Greater Los Angeles San Gabriel Valley Office Market Overview
The San Gabriel Valley office market recorded 282,700 square feet of leasing activity, marking at least 100,000 square feet of velocity for four out of the past five quarters. Vacancy rose by 20 basis points to 15% due to negative absorption of 27,900 square feet. The overall average asking rent rose by $0.02 to $2.25 per square foot (PSF) full service gross (FSG). Over the past 12 months, Los Angeles County gained 61,500 jobs for an increase of 1.4%. Leisure and hospitality (+26,000), educational and health services (+21,600) and professional and business services (+12,800) posted the highest gains.
In the most notable sale of the quarter, Positive Investments sold 801 Corporate Center to First California Investment.
Just two years after acquiring the property from TA Associates for $12.6 million, Positive Investments disposed of the property for $19.9 million, or $184 PSF.
Los Angeles County non-farm unemployment in February 2018 held at 4.5% from the same number last quarter. A historical perspective shows a decrease of 40 basis points year-over-year.
Demand slid to negative 27,900 square feet after four straight quarters of positive demand. That figures to change in the near future, as the signings of QTC Management, Inc. (98,500 square feet) and UTC Aerospace Systems (79,000 square feet) at San Dimas Corporate Park will absorb in the second half of 2018. The San Gabriel Valley pipeline remains relatively static, with no properties under construction and two proposed developments.