Arejian: Glendale has more velocity. It is similar to Pasadena, but it is more fluid than Burbank. There is more inventory in Glendale trading hands. Generally, the inventory is smaller, older buildings. For that reason, it is hard to get economies of scale. That is one of the big reasons that this buyer bought this portfolio. It has a lot of deferred maintenance, and it is a complete repositioning play. They will probably spend $50,000 a door repositioning the property and bring rents up to market. We are seeing value-add deals like that all over the city. There is a lot of smart, equity buyers chasing that kind of inventory.

GlobeSt.com: What are your expectations for the Glendale market this year?

Arejian: We do see interest rates going up, but I don't see a severe slow down. I think that the overall economy and the job market will continue to fuel stabilization of rents. I think that cap rates will go up a little bit, trending with interest rates, but I think the market will be strong for the next three to four years, continuing with a positive trajectory.

GlobeSt.com: How do you think the development activity will affect investment in the market?

Arejian: There is a rumor that Glendale is being overbuilt, and a lot of developers are putting brand new projects on the market for lease. There are rumors of concessions. Ultimately, we don't know if developers will get their projected rents, but there is a worry and a concern that the market is being overbuilt. A lot of developers are shying away from new projects. However, there are a lot of new developers coming in. It is an interesting dichotomy. In my opinion, though, Glendale is so strong as a whole that unless there is a severe downturn of the economy, I don't see the market collapsing. I think that in time, all of the new product will be absorbed.