San Gabriel Office Market Snapshot
The San Gabriel Valley office market recorded 152,000 square feet of leasing activity, marking at least 100,000 square feet of velocity for nine out of the past ten quarters. Vacancy dropped by 20 basis points to 14.3% due to positive demand of 19,300 square feet. The overall average asking rent rose by $0.04 to $2.30 per square foot (PSF) full service gross (FSG).
In the most notable sale of the quarter, LNR Partners LLC sold 3201 Temple Avenue in Pomona to Pomona Corporate Plaza LLC for $6.5 million ($148 PSF). After the sale, Acclamation Insurance signed a 8,800 square foot lease at the property, pushing occupancy from 69% at time of sale to 89%.
L.A. County non-farm unemployment in August 2018 rose to 4.5%, up 10 basis points from 4.4% last quarter. Despite the increase, this is still 10 basis points lower than the same time last year.
Over the past 12 months, Los Angeles County gained 62,000 jobs for an increase of 1.4%.
Leisure and hospitality (+21,800), educational and health services (+15,300) and professional and business services (+14,300) posted the highest gains.
Demand moderated down to 19,300 square feet after posting positive 51,600 square feet last quarter. Positive demand should continue into the final quarter of 2018, with the likes of QTC Management, Inc. (98,500 square feet), UTC Aerospace Systems (79,000 square feet) and L.A. County Department of Health Services (68,000 square feet) absorbing space by the end of the year. Two new developments have been proposed in East San Gabriel Valley.