernando Valley Office Market Report (Click Here)

West Hills School Campus Available for Lease - Classroom Tour

A unique opportunity to lease a West Hills school campus. The school campus is comprised of multiple buildings with a variety of uses and flexibility. Additional space can also be available for lease. The West Hills school campus is set up with administration offices and classrooms that have a variety of uses. This beautiful West Hills school campus offers strong demographics, abundant parking, secured access, outdoor activity areas and well manicured landscaping. Please do not disturb the tenant. Tours are by scheduled appointments only. For more leasing information or to schedule a tour, please contact Lee & Associates -- LA North/Ventura, Inc., Eric Nishimoto 818.444.4984

West Hills School Campus Available for Lease - Administration Office Tour

A unique opportunity to lease a West Hills school campus. The school campus is comprised of multiple buildings with a variety of uses and flexibility. Additional space can also be available for lease. The West Hills school campus is set up with administration offices and classrooms that have a variety of uses. This beautiful West Hills school campus offers strong demographics, abundant parking, secured access, outdoor activity areas and well manicured landscaping. Please do not disturb the tenant. Tours are by scheduled appointments only. For more leasing information or to schedule a tour, please contact Lee & Associates -- LA North/Ventura, Inc., Eric Nishimoto 818.444.4984

Q4 2012 San Fernando Valley Office Market Report

Q4 2012 San Fernando Valley Office Market Report (Click Here)

Woodland Hills Office Duplex For Sale - 21051 Costanso St, Woodland Hills

Q3 2012 San Fernando Valley Office Market Report

Q3 2012 San Fernando Valley Office Market Report (Click Here)

Q3 2012 San Fernando Valley Industrial Market Report

Q3 2012 San Fernando Valley Industrial Markert Report (Click Here)

Woodland Hills Office For Lease - Carlton Plaza Office Ground Floor Space Available

Office suite 160 at Carlton Plaza Office in Woodland Hills is now leased. This unique space has an estimated 12 ceilings and large windows allowing natural light to flow into the space. The open floor plan allows for a new tenant to customize their design and build.  Only at Carlton Plaza Office in Woodland Hills is an opportunity like this to have a creative space with high ceiling. The 2,620 RSF space is perfect for any company looking for a custom design with creative features.

Rent Woodland Hills Office Space On Ventura Boulevard Ground Floor Space Available

Rent Office Space in Woodland Hills at Carlton Plaza on Ventura Boulevard.

http://woodlandhillsoffice.com/

Q1 2012 Market Analysis Office Report San Fernando Valley

Q1 2012 Market Analysis Report Office (Click Here)

Q1 2012 Market Analysis Report Industrial (Click Here)

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.

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