Greater Los Angeles San Gabriel Valley Office Market Overview
The San Gabriel Valley office market compressed for the third straight quarter of 2017, with vacancy dropping to 13.0% from 13.8% the previous quarter. Upward pressure on rents did not
materialize, however, as the overall average asking rent slid by $0.01 to $2.21 per square foot (PSF) full service gross (FSG). Rents stagnated for the first time since second quarter of 2013.
In the most notable sale for the quarter, Bridge Gate Plaza in Diamond Bar traded to Great Far East for $27.3M ($202 PSF). Colony Northstar, which acquired the building in 2007, was the
seller. The 134,900 square foot property was 78% occupied at time of sale.
Los Angeles County non-farm unemployment in August 2017 increased to 4.8% from 4.4% last quarter. However, this was still a 7.7% decrease year-over-year.
Over the past 12 months, Los Angeles County gained 37,200 jobs for an increase of 0.8%.
Educational and health services (+22,000), construction (+11,000) and other services (+8,200) posted the highest gains.
The San Gabriel Valley pipeline remains relatively static, with only 32,000 square feet due to deliver by year-end.
Leasing activity for the quarter recorded at 38,900 square feet, a 70.4% drop year over year. This is the first time leasing activity recorded below 50,000 square feet since the second quarter of
2012. One of the largest deals for the quarter was engineering firm Henkels & McCoy signing for 13,200 square feet at 3201 Temple Ave. in Pomona.