The Real Deal Los Angeles

Submarket Snapshot: San Gabriel Valley East

Vacancy decreases slightly in area dominated by low-rise buildings
By Hannah Miet | February 01, 2016 04:58PM

West Covina 1135 South Sunset #304 West Covina, CA

An office building at 1135 South Sunset in West Covina

The San Gabriel Valley East submarket saw its vacancy decrease slightly in the fourth quarter, according to a report for Colliers International. The total vacancy across its 101 buildings, which total 6.8 million square feet of office space, was 13.6 percent, down from 14.4 percent in the previous quarter.

The submarket saw 77,000 square feet of leasing activity in the fourth quarter, and a net absorption of 49,500 square feet.

It is an inexpensive submarket for tenants. Asking rents in the fourth quarter averaged $2.13 a square foot a month.

No construction was completed or started in the fourth quarter.

The San Gabriel valley office market, as a whole, is quite small. Its East and West submarkets have a combined 10.3 million square feet and represent 3 percent of the office buildings larger than 25,000 square feet in the L.A. basin.

There are no high-rise buildings in the San Gabriel Valley. Low-rise buildings make up 80 percent of the inventory, while mid-rise buildings make up the other 20 percent.