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Exclusive Listings by Lloyd
Wertheimer
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Commercial Real Estate
Westlake Village
Telephone
805.497.4557
FAX
805.496.3589
E-Mail Address
Lloyd@Westcord.com
Address
951 Westlake Blvd
Suite 101
Westlake Village, CA 91361 |
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Provided by Commercial Real
Estate Direct
Rising rents and a steadily growing economy have
commercial developers and investors looking
optimistically into 2007. According to the 12th
semi-annual Vital Signs survey by the National
Association of Industrial and Office Properties,
71% of respondents reported increased rents in
their local markets. The industrial market is
seeing a similar boon, with 66% of respondents
reporting rising rents. NAIOP is predicting
continued upward momentum through 2007, with
exceptional growth along the Pacific Coast due
to strong Asian trade. Increasing rents have led
survey respondents to look more favorably on
development, specifically in the industrial,
office and research and development sectors.
Klein Family
Trust Acquires Agoura Hills Office Complex  Westcord Brokers
Sale of Two-Bldg. Property for $22 Million
Executive Center
of Simi Valley LLC, an affiliate of The Klein
Family Trust of Brentwood, acquired the Village
Corporate Center office complex in Agoura Hills,
CA, for $22 million, or about $200 per square
foot.
Tony Principe and Rick Principe of Westcord
Commercial Real Estate Services handled the deal
for the sellers, a partnership of TR Funding GP
and Midtown Center GP. Joe Lopez of Westcord
represented the buyer. Leasing Agent for the
property will be Lloyd R. Wertheimer of Westcord.
The architect for the 30077 building is Neal
Scribner of Neal Scribner Architecture.
Net
Absorption Rebounds, Rents Increase
After experiencing
a precipitous drop in the first quarter of 2007,
office absorption rebounded strongly in the
second quarter, bringing a collective sigh of
relief to the market.
Flex property, which while classified as
industrial can also serve office tenants, also
made a comeback giving a boost to industrial
markets in the second quarter.
(Editor's Note: Costar Group's second quarter
local and national office, industrial and retail
market reports are now available on
www.costar.com. Click on Second Quarter 2007
Market Reports in the Property Professional box
and make your selection.)
Office
Rebounds
Net office absorption dropped to its lowest level in three
years in the first quarter of this year but
bounced back in the second quarter to numbers
more in line with the average for the last three
years. Net absorption equaled 26.4 million
square feet, more in line with -- albeit still
slightly less than -- the 3-year average of 28.7
million square feet per quarter.
Houston posted the highest numbers with nearly
2.7 million square feet of net absorption.
Chicago posted 1.8 million; Denver, Philadelphia
and Washington, DC, around 1.5 million. Atlanta,
Los Angeles, New York, Portland and Seattle all
came in with around 1 million square feet of net
absorption.
Looking at the amount of space absorbed compared to the
amount of vacant space in the previous quarter,
Salt Lake City posted one of the strongest
showings in the quarter. Net absorption of
735,475 square feet amounted to 13% of its total
vacant space. Besides the above markets with 1
million or more square feet of net absorption,
other markets posting strong showings based on
percentage of vacant space absorbed included:
San Antonio at 10.6%, Providence (RI) at 9.6%,
Inland Empire at 9.2%, Nashville at 8.4%,
Southwest Florida at 7.8%, Hampton Roads (VA) at
7.3% and Las Vegas at 6.8%.
Eight markets experienced negative net absorption, most
notably Dallas with almost 1 million square feet
of negative net absorption. Orange County, CA,
which has been stung by problems and layoffs in
the subprime mortgage industry, also posted
negative net absorption of more than 200,000
square feet. Other markets included:
Greensboro/Winston-Salem (NC), Memphis, Oklahoma
City, Palm Beach County, South Bay/San Jose and
Western Michigan.
The strong absorption showing kept the national office
vacancy level at about 11.2% where it has been
for four consecutive quarters now.
The country as a whole hasn't seen single-digit vacancy for
six years. However several markets still show
less than an 8% vacancy: New York (the lowest at
5.3%), Hampton Roads (VA), Los Angeles and
Miami/Dade.
The vacancy rate exceeds 15% in several markets: Dallas/Fort
Worth (17.6%), Detroit (17%), Cincinnati,
Memphis and Western Michigan.
What has prevented the national vacancy rate from dropping
has been a steady stream of new office space
deliveries. For the last two years, developers
have delivered about 23.5 million square feet of
space per quarter and did so again in the second
quarter.
Logic would suggest that dynamic won't last for long. The
amount of new space on which construction has
started has risen for nine consecutive quarters
now, which likely means an increasing amount of
new space coming onto the market in the next two
years.
The markets where the amount under construction exceeds more
than 1% of total RBA are: Austin, Inland Empire,
Las Vegas, Madison (WI), Phoenix, San Antonio,
and Southwest Florida.
The national office asking rental rate has increased now for
five consecutive quarters going from $21.96 per
square foot to $23.35. That is an increase of
6.3%.
Opus Unveils Plan for
$150M Office Park
By Bob Howard of
GlobeSt.com
WESTLAKE, CA-Opus West has unveiled plans for a
$150-million project called Opus Corporate
Center at Westlake Village that will incorporate
twin four-story class A office buildings,
freestanding restaurant pads and service retail
space totaling more than 376,000 sf. The company
plans the project on a 21.5-acre site off of
Interstate 101 Freeway at Lindero Canyon Road
that it acquired earlier this year.........Full
Story
By Randyl Drummer
After analyzing office market conditions, most
observers remain in agreement that virtually
every major U.S. market is poised to see
continued rent increases and occupancy hikes
over a three-to five-year horizon -- nagging
concerns about the housing slump, credit crunch,
rising business costs and the national economy
notwithstanding. According to CoStar statistics,
the average nationwide rental rate for Class A
office space stands at $28.38 per square foot,
well up from $26... » Click
here for full story
Tenants are willing to
Pay Higher Rates
By Barbara Pearson/Pacific Business Times
Is it possible to
over-pay for Class A office
or retail space in the
Conejo Valley? Well Tenants don't believe so.
They are leaving older developments for the
high-quality lifestyle centers and paying the
higher rents. The same is being said of Office
Tenants, leaving the class "B" and "C" offices
and paying upwards to $4.17 FSG for Class "A"
office space in the Conejo Valley.
Along with that news; overall
corporate tenants are dragging their feet when
it comes to expansion and relocation because of
uncertainty about the economy. The trend
is expected to to continue in the second half of
2007. This trend is also in the retail market.
Slower Leasing Activity
a Cause for Concern
By Mark Heschmeyer
The latest commercial real
estate index released by the Society of
Industrial and Office Realtors (SIOR) of The
National Association of Realtors is showing a
steep decline from the previous quarter, no
doubt reflecting the economy uncertainty
generated by the recent credit crunch. The
Summer 2007 Commercial Real Estate Index, which
measures 10 variables pertinent to the
performance of U.S. industrial and office
markets, dropped 4.49 points to a summer reading
of just 113.7...
» Click here for full story
Muller, GE Pay $454M for Western Property
Portfolio
Affiliates of Silagi Development Divest 64-Bldg.
Portfolio in Arizona, California
September 12, 2007
The Muller Co. of Laguna Hills, CA, in a joint
venture with financial partner GE Real Estate,
has acquired a 19-property portfolio comprised
of 64 buildings in Arizona and California for
$454 million, or about $150 per square foot.
The sellers, affiliates of Silagi Development &
Management in Thousand Oaks, CA, had accumulated
the more than 3 million-square-foot portfolio
over a number of years. About 85% of the
portfolio is in Arizona and California's Inland
Empire, with the remaining assets located in
California's affluent Conejo Valley and Ventura
County areas.
More than half of the properties are industrial,
but the portfolio also includes office and
retail buildings. The properties were marketed
as 86% leased with upside potential and
below-market rents.
The California properties include Market Street
Corporate Center, a 127,267-square-foot office
project in the Riverside area of the Inland
Empire; the 157,328-square-foot Palms Center in
Oxnard; the 180,753-square-foot Redlands
Corporate Center I in Redlands, the
263,874-square-foot Chino Gateway Center in
Chino; and the 244,585-square-foot Airport
Commerce Center in Ontario.
Arizona assets include The Village at Hayden, a
145,385-square-foot retail and office project in
Scottsdale, and more than 606,000 square feet of
industrial and flex space in Tucson's Medina
Business Parks I & II and Tucson Commerce
Center.
Marketing advisors for the portfolio were Kevin
Shannon and Ken White of CB Richard Ellis in
Torrance, CA; Barbara Emmons of CB Richard Ellis
in Los Angeles; and Darla Longo of CB Richard
Ellis in Ontario. The sellers were also assisted
by Bob Young, Glenn Smigiel, Steve Brabant and
Rick Abraham of CB Richard Ellis of Phoenix, and
Steve Cohen and Russ Hall of Picor Commercial
Real Estate Services of Tucson.
Beverly Hills Group
Buys The Oaks at Westlake for $131M
Kennedy
Wilson Acquires Class A Office on 43 Acres
September
12, 2007
Beverly Hills
firm Kennedy Wilson purchased the
354,341-square-foot, three-story office landmark
Oaks at Westlake at One Baxter Way in Westlake
Village, CA, from One Baxter Way LP for $131
million, or nearly $370 per square foot.
Built in 1982 and extensively renovated this
year, the Oaks at Westlake is on 43 acres and is
79% occupied with three major tenants: Baxter
Healthcare, Verizon and HMS Capital.
The facility was originally developed for a
major financial institution, Prudential
Insurance Co. It is adjacent to Caruso
Affiliates' Promenade at Westlake, a prominent
retail venue.
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