Uncertainty keeps tenants on guard in Quiet market. (Real Estate Quarterly L.A. County Overview).ARE we there yet? For weeks, Landlords and brokers like have been waiting for concrete signs that 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. County's commercial real estate market has hit bottom. Many were convinced that the aftershocks of Sept. 11, coupled with a real estate market that began softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. towards the end of 2000, would finally be shaken
Shaken (車剣, also known as kurumaken) are a type of Shuriken off during the first quarter of 2002. Think again. The county's office market saw its fifth consecutive quarter of negative absorption due to general inactivity inactivity Sedentary activity Internal medicine An absence of physical activity and/or exercise, a predictor of obesity. See Couch potato. Physical activity, Vigorous exercise and the continued hesitancy hes·i·tan·cy n. An involuntary delay or inability in starting the urinary stream. of tenants to expand or move. Landlords put about 706,000 square feet of direct lease space back on the market during the first quarter, compared with 818,000 square feet 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 ELLIS - EuLisp LInda System. An object-oriented Linda system written for EuLisp. "Using Object-Oriented Mechanisms to Describe Linda", P. Broadbery <pab@maths.bath.ac.uk> et al, in Linda-Like Systems and Their Implementation, G. Wilson ed, U Edinburgh TR 91-13, 1991. Co. The countywide coun·ty·wide adv. & adj. Throughout a whole county: found at locations countywide; a countywide search. Adj. 1. office vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. rate was 15.9 percent during the first quarter, up from 15 percent in the previous three months and 12.9 percent for the like period a year ago. "Tenants would rather stay where they are, even if it means paying more rent, rather than face the uncertainty of moving," said David Lachoff, senior vice president at Grubb & Ellis Co. The deals that did occur were more likely to involve either a renewal or retrenchment re·trench·ment n. The cutting away of superfluous tissue. than an expansion. So for every Countrywide coun·try·wide adv. & adj. Throughout a whole country; nationwide: launched a fundraising campaign countrywide; a countrywide search. Adj. 1. Credit Industries looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. an additional 150,000 square feet in the San Gabriel Valley The San Gabriel Valley is one of the principal valleys of southern California. It lies to the east of the city of Los Angeles, to the north of the Puente Hills, to the south of the San Gabriel Mountains, and to the west of the Inland Empire. , there was Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co. consolidating its ABC Family  The novelty of research or terms used in this article is disputed.1 Residential town (1990 pop. 12,557), Norfolk co., E Mass., in the greater Boston area; settled 1640, inc. 1897. It has several early 18th-century buildings. 2 Residential borough (1990 pop. 10,446), Bergen co., NE N.J. market Opinions are mixed on whether the nearterm future looks bright or dim. "We're we're Contraction of we are. we're we are hoping for a modest increase in economic activity," said Stuart Gabriel, director at USC's Lusk a. 1. Lazy; slothful. n. 1. A lazy fellow; a lubber. v. i. 1. To be idle or unemployed. Center for Real Estate. "We're not looking at a "V" or a sharp improvement, but we're looking at a positive rate of economic growth." "Have we hit bottom? Probably not," said Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Kolsky, principal at Newmark & Co. "The rate that space has been put back on the market has considerably slowed but the activity levels have not picked up significantly this year. You're you're Contraction of you are. you're you are you're be not seeing as many new tenants in the market." More clear than the near-term near-term adj. Of, for, or involving a short period of time in the near future. outlook is the delineation between what markets performed well and what markets didn't did·n't Contraction of did not. didn't did not didn't do . The only two markets that experienced positive absorption for the quarter were downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or and Wilshire Not to be confused with Wiltshire. Wilshire may refer to:
By absorbing over 149,000 square feet of space - the most in the region - downtown reduced its vacancy rate to 17.3 percent in the first quarter from 17.8 percent in the October-December period. The vacancy drop at Wilshire Center, which is less than a quarter the size of the downtown market, was more pronounced - 13.4 percent in the first quarter from 15.1 percent in the fourth. "I think that has a lot to do with the diversity of our market and the lack of reliance on one or two industries," said Joe Faulkner, executive vice president at Grubb & Ellis Co. West Los Angeles
American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. & Kahan's move into 85,000 square feet at the Water Garden from Century Plaza Towers Century Plaza Towers are two 44-story, 571 feet tall twin towers located at 2029 and 2049 Century Park East in Century City in Los Angeles, California. The towers were completed in 1975 and designed by Minoru Yamasaki. , Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. absorbed 92,000 square feet. Century City put 283,000 square feet back on the market, the most of any subregion sub·re·gion n. A subdivision of a region, especially an ecological region. sub  re in the county.
The decline in activity was felt consistently throughout the county, though. The South Bay, which should get a shot in the arm as Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Corp. is expected to sign a 300,000-square-foot lease in El Segundo El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , and the San Gabriel Valley, which was the county's lone bright spot during the fourth quarter, each put about 100,000 square feet of office space back on the market. "If you look at 2001, we had a lot of completions that went on the market and affected the numbers," said Brad Cox Brad Cox is a computer scientist and Ph.D. of mathematical biology known mostly for his work in software engineering (specifically software reuse), software componentry, and the Objective-C programming language. , senior managing director at Cushman & Wakefield of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Inc. "That space is going to take a longer period to absorb than expected." The county's industrial market softened soft·en v. soft·ened, soft·en·ing, soft·ens v.tr. 1. To make soft or softer. 2. To undermine or reduce the strength, morale, or resistance of. 3. for the third straight quarter, recording a 4.7 percent vacancy rate in the first quarter, up from 4.5 percent in the fourth quarter and 4.2 percent in the year-earlier quarter. Reflecting an economy more dependent on foreign trade, industrial activity was stronger near the ports. South Bay and Mid-Cities reported market tightening while the markets of North Los Angeles and San Gabriel Valley softened slightly. "That market is off because general economic conditions are flat and employment is down," said Grubb & Ellis Senior Vice President Jim Biondi of the North Los Angeles market, where the vacancy rate was a county-high 7.5 percent for the quarter. "The tenants up there are more manufacturing and warehousing as opposed to your pure logistic lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation companies in the South Bay." Despite having a vacancy rate that rose 0.6 percent between quarters, the Central Los Angeles market remained the county's tightest, with a 3.2 percent vacancy rate for the quarter. [GRAPH OMITTED] [GRAPH OMITTED]
Los Angeles County Office Market, First Quarter 2002
Vacancy Rate
Total Vacant Space 1st Qtr.
Market/Submarket Inventory (square ft.) 2002
Downtown L.A. 32,190,227 5,557,237 17.3%
Wilshire Center 7,330,405 976,541 13.4%
San Gabriel Valley 9,211,021 1,304,202 14.2%
Burbank 4,019,310 549,038 13.7%
Glendale 6,057,922 777,650 12.8%
Pasadena 6,299,049 713,599 11.3%
Tri-Cities 16,376,281 2,040,287 12.5%
Beverly Hills 5,759,419 775,419 13.5%
Brentwood 3,413,078 357,091 10.5%
Century City 9,046,887 965,824 10.7%
Hollywood/WeHo 3,571,492 784,402 22.0%
Marina/Culver City 4,832,464 643,817 13.3%
Miracle/Park Mile 5,747,868 824,948 14.4%
Santa Monica 7,731,820 1,398,701 18.1%
West Los Angeles 6,080,179 1,023,940 16.8%
Westwood 2,868,210 613,637 21.4%
Westside 49,051,417 7,387,779 15.1%
Central Valley 7,806,829 1,061,446 13.6%
Coastal Plain 218,696 31,354 14.3%
Conejo Valley 4,266,404 725,110 17.0%
East Valley 2,818,998 505,708 17.9%
Santa Clarita Valley 1,665,723 275,148 16.5%
West Valley 8,709,219 1,369,152 15.7%
San Femando Valley 25,485,869 3,967,918 15.6%
LAX/Century Blvd. 4,080,481 1,118,508 27.4%
El Segundo/Beach Cities 10,832,442 2,518,862 19.2%
190th Street Corridor 3,156,628 371,105 12.3%
Torrance Central 3,375,870 564,521 16.7%
Carson 1,293,095 194,818 15.1%
Long Beach Suburban 4,559,671 485,326 10.6%
Long Beach Downtown 4,090,104 775,097 19.0%
South Bay 31,388,179 6,028,237 19.2%
L.A. County 171,003,399 27,262,201 15.9%
Vacancy Rate
Under
4th Qtr. 1st Qtr. Construction
Market/Submarket 2001 2001 (square ft.)
Downtown L.A. 17.8% 20.3% 0
Wilshire Center 15.1% 16.5% 0
San Gabriel Valley 12.4% 13.5% 85,600
Burbank 12.0% 7.7% 1,132,965
Glendale 12.1% 13.9% 0
Pasadena 9.0% 7.6% 0
Tri-Cities 10.9% 10.0% 1,132,965
Beverly Hills 12.6% 10.5% 158,617
Brentwood 9.4% 6.0% 0
Century City 7.6% 5.2% 700,000
Hollywood/WeHo 18.0% 12.1% 80,000
Marina/Culver City 14.2% 5.4% 738,659
Miracle/Park Mile 13.3% 11.3% 0
Santa Monica 20.1% 8.0% 101,124
West Los Angeles 15.3% 11.4% 190,803
Westwood 13.8% 14.8% 0
21.4% 13.8% 14.8%
Westside 13.6% 8.8% 1,969,203
Central Valley 12.4% 9.1% 0
Coastal Plain 19.2% 36.0% 23,873
Conejo Valley 16.6% 13.7% 181,082
East Valley 16.3% 15.1% 0
Santa Clarita Valley 17.5% 28.3% 0
West Valley 17.0% 10.3% 92,044
San Femando Valley 15.5% 12.1% 296,999
LAX/Century Blvd. 29.2% 25.5%
El Segundo/Beach Cities 18.2% 9.8%
190th Street Corridor 11.4% 8.1% 62,000
Torrance Central 16.6% 11.7% 39,000
Carson 14.5% 13.8%
Long Beach Suburban 10.3% 9.2% 20,000
Long Beach Downtown 14.3% 14.4%
South Bay 16.9% 12.6% 121,000
L.A. County 15.0% 12.9% 3,605,767
Net Absorption (square ft.) (1)
1st Qtr. 4th Qtr. 1st Qtr.
Market/Submarket 2002 2001 2001
Downtown L.A. 149,448 74,430 350,417
Wilshire Center 124,246 82,196 (11,485)
San Gabriel Valley (98,116) 257,433 193,041
Burbank 36,207 (46,914) (49,417)
Glendale (45,993) 5,945 (139,014)
Pasadena (146,148) 12,203 (103,755)
Tri-Cities (155,934) (28,766) (292,312)
Beverly Hills 2,696 (6,280) (40,798)
Brentwood (38,443) (10,963) (47,673)
Century City (282,886) (175,370) (120,986)
Hollywood/WeHo (83,175) (42,014) (5,100)
Marina/Culver City 59,936 (219,486) 49,238
Miracle/Park Mile (33,531) 18,599 85,715
Santa Monica 92,126 (288,911) 11,376
West Los Angeles (57,961) (70,354) (164,678)
Westwood (218,285) (28,258) (80,886)
0 (218,285) (28,258)
Westside (559,523) (823,037) (313,792)
Central Valley (57,453) (55,689) (116,031)
Coastal Plain 23,009 17,459 (1,867)
Conejo Valley 28,644 (9,834) 91,379
East Valley (60,341) (79,445) (155,193)
Santa Clarita Valley 16,396 33,908 19,543
West Valley (19,023) (162,518) (89,248)
San Femando Valley (68,768) (256,119) (251,417)
LAX/Century Blvd. 74,514 24,156 (134,072)
El Segundo/Beach Cities 55,259 (93,813) (168,833)
190th Street Corridor (11,983)) (21,057) 31,499
Torrance Central (4,230) (47,416) (11,179)
Carson (7,591) 12,645 45,886
Long Beach Suburban (14,739) (52,249) 40,982
Long Beach Downtown (180,389) 53,166 (15,182)
South Bay (197,159) (124,568) (210,899)
L.A. County (705,806) (818,431) (536,447)
Class-A Asking Rent (2)
1st Qtr. 4th Qtr. 1st Qtr.
Market/Submarket 2002 2001 2001
Downtown L.A. $2.34 $2.33 $2.39
Wilshire Center $1.30 $1.32 $1.40
San Gabriel Valley $2.01 $2.01 $1.99
Burbank $2.62 $2.66 $2.62
Glendale $2.50 $2.53 $2.41
Pasadena $2.39 $2.38 $2.41
Tri-Cities $2.49 $2.51 $2.44
Beverly Hills $2.91 $2.87 $3.27
Brentwood $2.95 $3.04 $3.24
Century City $3.22 $3.47 $3.34
Hollywood/WeHo $2.49 $2.50 $2.50
Marina/Culver City $2.72 $2.94 $2.72
Miracle/Park Mile $2.24 $2.31 $2.45
Santa Monica $3.49 $3.72 $3.89
West Los Angeles $2.43 $2.70 $3.34
Westwood $3.47 $3.45 $3.70
(80,886)
Westside $2.93 $3.07 $3.21
Central Valley $2.16 $2.14 $2.07
Coastal Plain $1.85 $1.85 --
Conejo Valley $2.37 $2.33 $2.31
East Valley $2.59 $2.63 $2.64
Santa Clarita Valley $1.94 $1.93 $1.95
West Valley $2.32 $2.49 $2.52
San Femando Valley $2.27 $2.33 $2.30
LAX/Century Blvd. $1.63 $1.63 $1.62
El Segundo/Beach Cities $2.75 $2.72 $2.85
190th Street Corridor $2.13 $2.13 $2.05
Torrance Central $2.13 $2.13 $2.18
Carson $1.90 $1.84 $1.90
Long Beach Suburban $2.43 $2.44 $2.46
Long Beach Downtown $2.07 $2.07 $2.12
South Bay $2.31 $2.28 $2.32
L.A. County $2.50 $2.53 $2.58
Los Angeles County Industrial Market, First Quarter 2002
Vacancy Rate
Total Vacant
Inventory Space 1st Qtr. 4th Qtr.
Market/Submarket (square ft.) (square ft.) 2002 2001
Central LA 284,747,196 9,229,175 3.2% 2.6%
Mid-Cities 107,050,890 6,580,336 6.1% 6.4%
North Los Angeles (4) 173,485,549 13,029,840 7.5% 7.3%
South Bay 200,570,330 8,577,432 4.3% 4.5%
San Gabriel Valley 157,939,575 6,052,230 3.8% 3.5%
LA County Total 923,793,540 43,469,013 4.7% 4.5%
Vacancy Sold & Leased (square
Rate ft.)
Under
1st Qtr. Construction 1st Qtr. 4th Qtr.
Market/Submarket 2001 (square ft.) 2002 2001
Central LA 4.0% 1,680,469 2,779,492 1,841,023
Mid-Cities 5.7% 998,064 1,400,000 1,448,004
North Los Angeles (4) 4.1% 3,855,037 1,713,104 1,473,785
South Bay 4.0% 1,025,800 2,650,059 2,367,151
San Gabriel Valley 3.9% 1,879,726 1,355,111 1,686,198
LA County Total 4.2% 9,439,096 9,938,335 8,816,161
Sold & Leased Asking Rent (3)
(square ft.)
1st Qtr. 1st Qtr. 4th Qtr. 1st Qtr.
Market/Submarket 2001 2002 2001 2001
Central LA 1,663,726 $0.45 $0.46 $0.51
Mid-Cities 1,500,000 $0.48 $0.50 $0.50
North Los Angeles (4) 1,851,304 $0.58 $0.59 $0.58
South Bay 1,823,642 $0.55 $0.56 $0.58
San Gabriel Valley 2,659,526 $0.42 $0.42 $0.42
LA County Total 9,498,198 $0.49 $0.50 $0.52
(1) Net Absorption is the change in occupied space for a given period of
time, excluding sublet space and renewals
(2) Average monthly, per-square-foot rents
(3) Average monthly, triple-net rents
(4) Includes parts of Ventura County
Due to the transfer of owner/occupied space to competively leasable
space and/or the delivery of now construction in the market,
descrepencies may occur in the relation between vacancy rates and net
absorption.
Source: Grubb & Ellis Co.
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