San Gabriel Office Market Snapshot
The San Gabriel Valley office market saw vacancy decrease in the third quarter of 2016, dropping from 13.7% to 11.6%, a 210 basis point decrease. Absorption recorded positive 33,300 square feet (SF). The average asking rental rate for the market rose incrementally, reaching $2.24 per square foot (PSF) full service gross (FSG) from $2.23 PSF FSG a quarter ago. Despite fluctuations in vacancy, rents have risen for 14 straight quarters since second quarter 2013, but are still short of the last market peak of $2.39 PSF FSG in 2007.
Sales activity consisted of 140-160 E. Via Verde in San Dimas trading from New York Life to a private entity for $19.0M ($206 PSF). Leasing activity for the quarter recorded at 131,300 SF.
Among the major deals were Travelers Indemnity Insurance renewing 55,400 SF at 21688 Gateway Center Dr. in Diamond Bar and broadband solutions provider Mellanox Technologies renewing and expanding for 11,700 SF at 1255 Corporate Center Dr. in Monterey Park.
August 2016 figures for nonfarm employment in Los Angeles County showed unemployment holding steady at 4.9% compared to last quarter. This is a 19.6% decrease year-over-year.
Over the past 12 months, Los Angeles County has gained 73,900 jobs for an increase of 1.7%. Educational and Health Services (+22,800), Professional and Business Services (+18,600) and Leisure and Hospitality (+14,600) posted the largest gains. Trade, Transportation and Utilities (+8,100) and Information (+5,600) also increased year-over-year.