Proximity, low rent rates fail to stem increase in vacancies. (Real Estate Quarterly - Wilshire Corridor).As it was all year, the Wilshire Corridor continued to be a study of contrasting performances in the fourth quarter. Rents were up and vacancies down in the Wilshire Center area, but farther to the west the Miracle Mile/Park Mile district saw vacancies climbing on stagnant stagnant /stag·nant/ (stag´nant) 1. motionless; not flowing or moving. 2. inactive; not developing or progressing. rents. "Wilshire Center has the lowest rents in the area, approximately one-third less than downtown, and appears more stable than surrounding submarkets," said Scot McBeath, marketing consultant for DAUM Commercial Real Estate Services. Asking rents for Class-A space in Wilshire Center rose to $1.37 per square foot in the fourth quarter from $1.32 in the previous three months and $1.32 in the fourth quarter of 2001, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Grubb & Ellis Co. Asking rents downtown were $2.27 in the fourth quarter. Vacancies continued to decline, falling to 12.8 percent from 14.1 percent in the third quarter and 15.1 percent in the fourth quarter of 2001. This moved Wilshire Center net absorption into the positive range at 96,164 square feet from negative 103,935 the quarter before. "Little tenants and expansions occupied more space and these small deals brought up absorption," said Chris Runyen, vice president of Grubb & Ellis' Office Services Group. Some small deals included law firm Bonnie bon·ny also bon·nie adj. bon·ni·er, bon·ni·est Scots 1. Physically attractive or appealing; pretty. 2. Excellent. Bridge Mueller O'Keefe & Nichols renewing its 40,000-square-foot lease at 3699 Wilshire Blvd. for $1.25 per square foot. Other deals included the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. City Department of Building & Safety leasing 37,000 square feet at 3550 Wilshire and the County Department of Aging leasing 18,800 square feet at 3580 Wilshire, Both deals were for three years at $1.25 per square foot. "Wilshire Center continues to perform well because it's eclectic e·clec·tic adj. 1. Selecting or employing individual elements from a variety of sources, systems, or styles: an eclectic taste in music; an eclectic approach to managing the economy. 2. ," said Raphael Bostic, director of the Casden Real Estate Economic Forecast at USC's Lusk Center. "There are a lot more lower-end service industries that can't afford downtown or West Los Angeles
The lack of a dominant industry like technology or telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. helped the submarket sub·mar·ket n. A geographic, economic, or specialized subdivision of a market. adj. Being below what is usual in a particular market: submarket wages; submarket interest rates. avoid any upheavals in particular sectors in recent years. Despite the continued success of The Grove and new residential development, the Miracle and Park Mile districts showed lackluster lack·lus·ter adj. Lacking brightness, luster, or vitality; dull. See Synonyms at dull. Adj. 1. lackluster - lacking brilliance or vitality; "a dull lackluster life"; "a lusterless performance" performances. Rents in the area were steady at $2.21 pre square foot in the fourth quarter, according to Grubb & Ellis. "That figure's high," said Mitch The name Mitch can mean:
British physician. Known especially for his studies of diseases of the chest and heart, he expanded on the observations of John Cheyne in describing the breathing irregularity now known as Cheyne-Stokes respiration. , a broker with Madison Partners. "Most Class-A space actually goes for around $1.90, maybe the low $2 range." He said the Grubb & Ellis figure was driven by two properties, the Wilshire Courtyard (5700-5750 Wilshire) and 6500 Wilshire that are asking above $2.20. As an added incentive, Miracle Mile Miracle Mile can refer to the following places:
Net absorption remained negative, but improved, moving up to 38,252 square feet in the fourth quarter from negative 59,407 square feet in the third. That's still down from a year ago, when it hovered at 18,599 square feet. Only a few deals were recorded in the Miracle and Park Mile districts. At 6222 Wilshire, Creation Media Marketing took 3,300 square feet and EuroAsia leased 3,000 square feet. Both deals were for five years at $1.90 per square foot. Elsewhere, Conde Nast renewed and expanded its space at 6300 Wilshire in a $21 million, 71,200-square-foot 10-year deal. "It was fairly static in the fourth quarter," said Toliver Morris, leasing director for McCarthy Cook & Co., which owns and manages the Wilshire Courtyard at 5700-5750 Wilshire. "But that's pretty typical for that time of year. It's starting to pick up pretty rapidly in the New year." Investment activity was slow. The only deals of note were the $57 million refinancing Refinancing An extension and/or increase in amount of existing debt. of Museum Square (5757 Wilshire) and the sale of the 42,083-square-foot medical office building at 6000 Wilshire to DS Ventures Wilshire for $6 million. [GRAPH OMITTED] RELATED ARTICLE: Major Events: * At 6222 Wilshire, Creation Media Marketing leased 3,300 square feet and EuroAsia leased 3,000 square feet. Both deals were for $5 years at $1.90 per square foot. * The L.A. County Department of Risk Management leased 9,034 square feet for six years at approximately $1.18 per square foot in 3333 Wilshire Blvd. * At Paramount Plaza, the Los Angeles City Department of Building & Safety leased 37,000 square feet in 3550 Wilshire, and the County Department of Aging leased 18,800 square feet in 3580 Wilshire at $1.25 for three years. * Bonnie Bridge Mueller O'Keefe & Nichols renewed its 40,000-square-foot lease at 3699 Wilshire Blvd. |
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