The San Gabriel Valley office market ended the three quarter mark of 2019 with continued positive momentum, recording 36,200 square feet of absorption. While a drop-off from last quarter’s total, demand recorded positive for the sixth consecutive quarter. Vacancy dropped accordingly by 40 basis points to 8%. Slowing demand did nothing to dampen rental growth, as the overall average asking rent rose by $0.09 to $2.41 per square foot (PSF) full service gross (FSG).
Leasing activity of 60,400 square feet was primarily made up of smaller transactions. The largest sale for the quarter consisted of HCT Logistics Co. purchasing 955 Overland Court in San Dimas from Asset Management Consultants for $19.9 million ($228 PSF). Fully occupied at the time of sale after a 33,800-square-foot lease by the County of Los Angeles a year ago, the transaction carried a 7.4 cap rate.