Priced at $318 per square foot, the Hollywood Way transaction reflects the premium investors place on infill Burbank industrial product.
Olive Properties LP has acquired a 47,056-square-foot fully leased industrial building at 2231-2249 North Hollywood Way in Burbank for $14.9 million, or approximately $318 per square foot, from Bay to Breakers LLC, according to Colliers’ Q1 2026 Industrial Market Report.
Kidder Mathews brokered the transaction, which closed during Q1 2026. The price per square foot of $318 places the sale among the highest-priced industrial transactions in the San Fernando Valley during the quarter on a per-square-foot basis, underscoring the outsized premium that Burbank’s infill industrial market continues to command.
Burbank sits within the East San Fernando Valley submarket, which encompasses approximately 53.4 million square feet of industrial inventory — the largest submarket in the San Fernando Valley. The East Valley posted vacancy of 3.8 percent in Q1 2026, up 80 basis points from the prior quarter, with net absorption coming in at negative 431,939 square feet, the weakest reading in the region, according to Colliers.
Despite the submarket’s challenging absorption figures, the Hollywood Way transaction suggests that investor appetite for well-located, fully leased industrial assets in Burbank remains robust. The property benefits from proximity to the Hollywood Burbank Airport and sits within one of the most supply-constrained industrial corridors in greater Los Angeles. The city’s entertainment industry ecosystem and central San Fernando Valley location create persistent demand from a diverse range of industrial users, including studio services, post-production, and logistics companies.
At $318 per square foot, the sale priced between the quarter’s two largest transactions: the $348-per-square-foot Clarion Partners acquisition in Santa Clarita and the $221-per-square-foot Greenlaw/Oaktree purchase in the same submarket, according to Colliers. The relatively tight range — with three of four sales above $10 million pricing between $221 and $348 per square foot — illustrates the compressed cap rate environment that continues to define institutional-quality industrial product in the San Fernando Valley.
Gross activity in the East San Fernando Valley totaled 271,494 square feet in Q1 2026, with user sales accounting for 73,475 square feet and new leasing contributing 198,019 square feet, according to Colliers. The availability rate, which includes both vacant and occupied space being marketed, stood at 6.4 percent, nearly double the vacancy rate and suggesting additional supply may come to market in coming quarters.
Across the broader San Fernando Valley and Ventura County market, average asking rents held at $1.41 per square foot NNN, down one cent from Q4 2025, according to Colliers. The East San Fernando Valley commanded the highest rents in the region at $1.53 per square foot, reflecting its proximity to core Los Angeles and the premium tenants are willing to pay for infill locations.
Bay to Breakers LLC, the seller, has not commented publicly on the disposition. The sale represents a successful exit from a fully stabilized asset at a time when the broader market is experiencing a normalization in fundamentals.
For Olive Properties, the acquisition provides income-producing industrial real estate in one of Southern California’s most desirable infill markets. With no new supply delivered in the San Fernando Valley for two consecutive quarters and just 766,293 square feet under construction, the supply side remains constrained, supporting rent levels and long-term asset values even as near-term absorption has turned negative.
The Burbank transaction is part of a broader wave of investment activity in the San Fernando Valley, where user sales totaled 276,465 square feet in Q1 2026, according to Colliers. Gross activity across the combined market rose 27 percent year over year, suggesting that despite the negative absorption trend, transaction velocity is accelerating as buyers and tenants respond to a market that offers more options than at any point since 2020.
