Despite rising interest rates, both office and retail sales have seen some of the biggest deals of the season in November. Heitman acquired the five-building Campus at Playa Vista for over $320 million, easily the largest office deal of the fall at almost $1,000 per square-foot. Playa Vista has seen quite a lot of office construction in recent years and is a budding tech hub, drawing companies like Fullscreen and YouTube. At 325,000 square feet, this is Heitman’s second SoCal property. They’ve owned the 600,000-square-foot 10100 Santa Monica in Century City since 2001.
On the retail front, LVMH continues to increase its Beverly Hills footprint with the purchase of The Paley Center for $80 million. At a price of over $3,000 per square-foot, it’s almost double what it traded for just four years ago. Earlier this year, LVMH purchased 456 North Rodeo Drive for $110 million. Beverly Hills remains the Mecca of opulence in the U.S. and continues to be popular even as other markets show signs of cooling.