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ASKING LEASE RATES INCREASE DESPITE A RISE
IN THE VACANCY RATE
Weighted average asking lease rates for the entire San Gabriel Valley office
market increased by three percentage points over the previous quarter to
end at $2.43 PSF per month, Full Service Gross (FSG). Last quarter asking
lease rates actually declined; spurred on by rising vacancy rates in Class
B space as landlords cut their rates to lease up this space.
This quarter, Class A vacancy rates are beginning to rise but landlords
are viewing this as an opportunity to lease their prestigious space at
higher rates. These landlords have remained firm on their high asking lease
rates and are unlikely to drop them, preferring instead to offer generous
tenant improvements and beneficial occupancy packages. As such, we can
expect the average asking rental rate to increase into the next quarter
as more Class A space becomes available, raising the average asking rate
for the region.
Contact Thomas Galvin at 909.937.6309 for more information.
  OFFSGV08Q1.pdf
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