Leasing activity in the San Fernando Valley continued to bump along the bottom in 2012, but the “fiscal cliff” and looming potential for a capital gains tax hike boosted fourth quarter sales in the market.

“Our office did $50 million in the fourth quarter,” said Stacy Vierheilig-Fraser, senior managing director at Charles Dunn Co. Inc. in Sherman Oaks. “There was a fear of taxes in 2013 and people are feeling better about the economy, so they did not want to wait.”

Chris Baer, executive vice president at Avison Young Inc., saw a similar trend. “A lot of people wanted to close before year end. Prices are still low and interest rates are still a driver, so businesses wanted to lock in,” he said.

Overall, the region’s 16.9 percent vacancy rate was down from 17.4 percent a year ago but up slightly from third quarter, according to Jones Lang LaSalle Inc. The Valley gave back 119,227 square feet in the quarter as nearly all its submarkets saw negative net absorption, except for the West Valley, where 48,500 square feet was taken off the market. Average asking rents jumped 10 cents in the market overall, from $2.18 in third quarter to $2.28.

The West Valley’s vacancy rate, long the highest in the region, continued dropping slowly, to 19 percent. But the area’s largest employers have been in consolidation mode since the recession, reducing staff and encouraging telecommuting, which act as a drag on leasing activity in the submarket, said Dan Sanchez, Jones Lang LaSalle executive vice president.

In contrast, the Central Valley continues to see a tightening market where concessions are decreasing. Landlords with large blocks of space might soon find they have the upper hand in negotiations, Sanchez said. The vibrant North Hollywood Arts District gained a prestigious addition when Actors’ Equity purchased a 20,000-square-foot creative building at 5636 Tujunga Ave. for its L.A. headquarters. The century-old, New York-based labor union, which represents actors and stage managers, is doubling the space it had been leasing in the Hollywood Boulevard and Highland Avenue area, said Mark Robinson, executive director at Cushman & Wakefield Inc.

The building, one block off Lankershim Boulevard, previously housed a graphic design firm, and features 30-foot ceilings and space for a planned rehearsal and audition stage.

“It was very important for (Actors’ Equity) to look at the NoHo Arts District, given the positive changes to the area and easy access to the Red Line Metro and the Orange bus line,” Robinson said.

The sale price was not disclosed.

– Karen E. Klein

Main Events

• Shubin Nadal Associates and Penwood Real Estate Investment Management bought the 17.35-acre Quest Diagnostics medical testing facility at 7600 Tyrone Ave. in Van Nuys for its land value of $13 million, or $17.20 per square foot. The 142,650-square-foot vacant office and industrial building is scheduled for demolition early this year. The investors plan to construct three industrial buildings totaling approximately 290,000 square feet on the site, to be called Central Park Van Nuys.

• The Valley Inn & Conference Center, at 10621 Sepulveda Blvd. in Mission Hills, sold for $9 million to a pair of investor groups in two transactions. The 6.5-acre, 116-room motel sold for $6.2 million while an adjacent shopping center and 13,000-square-foot convention center sold for $2.8 million. The property had been foreclosed in June 2012 and was bank owned: A previous owner was unable to complete a planned retail and residential development on the site.

• A 33,000-square-foot Class B office property, at 17555 Ventura Blvd. in Encino, sold for $6.6 million. The three-story building was owned by a trust and houses retail store Tuesday Morning on its ground floor, which recently renewed a two-year lease. The buyer was not disclosed.

• Defense contractor ATK Missile Systems signed a 10-year lease at 9401 Corbin Ave. in Chatsworth, where it will consolidate its laboratory and office staff in 120,000 square feet. The company is expected to vacate a handful of properties it was occupying in Woodland Hills later this year to make the move to Chatsworth.

• Digital creative agency Avatar Labs renewed and expanded its lease at 16030 Ventura Blvd. in Encino. The company now occupies 10,000 square feet.