Tri-Cities Ends 2019 With Increasing Rent Growth
- Absorption recorded positive 43,500 square feet in the fourth quarter, bring 2019’s absorption total for the Tri-Cities to positive 114,900 square feet.
- The average monthly asking rate increased to $3.28 per square foot (PSF) full service gross (FSG), marking four consecutive quarters above the previous cycle high of $3.16.
- Transactions for large blocks of space in the Burbank Media District and Airport areas spurred total leasing activity of 374,600 square feet.
- Progress on Lincoln Property Company’s AMLI mixed-use project in Pasadena continued. Located at the north end of the Old Pasadena retail district, the project will feature 200,000 square feet of office space in its first phase.
- Swift Real Estate Partners acquired the Pasadena Collection, a three-building portfolio in Downtown Pasadena, from PGIM, Inc.
The Tri-Cities market continues to be an attractive market for tenants from a variety of industries, particularly entertainment and technology, givens its history as an entertainment hub and its proximity to world-class engineering and science institutions. As such, spaces both new and old, have attracted interest amongst tenants looking to either expand or establish a presence. Occupancies from the likes of WeWork, Disney and Service Titan will help boost demand as well.