El Segundo - Market Report- (10-03-16)
14
El Segundo Office Market Report October 3, 2016 Prepared by: Jacob Bobek Principal (213) 471-7007 [email protected] Alex Jurdi Financial Analyst 213-471-7324 [email protected] Niko Buntich Financial Analyst 213-471-7016 [email protected]
-
Upload
ted-simpson -
Category
Documents
-
view
171 -
download
1
Transcript of El Segundo - Market Report- (10-03-16)
El Segundo
Office Market Report
October 3, 2016
Pre
pa
red b
y: Jacob Bobek
Principal
(213) 471-7007
Alex Jurdi
Financial Analyst
213-471-7324
Niko Buntich
Financial Analyst
213-471-7016
El Segundo - Submarkets
Introduction and Trends
• Aerospace and defense contractors are
out, tech and health care are in
• The last sub $3.00/SF market in the
city and time is running out
• Building retrofits are
running rampant
• Executives living in
Manhattan Beach
validate the office market
Aerospace and Defense Out
Tech and Healthcare In
The Value Play Compared to Competing Markets
$6.45
$4.75
$4.35
$3.90
$2.95
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
Avg
. M
on
thly
FS
G R
en
tal R
ate
(P
er
RS
F)
Demand Is On The Rise
638,338
14,024
(319,255)(370,185)
(82,962)
443,002
(109,069)
227,367 247,327
329,901
(600,000)
(400,000)
(200,000)
0
200,000
400,000
600,000
800,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Ne
t A
bs
orp
tio
n (
Pe
r S
F)
Data Source: Costar
Recent Lease Transactions
Tenant Address PremisesComm.
Date
Expiration
Date
Monthly
Rental Rate
(Per SF)
Free TIA
ConsumerTrack 1700 E. Walnut Ave. 19,927 RSF 12/1/2016 4/30/2024$2.90 FSG w/ 3%
escalations5 months $8.75/SF
FILD 850 S. Sepulveda Blvd. 3,000 RSF 10/30/2016 12/31/2021$4.10 FSG w/ 3%
escalations3 months Build to Suit
Guthy-Renker 100 N Sepulveda Blvd. 90,652 RSF 7/1/2016 6/30/2025$2.70 FSG w/ 3%
escalations12 months $80.00/SF
iRise 2381 Rosecrans Ave. 3,990 RSF 6/1/2016 5/31/2022$3.10 FSG w/ 3%
escalations2 months Build to Suit
Kite Pharma 2355 Utah Ave. 43,573 RSF 1/1/2016 7/31/2026$2.85 MG w/ 3%
escalations7 months $60.00/SF
TASC 200 N. Sepulveda Blvd. 43,000 RSF 1/1/2016 7/31/2021$2.75 FSG w/ 3%
escalations5 months $35.00/SF
Ignited USA 800 Apollo St. 41,874 RSF 10/1/2015 9/30/2026$3.00 MG w/ 3%
escalations11 months $67.00/SF
Trace3 2100 E. Grand Ave. 6,573 RSF 1/1/2016 6/30/2022$3.35 FSG w/ 3%
escalations6 months Build to Suit
New Creative Space
Tenant Address Total RBA Delivery DateAsking Rate
(Monthly/SF)Vacancy Ownership
Campus 2100 2150 E. Grand Ave. 206,500 RSF Delivered $3.50 FSG 25%Marshall Property/
Rockwood Capital
Elevon at Campus El
Segundo2205-2259 Campus Drive 210,000 RSF Delivered
$425-585/SF
(For Sale Only)0% Various Owners
2101 E. El Segundo Blvd. 2101 E. El Segundo Blvd. 113,694 RSF Delivered $3.60 FSG 0%Bixby Land
Company
Utah Ave. Campus 2383/2355 Utah Ave. 200,000 RSF Delivered $31.5 MG 46% NSD Associates
777 S. Aviation Blvd. 777 S. Aviation Blvd. 309,000 RSF Q4 2016 $3.75 MG 50%
Embarcadero
Capital Partners/
Westbrook Partners
2030 E. Maple Ave. 2030 E. Maple Ave. 96,000 RSF Q4 2016 $2.65 NNN 100% SteelWave, Inc.
The Landing at 2040 2040. E Mariposa Blvd. 90,000 RSF Q4 2016 Owner Occupied 0% NantWorks
Trisonic El Segundo 400 Duley Road 73,000 RSF Q4 2016 Owner Occupied 0% NantWorks
New Creative Space
Recent Creative Building Sale
The Landing at 2040 – 2040 E. Mariposa Blvd.
• Total RBA – 90,000 SF
• Delivery Date – Q4 2016
• Buyer – NantWorks
• Seller - SteelWave, Inc.
• Broker – Steven Solomon (JLL)
• Vacancy – 0%
• Sale Date – June, 2016
• Sale Price – $37,500,000 ($416/RSF)
Trisonic El Segundo – 400 Duley Rd.
• Total RBA – 73,000 SF
• Delivery Date – Q4 2016
• Owner – NantWorks
• Seller – Westport Capital Partners
• Broker – Bob Safai (Madison Partners)
• Vacancy – 0%
• Sale Date – May, 2016
• Sale Price – $25,300,000 ($345/RSF)
Recent Creative Building Sale
Recent Building Campus Sale
Apollo at Rosecrans – 2120-2175 E. Park Pl.
• Sale Date – May 9, 2016
• Buyer – Intercontinental Real Estate Corp.
• Seller – Invesco Advisors, Inc.
• Total RBA – 546,800 RSF
• Sale Price – $327,250,000 ($598.45/SF)
• The cap rate was reported at 5.5%
• Apollo was 98% leased, with many tenants on long term
leases, at the time of sale which produced one of the
highest per square-foot office trades ever in the South
Bay area.
• Largest Tenants
Davita – 185,419 RSF through 2026
JustFab – 133,748 RSF through 2029
Manhattan Beach Executives Drive Office Market
