Greater Los Angeles San Gabriel Valley Office Market Overview
The San Gabriel Valley office market recorded 102,900 square feet of leasing activity, marking at least 100,000 square feet of velocity for three out of four quarters in 2017. Vacancy rose, despite positive absorption, by 20 basis points to 13.2% due to new deliveries in the West San Gabriel Valley. The overall average asking rent rose by $0.02 to $2.23 per square foot (PSF) full service gross (FSG).
Notable sales included Gramercy Property Trust sold 444 S. Garey Avenue in Pomona to TC Enterprise Group for $9.4 million ($303 PSF) and Waypoint Property Group selling 588 Atlas Street in Monterey Park to InChrist Community Church for $10.5 million ($122 PSF).
Absorption totaled 7,500 square feet, marking four straight quarters of positive demand.
Despite various move-outs throughout the East San Gabriel Valley, the County of Los Angeles’ tenancy in 50,000 square feet at The Alhambra Campus helped buoy demand for the market.
The San Gabriel Valley pipeline remains relatively static, with only 32,000 square feet at 3629 Santa Anita Avenue delivering this year. This delivery caused vacancy to rise 20 basis points. Los Angeles County non-farm unemployment in November 2017 decreased to 4.5% from 4.7% last quarter. A historical perspective shows a decrease of 60 basis points year-over-year. Over the past 12 months, Los Angeles County gained 36,900 jobs for an increase of 0.8%. Educational and health services (+26,300), construction (+8,200) and other services (+5,700) posted the highest gains.