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Office market shows sign of life

Posted: February 5, 2014 2:00 a.m.
Updated: February 5, 2014 2:00 a.m.

The new Sunkist Headquarters at 27770 Entertainment Drive in Valencia. The office market showed some increased activity in the latter half of 2013, according to a commercial realty brokerage firm.

 

The Santa Clarita Valley office market showed some increased activity in the latter half of 2013, according to a commercial realty brokerage firm.

Still, the vacancy rate was 21 percent in the fourth quarter, ranking Santa Clarita as having the fourth highest vacancy rate amongst all submarkets in the San Fernando Valley and Ventura County office markets, Colliers International reported.

Some of the bigger lease deals noted last year included the California State Board of Equalization signing a new lease for 25,000 square feet of space on Magic Mountain Road off Tourney Road.

The state agency is moving into space formerly occupied by Princess Cruises, reported The Signal last July.

Three other leases, occurring in the second half of the year, accounted for 17,900 square feet of space. The deals were signed by companies Scorpion Design, Benchmark Communities and Multi-State Insurance, reported Colliers.

Three significant sales were recorded last year as well.

Sunkist Growers acquired 27770 Entertainment Drive from LNR Property Corporation for $21,925,000.

Peterson International Underwriters acquired 23929 Valencia Blvd. From Asset Management Consultants for $9.7 million, and Netbilling acquired 27451 Tourney Road in Valencia at an undisclosed price from JSB Development, Colliers reported.

Despite the higher office vacancy rates, the average asking rate in the region decreased only three cents per square foot to $2.36 in the fourth quarter. SCV landlords are able to offer perks property owners in other markets can’t always offer - such as more parking, including parking that is free to customers and employees. Landlords are also aggressive with their concessions, such as free rent, tenant improvement allowances, and more.

The outlook for 2014 seems promising for the first half of the year as strong new leasing activity in late 2013 is expected to translate into positive absorption early this year.

jana@signalscv.com
661-287-559

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