SOCAL OFFICE REAL ESTATE SNAPSHOT FEBRUARY 2015 – IT WILL BE A VERY GOOD YEAR

January 31, 2015 on 9:02 pm | In Bravo, Lease Rates, Market Snapshot, Office Fodder, Statistics, Trends, Uncategorized | 1 Comment

by Jodi Summershappy dance snoopy

If you’ve held on to your Los Angeles area office real estate through the stagnant years, 2015 is your time to cash in. Up until recently, office space demand has roughly equaled inventory additions. Finally, operations in the major office districts in Greater Downtown, the Westside Cities and the San Fernando Valley/Tri-Cities areas are seeing significant improvement.

Let’s look at Westside office space…where the past year, Silicon Beach office vacancy rates dropped to 14.3% as technology firms continue to seek out real estate in the ultra-hot neighborhoods of Venice, Santa Monica, Marina del Rey, Mar Vista, Playa Vista and Culver City. As the young and digital take over the Westside, according to Marcus and Millichap, median asking rents for office space climbed 10.4% to $42.97 per square foot. Rents for Class A space was up 9%% to $44.73 per square foot. Class B/C asking rents for jumped 13.7% in the period to $39.51 per square foot. In 2015, full-service Los Angeles Office Asking Rents - 4Q 2014asking rents will improve 5.7% to $44.12 per square foot this year as conditions remain favorable for leasing managers. Keep in mind, despite the huge gains, asking rents finish the year 8.5% below the pre-recession peak.

Rising rents have impacted sales trends. Average sale prices for West Side office buildings ncreased 7% in the period to $453 per square foot. Top-tier properties changed hands close to $500 per square foot.

Although buyer demand supported market appreciation, transaction velocity dipped 17% year over year as investors opted to hold onto properties as Net Operating Incomes continue to climb. Mostly, 2014 saw class B assets changing hands, as cap rates compressed to the low-6% range because of improving operations.Los Angeles Westside Office Sale Prices per sq.ft. - 4Q 2014

Expect the Westside Cities market to remain tight, as only 70,000 sq.ft.is under construction. Development is expected to be limited on 2015. The largest project is a medical office building at 121 N. San Vicente Blvd. The 32,000-square foot property is scheduled for completion in the second quarter of 2015.

Looking at 2015, vacancy rates will fall to 13.8%. As centrally located space becomes occupied and prices rise, affordable space will draw tenants priced out of prime office districts. Asking rents could climb as much as 5%.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

Los Angeles Office Vancancy Rates 4Q 2014

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http://www.marcusmillichap.com/research/researchreports/reports/2014/08/12/los-angeles-office-research-report

http://www.socalofficerealestateblog.com/?p=2701

http://piperbasenji.blogspot.com/2011/12/dog-named-snoopy.html

 

SOCAL OFFICE REAL ESTATE SNAPSHOT JANUARY 2015 – PLAYA VISTA EMBRACES SILICON BEACH

January 1, 2015 on 8:29 pm | In Bravo, Fascinating Information, Investment Opportunities, Lease Rates, Market Snapshot, New Developments, Office Fodder, Statistics, Trends, Uncategorized, Winning Properties | 2 Comments

by Jodi Summersgoogle logo

As real estate developer Rick Caruso is remaking downtown Pacific Palisades, other developers have been flocking to area neighboring Caruso’s Playa Vista development.

Global presence Google has increased their real estate holdings by purchasing 12 acres in Playa Vista, while developers Clarion Partners and Maguire Investments have made significant office investments in the spruce goose in hangar in playa vistaneighborhood.

Word on the street has it that Google spent nearly $120 million on 12 vacant acres next to a historic hangar where aviator Howard Hughes built his famous “Spruce Goose” airplane. Zoning allows for nearly 900,000 square feet of commercial space on the 520,000+ square feet of land. Google will also lease the Hughes hangar. Built in 1943, that 319,000-square-foot building has recently housed soundstages for movie and television production. This compliments their 41,000-square-foot video production facility for subsidiary YouTube, which is housed in a renovated former Hughes building in Playa Vista.spruce goose in playa vista hangar 1945

“This is phenomenal news for the Westside and for the Los Angeles economy,” said City Councilman Mike Bonin, who represents the Playa Vista area. “It really makes and brands Playa Vista as the tech and innovation capital of Los Angeles.”

Also in Playa Vista, DivcoWest and Maguire Investments have formed a joint venture that will own Water’s Edge, a two-building, 260,000-square-foot office property developed by Maguire Investments. The joint venture also plans to develop a third creative office building on the campus. Groundbreaking is expected to be mid-2015.Robert F. Maguire III at the Water's Edge office building in Playa Vista

“The timing was perfect,” praised Robert F. Maguire III, chairman and CEO of Maguire Investments. “Our timing is really exceptional because the buildings currently underway are essentially rehabs, so we will be the first new building in the market….We can’t move fast enough. Once completed it will be one of the most exciting creative campuses in the country.”

Speaking of facelifts, Clarion Partners has completed redevelopment and rebranding of its office property at 12130 and 12180 Millennium Drive in Playa Vista. Not to be outdone, Clarion boasts that the six-story, 301,642-square-foot property will be the first major creative office redevelopment property in Los Angeles. Formerly named Latitude 34, the new building has already signed a 49,000-square-foot lease with Group M advertising company.i-o at Playa Vista by Clarion Partners

Expect new office development on the Westside beyond Playa Vista be limited to a handful of small properties, as the average vacancy falls to 13.8%. Class A rents for top-tier space is up 9% to $44.73 per square foot annually.

Last year Microsoft Corp. opened a roughly 20,000-square-foot space in Playa Vista, relocating 130 employees from downtown L.A. Facebook Inc. has operations nearby. The neighborhood boasts the headquarters of online advertising platform Rubicon Project, consumer electronics and accessories maker Belkin International and ICANN, the nonprofit organization that is responsible for assigning Internet domains.

The Lincoln Property Co. (which sold the land to Google) is the largest commercial developer in Playa Vista, with five office buildings – including the new West Coast headquarters for movie Runway Shopping at Playa Vistaspecialist IMAX Corp.

Lincoln is also building the Runway, a $260-million retail, housing and office project that will become the commercial heart of Playa Vista when it opens early next year. Other developers are in the process of building an additional 2,600 housing units.

As the Silicon Beach reputation continues to grow, Playa Vista has become an innovation incubator. At first, the neighborhood’s appeal was because of its location near major freeways, the Westside, the beach and Los Angeles International Airport. But, Playa Vista has come into its one as a vibrant creative community, home to USC’s Institute for Creative Technologies, as well as TMZ, Warner Bros, Sony PlayStation and Verizon. Yahoo is rumored to be leasing office space there soon.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

Howard Hughes in the cockpit if an HK-1

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http://blog.playavista.com/2014/12/google-buys-12-acres-playa-vista/

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http://www.globest.com/news/12_1011/losangeles/acquisitions_dispositions/Investors-Hurry-to-Break-into-Westside-Office-Sector-353680.html

http://www.airfields-freeman.com/CA/HK-1_cockpit_HowardHughes.jpg

http://www.marcusmillichap.com/research/researchreports/reports/2014/08/12/los-angeles-office-research-report

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Google Playa Vista 2014

CALIFORNIA’S REAL ESTATE BILLIONAIRES – JOHN ARRILLAGE BUILT SILICON VALLEY AND LOVES STANFORD

December 10, 2014 on 10:14 pm | In Bravo, Fascinating Information, Funny...Money, New Developments, Office Fodder, Statistics, Uncategorized, Winning Properties | 2 Comments

#960 John Arrillaga

Net Worth: $1.9 Billion

Age: 76

Source Of Wealth: real estate, Self Made

Residence: Portola Valley, CA

Citizenship: United States

Marital Status: Widowed, Remarried

Children: 2

Education: Bachelor of Arts / Science, Stanford University

John Arrillaga on Forbes Lists:

  • #931 Billionaires
  • #328 in United States
  • #792 in 2013
  • #314 Forbes 400

The other half of the 1960s Silicon Valley real estate development team of Peery and Arrillaga is John Arrillaga. Together, they built a fortune in commercial real estate in Silicon Valley. In 2006, Peery-Arrillaga sold about half their real estate portfolio for $1.1 billion. Current tenants include Google and Apple.

In July, 2013, billionaire Arrillaga made headlines with $151 million gift to his alma mater, Stanford University. It is the largest gift from a living donor in the university’s history. Arrillaga, a Stanford alum, worked 6 part-time jobs to help pay his tuition while a student there in the 1950s.

He has previously donated funds for other Stanford buildings including the alumni center to the student gym, and he endowed scholarships to support 50 Stanford students. Arrillaga’s daughter, Laura, teaches philanthropy at Stanford and is married to Netscape cofounder Marc Andreessen, now a prominent venture capitalist.

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http://www.forbes.com/profile/john-arrillaga/

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http://www.forbes.com/sites/ryanmac/2013/07/01/stanford-billionaire-benefactor-john-arrillaga-makes-record-breaking-gift-to-university/

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CALIFORNIA’S REAL ESTATE BILLIONAIRES – RICHARD PEERY AND SILICON VALLEY

November 30, 2014 on 10:04 pm | In Bravo, Fascinating Information, Funny...Money, New Developments, Office Fodder, Statistics, Uncategorized, Winning Properties | 1 Comment

#824 Richard Peery

Net Worth: $2.2 Billion

Age: 75

Source Of Wealth: real estate, Self Made

Residence: Palo Alto, CA

Citizenship: United States

Marital Status: Married

Children: 4

Education: Bachelor of Arts / Science, Brigham Young University

Richard Peery on Forbes Lists:

  • #796 Billionaires
  • #277 in United States
  • #736 in 2013
  • #260 Forbes 400

Back in the 1960s, Silicon Valley real estate developer Richard “Dick” Peery worked with business partner John Arrillaga to turn orange groves into office parks for the booming tech industry.

In 2006 the partners sold a vast swath of buildings for $1.1 billion but held onto a portion.

A Google lease 15 of Peery Arrillaga’s buildings and the duo is reportedly constructing a building that LinkedIn will lease.

Peery’s son Dave runs the family foundation, which supports social entrepreneurs and organizations addressing poverty in the SF bay area and around the world. The family is also contributing to several education and child-related initiatives such as the Palo Alto High School athletic facility and the Palo Alto Junior Museum and Zoo.

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http://www.forbes.com/profile/richard-peery/

http://www.peeryfoundation.org/foundation

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http://www.peeryfoundation.org/

 

CALIFORNIA’S REAL ESTATE BILLIONAIRES – GEORGE ARGYROS – REAL ESTATE, SPORTS AND DIPLOMACY

November 20, 2014 on 9:50 pm | In Bravo, Fascinating Information, Funny...Money, Uncategorized, Winning Properties | 1 Comment

#759 George Argyros

Net Worth: $2.4 Billion

Chairman and CEO, Arnel & Affiliates

Age: 77

Source Of Wealth: real estate, investments, Self Made

Residence: Newport Beach, CA

Citizenship: United States

Marital Status: Married

Children: 3

Education: Bachelor of Arts / Science, Chapman University

George Argyros on Forbes Lists:

  • #731 Billionaires
  • #258 in United States
  • #736 in 2013
  • #260 Forbes 400

George Leon Argyros made his fortune in real estate investments as chairman and CEO of Arnel & Affiliates, which manages about 5,500 apartments and more than two million square feet of commercial space in San Diego, Los Angeles and Orange County. He started his business career running a grocery store and moved on to buying and selling real estate to gas stations.

His illustrious career includes owning the Seattle Mariners baseball team from 1981 to 1989. As well as a stint as Ambassador to Spain and Andorra under President George W. Bush.

Argyros has been on the board of directors of many corporations, and is a founding partner of private equity firm Westar Capital and a board member at software development company DST Systems.

His Argyros Foundation gives to various causes in Southern California, including the South Coast Repertory, the Eisenhower Medical Center Foundation and Argyros’ alma mater, Chapman University. In 2011, he and his wife gave $5 million to University of California, Irvine’s Gavin Herbert Eye Institute.

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http://www.forbes.com/profile/george-argyros/

http://en.wikipedia.org/wiki/George_Argyros

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