Entries in San Fernando Valley (12)

Thursday
Apr102014

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.


Wednesday
Feb202013

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

Wednesday
Feb062013

Q4 2012 San Fernando Valley Office Market Report

Tuesday
Oct302012

Q3 2012 San Fernando Valley Office Market Report

Thursday
Aug302012

Q2 2012 San Fernando Valley Analysis Office Market Report

Friday
Jun012012

Q1 2012 Market Analysis Office Report San Fernando Valley

Thursday
Feb162012

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

 

Friday
Dec022011

What Type of Commerical Lease Are They Asking?

There are a variety of lease types in Commercial Real Estate.  Having a basic understanding of the most commonly used lease types will help you make a better decision when looking for a space to rent.  For example, you are interested in comparing 3 commercial spaces and all identical sizes.  Space 1 is offering $2.35 (FSG) Full Service Gross per sq. ft.  Space 2 is offering $2.25 (MG) Modified Gross per sq. ft.  And Space 3 is offering $1.55 (NNN) Net Net Net per sq. ft.  From the surface the $1.55 NNN sure looks attractive, but beware, that’s not always the case.  Also, lease terms may have slightly different meanings depending on who you ask.

Full Service Gross (FSG): Monthly rent included utilities, janitorial services, taxes, insurance and common area maintenance. In simple terms, the rent includes everything except for you phone and internet.  Also, parking might have an additional cost depending on location. This type of lease is very typical for office buildings. The Landlord is however able to pass on your pro rata share of any annual increases in operating expenses for the following year.  Office buildings also have typical office hours of operation. This means that your Heating, Ventilation, and Air Conditioning (HVAC) will be limited to only those hours.  Most buildings charge for after hour usage should you request access to the HVAC during those times.

Gross Lease: Monthly rent includes maintenance, taxes and insurance. You are responsible for the cost of your own utilities, janitorial, phone and internet.  This is commonly used in multi-tenant commercial buildings.  This type of lease when referred to an Industrial building is sometimes known as an Industrial Gross lease.  If your work hours are early morning, late nights and weekends, this type of lease might be better for you.

Modified Gross Lease (MG): Monthly rent includes a separate charge (e.g. common area maintenance (CAM), janitorial, proportionate share of water) TBD by Landlord. This is typically a hybrid of a Gross Lease.  In this case, you would need to find out from the Ownership exactly what additionally you would be responsible for.  This type of lease is commonly used in multi-tenant commercial buildings. 

Triple Net Lease (NNN): In addition to monthly rent, the tenant is responsible for paying their estimated pro rata share of taxes, insurance, utilities, janitorial service and all common area maintenance.  Any expense to the property can be passed on to the Tenant. This is typically billed to the tenant on a monthly basis in addition to their monthly base rent.  At the end of the year, semi-yearly or quarterly year, if the actual total NNN’s are different, either the Landlord or Tenant will be responsible for the difference in credit or payment.  NNN charges on average can be as low as $.15 per sq. ft. to as large as $1.20 per sq. ft. or higher.  Now depending on the person you ask, the roof and structure of a building may or may not be the Tenants responsibility.  On a lease called an Absolute NNN Lease, the Tenant is responsible for Roof and Structure, however on a NN Lease the Tenant is not responsible.   The monthly base rent might be look appealing, however be careful and know what the NNN charges are so you can budget accordingly. This type of lease is typical on Retail Storefront, Shopping Centers, and Single Tenant Commercial Buildings and favors the Landlord.

Tuesday
Nov292011

Leasing Space? What you need to know! BOMA, Rentable vs. Usable

Buildings are typically measured using a standing method called “building owners and managers association” or BOMA measurement standards. 1915 BOMA first published an accepted and approved methodology of floor measurement for office buildings by the American National Standards institute.  As design standards have changed throughout the years, so has the way BOMA measurement standards are used.

Area calculations from field measurements will most likely never be exactly the same, but considered accurate when results are within 2% or less.

Building measurements are given in terms of Rentable Square Foot (RSF) and Useable Square Foot (USF).  The RSF is the USF plus the Common Areas.  Common areas are considered to be restrooms, elevator lobby, hallways, stairwells, mechanical rooms, etc. These areas are not exclusive to any one tenant, but are shared by all tenants.  Let’s say for example the total RSF of an office building is 10,000 sq. ft. and the Common Area is 1,500 sq. ft .  10,000 sq. ft. - 1,500 sq. ft. = 8,500 sq. ft. of USF.

 A Load Factor is a multiplier to a tenant's USF that accounts for the tenant's proportionate share of the common area.  A load factor can typically range from 15% to as high as 30% for a multi-tenant floor.  In the above example the load factor is 1,500/10,000=15%

For example, leasing a 2,000 sq. ft. office space with a Load Factor of 15% would give you (2,000 sq. ft. – 15% = 1,700 sq. ft.) of Useable space.

Higher load factors may not always mean less, as often times other amenities such as atriums and spacious lobbies are appealing to clients and guests.  Also to note, Tenants occupying an entire floor will not have shared hallways or shared bathrooms and can be charged a lower load factor than a tenant on a multi-tenant floor as their common area will be less.  Knowing your load factor can really save you a lot of money.

Friday
Nov182011

San Fernando Valley 3rd Quarter Office and Industrial Market Report

All-around improvements show stability, but growht still elusive

Office - Full Report

Market sees little change as leasing remains constant

Industrial - Full Report

Friday
Jul152011

Los Angeles Class A Office Vacancy Recovery! Are We There Yet?

Optimism is echoed as compared to the previous quarters by many office investors and business owners. A recent leasing survey by local real estate professionals show lease transactions consummating but at a steady and slow pace. Renewals by Tenants are keeping the vacancy factor constant as long as Tenants are not leaving. We are not seeing many new businesses located in the local area making sideways moves. Many Landlord Leasing Representatives are targeting quality tenants located just outside the local market in hope of brining them in. Businesses that have weathered the storm by now, are able to take a slight breath as the overall sluggish economic moves in a positive direction but at snails pace.  Construction has yet to be seen, however there is buzz out there that projects are going to begin. 

Los Angeles Business Journal Article

Wednesday
May112011

San Fernando Valley & Conejo Valley 1st Quarter Office and Industrial Market Report 

The San Fernando Valley and Conejo Valley leasing market continues to slowly move forward. Landlords are trying to keep LEASE RATES as high as possible. In turn giving tenants free rent to mitigate the difference in asking rates verses actual lease rate. Short term deals in AS-IS condition is very common to smaller types of tenants. Tenants are still shopping the market to use as a negoiating tool as their lease comes closer to it's end.  The renewal lease market is still very strong but at discounted rates and a lot of free rent.    

Click on the Full Report Link below to see the entire 1st quarter report.

 

San Fernando Valley Office Asking Rates 

Full Report

San Fernando Valley Industrial Asking Rates

Full Report

Ventura Office Asking Rates

Full Report

 Ventura Industrial Asking Rates

Full Report