Talking about the Santa Clarita Valley, brokers don’t mince words: It’s rough out there.

The vacancy rate in the first quarter of this year was 23.4 percent, barely down from 23.9 percent in the four quarter. A year ago, the vacancy rate was still in the same ballpark at 25.9 percent, according to Grubb & Ellis Co.

“Leasing activity and sales action have been very slow,” said Roger Beck, senior vice president at Grubb & Ellis.

In this case, the numbers tell the story: Net absorption in the quarter was 13,113, just slighter higher than 17,271 the previous quarter.

The valley once housed offices for home builders such as KB Homes and Centex, but since the housing bust, the market has become a mostly small-tenant market, said Kevin Fenebock, senior vice president at Colliers International.

“The average size of a lease is 1,500 to 2,000 square feet,” he said. “These guys have all been hit hard by recent events in the economy.”

What most of the tenants are doing is staying put and finding the best deal, brokers said. Tenants are seeking concessions, which usually consist of free parking and a month of free rent for every two- or three-year contract.

“Concessions are still being offered, because the vacancies are not low enough to pull back the concessions. They need a compelling reason to relocate,” Beck said.

The weak state of the market is exemplified in what is considered a major deal these days, such as Animal Behavior College’s signing a 21,000-square-foot sublease at 25104 Rye Canyon Loop in Valencia. The college, which relocated from Northridge, specializes in training students in pet discipline and care, including pet grooming and training.

Meanwhile, one of the expected big drivers of growth in the valley – the 21,000-home Newhall Ranch development – looks to be still mired in difficulties.

The proposed development along the Santa Clara River was already to have been under construction, but the housing bust and investors’ financial difficulties have prevented that. Now, despite a pact reached with major environmental organizations several years ago, the 12,000-acre project has come under legal attack.

Environmental and American Indian groups not part of the pact filed suit in Superior Court alleging the development will hurt water quality in the river’s watershed.

MAIN EVENTS

• Washington, D.C.’s CW Capital Asset Management LLC purchased Valencia Oaks Building, a 45,000-square-foot office building for $67 million. The seller of the 23822 W. Valencia Blvd. building was Assured Lender Services of Tustin.
• The Vistas of West Hills, at 24015 Cooper Hill Drive in Valencia, sold for $56.5 million, or $257,000 a unit. The seller of the 220-apartment, 10-building development was LNR Property Corp. of Newport Beach; the buyer was BRE Properties of San Francisco.
• North Park Village Square, a Valencia retail center at 27706 McBean Parkway, was sold for $40 million by Northpark Village Corp. to TIAA Creff of New York.
• Animal Behavior College signed a 21,000-square-foot deal for 25104 Rye Canyon Loop in Valencia. The college relocated from Northridge.
• A coalition of environmental and American Indian groups has sued the state Department of Fish and Game, alleging it should not have approved building permits for the 21,000-home Newhall Ranch community. The groups allege the long-delayed development, now owned by Newhall Land Development LLC, will hurt water quality in the river’s watershed.