San Gabriel Valley/Los Angeles Industrial Market
Los Angeles ended 2016 with the lowest overall industrial vacancy rate in the country at one percent. The greater Los Angeles area has 4.7 million square feet under construction despite the lack of available land. The average lease rate is up at $0.79 PSF and the average sale price is $149 PSF up from $141 PSF one year ago for the greater LA market. The San Gabriel Valley industrial market closed on par with the overall LA market with the vacancy rate at one percent. The average asking lease rate in the San Gabriel Valley increased to $0.80 PSF from $0.78 PSF the previous quarter. The outlook for absorption and activity moving forward is positive with new construction completing in 2017. The SGV has 1.3M SF under construction in City of Industry, Irwindale and mainly over 400K SF in Pomona at the Oakmont Pomona Development. There is an additional 2M SF planned for construction in Arcadia, Baldwin Park, City of Industry and Irwindale.
Source: AIR XCeligent 4th Quarter Industrial Report, CoStar
San Gabriel Valley/Los Angeles Office Market
The office market in the San Gabriel Valley improved over 2016. The vacancy rate has reduced from the 14 percent range at the beginning of 2016 to an estimated 11 percent in the fourth quarter. The office market is continuing to show signs of improvement. The average asking rents are at $2.24 PSF for Class B space and $2.52 PSF for Class A space. There is estimated to be just over 50K SF under construction in the San Gabriel Valley. The overall vacancy rate for the greater Los Angeles market averages at 13 percent.