Downtown
Downtown’s fourth-quarter office vacancy rate was 26.8%, steady quarter over quarter but up from 22.7% the previous year. There was no office product under construction during the quarter and a negative 3,564 square feet of space was absorbed in the market. Asking rents were down 3 cents quarter over quarter but up 1 cent year over year to $3.87 a square foot.
In the biggest downtown office sale of 2023, the Aon Center sold for $148 million. Carolwood LP acquired the 1.1 million-square-foot building along with private investors Daniel Abrams and Adam Tischer. Colliers represented Carolwood, and Newmark Group Inc. represented Shorenstein, the seller. The property sold for 45% less than its last purchase price.
Sonder Holdings Inc. opened two new apartment-style hotels in the fourth quarter of last year. The 125-key Winfield opened in October, and the 110-key Craftsman hotel opened in December. Both are adaptive reuse projects that most recently housed office space.
Daum Commercial Real Estate Services completed the sale of a 7,100-square-foot industrial warehouse property located in the Arts District for $4.4 million. DUAM Commercial represented Fabriquer LLC as the buyer in the sale. Chad Maxner of Maxner Real Estate represented the seller, Part-Rosin Properties LLC.
HOLLYWOOD
Hollywood’s office vacancy rate fell to 27.5%, down from 28.9% the previous quarter and 27.6% the previous year. Rents fell 6 cents quarter over quarter and 21 cents year over year to $4.92 a square foot. Net absorption was 110,222 square feet. There were 145,300 square feet under construction during the quarter.
Upscale regional grocer Bristol Farms signed a 23,000-square-foot lease on the ground floor of Modera Argyle, a luxury community with 276 apartment homes in the heart of Hollywood. Kennedy Wilson Brokerage represented apartment developer Mill Creek Residential in the transaction. The lease marked Bristol Farm’s 14th location in Southern California.
A joint venture…
Read the full article here
