Office Space News
Pasadena Office Space Sees Slight Recovery
Published July 6th, 2010 by Jennifer LeClaire
I’ve been writing a lot about office markets that are seeing high vacancy rates. Round Rock and Dallas two of the worst hit I’ve covered so far. Now, let’s take a look at a market where office space appears to be on the rebound: Pasadena.
According to John Alle Co., Pasadena is saw a flurry of activity in the office space market in the second quarter of 2010. In fact, office leasing increased nearly 50 percent compared to the first and second quarters of 2009. Now here’s the rub: it took plenty of concessions to get there. Office space rental rates are declining.
John Alle Co. reports that monthly office rates that were averaging $3.12 to $3.45 per square foot in 2007 and 2008 have dipped to $2.15 to $2.35 per square foot. And it’s not just the prices that are dropping. Pasadena landlords are also offering more flexible lease terms, better parking rates, and allotments for tenant improvements. At the end of the day, the vacancy rate is still 18 percent, about double the rate at the peak of the market.
So, as we’ve been in the habit of doing, let’s look at the executive office suites industry in Pasadena. Of course, some of the major players there is Premier Business Centers, Barrister Executive Suites, Carr Workplaces, Corporate Office Centers, and Regus. Here are some smaller competitors in the area:
- Pasadena Executive Suites (Pasadena)
- Virtuoso Business Center (Glendale)
- IMS Executive Suites (Arcadia)
Naming an executive suites project after the city in which it is located is a smart move. So let’s take a quick look at Pasadena Executive Suites. It’s located in the Pasadena Financial District at 175 South Lake Avenue. You get all the typical serviced office amenities, like high-speed Internet access, personalized telephone answering service, furniture and conference room access. At Pasadena Executive Suites, though, you also get access to the fitness center.
I checked out the photo gallery and the design is appealing. The location is equally appealing if you are settled in Pasadena. You’re close to the 210, 134, and 110 freeways. You get views of the San Gabriel Mountains. And there’s even dry cleaning service pick up and delivery. Virtual office packages start at $50 a month. Pasadena Executive Suites doesn’t list its office space rental rates online.
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About the Author
Elizabeth Sanchez July 6th, 2010 at 9:51 am
So the numbers again are a bit misleading. Office space leases have picked up because landlords are going all out to get them. I bet that’s the case in many office markets across the country. Still, it doesn’t look like Pasadena is suffering as much as some other California cities. These reports are interesting. I am glad you are doing them!
Bill Brookshire July 6th, 2010 at 10:08 am
I wonder what the margin of error is on these sorts of office market reports. When it comes to double digit figures of office space vacancies, I guess it doesn’t make that big of a difference. Pasadena isn’t at all unique. What I would love to see is a report on a city whose office market defies the norm. I wonder if that exists.