San Gabriel Valley Market Analysis

The reported office vacancy rate for the San Gabriel Valley for the Second quarter of 2011 saw a modest decrease at an average of 10.1%. The average rate for Class B office saw a slight increase and is estimated at $1.93 PSF. The San Gabriel Valley still has the lowest vacancy rate of all sub-markets in Los Angeles County with other sub-markets ranging from 15.4-18.9% respectively. Rents are projected to stabilize throughout the remainder of 2011.  However, concessions will still remain a key factor for tenants.  

The industrial vacancy rate for the San Gabriel Valley for the Second quarter 2011 is still relatively low at an average of 3.5%.   The average asking rate for warehouse/distribution space is $0.46 PSF and $0.81 PSF for R&D/Flex space. Rents are projected to increase moderately throughout the remainder of 2011 as demand improves driving the vacancy rate lower.  Industrial vacancy rates in other Los Angeles sub-markets has also declined and range from 2.2-4.2%.  It is projected the vacancy rates will remain low due to improving market outlook.  Los Angeles has the strongest industrial market in the country.  This is due to the large concentration of people and workforce as well as having the 2 largest container ports in the country.  Los Angeles also has very little develop-able land remaining which drives demand and continues to make Los Angeles one of the best performing markets in the country.

Monrovia

The current office vacancy rate in Monrovia is approx. 6.3%. There is new office construction planning on Huntington Drive & Myrtle Avenue with a 20,000 SF planned building. 

New office will also be available with the planned construction of Station Square. This is an 80 acre development planned with parameters from Mayflower to Shamrock below the 210 freeway to Duarte Road. This development will include new 450K SF office building, 25,000 SF of retail, 700 condominium units, residential housing and transportation center. The current estimated time for the Gold Line extension to Monrovia is 2013.

 Paragon at Old Town is a mixed-use, urban apartment community with 163 planned apartment units on Myrtle and Olive has completed construction.  It has approx 6,000 SF of retail on the ground level.  Spaces are for lease at $2.50 PSF NNN.

Monrovia High School has just undergone a $60 million renovation.  It includes a new Science building, new gymnasium, refurbished classrooms, cafeteria and auditorium.  A new stadium is also planned.

 Arcadia

 Due to approved funding for the Goldline extension project, Arcadia has broken ground on the extension from Sierra Madre Villa.  The station will be located at First St and Santa Clara.  They are proposing mixed-use projects around the station.  A bridge will also cross over the 210 freeway to bring the train to the new station.

There are new office developments occurring along Huntington Drive, First Avenue and Santa Anita Avenue. The project to expand the grounds at the Racetrack has recently been approved but is still going through litigation issues. This site proposes an open-air mall similar to The Grove at Fairfax and Anaheim and The Americana at Brand by the well-known Developer Rick Caruso. It would include an outdoor mall, condominium units, parks and recreation.

 Azusa

The city of Azusa is going through extensive redevelopment efforts with strategic plans for various zones. The Foothill Blvd/Azusa Avenue corridor has plans for a large mixed-use development that will have retail on the bottom floor and condos on the top floors. New retail buildings are planned along Foothill with the anticipation of the Gold-Line extension. The industrial area along Foothill Blvd. is targeting new industrial construction to replace outdated buildings that do not meet current standards. New mixed-use developments are also planned near Azusa Pacific University. APU has begun construction on an extension that is located at Alosta and Foothill and is close to completion.  Citrus College is also building additional parking structures and buildings on site.

The newer shopping center, Citrus Crossing in Azusa is a popular new location in Azusa. It houses large retailers such as Fresh and Easy, Pinkberry, Starbucks, Ross, 99 Cent Stores and much more.  Applebees restaurant is building a new location here as welland is currently under construction.

Rosedale Master-Planned Community has resumed construction in phases of their proposed 1,250 homes.  This shows promise of renewed confidence in the real estate market and anticipation for the Goldline extension planned through Azusa.

A new Target store has completed construction on North Azusa Avenue above Foothill and is open for business.  It is a large two-story Target store with parking structure.  This is a new concept style store for Target that leaves a smaller footprint and utilizes space by building up.