The Real Deal Los Angeles

Submarket Snapshot: Westwood’s office market in Q1 2016

Area saw major sales activity with Douglas Emmett purchase

April 27, 2016 05:00PM
By Hannah Miet

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Dan Emmett Westwood

Dan Emmett, chairman of Douglas Emmett and the property at 1100 Glendon Avenue in Westwood

Westwood’s office market saw major activity in the first quarter, thanks to Santa Monica-based REIT Douglas Emmett’s purchase of a 1.7 million-square-foot office portfolio from Blackstone Group for $1.34 billion.

In what was one of L.A.’s biggest office acquisitions in recent years, the real estate giant and joint venture partner Qatar Investment Authority purchased four Westwood office buildings at 10960, 10940 and 10880 Wilshire Boulevard and 1100 Glendon Avenue for roughly $777 a square foot.

Douglas Emmett now owns a large share of the 4.8 million-square-foot submarket, which saw meager net absorption of 4,996 square feet in the first quarter, according to a report by Transwestern.

Its first quarter vacancy rate was 12 percent, in line with the Westside average.

Office rent in Westwood averaged $4.57, slightly higher than the $4.52 Westside average.